SECURITIES EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                  FORM 10-KSB/A



                  ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                   For the Fiscal Year Ended December 31, 2003
                         Commission file number 0-29670


                                  DRUCKER, INC.
                                -----------------
             (Exact name of registrant as specified in its charter)


Delaware                                                N/A
----------                                             -----
(State or other jurisdiction                   (I.R.S. Employer of incorporation
or organization)                               Identification No.)


  916 Cathedral Place, 925 West Georgia Street, Vancouver, B.C., Canada V6C 3L2
  -----------------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)


       Registrant's telephone number, including area code: (604) 688-6999


        Securities Registered Pursuant to Section 12(b) of the Act: NONE

           Securities Registered Pursuant to Section 12(g) of the Act

                          COMMON STOCK $.001 PAR VALUE



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to the filing
requirements for at least the past 90 days.

                      Yes [X]        No [_]


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<PAGE>


Indicate by check mark if disclosure of delinquent filers in Response to Item
405 of Regulation S-B is not contained in this form, and no disclosure will be
contained to the best of Registrant's knowledge in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB.

                      Yes [_]           No [X]

Registrant's gross revenues for its most recent fiscal year were $1,371,540.

State the aggregate market value of the voting stock held by non-affiliates of
the Registrant: $11,041,925 as of December 31, 2003 (at $0.34/share closing
price at December 31, 2003).

Indicate the number of shares outstanding of each of the Registrant's classes of
common stock: 32,476,250 common shares as of December 31, 2003.



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<PAGE>


                                TABLE OF CONTENTS

                                     PART I
                                                                            Page

Item 1.   Business.............................................................4

Item 2.   Properties .........................................................17

Item 3.   Legal Proceedings...................................................18

Item 4.   Submission of Matters to a Vote of
          Security Holder.....................................................18

                                     PART II

Item 5.   Market for Registrant's Common Stock and
          Security Holder Matters.............................................18

Item 6.   Management's Discussion and Analysis of
          Financial Condition and Results of Operations.......................19

Item 7.   Financial Statements and Supplementary Data.........................22

Item 8.   Changes in and Disagreements with Accountants
          on Accounting and Financial Disclosure..............................23

Item 8A.  Controls and Procedures.............................................23

                                    PART III

Item 9.   Directors and Executive Officers of the
          Registrant .........................................................23

Item 10.  Executive Compensation..............................................25

Item 11.  Security Ownership of Certain Beneficial
           Owners and Management..............................................27

Item 12.  Certain Relationships and Related
          Transactions........................................................29

                                     PART IV

Item 13.  Exhibits, Financial Statement Schedule
          and Reports on Form 8-K.............................................30

Item 14.  Principal Accountant Fees and Services..............................31



                                       3
<PAGE>


                                     PART I

ITEM 1.    BUSINESS


                               HISTORY OF COMPANY

         On February 4, 1971, we were incorporated under the laws of the State
of Idaho, under the name of Monetary Metals Corporation. On December 16, 1988,
Drucker Sound Design Corporation was incorporated under the laws of the State of
California. On October 18, 1989, Gul Industries Corp. was incorporated under the
laws of the State of Delaware. On December 14, 1989, we entered into an
Agreement and Plan of Reorganization, whereby Monetary Metals Corporation
acquired 100% of the assets subject to liabilities of Drucker Sound Design
Corporation, a California corporation. We began engaging in the manufacturing
and distribution of audio, cellular, C.B., radar, and other electronic
installation systems for automobiles. We decided to redomicile in Delaware and
entered into a merger agreement with Gul Industries, Inc., a Delaware
corporation. On April 16, 1990, we filed Articles of Amendment in the State of
Idaho changing our name from Monetary Metals Corporation to Drucker Sound Design

Corporation. On June 6, 1990, Gul Industries Corp. filed a Certificate of
Amendment to the State of Delaware changing its name to Drucker Sound Design
Corporation. On June 19, 1990, a Certificate of Merger was filed in the State of
Delaware. On August 7, 1990, a Certificate of Merger was filed in the State of
Idaho. Prior to September 1991, we discontinued engaging in the business of
manufacturing and distributing of audio, cellular, C.B., radar, and other
electronic installation systems for automobiles. On September 4, 1991, we filed
a Certificate of Amendment in the State of Delaware changing our name to Drucker
Industries, Inc.

         In September 1991, we purchased the license to the "N-Viro Process" in
Japan from N-Viro Energy Systems, Ltd. for $466,063. We made a $100,000 down
payment and paid the balance by quarterly installments. We were delinquent on
minimum royalty payments due June 30, 1994 and September 30, 1994, totaling
$50,000, and consequently all rights and privileges granted to us under the
license agreement were canceled by the licensor. The license agreement costs and
net of accumulated amortization, were written-off during the year ended December
31, 1994. On December 31, 1995, we terminated any attempts in the N-Viro
business.

         On November 29, 2000, we filed a Certificate of Amendment in the State
of Delaware changing our name to Drucker, Inc.

         No activities were conducted in 1995 or 1996. In 1997, we discontinued
with our `N-Viro' business and adopted a business plan to engage in oil and gas
exploration. The Company's primary business focus was then the acquisition,
exploration and development of mineral properties and oil and natural gas
properties. In early 1997, the Company negotiated joint venture farm-in agree-
ments with two Vancouver based oil companies with whom the companies' officers
and directors are affiliates for a 50% interest in certain oil projects in the
People's Republic of China. The projects were unsuccessful and were abandoned in
1998, although we retain an investment in China in the Shaanxi exploration


                                       4
<PAGE>

project which is not under active exploration. We had a participation in the
Gulf of Suez joint venture in Egypt, West Gharib which in 1999 made one oil
discovery, drilled one dry hole, and drilled a third well which was completed
successfully as an appraisal well in the last quarter of 1999. In October 1999,
the Company entered into an agreement for an interest in the North Ghadames
joint venture in Algeria. The discovery well was drilled in 1996 and the overall
three well program was designed to prove the mega structure concept. The second
well was drilled successfully in August 2000 and the third well was abandoned in
February 2001.


                              THE COMPANY BUSINESS

         General Operations

         We have had limited operations within the last five years, and such
operations have been restricted to investigation of opportunities, evaluation
and negotiations of the joint venture agreements described below, and joint
venture participations in oil exploration projects in the following geographical
areas: China in 1997, Egypt in 1999 and Algeria in 2000.

         Current Business

     By an agreement  dated  February 1, 2002,  the Company agreed to dispose of
its wholly owned subsidiary Drucker Petroleum, Inc. for US$250,000 and 1,000,000
common  shares  of  Tanganyika  Oil  Ltd.,  a  public  company.  The sale of the
Company's  20% interest in West Gharib  Block,  Egypt was completed in May 2002.
The Company  received  US$250,000  and 200,000  common shares of Tanganyika  Oil
Company Ltd. and 800,000  special  warrants  which were  converted  into 800,000
common shares.  Tanganyika Oil Company Ltd. is a publicly  registered company in
Canada,  and is listed on  TSX-Venture.  In 2003, the Company sold $1,364,530 in
Tanganyika shares and, at year end, had shares of a market value of $2,927,112.

          By an agreement dated June 15, 2003, the Company agreed to acquire
from Beijing Beike Machinery Electronic Materials Hightech Corporation ("BK
Machinery") all the shares it owned in Beijing Beike-Masic Automation
Engineering Company Limited ("BK") being 25% of the issued and outstanding
shares of BK, and from Speed One Investment Limited all the shares it owned in
BK being 75% of the issued and outstanding shares of BK. The Company agreed to
initially issue 17,500,000 common shares (pre-consolidation), in escrow, and a
further 25,173,600 common shares (post-consolidated) after the shareholders have
approved a consolidation of the Company's shares on a 3 old shares for 1 new
share basis and audited financial statements of BK have been delivered. The
Company agreed to pay a legal fee in common shares equal to 7% of the total
shares required to be issued under the agreement. On July 14, 2003, the Company
issued 17,500,000 common shares pursuant to this agreement upon tender by BK
Machinery of all the shares it owned in BK being the 25% shares of BK. The
Company has committed to deliver the balance of the shares due upon completion
of the reverse split. The issuance of the balance of the shares for the
acquisition transaction requires the completion of the reverse split, which
required reverse split is subject to shareholders authorization. The Company has
not yet obtained such authorization, although written consent of a majority of
the shareholders was given on February 17, 2004, but intends to do so in the
next 60 days.

BK, a business corporation incorporated under the laws of the Peoples Republic
of China, is a provider of complete system solutions for industrial automation
and control. This acquisition will be accounted for under the purchase method as
a reverse acquisition.


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<PAGE>

BK is a major Chinese provider of industrial system solutions for automation and
control.  It  is  specialized  and  experienced  in  developing,  manufacturing,
distributing and integrating system solutions and automation control products to
top industrial  enterprises  such as steel  companies,  machinery  manufacturing
companies and public utilities in China. The  manufacturing and R & D facilities
are located in  Zhong-Guan-Cun  Hi-tech Zone, the so-called  "Silicon Valley" in
Beijing,  China.  It has received ISO  9001:2000  certification  for its quality
management  system.  Being  a  high-tech  company  it was  entitled  to  various
government  incentives,  tax and other  preferential  treatments  including full
exemption from PRC income tax for 3 years effective from April 1, 1998, followed
by a 50  percent  reduction  for the next  three  years in  accordance  with the
relevant  tax  rules  and  regulation.  BK has  over 100  employees  at its main
manufacturing  facilities  and R & D  centre  in  Beijing.  More  than  60%  are
technical  and  engineering  personnel.  In order to be at the  cutting  edge of
automation  engineering,  it has  participated  in many joint  projects with the
Institute of Industrial Robots,  Automation and Engineering of the University of
Science and  Technology  Beijing  (USTB) where BK has recruited some of its core
technical and research  engineering  teams.  BK's OEM suppliers  include  AVTRON
(US), SIEI (Italy), Siemens (Germany),  GE-FANUC (US), Yaskawa (Japan) and Omron
(Japan). BK is also a distribution agent in China for Yaskawa products including
robotics  information  and other  control  products.  It also acts as authorized
value-added reseller for GE-FANUC and SIEI.

On June 15, 2003, the Company entered into an Acquisition Agreement with Speed
One Investment Limited ("Speed One") and Beijing Beike Machinery Electronic
Materials Hightech Corporation ("BK Machinery") to acquire 100% of the issued
and outstanding shares of Beijing Beike-Masic Automation Engineering Company
Limited ("BK"), a Chinese company which specializes in industrial automation, in
exchange for 93,020,800 shares of common stock of the Company, calculated on
pre-consolidation basis. The Agreement provides for a one for three reverse
split of all the outstanding shares of Drucker which must be approved by share-
holders before the issuance of the additional shares may be completed. Pursuant
to the Agreement, the Company has issued 17,500,000 common shares pre-consolida-
tion and will issue 25,173,600 on post-consolidation basis (representing the
75,520,800 common shares pre-split pursuant to the Agreement). Upon tender by BK
Machinery of all the shares it owned in BK, being 25% of all the issued and out-
standing shares of BK, the Company issued 17,500,000 common shares. All shares
of BK have been delivered to the Company, and the Company has committed to
deliver the balance of the shares upon completion of the reverse split. The
issuance of the balance of the shares for the acquisition transaction requires
the completion of the reverse split, which required reverse split is subject to
shareholders authorization. The Company has not yet obtained such authorization,
but intends to do so in the next 60 days.

New Management
--------------

As a result of the BK  transaction, Messrs LIU Wei Zhang, Engineer; HONG Liang,
Engineer; GE Liang Song, Senior Engineer; SUN Yi Kang, Professor; Ronald Xie,
Lawyer; and Nick Ringma, Businessman, have been appointed to the Board. Messrs
Patrick Chan (Chairman), Ernest Cheung, Ken Kow & Joseph Tong have resigned from
the Board. Mr. Gerald Runolfson has resigned as President and Mr. Ronald Xie has
been appointed as President of the Company.  Mr. Gerald Runolfson has been
appointed Secretary of the Company replacing Mr. Ernest Cheung. Subsequent to
the execution of the Acquisition Agreement, Mr. LIU Wei Zhang has been elected
as Chairman of the Board.


                                       6
<PAGE>

Appointment of Officers
-----------------------

Ronald Xie was appointed President of the Company to serve at the discretion of
the Board of Directors as from June 16, 2003. (See Biographical Information
under Directors herein below).

Ronald Xie and Nick Ringma have been appointed as Directors effective June 16,
2003.

Mr. Nick Ringma has been appointed as Vice President of the Company in a
separate appointment.

Pursuant to the Acquisition Agreement, the Board of Directors has appointed the
following persons as Directors:

Liu, Wei Zhang
Hong, Liang
Ge, Liang Song
Sun, Yi Kang

The biographical information of the new directors is as follows:

RONALD XIURU XIE, age 41, President and Director (appointed in June 2003)
obtained a BA degree from Beijing University of International Business &
Economics in 1984 and a Master of Law in 1986 from School of Law, Beijing
University of International Business & Economics. He obtained an LLB (law) in
1992 from Queen's University in Canada. He is President and director of China
NetTV Holdings, Inc. since July 2003 to present. He was a founding partner of
Allied Law Office in Beijing, PR China since 1998. He was a Senior Partner,
Great Wall Law Office in Beijing, China, 1995-1998. He has been a member of the
Chinese practice Bar since 1988 and was called to the Bar of Ontario, Canada in
1993. Mr. Xie will devote approximately 40% of his time to company operations.

NICK RINGMA, age 56, was appointed Vice President and a director of Drucker,
Inc. in June 2003. Mr. Ringma studied at Calvin College 1967-68 and obtained a
BA in 1973 from Simon Fraser University in Vancouver, BC. From 1997 to present,
he has been Vice President and director of Digital Accelerator Corp. He has been
a director of Vertigo Technologies, Inc. from September 2002 to present. From
1980-1982, he was President of Miller Electronics - a Division of Gendis.

HONG, LIANG, age 40, obtained a Bachelor Degree in 1985 from Automation
Department of USTB. From the beginning of 2003 to the present, he has been Vice
G.M. in School-funded Industrial Group of USTB. His major responsibilities
include assessment for investment in connection with whole school's industry,
evasion of legal risks, project plan, capital operation, public relationship,
etc. Mr. Hong was a founder of BK and acts as Vice President, participating in
all major decisions and development plan of the company, and shouldering such
responsibilities as the establishment of technical and marketing teams,
operating management, organization of R & D, development of new technology,
administration of major projects, public relations, financing, etc. From 2001 to
2002, Mr. Hong set up Time High-Tech Co., Ltd. (THT) and acted as Vice G.M. The
company was invested by State Investment Development Corporation (SIDC) and
USTB. Mr. Hong participated in all initial activities including project
assessment, financing negotiations, incorporation of joint ventures. From 1999
to 2002, Mr. Hong acted as vice director of Robot Institute of USTB.


                                       7
<PAGE>

SUN, YI KANG, age 71, professor of automation at USTB, obtained a Bachelor
Degree in 1952 from Tsinghua University in Beijing, China with a major in
Material Molding and Control Engineering. Since 1999, Mr. Sun has acted as
Technical Director of BK. He has been a director since incorporation of the
company, responsible for technology directions, application and management,
product development, international communication and development planning, R &
D, and project planning. From 1994 to 1999, Mr. Sun acted as Chief Engineer of
BK and was responsible for all major engineering and technological issues.

LIU, WEI ZHANG, age 53, obtained Bachelor Degree from USTB in 1976 and also
obtained a Bachelor Degree from the Arts & Law School of USTB in 1982. During
the period from 1990 to present, Mr. Liu acted as Vice G.M. and G.M. of BK
Machinery; G.M. and President of BK. He is in charge of overall affairs of BK
and has turned the company into a top manufacturer and provider of automation
system solutions and related products in China.

GE, LIANG SONG, age 38,  obtained a Bachelor  Degree in 1986 from the Automation
Department  of USTB and a Master  Degree in 1989 from  Automation  Department of
Harbin Institute of Technology,  China.  From 1998 to 2002, Mr. Ge acted as Vice
G.M. of BK. Since the beginning of 2003, Mr. Ge has acted as G.M. of BK.

On January 6, 2003 the Company  entered into a Letter of Intent to acquire Crime
Prevention Analysis Lab Incorporated  (CPAL) in Vancouver,  BC, Canada. On April
17,  2003,  the  Company  announced  it had  decided  not to  proceed  with  the
acquisition and canceled the letter of intent

Investment Company Act and Other Regulation

         The Company may participate in a business opportunity by purchasing,
trading or selling the securities of such business. The Company does not,
however, intend to engage primarily in such activities. Specifically, the
Company intends to conduct its activities so as to avoid being classified as an
"investment company" under the Investment Company Act of 1940 (the "Investment
Act"), and therefore to avoid application of the costly and restrictive
registration and other provisions of the Investment Act, and the regulations
promulgated thereunder.

         Section 3(a) of the Investment Act contains the definition of an
"investment company," and it excludes any entity that does not engage primarily
in the business of investing, reinvesting or trading in securities, or that does
not engage in the business of investing, owning, holding or trading "investment
securities" (defined as "all securities other than government securities or
securities of majority-owned subsidiaries") the value of which exceeds 40% of
the value of its total assets (excluding government securities, cash or cash
items). The Company intends to implement its business plan in a manner which
will result in the availability of this exception from the definition of
"investment company." Consequently, the Company's participation in a business or
opportunity through the purchase and sale of investment securities will be
limited.

         The Company's plan of business may involve changes in its capital
structure, management, control and business, especially as it consummates the
reorganization as discussed above. Each of these areas is regulated by the
Investment Act, in order to protect purchasers of investment company securities.
Since the Company will not register as an investment company, stockholders will
not be afforded these protections.


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<PAGE>

         Any securities which the Company might acquire in exchange for its
Common Stock are expected to be "restricted securities" within the meaning of
the Securities Act of 1933, as amended (the "Act"). If the Company elects to
resell such securities, such sale cannot proceed unless a registration statement
has been declared effective by the Securities and Exchange Commission or an
exemption from registration is available. Section 4(1) of the Act, which exempts
sales of securities not involving a distribution, would in all likelihood be
available to permit a private sale. Although the plan of operation does not
contemplate resale of securities acquired, if such a sale were to be necessary,
the Company would be required to comply with the provisions of the Act to effect
such resale.

Administrative Offices

         The Company currently maintains a mailing address at 916 Cathedral
Place, 925 West Georgia Street, Vancouver, B.C. Canada V6C 3L2. The Company's
telephone number is (604) 688-6999. Other than this mailing address, the Company
also maintains another office at #950, 789 West Pender Street, Vancouver, B.C.
Canada V6C 1H2.

Employees

         The Company does not currently have any employees. Management of the
Company expects to use consultants, attorneys and accountants as necessary, and
does not anticipate a need to engage any full-time employees so long as it is
seeking and evaluating business opportunities. The need for employees and their
availability will be addressed in connection with the decision whether or not to
acquire or participate in specific business opportunities. Although there is no
current plan with respect to its nature or amount, remuneration may be paid to
or accrued for the benefit of the Company's officers prior to, or in conjunction
with, the completion of a business acquisition for services actually rendered.
See "Executive Compensation" and under "Certain Relationships and Related
Transactions."

Risk Factors

1. Conflicts of Interest. Certain conflicts of interest may exist between the
Company and its officers and directors. They have other business interests to
which they devote their attention, and may be expected to continue to do so
although management time should be devoted to the business of the Company. As a
result, conflicts of interest may arise that can be resolved only through
exercise of such judgment as is consistent with fiduciary duties to the Company.
See "Management," and "Conflicts of Interest."

2. Need For Additional Financing. The Company funds may not be adequate to fund
BK adequately. Even if the Company's funds prove to be sufficient to operate,
the Company may not have enough capital to succeed. The ultimate success of the
Company may depend upon its ability to raise additional capital. The Company has
not investigated the availability, source, or terms that might govern the
acquisition of additional capital and will not do so until it determines a need
for additional financing. If additional capital is needed, there is no assurance
that funds will be available from any source or, if available, that they can be
obtained on terms acceptable to the Company. If not available, the Company's
operations will be limited to those that can be financed with its available
capital.

3. Regulation of Penny Stocks. The Company's securities, when available for
trading, will be subject to a Securities and Exchange Commission rule that
imposes special sales practice requirements upon broker-dealers who sell such


                                       9
<PAGE>

securities to persons other than established customers or accredited investors.
For purposes of the rule, the phrase "accredited investors" means, in general
terms, institutions with assets in excess of $5,000,000, or individuals having a
net worth in excess of $1,000,000 or having an annual income that exceeds
$200,000 (or that, when combined with a spouse's income, exceeds $300,000). For
transactions covered by the rule, the broker-dealer must make a special
suitability determination for the purchaser and receive the purchaser's written
agreement to the transaction prior to the sale. Consequently, the rule may
affect the ability of broker- dealers to sell the Company's securities and also
may affect the ability of purchasers in this offering to sell their securities
in any market that might develop therefore.

         In addition, the Securities and Exchange Commission has adopted a
number of rules to regulate "penny stocks." Such rules include Rules 3a51-1,
15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 15g-7, and 15g-9 under the Securities
Exchange Act of 1934, as amended. Because the securities of the Company may
constitute "penny stocks" within the meaning of the rules, the rules would apply
to the Company and to its securities. The rules may further affect the ability
of owners of Shares to sell the securities of the Company in any market that
might develop for them.

         Shareholders should be aware that, according to Securities and Exchange
Commission, the market for penny stocks has suffered in recent years from
patterns of fraud and abuse. Such patterns include (i) control of the market for
the security by one or a few broker-dealers that are often related to the
promoter or issuer; (ii) manipulation of prices through prearranged matching of
purchases and sales and false and misleading press releases; (iii) "boiler room"
practices involving high-pressure sales tactics and unrealistic price
projections by inexperienced sales persons; (iv) excessive and undisclosed
bid-ask differentials and markups by selling broker-dealers; and (v) the
wholesale dumping of the same securities by promoters and broker-dealers after
prices have been manipulated to a desired level, along with the resulting
inevitable collapse of those prices and with consequent investor losses. The
Company's management is aware of the abuses that have occurred historically in
the penny stock market. Although the Company does not expect to be in a position
to dictate the behavior of the market or of broker-dealers who participate in
the market, management will strive within the confines of practical limitations
to prevent the described patterns from being established with respect to the
Company's securities.

4. Lack of Profitable Operating History. The Company was inactive from 1994 to
1996. From 1997 to early 2003, the Company conducted exploration activities on
oil and gas properties for joint venture participation in China, Egypt and
Algeria. The exploration efforts in China and China were not successful and the
Company was not profitable from the operations. Currently the Company has no
revenues from oil and gas operations. The Company faces all of the risks of a
new business and the risks inherent in the acquisition of a new business
opportunity, BK. The Company should be regarded as a new or "start-up" venture
with all of the unforeseen costs, expenses, problems, and difficulties to which
such ventures are subject.

5. No Assurance of Success or Profitability. There is no assurance that the
Company will be profitable. There is no assurance that the BK business acquired
will generate revenues or profits, or that the market price of the Company's
Common Stock will be increased thereby.

6. Lack of Diversification. Because of the limited financial resources that the
Company has, it is unlikely that the Company will be able to diversify its
acquisitions or operations. The Company's probable inability to diversify its


                                       10
<PAGE>

activities into more than one area will subject the Company to economic
fluctuations within its particular business or industry and therefore increase
the risks associated with the Company's operations.

7. Dependence upon Management; Limited Participation of Management. The Company
will be heavily dependent upon the skills, talents, and abilities of its
officers and directors to implement its business plan, and may, from time to
time, find that the inability of the officers and directors to devote their full
time attention to the business of the Company results in a delay in progress
toward implementing its business plan. See "Management." Because investors will
not be able to evaluate the merits of possible business acquisitions by the
Company, they should critically assess the information concerning the Company's
officers and directors.

8. Lack of Continuity in Management. The Company does not have an employment
agreement with its officers and directors, and as a result, there is no
assurance they will continue to manage the Company in the future. In connection
with acquisition of a business opportunity, it is likely the current officers
and directors of the Company may resign subject to compliance with Section 14f
of the Securities Exchange Act of 1934. A decision to resign will be based upon
the identity of the business opportunity and the nature of the transaction and
is likely to occur without the vote or consent of the stockholders of the
Company.

9. Indemnification of Officers and Directors. Delaware Revised Statutes provide
for the indemnification of its directors, officers, employees, and agents, under
certain circumstances, against attorney's fees and other expenses incurred by
them in any litigation to which they become a party arising from their
association with or activities on behalf of the Company. The Company will also
bear the expenses of such litigation for any of its directors, officers,
employees, or agents, upon such person's promise to repay the Company therefor
if it is ultimately determined that any such person shall not have been entitled
to indemnification. This indemnification policy could result in substantial
expenditures by the Company which it will be unable to recoup.

10. Director's Liability Limited. Delaware Revised Statutes exclude personal
liability of its directors to the Company and its stockholders for monetary
damages for breach of fiduciary duty except in certain specified circumstances.
Accordingly, the Company will have a much more limited right of action against
its directors than otherwise would be the case. This provision does not affect
the liability of any director under federal or applicable state securities laws.

11. Dependence upon Outside Advisors. To supplement the business experience of
its officers and directors, the Company may be required to employ accountants,
technical experts, appraisers, attorneys, or other consultants or advisors. The
selection of any such advisors will be made by the Company's President without
any input from stockholders. Furthermore, it is anticipated that such persons
may be engaged on an "as needed" basis without a continuing fiduciary or other
obligation to the Company. In the event the President of the Company considers
it necessary to hire outside advisors, he may elect to hire persons who are
affiliates, if they are able to provide the required services.

12.  No Foreseeable Dividends.  The Company has not paid dividends on its
Common Stock and does not anticipate paying such dividends in the foreseeable
future.


                                       11
<PAGE>

Political Risks

        The market in China is monitored by the government, which could impose
taxes or restrictions at any time which would make operations unprofitable and
infeasible and cause a write-off of investment in the properties. Other factors
include political policy on foreign ownership, political policy to open the
doors to foreign investors.


ITEM 2.  PROPERTIES

         (a)  Real Estate.  None

         (b)  Title to properties.  None

         (c)  Oil and Gas Drilling Activities. None

         (d)  Oil and Gas Production. None

         (e)  Oil and Gas Reserves. None

         (f)  Natural Gas Gathering/Processing Facilities. None.

         (g) Present Activities and Subsequent Events: The Company entered into
a stock for stock transaction with BK Machinery and Speed One Investment Limited
to acquire all the shares of BK on June 15, 2003. BK is a Chinese company
specialized in the manufacturing and distribution of industrial automation
system solutions and products in China. The Company issued 17,500,000 common
shares to BK Machinery on July 14 under escrow pending delivery of the audit of
BK. The Company will issue the balance of the shares under the Acquisition
Agreement upon shareholder approval of the 1 new share for 3 old shares reverse
split of all its stocks. The transaction involving the 25% of BK shares was
completed on February 1, 2004 but requires delivery of the shares called for in
the Agreement, which requires an additional authorization of shares.


ITEM 3.           LEGAL PROCEEDINGS

                  None at date of this Annual Report.

ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters were submitted during the fiscal year covered by this report to
a vote of security holders of Drucker, Inc., through the solicitation of proxies
or otherwise.


                                     PART II

ITEM 5. MARKET FOR THE  REGISTRANT'S  COMMON STOCK AND RELATED  SECURITY  HOLDER
MATTERS

         The Company's common stock is traded on the "Over-the-Counter" market
on the National Quotation Bureau or the NASD Electronic Bulletin Board. The
following table sets forth high and low bid prices of the Company's common stock
for the three (3) years ended December 31, 2003, 2002, and 2001 as follows:


                                       12
<PAGE>


                                              Bid
                                     High            Low
2003
         First Quarter               .09             .04
         Second Quarter              .28             .04
         Third Quarter               .28             .14
         Fourth Quarter              .41             .20



                                             Bid
                                     High            Low
2002
         First Quarter               .06             .01
         Second Quarter              .06             .01
         Third Quarter               .05             .02
         Fourth Quarter              .05             .01



         Such over the counter market quotations reflect interdealer prices,
without retail mark up, mark down or commission and may not necessarily
represent actual transactions.

         (b) As of December 31, 2003 the Registrant had 57 shareholders of
record of the common stock.

         (c) No dividends on outstanding common stock have been paid within the
last two fiscal years, and interim periods. We do not anticipate or intend upon
paying dividends for the foreseeable future.


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.

The information presented here should be read in conjunction with Drucker,
Inc.'s financial statements and other information included in this Form 10-KSB.
When used in this Form 10-KSB, the words "expects," "anticipates," "estimates"
and similar expressions are intended to identify forward-looking statements.
Such statements are subject to risks and uncertainties, including those set
forth below under "Risks and Uncertainties," that could cause actual results to
differ materially from those projected. These forward-looking statements speak
only as of the date hereof. The Company expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's expectations
with regard thereto or any change in events, conditions or circumstances on
which any statement is based.


Overview

On June 15, 2003, the Company entered into an Acquisition Agreement to acquire
100% of the issued and outstanding shares of Beijing Beike-Masic Automation
Engineering Company Limited ("BK"), a Chinese company which specializes in
industrial automation, in exchange for 93,020,800 shares of common stock of the
Company, calculated on pre-consolidation basis. The Agreement provides for a one
for three reverse split of all the outstanding shares of Drucker which must be
approved by shareholders before the issuance of the additional shares may be
completed. Pursuant to the Agreement, the Company has issued 17,500,000 common
shares pre-consolidation under escrow. Upon shareholders' approval of the
required reverse split, the balance of the shares for the acquisition
transaction will be issued by the Company and the agreement will be completed.


                                       13
<PAGE>

   The transaction involving the 25% shares of BK was completed February 1, 2004
but requires additional authorization of shares for the Company to issue the
balance of the shares under the transaction.

Results of Operations

      The Company had no operations during the fiscal year ended December 31,
2003. The Company's revenue were derived from the disposal of 495,600 shares of
Tanganyika Oil Company Ltd. for a gain of $1,364,530 and an interest income of
$7,010, totaling $1,371,540. The Company incurred expenses of $471,552 stemming
from general and administrative expenditures as compared to $159,555 for the
same period of last year. The increase of $311,997 was mainly due to the
consulting fees paid to directors and consultants for their services and legal
and accounting fees incurred in connection with the BK acquisition. No future
commitments exist for the consulting and legal fees, however, the Company may
need to incur additional fees of this type as a result of finalizing the BK
acquisition.

         We expect the current trend of level of expenditures to continue at
about the same rate based on our current business situation. We currently have
sufficient cash to operate for the balance of 2004 at the current level of
business. This could change, however, if any other business venture were to be
embarked upon, and the available cash could be depleted much more rapidly.

        In 2003, the net operating income was $899,988 compared to a net
operating loss of ($152,162) in 2002. In 2002, the Company had additional losses
on discontinued operations and upon disposal of the discontinued subsidiary of
($120,076). The net income for 2003 was $899,988 or $0.03 per share compared to
a net loss of $(272,238) or ($0.01) per share in 2002.


LIQUIDITY

         The Company may use all of its liquidity in the attempt to acquire or
develop a business. The Company is unable to carry out any plan of business
without adequate funding. The Company cannot predict to what extent its current
liquidity and capital resources will impair the consummation of a business
combination or whether it will incur further operating losses through any
business entity which the Company may eventually acquire. There is no assurance
that the Company can continue as a going concern without more and substantial
funding in any business, for which funding there is no committed source. The
Company had cash at year end of $1,274,931 and stock of Tanganyika Oil Company,
Ltd. valued at $2,927,112. The Company's primary capital resources are stock
from another company, Tanganyika Oil Company, Ltd., its own stock and cash on
deposit. 495,600 shares of Tanganika were sold during 2003 and 504,400 shares
were held as of December 31, 2003. Management will continue to sell the
remaining shares for working capital purpose, if required. The Company's own
stock may be illiquid because it is restricted in an unproved company with a
short history of income generation.

         As the Company has disposed of its subsidiary, Drucker Petroleum, Inc.,
in 2002, the Company will be dependent on its cash reserves for its short term
needs. The Company had current assets of $1,297,924 at December 31, 2003 and had
current liabilities of $56,520. These amounts are sufficient to the Company for
continued operations at the current level until the end of 2004. This could
change, however, if any other business venture were to be embarked upon, and the
available cash could be depleted much more rapidly. On a long-term basis, we
have no long term debt.


                                       14
<PAGE>

The Company also has an amount due from a related party of $111,265 which is
repayable on December 31, 2003. The Company has already demanded for repayment
of balance due from the related party and is in the course of negotiation on the
terms of repayment by installments.

The Company has no plans for significant research and development or capital
expenditures in the next twelve months, nor does it expect to hire any
significant employees subject to its completion of a merger opportunity.


Market Risk

Except from holding the securities held for sale, the Company does not hold any
derivatives or other investments that are subject to market risk. The carrying
values of any financial instruments, approximate fair value as of those dates
because of the relatively short-term maturity of these instruments which
eliminates any potential market risk associated with such instruments.

As of December 31, 2003, the Company held 504,400 shares of Tanganyika Oil
Company Ltd. as securities held for sale. The Company has recorded $2,769,303
unrealized gain under other comprehensive income, which is included in the
stockholders' equity section.


NEED FOR ADDITIONAL FINANCING

         No commitments to provide additional funds have been made by management
or other stockholders. Accordingly, there can be no assurance that any
additional funds will be available to the Company to allow it to cover expenses
as they may be incurred.

         In the event the Company's cash assets and other prove to be inadequate
to meet the Company's operational needs, the Company might seek to compensate
providers of services by issuances of stock in lieu of cash.

         The Company has plans to continue any research and development in the
next twelve months and could spend $1 million on R&D. The Company has no plans
at this time for purchases or sales of fixed assets which would occur in the
next twelve months.

         The Company has no expectation or anticipation of significant changes
in number of employees in the next twelve months, it may acquire or add
employees of an unknown number in the next twelve months.


ITEM 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                  The response to this Item is included as a separate Exhibit to
this report. Please see pages F-1 through F-27.


ITEM  8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

Effective on March 18, 2004, Amisano Hanson, Chartered Accountants, resigned as
the principal accountant engaged to audit the financial statements of Drucker,
Inc. (the "Company"). Amisano Hanson, Chartered Accountants, performed the
December 31, 2002 and 2001 audits of the Company's financial statements. During
this period and the subsequent interim period prior to their resignation, there
were no disagreements with Amisano Hanson, Chartered Accountants, on any matter


                                       15
<PAGE>

of accounting principles or practices, financial statement disclosure or
auditing scope or procedure, which disagreements if not resolved to Amisano
Hanson, Chartered Accountants, satisfaction would have caused Amisano Hanson,
Chartered Accountants, to make reference to this subject matter of the
disagreements in connection with Amisano Hanson, Chartered Accountants, report,
nor were there any "reportable events" as such term is defined in Item
304(a)(1)(iv) of Regulation S-K, promulgated under the Securities Exchange Act
of 1934, as amended ("Regulation S-K").

The Company has requested Amisano Hanson, Chartered Accountants, furnish it with
a letter addressed to the Securities and Exchange Commission stating whether it
agrees with the statements made above by the Company. A copy of such letter,
dated March 19, 2004 was attached and filed with the Form 8-K.

On March 18,  2004,  the  Company  engaged  Clancy & Co.  P.L.L.C.  to audit the
Company's  financial  statements.  Prior to its engagement,  the Company had not
consulted  with Clancy & Co.  P.L.L.C.  with respect to: (i) the  application of
accounting principles to a specified transaction,  either completed or proposed;
(ii) the type of audit opinion that might be rendered on the Company's financial
statements;  or (iii) any matter that was either the subject or disagreement (as
defined in Item  304(a)(1)(iv)  of  Regulation  S-K) or a  reportable  event (as
described in Item 304(a)(1)(iv) of Regulation S-K.

The Board of Directors of the Company approved the change in accountants
described herein.

ITEM 8A.   CONTROLS AND PROCEDURES

The Company's president acts both as the Company's chief executive officer and
chief financial officer and is responsible for establishing and maintaining
disclosure controls and procedures for the Company.

(a) Evaluation of Disclosure Controls and Procedures

Based on his evaluation as of December 31, 2003, the chief executive officer and
chief financial officer has concluded that the Company's disclosure controls and
procedures (as defined in Rule 13a-14(c) and 15d-15(e) of the Securities
Exchange Act of 1934, as amended) are effective to ensure that information
required to be disclosed by the Company in reports that the Company files or
submits under the Securities Exchange Act, as amended is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the Securities and Exchange Commission.

(b) Changes in Internal Controls

Based on his evaluation as of December 31, 2003, the chief executive officer and
chief financial officer has concluded that there were no significant changes in
the Company's internal controls over financial reporting or in any other areas
that could significantly affect the Company's internal controls subsequent to
the date of his most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


                                       16
<PAGE>


                                    PART III

ITEM 9.           DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The  following  table  furnishes  the  information  concerning  our
directors and officers as of December 31, 2003 as well as those who were
directors as of December 31, 2002. The directors of the Registrant are elected
every year and serve until their successors are elected and qualify.

Name                             Age     Title                            Term
-------------------------        ---     --------------------------      ------
Ronald Xiuru Xie                 41      President, CEO, Acting CFO
(appointed as of June 16, 2003)              and Director                Annual

Gerald William Runolfson         62      Former President (resigned
(at December 31, 2002)                   June 15, 2003)
                                         Current Secretary and Director  Annual

Nick Ringma                      56      Vice President and Director     Annual
(appointed as of June 16, 2003)

Wei Zhang Liu                    53      Director and Chairman           Annual
(appointed as of August 11, 2003)

Liang Hong                       40      Director                        Annual
(appointed as of August 11, 2003)

Liang Song Ge                    38      Director                        Annual
(appointed as of August 11, 2003)

Yi Kang Sun                      71      Director                        Annual
(appointed as of August 11, 2003)

         The term of office for each director is one (1) year, or until his/her
successor is elected at the Company's annual meeting and qualified. The term of
office for each officer is at the pleasure of the board of directors.

         At December 31, 2002, the board of directors had an audit committee
with Gerald Runolfson and Ernest Cheung as committee members and also had a
compensation committee with Gerald Runolfson and Ernest Cheung as committee
members. Mr. Cheung resigned in August 2003.

         As of August 31, 2003, the Board of Directors acts as the Audit
Committee and Compensation Committee. During the fiscal year ended December 31,
2003, the Board of Directors held numerous meetings.


         (b) Identification of  Significant Employees.

         There are no employees other than the directors disclosed above who
make, or are expected to make, significant contributions to the business, the
disclosure of which would be material.

         (c)  Family Relationships. None.


                                       17
<PAGE>

         (d)  Business Experience.

         The following is a brief account of the business experience during the
past five years of each director and executive officer of the Registrant,
including principal occupations and employment during that period and the name
and principal business of any corporation or other organization in which such
occupation and employment were carried on.


                              MANAGEMENT EXPERIENCE

            RONALD XIURU XIE, age 41, President, Director, CEO, and Acting CFO
of Drucker, Inc. (appointed in June 2003) obtained a BA degree from Beijing
University of International Business & Economics in 1984 and a Master of Law in
1986 from School of Law, Beijing University of International Business &
Economics. He obtained an LLB (law) in 1992 from Queen's University in Canada.
He is President and director of China NetTV Holdings, Inc. since July 2003 to
present. He was a founding partner of Allied Law Office in Beijing, PR China
since 1998. He was a Senior Partner, Great Wall Law Office in Beijing, China,
1995-1998. He is admitted to practice in China since 1988 and was called to the
Bar of Ontario, Canada in 1993. Mr. Xie will devote approximately 40% of his
time to company operations.

         NICK RINGMA, age 56, was appointed a director of Drucker,  Inc. in June
2003.  Mr. Ringma  studied at Calvin  College  1967-68 and obtained a BA in 1973
from Simon Fraser University in Vancouver, BC. From 1997 to present, he has been
Vice President and director of Digital  Accelerator Corp. He has been a director
of Vertigo Technologies, Inc. from September 2002 to present. From 1980-1982, he
was President of Miller Electronics - a Division of Gendis.

         GERALD WILLIAM RUNOLFSON, current Secretary and Director, age 62, was
President and Director of Drucker, Inc. from 1991 to June 2003. He received a
Bachelor of Science in Civil Engineering in 1963 from University of Saskatchewan
Canada. He studied Business Administration 1970 - 1971 at University of Alberta,
Canada. From 1988 to 2000, he has been President of International Butec
Industries Corp., Vancouver, BC, a company involved in mining exploration but
switched to high tech (smart card technology) in 2000. He has resigned as an
officer and director from Butec effective January 29, 2001. From 1991 to 1994 he
was President of N-Viro Recovery, Inc. From 1994 to present he has been
President of Elkon Products, Inc. of Vancouver, B.C. Principal business of Elkon
Products is the supply of silica fume. Silica fume is a product 100 times finer
than cement and is a byproduct of the silicon metal manufacturing business.
Elkon has the exclusive Canadian distribution rights for all silica fume
produced in Canada. The product is used mainly in oil well cementing operation
and in concrete construction. It is delivered by bulk rail car from Quebec to
Alberta and then delivered by tanker truck to the company's customers. Major
customers include the oilfield service companies: Halliburton, BJ Services. He
has been a Director of Horseshoe Gold Mines since 1991, a mining exploration
company currently focusing on diamond exploration in Northern Canada. He
resigned as President in June 2003 and was appointed Secretary.

            WEI ZHANG LIU, age 53, was appointed a director of Drucker, Inc. on
August 11, 2003. He obtained a Bachelor Degree from University of Science and
Technology Beijing ("USTB") in 1976 and also obtained a Bachelor Degree from the
Arts & Law School of USTB in 1982. During the period from 1990 to present, Mr.
Liu acted as Vice G.M. and G.M. of BK Machinery; G.M. and President of BK. He is


                                       18
<PAGE>

in charge of overall affairs of BK and has turned the company into a major
manufacturer and provider of automation system solutions and related products in
China.

         LIANG HONG, age 40, was appointed a director of Drucker, Inc. on August
11, 2003. He obtained a Bachelor Degree in 1985 from Automation Department of
USTB. From the beginning of 2003 to the present, he has been Vice G.M. in
School-funded Industrial Group of USTB. His major responsibilities include
assessment for investment in connection with whole school's industry, estimation
of legal risks, project plan, capital operation, public relationship, etc. Mr.
Hong was a founder of BK and acts as Vice President, participating in all major
decisions and development plan of the company, and shouldering such
responsibilities as the establishment of technical and marketing teams,
operating management, organization of R & D, development of new technology,
administration of major projects, public relations, financing, etc. From 2001 to
2002, Mr. Hong set up Time High-Tech Co., Ltd. (THT) and acted as Vice G.M. The
company was invested by State Investment Development Corporation (SIDC) and
USTB. Mr. Hong participated in all initial activities including project
assessment, financing negotiations, incorporation of joint ventures. From 1999
to 2002, Mr. Hong acted as vice director of Robot Institute of USTB.

         LIANG SONG GE, age 38, was  appointed a director  of  Drucker,  Inc. on
August 11,  2003.  He  obtained a  Bachelor  Degree in 1986 from the  Automation
Department  of USTB and a Master  Degree in 1989 from  Automation  Department of
Harbin Institute of Technology,  China.  From 1998 to 2002, Mr. Ge acted as Vice
G.M. of BK. Since the beginning of 2003, Mr. Ge has acted as G.M. of BK.

         YI KANG SUN, age 71, was appointed a director of Drucker, Inc. on
August 11, 2003. He is a professor of automation at USTB, obtained a Bachelor
Degree in 1952 from Tsinghua University in Beijing, China with a major in
Material Molding and Control Engineering. Since 1999, Mr. Sun has acted as
Technical Director of BK. He has been a director since incorporation of the
company, responsible for technology directions, application and management,
product development, international communication and development planning, R &
D, and project planning. From 1994 to 1999, Mr. Sun acted as Chief Engineer of
BK and was responsible for all major engineering and technological issues.

Each of the Directors, Mssrs. Ringma, Liu, Hong, Ge, Sun, and Runolfson devotes
10% of his time to the business of the Company.

         (e) Directors' Compensation

         Each member of the Board of Directors receives $1,000.00 plus
reasonable outside travel expenses for each Board meeting he attends and for
each Committee meeting he attends during the fiscal year. Directors who are also
officers of the Company receive no compensation for services as a director.

Indemnification of Officers and Directors

     As permitted by Delaware Law, the Company may indemnify its directors and
officers against expenses and liabilities they incur to defend, settle, or
satisfy any civil or criminal action brought against them on account of their
being or having been Company directors or officers unless, in any such action,
they are adjudged to have acted with gross negligence or willful misconduct.
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers or persons controlling the Company


                                       19
<PAGE>

pursuant to the foregoing provisions, the Company has been informed that, in the
opinion of the Securities and Exchange Commission, such indemnification is
against public policy as expressed in that Act and is, therefore, unenforceable.

Exclusion of Liability

     The Delaware Corporation Law excludes personal liability for its directors
for monetary damages based upon any violation of their fiduciary duties as
directors, except as to liability for any breach of the duty of loyalty, acts or
omissions not in good faith or which involve intentional misconduct or a knowing
violation of law, acts in violation of the Delaware Law, or any transaction from
which a director receives an improper personal benefit. This exclusion of
liability does not limit any right which a director may have to be indemnified
and does not affect any director's liability under federal or applicable state
securities laws.

Conflicts of Interest

         The officers and directors of the Company will not devote more than a
portion of their time to the affairs of the Company. There will be occasions
when the time requirements of the Company's business conflict with the demands
of their other business and investment activities. Such conflicts may require
that the Company attempt to employ additional personnel. There is no assurance
that the services of such persons will be available or that they can be obtained
upon terms favorable to the Company.

         There is no procedure in place which would allow officers or directors
to resolve potential conflicts in an arms-length fashion. Accordingly, he will
be required to use his discretion to resolve them in a manner which he considers
appropriate.

         The Company's officers and directors may actively negotiate or
otherwise consent to the purchase of a portion of their common stock as a
condition to, or in connection with, a proposed merger or acquisition
transaction. It is anticipated that a substantial premium over the initial cost
of such shares may be paid by the purchaser in conjunction with any sale of
shares by the Company's officers and directors which is made as a condition to,
or in connection with, a proposed merger or acquisition transaction. The fact
that a substantial premium may be paid to the Company's officers and directors
to acquire their shares creates a potential conflict of interest for them in
satisfying their fiduciary duties to the Company and its other shareholders.

Even though such a sale could result in a substantial profit to them, they would
be legally required to make the decision based upon the best interests of the
Company and the Company's other shareholders, rather than their own personal
pecuniary benefit.


ITEM 10.          EXECUTIVE COMPENSATION

         (a)  Cash Compensation.

         Compensation paid for all services provided during the fiscal year
ended December 31, 2003, to each of our executive officers and to all officers
as a group is set forth below.


                                       20
<PAGE>

<TABLE>
<CAPTION>

                                    SUMMARY COMPENSATION TABLE OF EXECUTIVES
                                            Annual Compensation                                          Awards

Name and                 Year          Salary ($)       Bonus         Other Annual          Restricted           Securities
Principal                                               ($)           Compensation ($)      Stock                Underlying
Position                                                              Award(s)($)           Options/SARs(#)
<S>                       <C>           <C>               <C>               <C>             <C>                       <C>

Gerald                    2003          0                 0              20,000             0                         0
Runolfson,                2002          0                 0              23,000             0                         0
President                 2001          0                 0              24,000             0                         0
(resigned June 2003
currently Secretary)

Ernest Cheung,            2003          0                 0               6,000             0                         0
Secretary                 2002          0                 0              25,000             0                         0
(resigned June 2003)      2001          0                 0              48,000             0                         0

Patrick Chan,             2003          0                 0                 0               0                         0
Chairman                  2002          0                 0                 0               0                         0
(resigned June 2003)      2001          0                 0                 0               0                         0

Ronald Xie,               2003          0               20,000           70,000             0                         0
President/Director        2002          0                 0                 0               0                         0
                          2001          0                 0                 0               0                         0

Nick Ringma               2003          0               10,000           28,000             0                         0
Vice President/Director   2002          0                 0                 0               0                         0
                          2001          0                 0                 0               0                         0

Officers                  2003          0               30,000          124,000             0                         0
as a group                2002          0                 0              48,000             0                         0
                          2001          0                 0              72,000             0                         0
</TABLE>

         (b) Compensation Pursuant to Option Plans.  See Executives' and
Directors' Compensation Tables.

         (c) Other Compensation. None. No stock appreciation rights or warrants
exist to management.

         (d) Compensation of Directors.

         Compensation paid by us for all services provided during the fiscal
year ended December 31, 2003 to each of our directors and to all directors as a
group is set forth below:


                                       21
<PAGE>

DIRECTOR COMPENSATION FOR LAST FISCAL YEAR

(Except for compensation of Officers who are also Directors which Compensation
is listed in Summary Compensation Table of Executives)

<TABLE>
<CAPTION>

                                                      Cash Compensation
Security Grants
------------------------------------------------------------------------------------------------------------------------------------
Name                              Annual             Meeting          Consulting              Number            Number of Securities
                                  Retainer           Fees ($)         Fees/Other              of                Underlying
                                  Fees               ($)              Fees ($)                Shares(#)         Options/SARs(#)
<S>                               <C>                    <C>              <C>                   <C>                  <C>
A. Director                       0                      0                20,000                0                    0
Gerald Runolfson

B. Director                       0                      0                 6,000                0                    0
Ernest Cheung
(resigned August 2003)

C. Director                       0                      0                     0                0                    0
Patrick Chan
(resigned June 2003)

D. Director                       0                      0                     0                0                    0
Joseph Tong
(resigned June 2003)

E. Director                       0                      0                 36,919               0                    0
Ken Kow
(resigned August 2003)

F. Director                       0                      0                     0                0                    0
Zhang Liu Wei

G. Director                       0                      0                     0                0                    0
Hong Liang

H. Director                       0                      0                     0                0                    0
Liang Song Ge

I. Director                       0                      0                     0                0                    0
Liang Hong

J. Director                       0                      0                     0                0                    0
Yi Kang Sun

K. Director                       0                      0                  90,000              0                    0
Ronald Xie

L. Director                       0                      0                  38,000              0                    0
Nick Ringma
</TABLE>



         (e)  Termination of Employment and Change of Control Arrangements.
                  None


                                       22
<PAGE>

         (f) Stock purchase options:

Share Purchase Options
     Patrick Chan                                       550,000 shares (1)
     FKT Exploration Consultants, Ltd.                  325,000 shares (2)
     Ken K Consulting, Ltd.                             325,000 shares (3)
     Cobilco Inc.                                       550,000 shares (4)
     Lancaster Pacific Investment Ltd.                  550,000 shares (5)
     Gerry Runolfson                                    300,000 shares (6)
     Yonderiche Int'l Consultants                       150,000 shares (7)
     808719 Ont. Ltd.                                   100,000 shares (8)
     Gemsco Management Ltd.                             100,000 shares (9)


         The above options were issued in November, 1999 with expiry on March
31, 2006 and are exercisable at US$0.40 per share. As of the date of this report
none of the above options has been exercised.

(1)  Mr. Chan was Chairman of the Board.
(2)  FKT Exploration Consultant, Ltd. is owned by Fred Tse, a consultant.
(3)  Ken K Consultant, Ltd. is owned by Ken Kow, a paid consultant and director.
(4)  Cobilco is owned by Raoul Tsakok, a director, of Richco Investors, Inc., a
     major shareholder.
(5)  Lancaster Pacific Investment, Ltd. is owned by Paul Chan, a consultant.
(6)  Mr. Runolfson is President and director.
(7)  Yonderiche Int'l Consultants is owned by Jack Song.
(8)  808719 Ont., Ltd. is owned and controlled by Joe Tong, a director.
(9)  Gemsco Management, Ltd. is owned and controlled by Maurice Tsakok, a
     director of Richco Investors, Inc. a major shareholder

         Section 16(a) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), requires the Registrant's officers and directors, and persons
who own more than 10% of a registered class of the Registrant's equity
securities, to file reports of ownership and changes in ownership of equity
securities of the Registrant with the Securities and Exchange Commission and
NASDAQ. Officers, directors and greater-than 10% shareholders are required by
the Securities and Exchange Commission regulation to furnish us with copies of
all Section 16(a) that they file. All new officers, directors or 10%
shareholders
have filed any reports pursuant to Section 16(a) at year end. Although, all of
them were filed late in 2003 as to Forms 3. All prior officers and directors had
previously filed reports under 16a as required in 2002 and 2003.


                                       23
<PAGE>

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         (a) Beneficial owners of five percent (5) or greater, of the
Registrant's Common Stock and Warrants: No Preferred Stock is outstanding at the
date of this offering. The following sets forth information with respect to
ownership by holders of more than five percent (5%) of the Registrant's Common
Stock known by us based upon 32,476,250 shares outstanding at December 31, 2002.


Title            Name and                         Amount and             Percent
 of              Address of                       Nature of                of
Class            Beneficial Owner                 Beneficial Interest    Class
-------          ----------------------           ---------------------  -------
(i)
Title            Name and                         Amount and             Percent
 of              Address of                       Nature of                of
Class            Beneficial Owner                 Beneficial Interest    Class
                                                                         Current
                                                                         -ly
                                                                         Author-
                                                                         ized
-------          ----------------------           ---------------------  -------
Common Stock     Richco Investors, Inc.           9,225,000(1)(2)        18.48%
                 789 West Pender St. #950
                 Vancouver, B.C. Canada V6C 1H2

Common Shares    Beijing Beike Machinery          17,500,000             35%
                 Electronics Materials Hightech
                 Corp.

Common Shares    Speed One Investment Ltd.        75,520,800*            0%

*These shares will be issued after the additional authorization of common shares
subject to this Information Statement.

(ii) The following sets forth information with respect to our Common Stock
beneficially owned by each officer and director at March 30, 2004 and by all
directors and officers as a group. (Table includes options granted to officers
and directors. See Item 10(f) Stock Purchase Options.)

Title        Name of                        Amount and                Percent
of           Beneficial                     Nature of                 of
Class        Owner                          Beneficial Ownership      Class
-----        -----                          --------------------      -----
Common       Gerald Runolfson               512,501 (a)(b)            1.5%
             Secretary and Director
             (former President)
             4151 Rose Crescent             812,501 (b)
             West Vancouver,                including options         2.4%
             B.C. Canada

Common       Nick Ringma                    0                         0%
             916 Cathedral Place
             925 West Georgia Street
             Vancouver, B.C., Canada
             V6C 3L2

             Wei Zhang Liu                  14,650,776                11.67%
             916 Cathedral Place
             925 West Georgia Street
             Vancouver, B.C., Canada
             V6C 3L2


                                       24
<PAGE>

             Liang Hong                     14,650,776                11.67%
             916 Cathedral Place
             925 West Georgia Street
             Vancouver, B.C., Canada
             V6C 3L2

             Yi Kang Sun                    10,464,840                8.34%
             916 Cathedral Place
             925 West Georgia Street
             Vancouver, B.C., Canada
             V6C 3L2

             Liang Song Ge                  14,650,776                11.67%
             916 Cathedral Place
             925 West Georgia Street
             Vancouver, B.C., Canada
             V6C 3L2

<TABLE>
<CAPTION>

NAME                                # OF SHARES     PRE TRANSACTION         POST TRANSACTION
                                                    (%)                     (%)
<S>                                 <C>             <C>                     <C>

    Ronald Xie                      0               0                       0
    916 Cathedral Place
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

    Gerald Runolfson                512,501         1.5                     .4%
    916 Cathedral Place             (+300,000       2.4                     .6%
    925 West Georgia Street         options)
    Vancouver, B.C., Canada
    V6C 3L2

    Nick Ringma                     0               0                       0
    916 Cathedral Place
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

    Wei Zhang Liu                   14,650,776      0                       11.67%
    916 Cathedral Place
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

    Liang Hong                      14,650,776      0                       11.67%
    916 Cathedral Place
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

    Liang Song Ge                   14,650,776      0%                      11.67%
    916 Cathedral Place             (1)(2)
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

                                       25

<PAGE>

    Yi Kang Sun                     10,464,840      0                       8.34%
    916 Cathedral Place
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

    Beijing Science & Technology    23,255,200      0                       18.53%
      University (USTB)             (pre-transaction 17,500,000) (2)(3)

    BK Machinery                    23,255,200      0                       18.53%

    Hong Jun Lu                     2,092,968       0                       1.67%
    916 Cathedral Place             (1)(2)
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

    Wang Ping                       5,581,248        0                      4.45%
    916 Cathedral Place             (1)(2)
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

    Ling Sheng Han                  7,674,216        0                      6.12%
    916 Cathedral Place             (1)(2)
    925 West Georgia Street
    Vancouver, B.C., Canada
    V6C 3L2

Total Officers & Directors Post Transaction     62,091,384(4)     49.47%
                                                69,765,600        55.6%
</TABLE>

(1)  Through ownership of Speed One Investment LTD.

(2)  Post transaction

(3)  Currently holds 17,500,000 shares

(4)  Assuming by % beneficial ownership of Speed One Investment Ltd.

(5)  As beneficially controlled by Speed One Investment Ltd. (Group)


(a) Porta-Pave Industries, Inc. (company owned by Runolfson family) owns 380,002
shares

(b) Gerald Runolfson, individually owns 132,499 shares and has an option to
acquire 300,000 shares.

          (1)  9,225,000 shares  are owned by Richco  Investors,  Inc.  of which
Ernest Cheung is a director, officer and shareholder.  Richco Investors, Inc. is
beneficially  owned by Raoul Tsakok  through  ownership of 50%+ shares of common
stock of Richco Investors,  Inc. Mr. Raoul Tsakok, through Cobilco, Inc., has an
option to acquire 550,000 shares.


                                       26
<PAGE>

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Certain Transactions

On June 15, 2003, the Company entered into an Acquisition Agreement to acquire
100% of the issued and outstanding shares of Beijing Beike-Masic Automation
Engineering Company Limited ("BK"), a Chinese company which specializes in
industrial automation, in exchange for 93,020,800 shares of common stock of the
Company, calculated on pre-consolidation basis. The Agreement provides for a one
for three reverse split of all the outstanding shares of Drucker which must be
approved by shareholders before the issuance of the additional shares may be
completed. Pursuant to the Agreement, the Company has issued 17,500,000 common
shares pre-consolidation under escrow. Upon shareholders' approval of the
required reverse split, the balance of the shares for the acquisition
transaction will be issued by the Company and the agreement will be completed.

   The transaction involving the acquisition of the 25% BK shares was completed
February 1, 2004. The entire transaction will be completed as soon as the
reverse split or the increase of ahtiorized capital is completed to enable the
Company to issue and deliver the balance of the shares for the transaction.

         The new officers, directors, and principal shareholders: Liang Song Ge,
Liang Hong, Wei Zhang Liu, Yi Kong Sun, and USTB (university) received an
aggregate of 17,500,000 shares in 2003 and will receive an additional 75,520,800
shares in 2004 upon completion of the reverse split or increase of authorized
capital.

         The Company has committed to issue, as soon as the reverse split or
increase of authorized capital is completed, to an officer 6,511,456 shares in
payment of legal fees for the transaction, which is equal to 7% of the stock
issued and to be issued for the BK transaction.

         Certain employees, officers, directors, and affiliates were granted
options in November 1999. The options are exercisable at $0.40 per share and
extend until March 31, 2006. The granting of these options for their services
have been very favorable to the Company as these services are necessary and are
provided at no monetary cost to the Company.


                                       27
<PAGE>

1.   Mr. Chan,  who is Chairman of the Board,  was granted an option for 550,000
     shares,  for his  negotiation  for oil  concessions  in  China  and for his
     contributions  in the  areas of  regulatory  matters,  Chinese  oil and gas
     market conditions and strategies aimed at penetrating that market.
2.   FKT Exploration  Consultants,  Ltd. is owned by Fred Tse, a consultant.  It
     received a 325,000  share option for their  contribution  in assessing  the
     risks and rewards of global  geological plays, in advising on joint venture
     drilling targets and in advising on drilling and completion progress.
3.   Ken K  Consultant,  Ltd.  is  owned  by Ken Kow,  a paid  consultant  and a
     director.  It received a 325,000 share option for  providing  technological
     information   on   drilling   and  for   geological   interpretation,   for
     technological  research  in new  joint  venture,  and for  his  help in the
     general management of Drucker.
4.   Cobilco is owned by Raoul Tsakok, a director, of Richco Investors, Inc., a
     majority shareholder. Cobilco was granted a 550,000 share option for their
     role as advisor on strategic issues, oil and gas industry market trends,
     and financial and capital market issues.
5.   Lancaster Pacific Investment,  Ltd. is owned by Paul Chan, a consultant. It
     received a 550,000  share  option for their  contributions  in the areas of
     regulatory  matters,  Chinese oil and gas market  conditions and strategies
     aimed at penetrating that market.
6.   Mr. Runolfson is President and director. He received a 300,000 share option
     for the general management of Drucker,  investor  relations,  financial and
     capital market matters and for services as a director.

7.   Yonderiche Int'l Consultants is owned by Jack Song. It received a 150,000
     share option for their services rendered in matters regarding Chinese
     government policies and regulations and for their work in negotiating oil
     concessions in China.
8.   808719 Ont.  Ltd. is owned and  controlled  by Joseph Tong, a director.  It
     received a 100,000 share option for services rendered as director.
9.   Gemsco  Management,  Ltd.  is owned and  controlled  by Maurice  Tsakok,  a
     director of Richco Investors, Inc. a major shareholder. It received 100,000
     share  option   for  designing  and  implementing  our  corporate  and  for
     advising on computer and internet technology.


ITEM 13.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

     (a) Financial Statements and Schedules.  The following financial statements
and schedules  for Drucker,  Inc., as of December 31, 2003 and 2002 are filed as
part of this report.

     (b) Exhibits Reports on Form 8-K: None for the reporting period.

ITEM 14.          PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

              Clancy and Co., P.L.L.C. {"Clancy") provided audit services to the
Company in connection with its annual report for the fiscal year ended December
31, 2003. Amisano Hanson ("AH") provided audit services to the Company in
connection with the Company's annual report for the fiscal year ended 2002. The
aggregate fees billed by Clancy for the 2003 audit of the Company's annual
financial statements was $12,000 and the aggregate fees billed by AH for the
2003 quarterly reviews of the Company was $9,369. The aggregate fees billed by
AH for the 2002 audit of the Company's annual financial statements and a review
of the Company's quarterly financial statements was $31,319.

Audit Related Fees

              No fees were billed by Clancy or AH to the Company for
professional services that are reasonably related to the audit or review of the
Company's financial statements that are not disclosed in "Audit Fees" above.


                                       28
<PAGE>

Tax Fees
              No fees were billed by Clancy to the Company in 2003 for
professional services rendered in connection with the preparation of the
Company's tax returns for the period. AH billed to the Company fees of $nil in
2002 for professional services rendered in connection with the preparation of
the Company's tax returns for the period.

All Other Fees
              No fees were billed by Clancy or AH to the Company for other
professional services rendered or any other services not disclosed above.

Audit Committee Pre-Approval
            At December 31, 2002, the board of directors had an audit committee
with Gerald Runolfson and Ernest Cheung as committee members and also had a
compensation committee with Gerald Runolfson and Ernest Cheung as committee
members. Mr. Cheung resigned in August 2003.

         As of August 31, 2003, the Board of Directors acts as the Audit
Committee and Compensation Committee. During the fiscal year ended December 31,
2003, the Board of Directors held numerous meetings.


                                       29
<PAGE>

                                   Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                             DRUCKER, INC.


Date: April 20, 2004                         By: /s/ Ronald Xiuxu Xie
                                                 ----------------------------
                                                 Ronald Xiuxu Xie, President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.



Date: 4/20/2004                              By: /s/ Ronald Xiuxu Xie
                                                 ----------------------------
                                                 Ronald Xiuxu Xie,
                                                 President and Director



Date: 4/20/2004                                  /s/ Gernald William Runolfson
                                                 ----------------------------
                                                 Gernald William Runolfson,
                                                 Secretary and Director



Date: 4/20/2004                                  /s/ Nick Ringma
                                                 ----------------------------
                                                 Nick Ringma,Director


Date: 4/20/2004                                  /s/ Wei Zhang Liu
                                                 -----------------------------
                                                 Wei Zhang Liu, Director



Date: 4/20/2004                                  /s/ Liang Hong
                                                 -----------------------------
                                                 Liang Hong, Director

Date: 4/20/2004                                  /s/Liang Song Ge
                                                 -----------------------------
                                                 Liang Song Ge, Director

Date: 4/20/2004                                  /s/Yi Kang Sun
                                                 -----------------------------
                                                 Yi Kang Sun, Director



                                       30
<PAGE>






                         DRUCKER, INC. AND SUBSIDIARIES
                   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS



Independent Auditors' Report of Clancy and Co., P.L.L.C............      F-1

Independent Auditors' Report of Amisano Hanson.....................      F-2

Consolidated Balance Sheets........................................      F-3

Consolidated Statements of Operations..............................      F-4

Consolidated Statements of Changes in Stockholders' Equity.........      F-5

Consolidated Statements of Cash Flows..............................      F-6

Notes to the Consolidated Financial Statements.....................   F-7 - F-14


<PAGE>





                          INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Stockholders of
Drucker, Inc.

We have audited the consolidated balance sheet of Drucker, Inc. (a Delaware
corporation) and Subsidiaries as of December 31, 2003, and the related
consolidated statements of operations, changes in stockholders' equity and cash
flows for the year then ended. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Drucker Inc. and
Subsidiaries at December 31, 2003, and the consolidated results of their
operations and their cash flows for the year then ended, in conformity with
accounting principles generally accepted in the United States of America.


/s/ Clancy and Co., P.L.L.C.
Clancy and Co., P.L.L.C.
Phoenix, Arizona

April 13, 2004

                                      F-1

<PAGE>



                        CONSENT OF INDEPENDENT ACCOUNTANT

We hereby consent to the use in the Form 10-KSB, dated April 15, 2004, of our
report dated January 22, 2003, relating to the financial statements of Drucker,
Inc., as of January 22, 2003, which appears in such Form 10-KSB.

Vancouver, Canada                                            "Amisano Hanson"
April 15, 2004                                         CHARTERED  ACCOUNTANTS












                                      F-2

<PAGE>

<TABLE>
<CAPTION>



                                         DRUCKER, INC. AND SUBSIDIARIES
                                           CONSOLIDATED BALANCE SHEET
                                                DECEMBER 31, 2003
Stated in U.S. dollars
------------------------------------------------------------------------------------------
<S>                                                                  <C>

ASSETS
Current Assets
   Cash                                                              $          1,274,931
   Prepaid expenses and other current assets                                        4,728
   Prepaid expenses - related party (Note 3)                                       18,265
                                                                      --------------------
Total Current Assets                                                            1,297,924

Fixed assets, net (Note 2)                                                         14,729

Due from related parties (Note 3)                                                 111,652

Securities - available for sale (Note 4)                                        2,927,112
                                                                      --------------------

Total Assets                                                         $          4,351,417
                                                                      ====================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
  Accounts payable and other accrued liabilities                     $             56,520

Commitments and contingencies (Notes 6, 10)                                             -

Stockholders' Equity
  Common stock : $0.001 par value, authorized: 50,000,000
      Issued and outstanding: 32,476,250 shares                                    32,115
  Additional paid-in capital                                                    6,843,803
  Accumulated deficit                                                         (5,340,528)
  Accumulated other comprehensive income                                        2,759,507
                                                                      --------------------
Total Stockholders' Equity                                                      4,294,897
                                                                      --------------------

Total Liabilities and Stockholders' Equity                           $          4,351,417
                                                                      ====================




       The accompanying notes are an integral part of these financial statements.

                                           F-3
</TABLE>


<PAGE>

<TABLE>
<CAPTION>



                                            DRUCKER, INC. AND SUBSIDIARIES
                                         CONSOLIDATED STATEMENTS OF OPERATIONS
                                    FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
Stated in U.S. dollars                                                             2003                    2002
------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                    <C>

Expenses
   Accounting and audit                                                                  61,966                  17,877
   Consulting (Note 3)                                                                  240,972                 111,288
   Depreciation                                                                           2,286                   1,227
   Foreign exchange (gain) loss                                                        (36,632)                     904
   Legal and professional                                                               117,189                   9,577
   Other operating expenses                                                              85,771                  18,682
                                                                            --------------------   ---------------------
Total expenses                                                                          471,552                 159,555

Other income
   Gain on disposal of securities - available for sale (Note 4)                       1,364,530                       -
   Interest income                                                                        7,010                   7,393
                                                                            --------------------   ---------------------
Total other income                                                                    1,371,540                   7,393
                                                                            --------------------   ---------------------

Income (loss) from continuing operations before taxes                                   899,988               (152,162)

Provision for income taxes (Note 5)                                                           -                       -
                                                                            --------------------   ---------------------

Loss from continuing operations                                                         899,988               (152,162)

Discontinued operations (Note 8)
   Loss from operations                                                                       -                (65,578)
   Loss from disposal of subsidiary, net of tax                                               -                (54,498)
                                                                            --------------------   ---------------------
Loss from discontinued operations                                                             -               (120,076)
                                                                            ====================   =====================

Net income (loss)                                                                 $     899,988          $    (272,238)
                                                                            ====================   =====================

Basic and diluted loss per share:
  Loss from continuing operations                                                  $       0.03           $      (0.01)
  Loss from discontinued operations                                                           -                  (0.00)
                                                                            --------------------   ---------------------
                                                                                   $       0.03           $      (0.01)
                                                                            ====================   =====================

Basic and diluted weighted average common shares outstanding:                        32,476,250              32,476,250
                                                                            ====================   =====================



                              The accompanying notes are an integral part of these financial statements.

                                                                 F-4
</TABLE>


<PAGE>


<TABLE>
<CAPTION>


                         DRUCKER, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002

                                                                                                        Accumulated
                                                           Stock       Additional                          Other
                                               Common    Amount At      Paid-In       Accumulated      Comprehensive
Stated in U.S. dollars                         Shares    Par Value      Capital         Deficit           Income            Total
------------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>          <C>          <C>          <C>                <C>             <C>
Balance, December 31, 2001                    32,476,250   $  32,115    $  6,843,803 $ (5,968,278)      $         -     $   907,640

Components of comprehensive loss:
   Translation adjustments                             -           -               -             -              170             170
   Unrealized gain on securities                       -           -               -             -           54,315          54,315
   Net loss                                            -           -               -     (272,238)                -       (272,238)
                                                                                                                   -----------------
Total comprehensive loss                                                                                                  (217,753)

                                                                                                                   -----------------

                                            ----------------------------------------------------------------------------------------
Balance, December 31, 2002                    32,476,250      32,115       6,843,803   (6,240,516)           54,485         689,887

Components of comprehensive income:
   Translation adjustments                             -           -               -             -          (9,966)         (9,966)
   Unrealized gain on securities, net of
    reclassification adjustment [1]                    -           -               -             -        2,714,988       2,714,988
   Net income                                          -           -               -       899,988                -         899,988
                                                                                                                   -----------------
Total comprehensive income                                                                                                3,605,010
                                                                                                                   -----------------

                                            ----------------------------------------------------------------------------------------
Balance, December 31, 2003                    32,476,250   $  32,115    $  6,843,803 $ (5,340,528)   $    2,759,507    $  4,294,897
                                            ========================================================================================

[1] Disclosure of reclassification amount:
Unrealized gains during 2003                             $ 3,723,370
Less: reclassification adjustment for gains
    included in net inocme                               (1,008,382)
                                                        -------------
Net unrealized gains on securities                       $ 2,714,988
                                                        =============




                              The accompanying notes are an integral part of these financial statements.

                                                               F-5
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                       DRUCKER, INC. AND SUBSIDIARIES
                                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                               FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002

Stated in U.S. dollars                                                      2003                2002
-------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>                <C>
Cash flows from operating activities
  Net income (loss) from continuing operations                             $     899,988      $    (152,162)
  Adjustments to reconcile net income (loss) to net cash
        provided by (used in) operating activities
    Depreciation                                                                   2,286               1,227
    Translation adjustments                                                      (9,966)                 170
    Gain on disposal of securities - available for sale                      (1,364,530)                   -
    Changes in assets and liabilities
     (Increase) decrease in prepaid expenses and other current
assets                                                                           (1,907)             (1,813)
     (Increase) decrease in prepaid expenses - related party                    (16,195)             (2,070)
      Increase in accounts payable                                                42,307             (6,890)
                                                                    -----------------------------------------
  Net cash flows used in operating activities                                  (448,017)           (161,538)

Cash flows from investing activities
    Due from a related company                                                   (6,154)             (5,498)
    Proceeds from disposal of securities - available for sale                  1,519,586                   -
    Advances from discontinued operations of disposed subsidiary                       -             241,306
    Additions to fixed assets                                                   (16,693)                   -
    Proceeds from sale of subsidiary                                                   -             250,000
                                                                    -----------------------------------------
  Net cash flows provided by investing activities                              1,496,739             485,808

Cash flows from financing activities
    Cash overdraft                                                                     -            (98,227)
                                                                    -----------------------------------------
  Net cash flows used in financing activities                                          -            (98,227)
                                                                    -----------------------------------------

Increase in cash from continuing operations                                    1,048,722             226,043

Increase in cash from discontinued operations (Note 8)                                 -                 166
                                                                    -----------------------------------------

Increase in cash and cash equivalents                                          1,048,722             226,209
Cash and cash equivalents - beginning of year                                    226,209                   -
                                                                    -----------------------------------------
Cash and cash equivalents - end of year                                   $    1,274,931       $     226,209
                                                                    =========================================

Supplemental information:
Cash paid for:
    Interest                                                                 $        30         $         -
                                                                    =========================================
    Income taxes                                                                       -                   -
                                                                    =========================================

Non-cash investing activities:
    Securities received in the sale of subsidiary                                      -       $     312,865
                                                                    =========================================





           The accompanying notes are an integral part of these financial statements.

                                              F-6
</TABLE>

<PAGE>



                         DRUCKER, INC. AND SUBSIDIARIES
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2003

NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Drucker Inc. (the "Company") is a Delaware corporation with an authorized
capital of 50,000,000 shares of $0.001 par value common stock. The Company's
current business plan is to seek, investigate, and, if warranted, acquire one or
more properties or businesses, and to pursue other related activities intended
to enhance shareholder value. During 2003, the Company entered into an agreement
and primarily focused its efforts on acquiring Beijing Beike-Masic Automation
Engineering Company Limited ("BK"), a business corporation incorporated under
the laws of the Peoples Republic of China. BK is a provider of complete system
solutions for industrial automation and control. (See Note 10). During 2002 and
prior, the Company was in the business of acquiring, exploring and evaluating
oil and gas prospects and either joint venturing or developing these properties
further or disposing of them when the evaluation was completed.

Summary of Significant Accounting Policies

Principles of consolidation - The accompanying consolidated financial statements
include the accounts of the Company and its wholly-owned subsidiaries. All
significant inter-company transactions and balances have been eliminated in
consolidation.

Use of estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

Cash and cash equivalents - The Company considers all highly liquid debt
instruments with original maturities of three months or less to be cash
equivalents.

Marketable Equity Securities - Marketable equity securities consist of common
shares of Tanganyika Oil Company Ltd. and have been classified as
available-for-sale, stated at market value as determined by the most recently
traded price at the balance sheet date, with the change in fair value
(unrealized gains or losses) during the period excluded from earnings and
recorded net of tax as a component of other comprehensive income.

Fixed assets - Fixed assets represent, stated at cost, depreciated over the
asset's estimated useful life, ranging from three to five years. Significant
improvements and betterments are capitalized where it is probable that the
expenditure resulted in an increase in the future economic benefits expected to
be obtained form the use of the asset beyond its originally assessed standard of
performance. Routine repairs and maintenance are expensed when incurred. Gains
and losses on disposal of fixed assets are recognized in the statement of
operations based on the net disposal proceeds less the carrying amount of the
assets.

                                      F-7

<PAGE>

Impairment or Disposal of Long-lived Assets

The Company reports the impairment of long-lived assets and certain identifiable
intangibles in accordance with Statement of Financial Accounting Standards No.
144, "Accounting for the Impairment or Disposal of Long-lived Assets". Certain
long-lived assets and identifiable intangibles held by the Company are reviewed
for impairment whenever assets or changes in circumstances indicate the carrying
amount of an asset may not be recoverable. Accordingly, an impairment loss is
recognized in the period it is determined. A component of an entity that is
classified as held for sale or that has been disposed of is presented as a
discontinued operation if the operations and cash flows of the component will be
(or have been) eliminated from the ongoing operations of the entity and the
entity will not have any significant continuing involvement in the operations of
the component.

Advertising costs - Advertising costs are expensed as incurred. There were no
advertising costs for the periods presented.

Discontinued operations - The accounting policies as they related to
discontinued operations are as follows:

(i) Oil and Gas Project Costs - The Company uses the successful efforts method
of accounting for oil and gas producing activities. Costs to acquire mineral
interests in oil and gas properties, to drill and equip exploratory wells that
find proved reserves, and to drill and equip development wells are capitalized.
Costs to drill exploratory wells that do not find proved reserves, geological
and geophysical costs, and costs of carrying the retaining unproved properties
are expensed.

Unproved oil and gas properties that are individually significant are
periodically assessed for impairment of value, and a loss is recognized at the
time of impairment by providing an impairment allowance. Other unproved
properties are amortized based on the Company's experience of successful
drilling and average holding period. Capitalized costs of producing oil and gas
properties, after considering estimated dismantlement and abandonment costs and
estimated salvage values, are depreciated and depleted by the unit-of-production
method. Support equipment and other property and equipment are depreciated over
their estimated useful lives.

(ii) Capitalization of Mineral Claim Costs - The cost of acquisition,
exploration, carrying and retaining unproven properties are expensed as
incurred. Costs incurred in proving and developing a property ready for
production are capitalized and amortized over the life of the mineral deposit or
over a shorter period if the property is shown to have an impairment in value.
Expenditures for mining equipment are capitalized and depreciated over their
useful life.

(iii) Environmental Costs - Environmental expenditures that relate to current
operations are expensed or capitalized as appropriate. Expenditures that relate
to an existing condition caused by past operations, and which do not contribute
to current or future revenue generation, are expensed. Liabilities are recorded
when environmental assessments and/or remedial efforts are probable, and the
cost can be reasonably estimated. Generally, the timing of these accruals
coincides with the earlier of completion of a feasibility study or the Company's
commitment to a plan of action based on the then known facts.

(iv) Values - The amounts shown for oil and gas project costs represent costs to
date and do not necessarily reflect present or future values.

(v) Revenue recognition - Revenue is recognized when all of the following
criteria are met: persuasive evidence of an arrangement exists, delivery has
occurred or services have been rendered, the seller's price to the buyer is
fixed or determinable, and collectibility is reasonably assured. Revenues from
the sale of petroleum products are recognized when delivered.

Income taxes - The Company accounts for income taxes under the provisions of
SFAS No. 109, "Accounting for Income Taxes." Under SFAS No. 109, deferred income
tax assets and liabilities are computed for differences between the financial
statements and tax bases of assets and liabilities that will result in taxable
or deductible amounts in the future, based on enacted tax laws and rates
applicable to the periods in which the differences are expected to affect
taxable income. Valuation allowances are established when necessary, to reduce
deferred income tax assets to the amount expected to be realized.

Foreign currency translations - The assets and liabilities of the Company's
foreign operations are generally translated into U.S. dollars at current
exchange rates, and revenues and expenses are translated at average exchange
rates for the year. Resulting translation adjustments are reflected as a

                                      F-8

<PAGE>

separate component of stockholders' equity. Transaction gains and losses that
arise from exchange rate fluctuations on transactions denominated in a currency
other than the functional currency, except those transactions which operate as a
hedge of an identifiable foreign currency commitment or as a hedge of a foreign
currency investment position, are included in the results of operations as
incurred.

Fair value of financial instruments - For certain of the Company's financial
instruments, including cash and cash equivalents, accounts receivable, prepaid
expenses, accounts payable and other accrued liabilities, the carrying amounts
approximate fair value due to their short maturities.

Earnings per share - Basic earnings or loss per share are based on the weighted
average number of common shares outstanding. Diluted earnings or loss per share
is based on the weighted average number of common shares outstanding and
dilutive common stock equivalents. Basic earnings/loss per share is computed by
dividing income/loss (numerator) applicable to common stockholders by the
weighted average number of common shares outstanding (denominator) for the
period. All earnings or loss per share amounts in the financial statements are
basic earnings or loss per share, as defined by SFAS No. 128, "Earnings Per
Share." Diluted earnings or loss per share does not differ materially from basic
earnings or loss per share for all periods presented. Convertible securities
that could potentially dilute basic earnings per share in the future such as
options and warrants are not included in the computation of diluted earnings per
share because to do so would be antidilutive. All per share and per share
information are adjusted retroactively to reflect stock splits and changes in
par value.

Stock-based compensation - The Company accounts for stock-based compensation
using the intrinsic value method prescribed in Accounting Principles Board
("APB") Opinion No. 25, "Accounting for Stock Issued to Employees." Compensation
cost for stock options, if any, is measured as the excess of the quoted market
price of the Company's stock at the date of grant over the amount an employee
must pay to acquire the stock. SFAS No.123, "Accounting for Stock-Based
Compensation," established accounting and disclosure requirements using a
fair-value-based method of accounting for stock-based employee compensation
plans. The Company has elected to remain on its current method of accounting as
described above, and has adopted the disclosure requirements of SFAS No. 123. In
December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation - Transition and Disclosure, amending FASB No. 123, and "Accounting
for Stock-Based Compensation". This statement amends Statement No. 123 to
provide alternative methods of transition for an entity that voluntarily changes
to the fair value based method of accounting for stock-based employee
compensation. SFAS No. 148 amends APB Opinion No. 28 "Interim Financial
Reporting" to require disclosure about those effects in interim financial
information. The Company adopts the disclosure provisions and the amendment to
APB No. 28 effective for interim periods beginning after December 15, 2002.

Comprehensive income - The Company includes items of other comprehensive income
by their nature, such as translation adjustments and unrealized gains on
available-for-sale marketable securities, in a financial statement and displays
the accumulated balance of other comprehensive income separately from retained
earnings and additional paid-in capital in the equity section of the balance
sheet. The Company discloses total comprehensive income (loss), its components
and accumulated balances on its statement of stockholders' equity.

Related party transaction - A related party is generally defined as (i) any
person that holds 10% or more of the Company's securities and their immediate
families, (ii) the Company's management, (iii) someone that directly or
indirectly controls, is controlled by or is under common control with the
Company, or (iv) anyone who can significantly influence the financial and
operating decisions of the Company. A transaction is considered to be a related
party transaction when there is a transfer of resources or obligations between
related parties.

                                      F-9

<PAGE>

Reclassification - Certain prior period amounts have been reclassified to
conform to the current year presentation. These changes had no effect on
previously reported results of operations or total stockholders' equity.

Recent Accounting Pronouncements - The FASB issued the following pronouncements
during 2003, none of which are expected to have a significant affect on the
financial statements:

In January 2003, the Financial Accounting Standard Board issued FASB
Interpretation No. 46 (FIN 46), "Consolidation of Variable Interest Entities -
An Interpretation of Accounting Research Bulletin (ARB) No. 51". This
interpretation addressed the requirements for business enterprises to
consolidate related entities in which they are determined to be the primary
economic beneficiary as a result of their variable economic interest. The
interpretation is intended to provide guidance in judging multiple economic
interests in an entity and in determining the primary beneficiary. The
interpretation outlines disclosure requirements for variable interest entities
in existence prior to January 31, 2003, outlines consolidation requirements for
variable interest entities created after January 31, 2003. The company has
reviewed its major commercial relationship and its overall economic interests
with other companies consisting of related parties, manufacture vendors, loan
creditors and other suppliers to determine the extent of its variable economic
interest in these parties. The review has not resulted in a determination that
the Company would be judged to be the primary economic beneficiary in any
material relationships, or that any material entities would be judged to be
variable interest entities of the Company.

The American Institute of Certified Public Accountants has issued an exposure
draft SOP "Accounting for Certain Costs and Activities Related to Property,
Plant and Equipment ("PP&E")". This proposed SOP applies to all non-government
entities that acquire, construct or replace tangible property, plant and
equipment including lessors and lessees. A significant element of the SOP
requires that entities use component accounting retroactively for all PP&E
assets to the extent future component replacement will be capitalized. At
adoption, entities would have to option to apply component accounting
retroactively for all PP&E assets, to the extent applicable, or to apply
component accounting as an entity incurs capitalizable costs that replace all or
a portion of PP&E. The Company cannot evaluate the ultimate impact of this
exposure draft until it becomes final.

In April 2003, the FASB issued SFAS No. 149, "Accounting for Amendment of
Statement 133 on Derivative Instruments and Hedging Activities," which amends
and clarifies financial accounting and reporting for derivative instruments,
including certain derivative instruments embedded in other contracts and for
hedging activities under FASB Statement No. 133, Accounting for Derivative
Instruments and Hedging Activities. This Statement is generally effective for
contracts entered into or modified after June 30, 2003, and all provisions
should be applied prospectively. This statement does not affect the Company.

In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity". SFAS No. 150
establishes standards for how an issuer classifies and measures certain
financial instruments with characteristics of both liabilities and equity. SFAS
No. 150 is effective for financial instruments entered into or modified after
May 31, 2003, and otherwise is effective at the beginning of the first interim
period beginning after June 15, 2003. The Company does not believe that the
implementation of SFAS No. 150 will have a material impact on the financial
condition, results of operations or cash flows.

NOTE 2 - FIXED ASSETS
---------------------

Fixed assets consist of the following:

Computer equipment                                     $    9,347
Furniture and fixtures                                     11,026
                                                  ----------------
Total                                                      20,373
Less accumulated depreciation                               5,644
                                                  ----------------
Net book value                                         $   14,729
                                                  ================

                                      F-10

<PAGE>


Depreciation charged to operations for 2003 amounted to $2,286 (2002: $1,227)

NOTE 3 - RELATED PARTY TRANSACTIONS
-----------------------------------

During the years ended December 31, 2003 and 2002, included in consulting fees
are related party consulting fees of $197,359 and $86,288, respectively, charged
by companies with common directors and with current/former directors of the
Company.

At December 31, 2003, there was $111,265 due from a company with a common
director. This loan is unsecured, bears interest at the US Bank prime rate plus
one percent calculated semi-annually and is due upon 30 days formal notice from
the Company. The Company has already demanded for repayment of balance due from
the related party and is in the course of negotiation on the terms of repayment
by installments. During the years ended December 31, 2003 and 2002, the Company
accrued interest income of $5,767 and $5,498, respectively. The Company also was
due $387 from a company with a common director. This loan is unsecured and
non-interest bearing with no fixed terms of repayment.

Prepaid expenses - related party represent travel expenses of $18,265 advanced
to an officer and director of the Company.


NOTE 4 - MARKETABLE SECURITIES
------------------------------

Marketable securities consist of 504,400 shares of Tanganyika Oil Company Ltd.
with an estimated fair value of $2,927,112, amortized cost of $157,809, and
gross unrealized gains of $2,769,303. The Company sold 495,600 shares for gross
proceeds of $1,519,586, gross realized gains of $1,364,530, and related
amortized cost of $155,056. The method used to determine the cost of the
securities sold is average cost.

<TABLE>
<CAPTION>

Reconciliation of unrealized gains included in other comprehensive income for
the years ended December 31 is as follows:

                                                       2003                2002
                                                  ----------------    ---------------
<S>                                               <C>                 <C>

Beginning balance                                      $   54,315           $      -
Unrealized holding gains during period                  3,723,370             54,315
Reclassification - gains included in earnings         (1,008,382)                  -
                                                  ----------------    ---------------
Ending balance                                        $ 2,769,303         $   54,315
                                                  ================    ===============
</TABLE>

                                      F-11

<PAGE>


There is no provision for income tax expense due to the utilization of available
income tax loss carry-forwards.


NOTE 5 - INCOME TAXES

There is no current or deferred tax expense for the years ended December 31,
2003 and 2002, due to the Company's loss position. The Company has fully
reserved for any benefits of these losses. The deferred tax consequences of
temporary differences in reporting items for financial statement and income tax
purposes are recognized, as appropriate. Realization of the future tax benefits
related to the deferred tax assets is dependent on many factors, including the
Company's ability to generate taxable income within the net operating loss
carryforward period. Management has considered these factors in reaching its
conclusion as to the valuation allowance for financial reporting purposes. The
income tax effect of temporary differences comprising the deferred tax assets on
the accompanying consolidated balance sheet is as follows:

                                                                    2003
                                                               ---------------

Deferred tax asset from net operating loss carryforwards           $1,782,000
Valuation allowance                                               (1,782,000)
                                                               ---------------
Net deferred tax assets                                               $     -
                                                               ===============




The Company has available net operating loss carryforwards of approximately
$5,243,000 for tax purposes to offset future taxable income, which expire
beginning in the year 2017. The Company has accumulated capital losses of
approximately $132,000 available to offset future years' capital gains. The
potential tax benefit of these losses, if any, has not been recorded in these
financial statements.

Pursuant to the Tax Reform Act of 1986, annual utilization of the Company's net
operating loss carryforwards may be limited if a cumulative change in ownership
of more than 50% is deemed to occur within any three-year period. As a result of
equity transactions occurring through December 31, 1999, the Company will be
subject to such limitation. The annual limitations have not been determined.

The difference between income taxes at statutory rates and the amount presented
in the financial statements for the years ended December 31, 2003 and 2002 is a
result of the following:

                                                2003                2002
                                           ---------------     ---------------
Statutory federal income tax rate             $ (158,000)          $ (51,000)
Change in valuation allowance                     158,000              51,000
                                           ---------------     ---------------
                                                        -                   -
                                           ===============     ===============

                                      F-12

<PAGE>



NOTE 6 - STOCK-BASED COMPENSATION
---------------------------------

Share Purchase Warrants

At December 31, 2003 5,542,065 share purchase warrants are outstanding. Each
warrant entitles the holder the right to purchase one additional unit of the
Company at $0.40 per unit until the earlier of March 31, 2005 and the 90th day
after the day on which the weighted average trading price of the Company's
shares exceed $0.60 per share for 10 consecutive trading days. Each unit
consists of one common share of the Company and one additional warrant. Each
additional warrant entitles the holder thereof the right to purchase one
additional common share of the Company at $0.60 per share. The additional
warrants will expire one year after the occurrence of the exercise of the
original warrants.

Stock Options

The Company has granted 2,950,000 stock options to officers, directors and
employees (1,175,000) of the Company and consultants (1,775,000) to the Company
to purchase shares of the Company's common stock at an exercise price of $0.40
per share, expiring on March 31, 2006. The weighted average exercise price is
$0.40 per share and the number of stock options outstanding is equal to the
number exercisable as there are no vesting provisions.


NOTE 7 - CANCELED TRANSACTIONS
------------------------------

By an agreement dated effective January 1, 2003, the Company proposed to acquire
up to 100% (minimum 60%) of Crime Prevention Analysis Lab Inc. ("CPAL") in
consideration of the issuance by the Company of up to 10,000 convertible
debentures to CPAL. The terms of the debentures are as follows:

    o   each debenture is convertible into 3,075 common shares of the Company;
    o   the debenture is non-interest bearing;
    o   the debenture is redeemable in whole by the Company any time until March
        31, 2003;
    o   the debenture is not convertible until after April 1, 2003;
    o   thereafter the debenture is convertible according to an agreed formula;
        and
    o   the debenture will have a floating charge on the assets of CPAL only.

On April 17, 2003, the Company announced it had decided not to proceed with the
acquisition and canceled the letter of intent.


NOTE 8 - DISCONTINUED OPERATIONS
--------------------------------

Drucker Petroleum, Inc., West Gharib, Egypt Concession:

By an agreement dated February 1, 2002, the Company disposed of it's wholly-
owned subsidiary, Drucker Petroleum, Inc., for CDN$900,000 (US$562,865). Drucker
Petroleum, Inc. held a 20% participating interest in a production sharing agree-
ment in respect to an oil and gas concession in located in West Gharib, Gulf of
Suez, Egypt.

The consideration paid on closing was as follows:

    o   US$250,000 (CDN$400,000 (received));
    o   200,000 common shares of the purchaser (Tanganyika Oil Company Ltd.), a
        public company, at CDN$0.50 per share (received); and
    o   800,000 special warrants of the purchaser at CDN$0.50 per warrant
        (received). Each special warrant was exercised (without additional
        consideration) into one common share of the purchaser.

                                      F-13

<PAGE>

Loss from discontinued operations was as follows:

Revenues                                                            $  81,796
Royalties                                                            (40,080)
                                                               ---------------
                                                                       41,716
Interest income                                                           121
                                                               ---------------
                                                                       41,837
Expenses
   Administration                                                      14,827
   Bank charges                                                            32
   Depletion                                                           15,637
   Handling and trucking                                               25,713
                                                               ---------------
                                                                       56,209
Other item:
   Write-off of oil and gas projects                                   51,206
                                                               ---------------

Net loss from discontinued operations                              $ (65,578)
                                                               ===============



The loss from disposal of the subsidiary was calculated as follows:

Proceeds                                                            $ 562,865
Less: net identifiable assets                                       1,012,965
Less: net identifiable liabilities                                  (395,602)
                                                               ---------------
Loss on disposal of subsidiary                                     $ (54,498)
                                                               ===============


                                      F-14

<PAGE>


Cash flows from discontinued operations for the year ended December 31, 2002 is
as follows:


Operating activities:
Net loss                                                        $ (120,076)
Non-cash items:
   Write-off of oil and gas property                                 51,206
   Loss on disposal of subsidiary                                    54,498
   Depletion                                                         15,637
Changes in non-cash working capital balances:
   Accounts receivable                                               12,030
   Accounts payable and accrued expenses                             98,825
                                                             ---------------
                                                                    112,120
Investing Activities:
   Oil and gas project costs                                      (117,449)

Financing activities:
   Repayment of advances from Drucker, Inc.                       (241,306)
                                                             ---------------

Decrease in cash prior to disposal                                (246,635)

Cash balances of subsidiaries on disposal                           246,801
                                                             ---------------

Increase in cash from discontinued operations                      $    166
                                                             ===============


NOTE 9 - SEGMENTED INFORMATION
------------------------------

Until the Company disposed of its subisidary in 2002, the Company's industry
segment was the oil and gas industry. The Company's geographic segments were
Canada, Egypt and Algeria and its related segment information follows for 2002:

<TABLE>
<CAPTION>

Identifiable assets

                                                                 Canada         Egypt        Algeria        Total
<S>                                                           <C>           <C>            <C>           <C>
Current                                                          $ 230,934        $     -       $   166     $ 231,100
Fixed assets                                                           322              -             -           322
Marketable securities                                              367,180              -                     367,180
Due from related parties                                           105,498                                    105,498
                                                              ------------- -------------- ------------- -------------
                                                                 $ 703,934        $     -       $   166     $ 704,100
                                                              ============= ============== ============= =============
Gross Revenue Oil and Gas

Canada                                                                    $     -
Egypt                                                                      81,796
Algeria                                                                         -
                                                                   ---------------
                                                                        $  81,796
                                                                   ===============
Net loss

Canada                                                                $ (152,162)
Egypt                                                                   (120,058)
Algeria                                                                      (18)
                                                                   ---------------
                                                                      $ (272,238)
                                                                   ===============
</TABLE>

                                      F-15

<PAGE>


The Company's geographic segment for 2003 was Canada only and therefore, all of
the Company's identifiable assets, gross revenues and net income represent that
segment only.


NOTE 10 - SUBSEQUENT EVENTS
---------------------------

By an agreement dated June 15, 2003, the Company agreed to acquire from Beijing
Beike Machinery Electronic Materials Hightech Corporation ("BK Machinery") all
the shares it owned in Beijing Beike-Masic Automation Engineering Company
Limited ("BK") being 25% of the issued and outstanding shares of BK, and from
Speed One Investment Limited all the shares it owned in BK being 75% of the
issued and outstanding shares of BK. The Company agreed to initially issue
17,500,000 common shares (pre-consolidation), in escrow, and a further
25,173,600 common shares (post-consolidated) after the shareholders have
approved a consolidation of the Company's shares on a 3 old shares for 1 new
share basis and audited financial statements of BK have been delivered. The
Company agreed to pay a legal fee in common shares equal to 7% of the total
shares required to be issued under the agreement. On July 14, 2003, the Company
issued 17,500,000 common shares pursuant to this agreement, which has been held
by an escrow agent pending the completion of the transaction. However as these
shares are held in escrow and will be released only upon closing of the
transaction, such shares are not yet considered issued.

As of the date of issuance of these financial statements, all of the 25% shares
of BK have been delivered to the Company, and the Company has committed to
deliver the balance of the shares, including escrowed shares, upon completion of
the reverse split, which is subject to regulatory and shareholder approval. The
issuance of the balance of the shares for the acquisition transaction requires
the completion of the reverse split, which required reverse split is subject to
shareholders authorization. The Company has not yet obtained such authorization,
but intends to do so in the next 60 days.

BK, a business corporation incorporated under the laws of the Peoples Republic
of China, is a provider of complete system solutions for industrial automation
and control. This acquisition will be accounted for under the purchase method as
a reverse acquisition.




                                      F-16