----

| o      | REGISTRATION      STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT      OF 1934                                                                   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | OR                                                                                                                                                                         |
|   |                                                                                                                                                                       |
| x      | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 for the fiscal year ended December 31,      2008                            |
|   | OR                                                                                                                                                                         |
|   |                                                                                                                                                                       |
| o      | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 for thetransition      period from ________________ to ________________ |
|   | OR                                                                                                                                                                         |
|   |                                                                                                                                                                       |
| o      | SHELL      COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT OF 1934                                                                      |
|   | Date      of event requiring this shell company report    ________________                                                                                                 |

| Title      of each class | Name      of each exchange on which registered |
|--------------------------|------------------------------------------------|
| Ordinary      shares     | The      NASDAQ Stock Market LLC               |

----

----

----

|           |                                                                           |   | Page   |   |
|----------------|--------------------------------------------------------------------------------|--------|--------|--------|
|           |                                                                           |   |   |   |   |
| ITEM      1.   | IDENTITY      OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS                     |   |   | 4      |   |
| ITEM      2.   | OFFER      STATISTICS AND EXPECTED TIMETABLE                                   |   |   | 4      |   |
| ITEM      3.   | KEY      INFORMATION                                                           |   |   | 4      |   |
| ITEM      4.   | INFORMATION      ON THE COMPANY                                                |   |   | 26     |   |
| ITEM      4A.  | UNRESOLVED      STAFF COMMENTS                                                 |   |   | 51     |   |
| ITEM      5.   | OPERATING      AND FINANCIAL REVIEW AND PROSPECTS                              |   |   | 51     |   |
| ITEM      6.   | DIRECTORS,      SENIOR MANAGEMENT AND EMPLOYEES                                |   |   | 74     |   |
| ITEM      7.   | MAJOR      SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                         |   |   | 83     |   |
| ITEM      8.   | FINANCIAL      INFORMATION                                                     |   |   | 84     |   |
| ITEM      9.   | THE      OFFER AND LISTING                                                     |   |   | 86     |   |
| ITEM      10.  | ADDITIONAL      INFORMATION                                                    |   |   | 87     |   |
| ITEM      11.  | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                |   |   | 97     |   |
| ITEM      12.  | DESCRIPTION      OF SECURITIES OTHER THAN EQUITY SECURITIES                    |   |   | 97     |   |
| ITEM      13.  | DEFAULTS,      DIVIDEND ARREARAGES AND DELINQUENCIES                           |   |   | 98     |   |
| ITEM      14.  | MATERIAL      MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS                  |   |   |   |   |
|           | AND      USE OF PROCEEDS                                                       |   |   | 98     |   |
| ITEM      15.  | CONTROLS      AND PROCEDURES                                                   |   |   | 98     |   |
| ITEM      16A. | AUDIT      COMMITTEE FINANCIAL EXPERT                                          |   |   | 100    |   |
| ITEM      16B. | CODE      OF ETHICS                                                            |   |   | 100    |   |
| ITEM      16C. | PRINCIPAL      ACCOUNTANT FEES AND SERVICES                                    |   |   | 100    |   |
| ITEM      16D. | EXEMPTIONS      FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                |   |   | 101    |   |
| ITEM      16E. | PURCHASES      OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED    PURCHASERS |   |   | 101    |   |
| ITEM      17.  | FINANCIAL      STATEMENTS                                                      |   |   | 101    |   |
| ITEM      18.  | FINANCIAL      STATEMENTS                                                      |   |   | 101    |   |
| ITEM      19.  | EXHIBITS                                                                       |   |   | 101    |   |

----

|  | · | “China”      or “PRC” refers to the People’s Republic of China, excluding, for the      purpose of this annual report only, Hong Kong SAR, Macau SAR and      Taiwan. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “NASDAQ”      refers to the NASDAQ Global Market. |
|--|--------|---------------------------------------------------------------|

|  | · | “Renminbi”      or “RMB” refers to the legal currency ofChina. |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | “SEC”      refers to the United States Securities and Exchange      Commission. |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | “Securities      Act” refers to the Securities Act of 1933, as  amended. |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | “Shares”      or “ordinary shares” refers to our ordinary shares, of no par      value.  “USD”, “U.S. dollars”, “dollar” and “US$” refer to the      legal currency of the UnitedStates. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Yucheng”      refers to the Yucheng Technologies Limited, as a whole or any portion      thereof, unless expressly statedotherwise. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Beijing      Sihitech” refers to Beijing Sihitech Technology Co., Ltd. and, unless the      context otherwise requires, itssubsidiaries. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “China      Unistone” refers to China Unistone Acquisition  Corporation. |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | “Easycon”      refers to Beijing Easycon ElectronicsLimited. |
|--|--------|--------------------------------------------------------------------------|

|  | · | “e-Channels”      refers to Beijing e-Channels Century Technology Co.,  Ltd. |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | “e-Channels      BVI” refers to Port Wing Development Co.,Ltd. |
|--|--------|----------------------------------------------------------------------------|

|  | · | “Fujie”      refers to Shanghai Fujie Business Consulting  Limited. |
|--|--------|---------------------------------------------------------------------------------|

|  | · | “Fuyi”      refers to Shanghai Fuyi Business Consulting  Limited. |
|--|--------|-------------------------------------------------------------------------------|

|  | · | “Recency”      refers to Chengdu Recency TechnologiesLimited. |
|--|--------|---------------------------------------------------------------------------|

|  | · | “Sihitech      BVI” refers to Ahead Billion VentureLtd. |
|--|--------|---------------------------------------------------------------------|

|  | · | “Sunrisk”      refers to Beijing Yuxinhengsheng Information Technology      Limited. |
|--|--------|--------------------------------------------------------------------------------------------------|

|  | · | “Yuxinyicheng      Information” refers to Beijing Yuxinyicheng  Information. |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | “we,”      “us,” “our company,” “our,” “the Company” and “Yucheng” refer to Yucheng      Technologies Limited and, unless the context otherwise requires, its      subsidiaries and predecessors. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Tier      I banks” or “Top Four banks” refers to the four largest state-controlled      banks in China, namely the Industrial and Commercial Bank of China, the      Bank of China, China Construction Bank and the Agricultural Bank of China;      “Tier II banks” or “Joint-Stock banks” refers to the other 13 national      commercial banks in China; and “Tier III banks” or “SMBs” refers to small      and mid-sized banks in China. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | our      goals and strategies, including how we effect our goals and      strategies; |
|--|--------|---------------------------------------------------------------------------------------|

|  | · | our      expectations for our future business development, business prospects,      results of operations and financialcondition; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | · | expected      changes in our revenue composition, margins and certain costs or      expenditures; |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | our      future contracting and pricing strategies or  policies; |
|--|--------|------------------------------------------------------------------|

|  | · | our      plans to expand our business operations and product    offerings; |
|--|--------|----------------------------------------------------------------------------|

|  | · | competition      from other providers of IT services and  products; |
|--|--------|---------------------------------------------------------------------|

|  | · | the      time to develop and market new services and  products; |
|--|--------|-----------------------------------------------------------------|

|  | · | PRC      governmental policies relating to the business development, banking      regulation and regulation of the financial services sector;      and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | other      “forward-looking”information. |
|--|--------|------------------------------------------------------|

|  | · | changing      interpretations of generally accepted accounting    principles; |
|--|--------|-------------------------------------------------------------------------------|

|  | · | outcomes      of government reviews, inquiries, investigations and related      litigation; |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | continued      compliance with governmentregulations; |
|--|--------|-------------------------------------------------------|

|  | · | legislation      or regulatory environments, requirements or changes adversely affecting      the businesses in which we and our PRC operating companies are      engaged; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | geopolitical      events and regulatory changes; and |
|--|--------|------------------------------------------------------|

|  | · | the      effect of world recession and declines in global and specific country GDP      on the world financial sector and the Chinese  economy. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ITEM      1. | IDENTITY OF      DIRECTORS, SENIOR MANAGEMENT AND  ADVISERS |
|--------------|-------------------------------------------------------------|

| ITEM      2. | OFFER      STATISTICS AND EXPECTEDTIMETABLE |
|--------------|---------------------------------------------|

| ITEM      3. | KEY      INFORMATION |
|--------------|----------------------|

|                            |   | Year      Ended December 31,                                     |     |
|---------------------------------|--------|------------------------------------------------------------------|----------|
|                            |   | 2004                                                             |     |   | 2005 |   |   | 2006 |   |   | 2007 |   |   | 2008 |   |
|                            |   | RMB                                                              |     |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | USD |   |
|                            |   | (in      thousands, except earnings per share and share numbers) |     |
|                            |   |                                                             |     |
| Revenues                        |   |                                                             | 244,882  |   |   |   | 177,327 |   |   |   | 289,650 |   |   |   | 435,519 |   |   |   | 676,819 |   |   |   | 99,028 |   |
|                            |   |                                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenues           |   |                                                             | (192,260 | ) |   |   | (133,085 | ) |   |   | (215,332 | ) |   |   | (277,826 | ) |   |   | (449,277 | ) |   |   | (65,735 | ) |
|                            |   |                                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit               |   |                                                             | 52,622   |   |   |   | 44,242 |   |   |   | 74,318 |   |   |   | 157,693 |   |   |   | 227,542 |   |   |   | 33,293 |   |
|                            |   |                                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:        |   |                                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research      and development   |   |                                                             | (695     | ) |   |   | (352 | ) |   |   | (902 | ) |   |   | (8,370 | ) |   |   | (10,148 | ) |   |   | (1,485 | ) |
| Selling      and marketing      |   |                                                             | (14,453  | ) |   |   | (11,181 | ) |   |   | (13,990 | ) |   |   | (29,053 | ) |   |   | (49,383 | ) |   |   | (7,225 | ) |
| General      and administrative |   |                                                             | (14,423  | ) |   |   | (13,913 | ) |   |   | (14,170 | ) |   |   | (50,668 | ) |   |   | (95,425 | ) |   |   | (13,962 | ) |
| Total      operating expenses   |   |                                                             | (29,571  | ) |   |   | (25,446 | ) |   |   | (29,062 | ) |   |   | (88,091 | ) |   |   | (154,956 | ) |   |   | (22,672 | ) |
|                            |   |                                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from operations     |   |                                                             | 23,051   |   |   |   | 18,796 |   |   |   | 45,256 |   |   |   | 69,602 |   |   |   | 72,586 |   |   |   | 10,621 |   |
|                            |   |                                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income (expenses):   |   |                                                             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income            |   |                                                             | 157      |   |   |   | 142 |   |   |   | 117 |   |   |   | 1,818 |   |   |   | 1,259 |   |   |   | 184 |   |
| Interest      expense           |   |                                                             | (224     | ) |   |   | (617 | ) |   |   | (1,263 | ) |   |   | (1,937 | ) |   |   | (3,783 | ) |   |   | (554 | ) |

----

| Income      (loss) from short-term investment                     |   |   | −   |   |   |   | −   |   |   |   | −    |   |   |   | 3,494      |   |   |   | (529)      |   |   |   | (77)       |   |
|-------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
| Loss      from equity method investee                             |   |   | (445      | )      |   |   | (759      | )      |   |   | (135       | )      |   |   |       |   |   |   | (1,280)    |   |   |   | (187)      |   |
| Other      income, net                                            |   |   | 112       |   |   |   | 431       |   |   |   | 27         |   |   |   | 1,078      |   |   |   | 493        |   |   |   | 72         |   |
| Total      other income (expenses)                                |   |   | (400      | )      |   |   | (803      | )      |   |   | (1,254     | )      |   |   | 4,453      |   |   |   | (3,840)    |   |   |   | (562)      |   |
|                                                              |   |   |      |   |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |
| Income      before minority interests and income taxes            |   |   | 22,651    |   |   |   | 17,993    |   |   |   | 44,002     |   |   |   | 74,055     |   |   |   | 68,746     |   |   |   | 10,059     |   |
| Income      tax (expenses) benefits                               |   |   | (1,810    | )      |   |   | (3,462    | )      |   |   | (3,271     | )      |   |   | (5,528     | )      |   |   | 9,538      |   |   |   | 1,395      |   |
|                                                              |   |   |      |   |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |
| Income      before minority interests                             |   |   | 20,841    |   |   |   | 14,531    |   |   |   | 40,731     |   |   |   | 68,527     |   |   |   | 78,284     |   |   |   | 11,454     |   |
| Minority      interests                                           |   |   | (260      | )      |   |   | −   |   |   |   | −    |   |   |   | (1,813)    |   |   |   | 2,711      |   |   |   | 397        |   |
| Net      income                                                   |   |   | 20,581    |   |   |   | 14,531    |   |   |   | 40,731     |   |   |   | 66,714     |   |   |   | 80,995     |   |   |   | 11,851     |   |
|                                                              |   |   |      |   |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |
| Earnings      per share (basic)                                   |   |   | 5.48      |   |   |   | 3.87      |   |   |   | 5.02       |   |   |   | 5.08       |   |   |   | 4.61       |   |   |   | 0.67       |   |
|                                                              |   |   |      |   |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |
| Earnings      per share (fully diluted)                           |   |   | 5.48      |   |   |   | 3.87      |   |   |   | 3.96       |   |   |   | 4.34       |   |   |   | 4.33       |   |   |   | 0.63       |   |
|                                                              |   |   |      |   |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |
| Weighted      average ordinary shares outstanding (basic)         |   |   | 3,754,484 |   |   |   | 3,754,484 |   |   |   | 8,118,335  |   |   |   | 13,144,681 |   |   |   | 17,566,898 |   |   |   | 17,566,898 |   |
|                                                              |   |   |      |   |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |
| Weighted      average ordinary shares outstanding (fully diluted) |   |   | 3,754,484 |   |   |   | 3,754,484 |   |   |   | 10,292,308 |   |   |   | 15,370,197 |   |   |   | 18,691,852 |   |   |   | 18,691,852 |   |

|                                                  |   | As      of December 31, |    |
|-------------------------------------------------------|--------|-------------------------|---------|
|                                                  |   | 2004                    |    |   | 2005 |   |   | 2006 |   |   | 2007 |   |   | 2008 |   |
|                                                  |   | RMB                     |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | USD |   |
|                                                  |   | (in      thousands)     |    |
| Cash                                                  |   |                    | 39,831  |   |   |   | 42,716 |   |   |   | 98,358 |   |   |   | 222,494 |   |   |   | 239,751 |   |   |   | 35,079 |   |
| Trade      accounts receivable                        |   |                    | 49,283  |   |   |   | 55,209 |   |   |   | 116,606 |   |   |   | 203,451 |   |   |   | 280,654 |   |   |   | 41,064 |   |
| Total      current assets                             |   |                    | 104,400 |   |   |   | 144,104 |   |   |   | 305,848 |   |   |   | 572,304 |   |   |   | 647,311 |   |   |   | 94,711 |   |
| Goodwill                                              |   |                    | − |   |   |   | − |   |   |   | 37,274 |   |   |   | 169,362 |   |   |   | 187,816 |   |   |   | 27,480 |   |
| Total      assets                                     |   |                    | 118,277 |   |   |   | 159,137 |   |   |   | 389,141 |   |   |   | 821,747 |   |   |   | 943,887 |   |   |   | 138,104 |   |
| Total      current liabilities                        |   |                    | 73,836  |   |   |   | 101,547 |   |   |   | 141,218 |   |   |   | 315,727 |   |   |   | 367,352 |   |   |   | 53,749 |   |
| Total      liabilities                                |   |                    | 74,107  |   |   |   | 105,539 |   |   |   | 146,511 |   |   |   | 323,450 |   |   |   | 373,328 |   |   |   | 54,623 |   |
| Stockholders’      equity                       |   |                    | 41,168  |   |   |   | 53,599 |   |   |   | 242,629 |   |   |   | 493,098 |   |   |   | 558,536 |   |   |   | 81,722 |   |
| Total      liabilities and stockholders’ equity |   |                    | 118,277 |   |   |   | 159,137 |   |   |   | 389,141 |   |   |   | 821,747 |   |   |   | 943,887 |   |   |   | 138,104 |   |

|     |   | Noon      Buying Rate       |   |
|----------|--------|-----------------------------|--------|
|     |   | PeriodEnd                   |   |   | Average(1) |   |   | High |   |   | Low |   |
|     |   | (Renminbi      per USD1.00) |   |
| 2004     |   |                        | 8.2765 |   |   |   | 8.2768 |   |   |   | 8.2774 |   |   |   | 8.2764 |   |
| 2005     |   |                        | 8.0702 |   |   |   | 8.1936 |   |   |   | 8.2765 |   |   |   | 8.0702 |   |
| 2006     |   |                        | 7.8041 |   |   |   | 7.9723 |   |   |   | 8.0702 |   |   |   | 7.8041 |   |
| 2007     |   |                        | 7.2949 |   |   |   | 7.6058 |   |   |   | 7.8127 |   |   |   | 7.2946 |   |
| 2008     |   |                        | 6.8225 |   |   |   | 6.9477 |   |   |   | 7.2946 |   |   |   | 6.7800 |   |
| November |   |                        | 6.8254 |   |   |   | 6.8281 |   |   |   | 6.8373 |   |   |   | 6.8220 |   |
| December |   |                        | 6.8225 |   |   |   | 6.8539 |   |   |   | 6.8842 |   |   |   | 6.8225 |   |
| 2009     |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January  |   |                        | 6.8283 |   |   |   | 6.8223 |   |   |   | 6.8283 |   |   |   | 6.8089 |   |
| February |   |                        | 6.8258 |   |   |   | 6.8228 |   |   |   | 6.8328 |   |   |   | 6.8188 |   |
| March    |   |                        | 6.8223 |   |   |   | 6.8223 |   |   |   | 6.8291 |   |   |   | 6.8130 |   |
| April    |   |                        | 6.8112 |   |   |   | 6.8177 |   |   |   | 6.8230 |   |   |   | 6.8112 |   |
| May      |   |                        | 6.8143 |   |   |   | 6.8107 |   |   |   | 6.8188 |   |   |   | 6.8059 |   |

----

----

| (1) | Averages      for a period are calculated by using the average of the exchange rates on      the end of each month during the period.  Monthly averages are      calculated by using the average of the daily rates during the relevant      period. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | respond      to increasing competitions in theindustry; |
|--|--------|---------------------------------------------------------|

|  | · | adapt      to changing technologies; |
|--|--------|--------------------------------------|

|  | · | retain      and expand our client base; |
|--|--------|-----------------------------------------|

|  | · | expand      our solution and service offerings; |
|--|--------|-------------------------------------------------|

|  | · | manage      our business expansions, including integration of past and future      acquisitions; |
|--|--------|--------------------------------------------------------------------------------------------------|

|  | · | manage      risks associated with intellectualproperty; |
|--|--------|---------------------------------------------------------|

|  | · | maintain      effective control of our costs and expenses;and |
|--|--------|---------------------------------------------------------------|

|  | · | attract,      retain and motivate qualifiedpersonnel. |
|--|--------|-------------------------------------------------------|

----

|  | · | our      ability to successfully develop, introduce and sell new or enhanced      solutions in a timely manner; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | the      announcement or introduction of new or enhanced solutions by us or our      competitors; |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | any      delays in the completion of our projects;and |
|--|--------|-------------------------------------------------------|

|  | · | the      results of our acquisitions of, or investments in, other businesses or      assets. |
|--|--------|----------------------------------------------------------------------------------------------|

----

|  | · | Our clients may change the way      they make IT spending decisions.  We derive a substantial      majority of our revenues from providing IT solutions, software and      services to China’s banks on a project-by-project basis, and client      relationships play an important role in our ability to win projects from      our clients.  We strive to build long-term relationships with      our clients to increase our competitive advantage over other IT      vendors.  We have recently observed a shift in the      decision-making process for IT spending in China’s banks.  More      decisions are being made at banks’ head offices, instead of provincial      level branches, primarily due to centralization of customer data at the      bank head offices.  Such a shift, or any other change of the      decision maker in our clients, may result in the loss of business      opportunities to competitors who have closer relationships than us with      the new decision-making body within thebank. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Consolidation of our      clients.  There is a continuing trend for financial      institutions in China to consolidate.  Our clients may be      acquired by other financial institutions and adopt the acquirer’s IT      systems.  Also, as these institutions grow in size through      consolidation, they may exert pricing pressure on vendors.  In      addition, as restrictions against foreign ownership in the financial and      insurance industries ease, more foreign investors may acquire stakes in or      form strategic alliances with financial institutions in China, and may      direct or influence management to use IT vendors recommended or favored by      the investor, leading to the loss or reduction of our business with these      existing clients. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Our clients may decide to      develop their IT solutions in-house.  Our clients may      find it more cost-effective to invest in and develop their own      in-house IT capacity rather than relying on third-party vendors, thereby      reducing their purchases of our solutions and services.  For      example, a banking client for which we designed the initial online banking      platform decided to later conduct further online banking development      in-house, and as a result, we were not able to renew our contract with      such client. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Our clients fail to      expand.  The banking industry in China is becoming      increasingly competitive.  Our clients may not successfully      compete with their domestic and foreign competitors in the      future.  If any of our key clients suffer reduced market share      or their results of operations and financial condition are otherwise      adversely affected, they may reduce their IT spending and change expansion      plans for their IT systems, which in turn may materially and adversely      affect our growth and results ofoperations. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  | · | our      limited experience in managing the POS merchant acquiring      business; |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | our      ability to manage our relationships with our  collaborators; |
|--|--------|-----------------------------------------------------------------------|

|  | · | the      low barriers to entry and increasing  competition; |
|--|--------|-------------------------------------------------------------|

|  | · | the      existence of larger more established competitors, in particular China      UnionPay, the predominant player in thefield; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | · | adoption      of credit and debit cards and prepaid store cards as a way of payment by      merchants and consumers in China;and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------|

|  | · | our      ability to deploy additional POSterminals. |
|--|--------|-----------------------------------------------------|

----

----

|  | · | pay      damages to the owner of the technology that we are found to infringe,      which could be substantial; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | cease      making, selling or using solutions that incorporate the infringed      intellectual property; |
|--|--------|----------------------------------------------------------------------------------------------------------|

|  | · | redesign      our solutions around the infringed intellectual property, which may not be      feasible; and |
|--|--------|-------------------------------------------------------------------------------------------------------------|

|  | · | enter      into licensing agreements and pay royalties in order to obtain the right      to use necessarytechnologies. |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

----

|  | · | difficulties      integrating acquired businesses and retaining necessary personnel to run      such businesses; |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | entry      into unfamiliar markets; |
|--|--------|-------------------------------------|

|  | · | unforeseen      or hidden liabilities; |
|--|--------|----------------------------------------|

----

|  | · | need      for financial resources beyond our planned  levels; |
|--|--------|---------------------------------------------------------------|

|  | · | inability      to generate sufficient revenues and profits to offset acquisition      costs; |
|--|--------|----------------------------------------------------------------------------------------------|

|  | · | failures      in realizing anticipated synergies;and |
|--|--------|------------------------------------------------------|

|  | · | potential      loss of or harm to relationships with employees and clients resulting from      our integration of the acquiredbusinesses. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

----

----

|  | · | actual      or anticipated fluctuations in our quarterly results of      operations; |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | changes      in financial estimates by securities research  analysts; |
|--|--------|-----------------------------------------------------------------------|

|  | · | announcements      by us or our competitors of acquisitions, strategic partnerships, joint      ventures or capital commitments; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------|

|  | · | the      addition or departure of keypersonnel; |
|--|--------|-------------------------------------------------|

|  | · | the      addition or loss of key clients; |
|--|--------|-------------------------------------------|

|  | · | fluctuations      of exchange rates between the Renminbi and the U.S.  dollar; |
|--|--------|--------------------------------------------------------------------------------|

|  | · | intellectual      property litigation; |
|--|--------|----------------------------------------|

|  | · | the      release from or expiration of lock-up or other transfer restrictions on      our outstanding ordinary shares or sales of additional shares;      and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | general      economic or political conditions in China and the United      States. |
|--|--------|------------------------------------------------------------------------------------|

----

| ITEM      4. | INFORMATION ON      THE COMPANY |
|--------------|---------------------------------|

----

|  | (1) | USD4,960,000,      if we receive an aggregate of USD34,250,000 in gross proceeds from an      additional financing, including, but not limited to, (a) exercise of our      warrants, (b) our successful completion of a secondary offering, or (c)      the private investment into us by a strategic  investor; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | USD1,000,000,      if the average closing price of our stock in any 60 consecutive trading      days of the year, or the Average Share Price, is above USD10.00 in      2006; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | USD2,000,000,      if the Average Share Price is above USD12.00 in any 60 consecutive trading      days of 2007; and |
|--|-----|----------------------------------------------------------------------------------------------------------------------|

|  | (4) | USD3,000,000,      if the Average Share Price is above USD14.4 in any 60 consecutive trading      days of 2008; |
|--|-----|-----------------------------------------------------------------------------------------------------------------|

| Year      Ending December 31, |   | Net      Profit      |
|-------------------------------|--------|----------------------|
| 2007                          |   | USD8.5      million  |
| 2008                          |   | USD11.9      million |
| 2009                          |   | USD16.7      million |
| 2010                          |   | USD23.3      million |

----

|  | · | a      100% interest of Sunrisk, a provider of risk management solutions and      services to China’s banks; subsequently in April 2008, we sold a 49%      interest in Sunrisk tothird-parties. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | a      100% interest of Easycon, a provider of IT solutions and service to SMBs      in China; |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | a      100% interest of Recency, a provider of business intelligence solutions      and consulting services to China’s banks;and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a      100% interest of both Fujie and Fuyi, two related companies focused on ERP      management consulting and project  implementation. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Tier 1 - State-controlled      commercial banks. Commonly      known as the “Big Four,” this group is comprised of the Industrial and      Commercial Bank of China, Bank of China, China Construction Bank and the      Agricultural Bank of China. These four banks are the largest among China’s      domestic banks in terms of assets, deposit base, loan portfolio and      nationwide branch network. According to the 2007 IDC Report, the Big Four      together account for over 50% of bank assets in China. In recent years,      three members of the Big Four, i.e., the Industrial and Commercial Bank of      China, Bank of China and China Construction Bank, have completed an      initial public offering and listing of their shares on the Hong Kong Stock      Exchange. Although the Big Four have substantial in-house IT capabilities,      we believe that, given their status as overseas listed companies on      foreign exchanges and their needs to achieve global best practices; they      will continually need to use third-party IT solution and service      providers. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Tier 2 – National commercial      banks. More commonly referred to as “Joint-Stock” banks, this group      comprises of 13 other national commercial banks, which are owned by a      combination of government entities, state-owned enterprises and other      investors. Many members of this group, such as Bank of Communications,      China Merchants Bank, China Minsheng Banking Corporation, Huaxia Bank,      Shanghai Pudong Development Bank and Shenzhen Development Bank, are listed      domestically and/or in Hong Kong. Joint-Stock banks generally have the      financial resources necessary to maintain sufficient in-house IT      capabilities to meet their needs. However, we believe that they are in      substantial need of third-party expertise to enable them to sustain the      growth rates that they have achieved in recent  years. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Tier 3 – Small and      Medium-sized Banks (SMBs). According to IDC, in 2007 this group      comprised 124 city commercial banks and over 8,520 cooperatives (including      rural commercial banks and rural cooperative banks). We believe that most      of the SMBs lack both the financial resources and in-house IT expertise      needed to either scale up operations or to meet increasingly stringent      regulatory requirements. As such, we believe they are most likely to      allocate a majority of their IT spending to third-party providers such as      us. Although foreign banks possess the financial resources, they are not      familiar with local market practices and the regulatory requirements and      often require the assistance of China’s domestic IT service      providers. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Central bank and policy      banks. The People’s Bank of China, or PBOC, is PRC’s central bank,      which formulates China’s monetary policies and implements, such policies      through a number of means, such as setting deposit reserves, interest      rates and foreign exchange rates. In addition, there are three policy      banks in China: the Agricultural Development Bank of China, China      Development Bank and the Export-Import Bank of China. These policy banks      were established in the mid-1990s as a result of banking reforms to assume      the government driven policy lending functions from the Big Four. China      Development Bank is in the process of transforming from a policy bank to a      national commercial bank. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | extensive      experience in providing the specific services  required; |
|--|--------|-------------------------------------------------------------------------|

|  | · | ability      to proactively identify and address additional issues that may be      encountered with a given client’s IT operations for a project initially      undertaken for differentobjectives; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | ability      to complete the overall project and interim project milestones on timely      basis; |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | ability      to deliver solutions and services on budget for each    project; |
|--|--------|-------------------------------------------------------------------------------|

|  | · | best-in-class      solutions which can be implemented quickly and cost effectively and which      leverage prior solution developmentexperience; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | flexible      project staffing and resource allocation that best meets the project’s      scope, scale and length; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

|  | · | client      access to the deepest and most valuable technical and industry-specific      expertise, such as highly experienced senior staff  members. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Channel Solutions.      Channel Solutions are designed to facilitate banks’ interactions with      their customers, to improve communication and transaction efficiency and      to enhance the overall customer banking experience. Channel Solutions      include: customized online banking solutions, our E-Banking ASP and call      center solutions, which allow our clients serve their customers in a more      timely and cost effective manner. Our solutions automate our clients’      operations and allow them to better track performance of different      interaction methods. According to a June 2008 report issued by IDC, a      third-party research organization, we ranked second among all of the      banking IT solution providers in China for Channel Solutions as measured      by 2007 revenues. In 2006, 2007 and 2008, our revenues from Channel      Solutions were RMB19.4 million, RMB49.4 million and RMB97.7 million,      respectively, representing a CAGR of 124.4%, and accounted for 6.7%, 11.3%      and 14.4% of our total revenues,respectively. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Management Solutions.      Management Solutions help banks to collect and analyze data, so that they      can monitor and manage risks and performance in a timely manner, as well      as business intelligence. These solutions support intelligent data      analysis to enhance management reporting and sound decision making. We      provide a suite of consulting and implementation services in risk and      performance management, such as asset and liability management, funds      transfer pricing and profitability analysis. In 2006, 2007 and 2008, our      revenues from Management Solutions were RMB50.4 million, RMB97.5 million      and RMB93.9 million, respectively, representing a CAGR of 36.5% and      accounted for 17.4%, 22.4% and 13.9% of our total revenues,      respectively. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Business Solutions. Our      Business Solutions include a wide range of transaction-related solutions,      such as core-banking, foreign exchange and loan management. We provide our      core banking solutions, which manage all operations relevant to deposit      and loan accounts, principally to SMBs, as they usually lack the internal      IT capabilities needed to develop and maintain their own systems. In 2006,      2007 and 2008, our revenues from Business Solutions were RMB10.7 million,      RMB45.5 million and RMB72.3million, respectively, representing a CAGR of      160.0%, and accounted for 3.7%, 10.5% and 10.7% of our total revenues,      respectively. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Platform Services.      Platform Services is comprised in large part of our former System      Integration business. As a total solutions provider, our Platform Services      assists our clients with the selection of appropriate third-party hardware      or software, manufacturer negotiations (proposals, bids and pricing terms)      and, as required, installation support and testing of the third-party      hardware and software. We can also integrate the new equipment and      software with our clients’ existing IT architecture.In 2006, 2007 and 2008,      our revenues from platform services were RMB190.2 million, RMB204.9      million and RMB339.7 million, respectively, representing a CAGR of 33.6%,      and accounted for 65.7%, 47.0% and 50.2% of our total revenues,      respectively. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Maintenance & Ancillary      Services. Comprised mainly of our former IT Services business, this      category focuses on the maintenance and support services that we provide      after a project is completed. In addition, we perform limited agency      services where we procure third-party IT equipment for other system      integrators and charge a commission. We record these revenues as      Maintenance & Ancillary Services. In 2006, 2007 and 2008, our      maintenance and ancillary services revenue amounted to RMB18.9 million,      RMB34.6 million and RMB58.7 million, respectively, representing a CAGR of      75.8%, and accounted for 6.5%, 7.9% and 8.7% of our total revenues,      respectively. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | bear      the up-front sales and marketingcosts |
|--|--------|-------------------------------------------------|

|  | · | supply      and install the POS terminals |
|--|--------|-------------------------------------------|

|  | · | install      software to connect the POS terminals with the bank’s payment processing      network |
|--|--------|----------------------------------------------------------------------------------------------------------|

----

|  | · | provide      the training and ongoingmaintenance |
|--|--------|--------------------------------------------------|

|  | · | supply      consumables |
|--|--------|-------------------------|

|  | · | other      merchant support services |
|--|--------|--------------------------------------|

----

----

----

----

|  | · | Project setup. We      conduct feasibility and margin analysis before the set-up of each project,      which requires approval of the sales, pre-sales implementation and      technology management teams. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Project planning.      Following project setup approval, the project manager designs the overall      project plan, including estimates for workload and costs, so that      necessary resources can beallocated. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Project monitoring. Our      project manager then tracks the project’s progress and results are      presented both internally and to the client, through various project      progress reports. Any changes to the scope of the project need to be      approved from our sales, pre-sales implementation and technology      management teams. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Risk management. We      estimate potential risks upon project setup, and establish relevant      strategies and measures to respond to any such risks to minimize their      impact. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Quality assurance. We      conduct frequent tests and examinations to ensure the quality of our      solutions and services. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

|  | · | Client satisfaction      survey. We regularly distribute a client satisfaction questionnaire      to our clients during project implementation and adopt appropriate      measures to address any issuesraised. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Project closing. Our      sales, pre-sales implementation and technology management teams need to      approve the completion of each project, and we assess the overall the      project achievements and financialreturn. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Needs analysis. The      first step of our project development is to understand our client’s      business needs for the project. We carry out frequent communications with      our client and conduct extensive analyses of their needs based on their      business and current IT system. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | System design. Based on      our understanding of our client’s business needs, we design the overall      system architecture, including databases, customer interfaces and modules      to best address such needs. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Coding and module      testing. Once we have a system design or part of the system design      to meet our client’s requirements, we start coding individual functional      modules. Each of our functional modules is tested and debugged      individually to ensure quality and  functionality. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | System testing. After      we finish coding and testing the individual modules, we start connecting      the modules and performing testing at the system  level. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | System test run and client      examination. After the system passes system testing, we then      install it at our client’s site and conduct a real data test run with our      client. We work closely with our client to address and resolve any issues      that may come up during the test run and client    examination. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | System delivery and      maintenance. After passing client examination, the system is      delivered to our client and the project development cycle is closed.      Generally, we provide one year of maintenance and support for most of our      solutions. We assign an employee as the principal contact person to      receive client feedback, evaluate the severity of any problem arising from      the use of the IT solution, resolve the problem and maintain an issue      log. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Company            |   | Percentage |   |
|--------------------|--------|------------|--------|
| Teamsun            |   |       | 11.0   | % |
| Digital      China |   |       | 10.4   | % |
| eSOON              |   |       | 10.1   | % |
| HP                 |   |       | 10.1   | % |

----

----

|  | · | The      Interim Administration Measures for Qualification of Systems Integration      of Computer Information (1999); |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

|  | · | The      Certification Standards and Administration Measures of Software      Enterprises (2000); |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | The      Appraisal Condition for Qualification Grade of Systems Integration of      Computer Information (Revised Version)(2003); |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | · | Certain      Policies for Encouraging Development of the Software Industry and      Integrated Circuits Industry(2000); |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

|  | · | The      Software Products Administration Measures  (2000); |
|--|--------|-------------------------------------------------------------|

|  | · | The      Interim Administration Measures for Qualification of Systems Integration      of Computer Information Concerning State Secrets  (2001); |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The      Administrative Measures on Verification of Key Software Enterprises within      the State Plan (2005); |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | The      Administrative Regulation for Commercial Cryptogram (1999);      and |
|--|--------|-------------------------------------------------------------------------------|

|  | · | The      Administrative Measures on Examination and Sales Licensing of Security      Products for Computer Information Systems  (1997). |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| ITEM      4A. | UNRESOLVED      STAFF COMMENTS |
|---------------|--------------------------------|

| ITEM 5. | OPERATING AND FINANCIAL REVIEW AND      PROSPECTS |
|---------|---------------------------------------------------|

----

|  | · | Our      Software & Solutions revenue grew from RMB80.5 million in 2006 to      RMB192.4 in 2007 and to RMB263.9 million (USD38.6million) in 2008,      representing a CAGR of 81.1%. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Our      Platform & Maintenance Services revenue grew from RMB209.2 million in      2006 to RMB239.5 million in 2007 and to RMB398.3 million (USD58.3 million)      in 2008, representing a CAGR of38.0%. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Our      POS business was established in 2007 and revenues grew from RMB3.6 million      in 2007 to RMB14.6million (USD2.1 million) in  2008. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | As      a result our gross margins were 25.7% in 2006, 36.2% in 2007 and 33.6% in      2008. |
|--|--------|----------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

----

----

|                                                   |   | For      the Year Ended December 31,    |     |
|--------------------------------------------------------|--------|-----------------------------------------|----------|
|                                                   |   | 2006                                    |     |   | 2007 |   |   | 2008 |   |
|                                                   |   | RMB                                     |     |   | % |   |   | RMB |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |
|                                                   |   | (in      thousands, except percentages) |     |
| Revenues                                               |   |                                    | 289,650  |   |   |   | 100.0 |   |   |   | 435,519 |   |   |   | 100.0 |   |   |   | 676,819 |   |   |   | 99,028 |   |   |   | 100.0 |   |
| Cost      of revenues                                  |   |                                    | (215,332 | ) |   |   | (74.3 | ) |   |   | (277,826 | ) |   |   | (63.8 | ) |   |   | (449,277 | ) |   |   | (65,735 | ) |   |   | (66.4 | ) |
| Gross      profit                                      |   |                                    | 74,318   |   |   |   | 25.7 |   |   |   | 157,693 |   |   |   | 36.2 |   |   |   | 227,542 |   |   |   | 33,293 |   |   |   | 33.6 |   |
| Operating      expenses                                |   |                                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research      and development expenses                 |   |                                    | (902     | ) |   |   | (0.3 | ) |   |   | (8,370 | ) |   |   | (1.9 | ) |   |   | (10,148 | ) |   |   | (1,485 | ) |   |   | (1.5 | ) |
| Selling      and marketing expenses                    |   |                                    | (13,990  | ) |   |   | (4.8 | ) |   |   | (29,053 | ) |   |   | (6.7 | ) |   |   | (49,383 | ) |   |   | (7,225 | ) |   |   | (7.3 | ) |
| General      and administrative expenses               |   |                                    | (14,170  | ) |   |   | (4.9 | ) |   |   | (50,668 | ) |   |   | (11.6 | ) |   |   | (95,425 | ) |   |   | (13,962 | ) |   |   | (14.1 | ) |
| Total      operating expenses                          |   |                                    | (29,062  | ) |   |   | (10.0 | ) |   |   | (88,091 | ) |   |   | (20.2 | ) |   |   | (154,956 | ) |   |   | (22,672 | ) |   |   | (22.9 | ) |
| Income      from operations                            |   |                                    | 45,256   |   |   |   | 15.6 |   |   |   | 69,602 |   |   |   | 16.0 |   |   |   | 72,586 |   |   |   | 10,621 |   |   |   | 10.7 |   |
| Other      income (expenses)                           |   |                                    | (1,254   | ) |   |   | (0.4 | ) |   |   | 4,453 |   |   |   | 1.0 |   |   |   | (3,840 | ) |   |   | (562 | ) |   |   | (0.6 | ) |
| Income      before minority interests and income taxes |   |                                    | 44,002   |   |   |   | 15.2 |   |   |   | 74,055 |   |   |   | 17.0 |   |   |   | 68,746 |   |   |   | 10,059 |   |   |   | 10.2 |   |
| Income      tax (expenses) benefit                     |   |                                    | (3,271   | ) |   |   | (1.1 | ) |   |   | (5,528 | ) |   |   | (1.3 | ) |   |   | 9,538 |   |   |   | 1,395 |   |   |   | 1.4 |   |
| Income      before minority interests                  |   |                                    | 40,731   |   |   |   | 14.1 |   |   |   | 68,527 |   |   |   | 15.7 |   |   |   | 78,284 |   |   |   | 11,454 |   |   |   | 11.6 |   |
| Minority      interests                                |   |                                    | −  |   |   |   | − |   |   |   | (1,813 | ) |   |   | (0.4 | ) |   |   | 2,711 |   |   |   | 397 |   |   |   | 0.4 |   |
| Net      income                                        |   |                                    | 40,731   |   |   |   | 14.1 |   |   |   | 66,714 |   |   |   | 15.3 |   |   |   | 80,995 |   |   |   | 11,851 |   |   |   | 12.0 |   |

----

----

|                                |   | For the Year Ended December 31, |    |
|------------------------------------------|--------|----------------------------------------------------------|---------|
|                                |   | 2006                                                     |    |   | 2007 |   |   | 2008 |   |
|  Revenues by sources      |   | Amount                                                   |    |   | % of total |   |   | Amount |   |   | % oftotal |   |   | % changefrom2006 |   |   | Amount |   |   | % oftotal |   |   | % changefrom2007 |   |
|                                |   | RMB                                                      |    |   | % |   |   | RMB |   |   | % |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |   | % |   |
|                                     |   | (in thousands, except percentages)        |    |
| Software      & Solutions            |   |                                                     | 80,486  |   |   |   | 68.4 |   |   |   | 192,383 |   |   |   | 75.8 |   |   |   | 139.0 |   |   |   | 263,881 |   |   |   | 38,610 |   |   |   | 71.1 |   |   |   | 37.2 |   |
| POS                                      |   |                                                     | -       |   |   |   | - |   |   |   | 3,644 |   |   |   | 1.4 |   |   |   | - |   |   |   | 14,622 |   |   |   | 2,139 |   |   |   | 3.9 |   |   |   | 301.3 |   |
| Platform      & Maintenance Services |   |                                                     | 37,238  |   |   |   | 31.6 |   |   |   | 57,815 |   |   |   | 22.8 |   |   |   | 55.3 |   |   |   | 92,677 |   |   |   | 13,560 |   |   |   | 25.0 |   |   |   | 60.3 |   |
| Total                                    |   |                                                     | 117,724 |   |   |   | 100.0 |   |   |   | 253,842 |   |   |   | 100.0 |   |   |   | 115.6 |   |   |   | 371,180 |   |   |   | 54,309 |   |   |   | 100.0 |   |   |   | 46.2 |   |

|                                |   | For the Year Ended December 31, |                |
|------------------------------------------|--------|----------------------------------------------------------|---------------------|
|                                |   | 2006                                                     |                |   | 2007 |   |   | 2008 |   |
|  Revenues by sources      |   | Amount                                                   |                |   | % of      total |   |   | Amount |   |   | % oftotal |   |   | % changeFrom2006 |   |   | Amount |   |   | % oftotal |   |   | % changefrom2007 |   |
|                                |   | RMB                                                      |                |   | % |   |   | RMB |   |   | % |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |   | % |   |
|                                     |   | (in thousands, except percentages)        |                |
| Software      & Solutions            |   |                                                     | 80,486              |   |   |   | 27.8 |   |   |   | 192,383 |   |   |   | 44.2 |   |   |   |  139.0 |   |   |   | 263,881 |   |   |   | 38,610 |   |   |   | 39.0 |   |   |   |  37.2 |   |
| POS                                      |   |                                                     | -                   |   |   |   | - |   |   |   | 3,644 |   |   |   | 0.8 |   |   |   | - |   |   |   | 14,622 |   |   |   | 2,139 |   |   |   | 2.1 |   |   |   | 301.3 |   |
| Platform      & Maintenance Services |   |                                                     |  209,164  |   |   |   |  72.2  |   |   |   |  239,492  |   |   |   |  55.0 |   |   |   |        14.5 |   |   |   |  398,316 |   |   |   |  58,279 |   |   |   |  58.9 |   |   |   | 66.3 |   |
| Total                                    |   |                                                     | 289,650             |   |   |   | 100.0 |   |   |   | 435,519 |   |   |   | 100.0 |   |   |   |  50.4 |   |   |   | 676,819 |   |   |   | 99,028 |   |   |   | 100.0 |   |   |   | 55.4 |   |

|                                                   |   | For the Year Ended December 31, |         |
|-------------------------------------------------------------|--------|----------------------------------------------------------|--------------|
|                                                   |   | 2006                                                     |         |   | 2007 |   |   | 2008 |   |
| Software & Solutionsrevenue by type |   | Amount                                                   |         |   | % oftotal |   |   | Amount |   |   | % oftotal |   |   | % changefrom 2006 |   |   | Amount |   |   | % of      total |   |   | % changefrom 2007 |   |
|                                                   |   | RMB                                                      |         |   | % |   |   | RMB |   |   | % |   |   | % |   |   | RMB  |   |   | USD |   |   | % |   |   | % |   |
|                                                        |   | (in thousands, except percentages)        |         |
| Channel      Solutions                                      |   |                                                     | 19,432       |   |   |   | 24.1 |   |   |   | 49,365 |   |   |   | 25.7 |   |   |   | 154.0 |   |   |   | 97,748 |   |   |   | 14,302 |   |   |   | 37.0 |   |   |   | 98.0 |   |
| Management      Solutions                                   |   |                                                     | 50,361       |   |   |   | 62.6 |   |   |   | 97,494 |   |   |   | 50.7 |   |   |   | 93.6 |   |   |   | 93,850 |   |   |   | 13,732 |   |   |   | 35.6 |   |   |   | (3.7 | )   |
| Business      Solutions                                     |   |                                                     |  10,693 |   |   |   | 13.3 |   |   |   | 45,524 |   |   |   |  23.6 |   |   |   | 325.7 |   |   |   | 72,283 |   |   |   |  10,576 |   |   |   | 27.4 |   |   |   | 58.8 |   |
| Total                                                       |   |                                                     | 80,486       |   |   |   | 100.0 |   |   |   | 192,383 |   |   |   | 100.0 |   |   |   | 139.0 |   |   |   | 263,881 |   |   |   | 38,610 |   |   |   | 100.0 |   |   |   | 37.2 |   |

----

|                                    |   | For the Year Ended December 31, |         |
|----------------------------------------------|--------|----------------------------------------------------------|--------------|
|                                    |   | 2006                                                     |         |   | 2007 |   |   | 2008 |   |
| Revenues byclient type             |   | Amount                                                   |         |   | % of      total |   |   | Amount |   |   | % of total |   |   | % changefrom2006 |   |   | Amount |   |   | % of total |   |   | % changefrom2007 |   |
|                                    |   | RMB                                                      |         |   | % |   |   | RMB |   |   | % |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |   | % |   |
|                                         |   | (in thousands, except percentages)        |         |
| Top      Four Banks      (Tier      I)       |   |                                                     | 224,228      |   |   |   | 77.4 |   |   |   | 266,127 |   |   |   | 61.1 |   |   |   | 18.7 |   |   |   | 381,853 |   |   |   | 55,871 |   |   |   | 56.4 |   |   |   | 43.5 |   |
| Joint-Stock      Banks (Tier      II)        |   |                                                     | 17,656       |   |   |   | 6.1 |   |   |   | 49,757 |   |   |   | 11.4 |   |   |   | 181.8 |   |   |   | 107,341 |   |   |   | 15,706 |   |   |   | 15.9 |   |   |   | 115.7 |   |
| SMBs      (Tier      III) and Other Banks(1) |   |                                                     | 9,472        |   |   |   | 3.3 |   |   |   | 70,883 |   |   |   | 16.3 |   |   |   | 648.3 |   |   |   | 115,784 |   |   |   | 16,941 |   |   |   | 17.1 |   |   |   | 63.3 |   |
| Other                                        |   |                                                     |  38,294 |   |   |   |  13.2 |   |   |   |  48,752 |   |   |   |  11.2 |   |   |   | 27.3 |   |   |   |  71,841 |   |   |   |  10,510 |   |   |   |  10.6 |   |   |   | 47.4 |   |
| Total                                        |   |                                                     | 289,650      |   |   |   | 100.0 |   |   |   | 435,519 |   |   |   | 100.0 |   |   |   | 50.4 |   |   |   | 676,819 |   |   |   | 99,028 |   |   |   | 100.0 |   |   |   | 55.4 |   |

----

| (1)  |         Includes PBOC and policy banks. |
|-----------|---------------------------------------------------|

----

|                                            |   | For the Year Ended December 31, |   |
|------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                            |   | 2006                                                     |   |   | 2007 |   |   | 2008 |   |
| Software &Solutions byclient type |   | Amount                                                   |   |   | % of total |   |   | Amount |   |   | % of total |   |   | %changefrom2006 |   |   | Amount |   |   | % of total |   |   | %changefrom2007 |   |
|                                            |   | RMB                                                      |   |   | % |   |   | RMB |   |   | % |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |   | % |   |
|                                            |   | (in thousands, except percentages)        |   |
| Top      Four Banks      (Tier      I)               |   |                                                     | 53,846 |   |   |   | 66.9 |   |   |   | 96,947 |   |   |   | 50.4 |   |   |   | 80.0 |   |   |   | 119,455 |   |   |   | 17,478 |   |   |   | 45.3 |   |   |   | 23.2 |   |
| Joint-Stock      Banks (Tier      II)                |   |                                                     | 4,969  |   |   |   | 6.2 |   |   |   | 25,530 |   |   |   | 13.3 |   |   |   | 413.8 |   |   |   | 65,562 |   |   |   | 9,593 |   |   |   | 24.8 |   |   |   | 156.8 |   |
| SMBs      (Tier III)and Other      Banks(1)          |   |                                                     | 2,865  |   |   |   | 3.6 |   |   |   | 55,263 |   |   |   | 28.7 |   |   |   | 1828.9 |   |   |   | 42,999 |   |   |   | 6,291 |   |   |   | 16.3 |   |   |   | (22.2) |   |
| Other                                                |   |                                                     | 18,806 |   |   |   | 23.3 |   |   |   | 14,643 |   |   |   | 7.6 |   |   |   | (22.1) |   |   |   | 35,865 |   |   |   | 5,248 |   |   |   | 13.6 |   |   |   | 144.9 |   |
| Total                                                |   |                                                     | 80,486 |   |   |   | 100.0 |   |   |   | 192,383 |   |   |   | 100.0 |   |   |   | 139.0 |   |   |   | 263,881 |   |   |   | 38,610 |   |   |   | 100.0 |   |   |   | 37.2 |   |

----

| (1)  | Includes PBOC and policy      banks. |
|-----------|--------------------------------------|

|                                     |   | For the Year Ended December 31, |    |
|------------------------------------------|--------|----------------------------------------------------------|---------|
|                                |   | 2006                                                     |    |   | 2007 |   |   | 2008 |   |
|                                |   | Amount                                                   |    |   | % of total |   |   | Amount |   |   | % of total |   |   | Amount |   |   | % of total |   |
|                                |   | RMB                                                      |    |   | % |   |   | RMB |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |
| Cost of revenues               |   | (in thousands, except percentages)        |    |
| Software      & Solutions            |   |                                                     | (35,740 | ) |   |   | (82.3 | ) |   |   | (82,621 | ) |   |   | 85.9 |   |   |   | (118,167 | ) |   |   | (17,290 | ) |   |   | 82.3 |   |
| POS                                      |   |                                                     | -       |   |   |   | - |   |   |   | (1,088) |   |   |   | 1.1 |   |   |   | (9,157) |   |   |   | (1,339 | ) |   |   | 6.4 |   |
| Platform      & Maintenance Services |   |                                                     | (7,666  | ) |   |   | (17.7 | ) |   |   | (12,440 | ) |   |   | 13.0 |   |   |   | (16,314 | ) |   |   | (2,387) |   |   |   | 11.3 |   |
| Total                                    |   |                                                     | (43,406 | ) |   |   | (100.0 | ) |   |   | (96,149 | ) |   |   | 100.0 |   |   |   | (143,638 | ) |   |   | (21,016 | ) |   |   | 100.0 |   |

----

|                                     |   | For the Year Ended December    31,      |     |
|------------------------------------------|--------|-----------------------------------------|----------|
|                                     |   | 2006                                    |     |   | 2007 |   |   | 2008 |   |
|                                     |   | Amount                                  |     |   | % of total |   |   | Amount |   |   | % of total |   |   | Amount |   |   | % of total |   |
|                                     |   | RMB                                     |     |   | % |   |   | RMB |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |
| Cost      of revenues                    |   | (in      thousands, except percentages) |     |
| Software      & Solutions            |   |                                    | (35,740  | ) |   |   | 16.6 |   |   |   | (82,621 | ) |   |   | 29.7 |   |   |   | (118,167 | ) |   |   | (17,290 | ) |   |   | 26.3 |   |
| POS                                      |   |                                    |     |   |   |   |   |   |   |   | (1,088) |   |   |   | 0.4 |   |   |   | (9,157) |   |   |   | (1,339 | ) |   |   | 2.0 |   |
| Platform      & Maintenance Services |   |                                    | (179,592 | ) |   |   | 83.4 |   |   |   | (194,117 | ) |   |   | 69.9 |   |   |   | (321,953 | ) |   |   | (47,106) |   |   |   | 71.7 |   |
| Total                                    |   |                                    | (215,332 | ) |   |   | 100.0 |   |   |   | (277,826 | ) |   |   | 100.0 |   |   |   | (449,277 | ) |   |   | (65,735 | ) |   |   | 100.0 |   |

----

|                                |   | For the Year Ended December 31, |   |
|------------------------------------------|--------|----------------------------------------------------------|--------|
|                                |   | 2006                                                     |   |   | 2007 |   |   | 2008 |   |
|                                |   | Grossprofit                                              |   |   | Grossmargin |   |   | Grossprofit |   |   | Grossmargin |   |   | Gross profit |   |   | Grossmargin |   |
|                                |   | RMB                                                      |   |   | % |   |   | RMB |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |
|                                     |   | (in thousands, except percentages)        |
| Software      & Solutions            |   |                                                     | 44,746 |   |   |   | 55.6 |   |   |   | 109,762 |   |   |   | 57.1 |   |   |   | 145,714 |   |   |   | 21,320 |   |   |   | 55.2 |   |
| POS                                      |   |                                                     |   |   |   |   |   |   |   |   | 2,556 |   |   |   | 70.1 |   |   |   | 5,465 |   |   |   | 800 |   |   |   | 37.4 |   |
| Platform      & Maintenance Services |   |                                                     | 29,572 |   |   |   | 79.4 |   |   |   | 45,375 |   |   |   | 78.5 |   |   |   | 76,363 |   |   |   | 11,173 |   |   |   | 82.4 |   |
| Total                                    |   |                                                     | 74,318 |   |   |   | 63.1 |   |   |   | 157,693 |   |   |   | 62.1 |   |   |   | 227,542 |   |   |   | 33,293 |   |   |   | 61.3 |   |

|                                |   | For the Year Ended December 31, |   |
|------------------------------------------|--------|----------------------------------------------------------|--------|
|                                |   | 2006                                                     |   |   | 2007 |   |   | 2008 |   |
|                                |   | Grossprofit                                              |   |   | Grossmargin |   |   | Grossprofit |   |   | Grossmargin |   |   | Gross profit |   |   | Grossmargin |   |
|                                |   | RMB                                                      |   |   | % |   |   | RMB |   |   | % |   |   | RMB |   |   | USD |   |   | % |   |
|                                     |   | (in thousands, except percentages)        |
| Software      & Solutions            |   |                                                     | 44,746 |   |   |   | 55.6 |   |   |   | 109,762 |   |   |   | 57.1 |   |   |   | 145,714 |   |   |   | 21,320 |   |   |   | 55.2 |   |
| POS                                      |   |                                                     | -      |   |   |   | - |   |   |   | 2,556 |   |   |   | 70.1 |   |   |   | 5,465 |   |   |   | 800 |   |   |   | 37.4 |   |
| Platform      & Maintenance Services |   |                                                     | 29,572 |   |   |   | 14.1 |   |   |   | 45,375 |   |   |   | 18.9 |   |   |   | 76,363 |   |   |   | 11,173 |   |   |   | 19.2 |   |
| Total                                    |   |                                                     | 74,318 |   |   |   | 25.7 |   |   |   | 157,693 |   |   |   | 36.2 |   |   |   | 227,542 |   |   |   | 33,293 |   |   |   | 33.6 |   |

|                                |   | For the Year Ended December 31, |    |
|------------------------------------------|--------|----------------------------------------------------------|---------|
|                                |   | 2006                                                     |    |   | 2007 |   |   | 2008 |   |
|                                |   | RMB                                                      |    |   | RMB |   |   | RMB |   |   | USD |   |
|                                |   | (in thousands)                                      |    |
| Research      and development expenses   |   |                                                     | (902    | ) |   |   | (8,370 | ) |   |   | (10,148 | ) |   |   | (1,485 | ) |
| Selling      and marketing expenses      |   |                                                     | (13,990 | ) |   |   | (29,053 | ) |   |   | (49,383 | ) |   |   | (7,225 | ) |
| General      and administrative expenses |   |                                                     | (14,170 | ) |   |   | (50,668 | ) |   |   | (95,425 | ) |   |   | (13,962 | ) |
| Total                                    |   |                                                     | (29,062 | ) |   |   | (88,091 | ) |   |   | (154,956 | ) |   |   | (22,672 | ) |

----

----

|                                                   |   | For the Year Ended December 31, |   |
|--------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                              |   | 2006                                                     |   |   | 2007 |   |   | 2008 |   |
|                                              |   | RMB                                                      |   |   | RMB |   |   | RMB |   |   | USD |   |
|                                              |   | (in thousands)                                      |   |
| Value-added      tax refund for software products sold |   |                                                     | 1,281  |   |   |   | 2,554 |   |   |   | 4,318 |   |   |   | 632 |   |
| Technology      subsidy                                |   |                                                     | 1,041  |   |   |   | 3,303 |   |   |   | 1,314 |   |   |   | 192 |   |
| Business      tax and surcharges refund                |   |                                                     | -      |   |   |   | 1,460 |   |   |   | - |   |   |   | - |   |
| Others                                                 |   |                                                     | 838    |   |   |   | - |   |   |   | 531 |   |   |   | 78 |   |
| Total                                                  |   |                                                     | 3,160  |   |   |   | 7,317 |   |   |   | 6,163 |   |   |   | 902 |   |

----

----

|                                         |   | As of December 31, |   |
|---------------------------------------------------|--------|-----------------------------------|--------|
|                                         |   | 2006                              |   |   | 2007 |   |   | 2008 |   |
|                                         |   | RMB                               |   |   | RMB |   |   | RMB |   |   | USD |   |
|                                         |   | (in thousands)               |   |
| Short-term      bank borrowings                   |   |                              | 32,000 |   |   |   | 35,000 |   |   |   | 60,000 |   |   |   | 8,779 |   |
| Current      portion of long-term bank borrowings |   |                              | 3,500  |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Total                                             |   |                              | 35,500 |   |   |   | 35,000 |   |   |   | 60,000 |   |   |   | 8,779 |   |

----

|                                                |   | For the Year Ended December 31, |    |
|----------------------------------------------------------|--------|----------------------------------------------------------|---------|
|                                                |   | 2006                                                     |    |   | 2007 |   |   | 2008 |   |
|                                                |   | RMB                                                      |    |   | RMB |   |   | RMB |   |   | USD |   |
|                                                |   | (in thousands)                                      |    |
| Net      cash (used in) provided by operating activities |   |                                                     | (13,460 | ) |   |   | (33,321 | ) |   |   | 106,315 |   |   |   | 15,555 |   |
| Net      cash used in investing activities               |   |                                                     | (54,059 | ) |   |   | (62,576 | ) |   |   | (88,820 | ) |   |   | (12,995 | ) |
| Net      cash provided by (used in) financing activities |   |                                                     | 123,161 |   |   |   | 220,033 |   |   |   | (238 | ) |   |   | (35 | ) |
| Net      increase in cash                                |   |                                                     | 55,642  |   |   |   | 124,136 |   |   |   | 17,257 |   |   |   | 2,525 |   |
| Cash      and cash equivalents at beginning of year      |   |                                                     | 42,716  |   |   |   | 98,358 |   |   |   | 222,494 |   |   |   | 32,554 |   |
| Cash      and cash equivalents at end of year            |   |                                                     | 98,358  |   |   |   | 222,494 |   |   |   | 239,751 |   |   |   | 35,079 |   |

----

----

|                       |   | Payment Due by Period |   |
|----------------------------|--------|--------------------------------------|--------|
|                  |   | Total                                |   |   | Within 1Year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than5 years |   |
|                  |   | (RMB in thousands)         |   |
| Bank      debt             |   |                                 | 60,000 |   |   |   | 60,000 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Interest      on bank debt |   |                                 | 2,413  |   |   |   | 2,413 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Capital      leases        |   |                                 | 5,465  |   |   |   | 2,868 |   |   |   | 2,597 |   |   |   | – |   |   |   | – |   |
| Operating      leases      |   |                                 | 19,086 |   |   |   | 8,439 |   |   |   | 10,647 |   |   |   | – |   |   |   | – |   |
| Total                      |   |                                 | 86,964 |   |   |   | 73,720 |   |   |   | 13,244 |   |   |   | – |   |   |   | – |   |

| ITEM 6. | DIRECTORS,      SENIOR MANAGEMENT AND EMPLOYEES |
|---------|-------------------------------------------------|

| Name                     |   | Age |   | Position                                                                         |
|--------------------------|--------|-----|--------|----------------------------------------------------------------------------------|
| Weidong      Hong        |   | 42  |   | Chairman      of the Board and Chief Executive Officer                           |
| Shuo      Zeng           |   | 39  |   | Director,      Chief Operating Officer, and Chief Financial Officer    (interim) |
| Li      Liao             |   | 43  |   | Independent      Director                                                        |
| Jeffrey      R. Williams |   | 55  |   | Independent      Director                                                        |
| Chi      Wei Joong       |   | 53  |   | Independent      Director                                                        |
| Henry      Wang          |   | 50  |   | Independent      Director                                                        |

----

----

----

----

----

----

|  | · | periodically      reviewing and reassessing the adequacy of the committee’s formal      charter; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | reviewing      our annual audited financial statements with our management and our      independent auditors and the adequacy of our internal accounting      controls; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | reviewing      analyses prepared by management and independent auditors concerning      significant financial reporting issues and judgments made in connection      with the preparation of our financial  statements; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the      engagement of the independentauditors; |
|--|--------|-------------------------------------------------|

|  | · | reviewing      the independence of the independentauditors; |
|--|--------|-------------------------------------------------------------|

|  | · | reviewing      our auditing and accounting principles and practices with the independent      auditors, and reviewing major changes to our auditing and accounting      principles and practices as suggested by the independent auditors or our      management; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the      appointment of the independent auditors to our board, which firm is      ultimately accountable to the audit committee and our    board; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | approving      professional services provided by the independent auditors, including the      range of audit and non-audit fees;and |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | · | reviewing      all related party transactions on an ongoing basis for potential conflicts      of interest. |
|--|--------|-------------------------------------------------------------------------------------------------------------|

|  | · | reviewing      and recommending to the board with respect to the total compensation      package for our executive officers; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

|  | · | reviewing      and recommending to the board with respect to the compensation of our      directors; |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | reviewing      periodically and recommending to the board with respect to any long-term      incentive compensation or equity plans, programs or similar arrangements,      annual bonuses, employee pension and welfare benefit plans; and administer      our stock option plans, including authority to make and modify awards      under such plans.  Currently, our only equity award plan is the      2006 Performance Equity Plan. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Category                                    |   |  Number of Employees |   |
|---------------------------------------------|--------|-------------------------------------|--------|
| Project      development and implementation |   |                                | 1486   |   |
| Research      and development               |   |                                | 40     |   |
| Sales      and marketing                    |   |                                | 264    |   |
| General      and administrative             |   |                                | 151    |   |
| Total                                       |   |                                | 1,941  |   |

|  | · | each      of our directors and executive officers who beneficially own our ordinary      shares; and |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | each      person known to us to own beneficially more than 5.0% of our ordinary      shares. |
|--|--------|----------------------------------------------------------------------------------------------|

|  Name                                                     |   | NumberofOrdinaryShares |      |   | Percentage ofOutstandingOrdinaryShares(1) |   |
|----------------------------------------------------------------|--------|------------------------|-----------|--------|------------------------------------------------|--------|
| Directors      and executive officers:                         |   |              |      |   |                                           |   |
| Weidong Hong(2)(3)(9)Chairman      and Chief Executive Officer |   |                   | 3,057,488 |   |                                           |   |  16.5 | % |
| Shuo Zeng(2)(4)(9)Chief      Operating Office and Director     |   |                   | 963,278   |   |                                           |   |  5.2 | % |
| Li      LiaoDirector                                           |   |                   | 3,000     |   |                                           |   |  0.0 | % |
| Jeffrey      R. WilliamsDirector                               |   |                   | 0         |   |                                           |   |  0.0 | % |
| Chi      Wei JoongDirector                                     |   |                   | 2,250     |   |                                           |   |  0.0 | % |
| Henry      WangDirector                                        |   |                   | 3,750     |   |                                           |   |  0.0 | % |

----

|  Name                                                 |   | Number ofOrdinaryShares |      |   | Percentage ofOutstandingOrdinaryShares(1) |   |
|------------------------------------------------------------|--------|------------------------------|-----------|--------|------------------------------------------------|--------|
| Directors      and executive officers:                     |   |                    |      |   |                                           |   |
| Directors      and officers as a group (six persons)(3)(4) |   |                         | 4,029,766 |   |                                           |   | 21.7 | % |
|                                                       |   |                         |      |   |                                           |   |   |   |
| Principal      shareholders:                               |   |                         |      |   |                                           |   |   |   |
| Sihitech      Company Limited(5)                           |   |                         | 3,057,488 |   |                                           |   | 16.5 | % |
| Peter      J. Richards(6)                                  |   |                         | 1,775,000 |   |                                           |   | 9.6 | % |
| Scott      A. Fine(6)                                      |   |                         | 1,775,000 |   |                                           |   |  9.6 | % |
| Philip      J. Hempleman(7)                                |   |                         | 1,700,000 |   |                                           |   | 9.2 | % |
| Janus      Capital Management(8)                           |   |                         | 1,138,080 |   |                                           |   | 6.1 | % |

----

| (1)  | Beneficial      ownership and percentage has been determined in accordance with Rule 13d-3      under the Securities Exchange Act of 1934, based on 17,575,685 shares      outstanding. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | The      business address of the person is c/o Beijing Global Trade Center,      Tower D , Floor 9, 36 North Third Ring Road East, Dongcheng District,      Beijing 100013, P.R. China. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Includes      675,807 shares held by Mr. Hong’s spouse.  Represents shares      held through Sihitech Company Limited, a BVI company owned by Mr. Hong and      his spouse, of which Mr. Hong has voting and dispositive      authority. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | Represents      shares held through Elite Concord International Limited, a BVI company      owned by Mr. Zeng, of which Mr. Zeng has voting and dispositive      authority. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)  | A      BVI company owned by Mr. Hong and his spouse, of which Mr. Hong has voting      and dispositive authority.  The business address of Sihitech      Company Limited is TrustNet Chambers, P.O. Box 3444, Roadtown Tortola,      British Virgin Islands. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)  | Messrs.      Fine and Richards, as members, direct the operations of Empire GP, L.L.C.      and Empire Capital Management, L.L.C.  Empire GP is the general      partner of Empire Capital Partners, L.P, which directly owned 619,295      shares.  Empire Capital Management manages the Empire Overseas      Fund and the Charter Oak Funds, which in aggregate owned 1,155,705      shares.  The information is derived from a Schedule 13G filed by      such entities with the SEC on March 16,2009. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)  | Mr.      Hempleman is the managing partner of Ardsley Advisory Partners and Ardsley      Partners and in that capacity directs their operations.  Ardsley      Advisory Partners is the investment manager of Ardsley Offshore Fund Ltd.      and the investment advisor of certain managed accounts.  It is      also the investment advisor of Ardsley Partners Fund II, L.P. and Ardsley      Partners Institutional Fund, L.P.  Ardsley Partners is the      general partner of Ardsley Partners Fund II, L.P. and Ardsley Partners      Institutional Fund, L.P.  Ardsley Partners Fund beneficially      owned 714,000 of our shares.  Ardsley Partners Institutional      Fund, L.P.  beneficially owned 440,300 of our      shares.  Ardsley Offshore Fund Ltd. owned 133,000 of our      shares.  Ardsley Advisory Partners beneficially owned 1,305,000      of our shares.  Ardsley Partners I beneficially owned 1,154,300      of our shares.  Mr. Hempleman directly, or indirectly through      the companies listed above, beneficially owns a total of 1,700,000 of our      shares.  The address of Ardsley Offshore Fund Ltd. is Romasco      Place, Wickhams Cay, Roadtown Tortola, British Virgin      Islands.  The address of all other parties is 262 Harbor Drive,      Stamford, Connecticut 06902.  The information is derived from a      Schedule 13G filed by such entities with the SEC on February 14,      2008. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (8) | Janus      Capital has a direct 89.9% ownership stake in INTECH Investment Management      ("INTECH") and a direct 78.4% ownership stake in Perkins Investment      Management LLC("Perkins"). Due to the above ownership structure, holdings      for Janus Capital, Perkins and INTECH are aggregated for purposes of this      filing. Janus Capital, Perkins and INTECH are registered investment      advisers, each furnishing investment advice to various investment      companies registered under Section 8 of the Investment Company Act of 1940      and to individual and institutional clients. As a result of its role as      investment adviser or sub-adviser to the Managed Portfolios, Janus Capital      may be deemed to be the beneficial owner of 1,138,080 shares or 6.5% of      the shares outstanding of Yucheng Common Stock held by such Managed      Portfolios. However, Janus Capital does not have the right to receive any      dividends from, or the proceeds from the sale of, the securities held in      the Managed Portfolios and disclaims any ownership associated with such      rights. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)  | This      includes future expected share distributions based on the achievement of      2008 net income targets. |
|-----------|------------------------------------------------------------------------------------------------------------------|

| ITEM 7. | MAJOR      SHAREHOLDERS AND RELATED PARTYTRANSACTIONS |
|---------|-------------------------------------------------------|

----

|   | · | Beijing      Hengli Plastic Machinery Co., Ltd., or Hengli, a plastic mold      manufacturer, in which we held a 50% interest.  In June 2008, we      recorded RMB2.1 million in gains from the disposal of this      affiliate. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shanghai      Sihitech Sanjian Technology Co, Ltd., or Sanjian, a software and hardware      technology company, in which we held 50% interest.  Sanjian was      closed on December 20, 2007 due to business  considerations. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Chengdu      Elegon Information Technologies Limited, Elegon, a software and solution      services company, in which we held 49%interest. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 8. | FINANCIAL      INFORMATION |
|---------|----------------------------|

----

----

| ITEM 9. | THE      OFFER AND LISTING |
|---------|----------------------------|

|                                          |   | The OTCBBPrice PerCommon Stock |   |   | The NASDAQGlobal MarketPrice Per Share |   |
|----------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------------------------------|--------|
|                                          |   | High                                          |   |   | Low                                                        |   |   | High |   |   | Low |   |
|                                          |   | (USD)                                         |   |
|                                               |   |                                          |   |   |                                                       |   |   |   |   |   |   |   |
| Annual      Market Prices                          |   |                                     |   |   |                                                       |   |   |   |   |   |   |   |
| Year      2004 (from November 24, 2004)            |   |                                          | 5.20   |   |                                                       |   | 4.78 |   |   |   | N/A |   |   |   |  N/A |   |
| Year      2005                                     |   |                                          | 6.75   |   |                                                       |   | 0.98 |   |   |   | N/A |   |   |   |  N/A |   |
| Year      2006                                     |   |                                          | 8.85   |   |                                                       |   | 5.35 |   |   |   | N/A |   |   |   |  N/A |   |
| Year      2007 (until March 13, 2007)              |   |                                          | 8.30   |   |                                                       |   | 6.47 |   |   |   | N/A |   |   |   |  N/A |   |
| Year      2007 (from March 14, 2007)               |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 17.45 |   |   |   |  7.25 |   |
| Year      2008                                     |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 18.49 |   |   |   |  4.66 |   |
|                                               |   |                                          |   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Quarterly      Market Prices                       |   |                                          |   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| First      Quarter 2007(until      March 13, 2007) |   |                                          | 8.30   |   |                                                       |   | 6.47 |   |   |   | N/A |   |   |   |  N/A |   |
| First      Quarter 2007(from      March 14, 2007)  |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 8.80 |   |   |   |  6.65 |   |
| Second      Quarter 2007                      |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 9.50 |   |   |   |  7.46 |   |
| Third      Quarter 2007                            |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 11.00 |   |   |   |  7.15 |   |
| Fourth      Quarter 2007                           |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 18.01 |   |   |   | 9.95 |   |
| First      Quarter 2008                            |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 19.36 |   |   |   | 10.74 |   |
| Second      Quarter 2008                           |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 18.53 |   |   |   |  10.80 |   |
| Third      Quarter 2008                            |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 14.80 |   |   |   |  8.22 |   |
| Fourth      Quarter 2008                           |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 10.62 |   |   |   |  4.20 |   |
|                                               |   |                                          |   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Monthly      Market Prices                         |   |                                          |   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| November  2008                           |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 8.85 |   |   |   |  4.20 |   |
| December      2008                                 |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 8.25 |   |   |   |  6.13 |   |
| January      2009                                  |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 8.25 |   |   |   |  4.10 |   |
| February      2009                                 |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 5.70 |   |   |   |  4.06 |   |
| March      2009                                    |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 6.49 |   |   |   |  4.63 |   |
| April      2009                                    |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 7.62 |   |   |   |  6.11 |   |
| May      2009                                      |   |                                          | N/A    |   |                                                       |   | N/A |   |   |   | 8.95 |   |   |   | 6.10 |   |

----

| ITEM 10. | ADDITIONAL      INFORMATION |
|----------|-----------------------------|

----

----

----

----

----

----

----

|  | · | certain      financial institutions; |
|--|--------|--------------------------------------|

|  | · | insurance      companies; |
|--|--------|---------------------------|

|  | · | dealers      and traders in securities or foreigncurrencies; |
|--|--------|--------------------------------------------------------------|

|  | · | persons      holding shares as part of a hedge, “straddle,” integrated transaction or      similar transaction; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------|

|  | · | persons      whose functional currency for U.S. federal income tax purposes is not the      U.S. dollar; |
|--|--------|----------------------------------------------------------------------------------------------------------|

|  | · | partnerships      or other entities classified as partnerships for U.S. federal income tax      purposes; |
|--|--------|-----------------------------------------------------------------------------------------------------------|

|  | · | persons      liable for the alternative minimumtax; |
|--|--------|-----------------------------------------------------|

|  | · | tax-exempt      organizations; |
|--|--------|--------------------------------|

|  | · | persons      holding shares that own or are deemed to own 10% or more of our voting      stock; or |
|--|--------|----------------------------------------------------------------------------------------------------|

|  | · | persons      who hold the shares in connection with a trade or business outside the      United States; or |
|--|--------|------------------------------------------------------------------------------------------------------------|

|  | · | persons      who acquired our shares pursuant to the exercise of any employee stock      option or otherwise ascompensation. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | a      citizen or resident of the UnitedStates; |
|--|--------|-------------------------------------------------|

|  | · | a      corporation, or other entity taxable as a corporation, created or      organized in or under the laws of the United States or any political      subdivision thereof; or |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | an      estate or trust the income of which is subject to U.S. federal income      taxation, regardless of its source. |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

----

----

| ITEM 11. | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK |
|----------|----------------------------------------------------------------|

| ITEM 12. | DESCRIPTION      OF SECURITIES OTHER THAN EQUITYSECURITIES |
|----------|------------------------------------------------------------|

----

| ITEM13. | DEFAULTS, DIVIDEND ARREARAGES AND      DELINQUENCIES |
|---------|------------------------------------------------------|

| ITEM 14.  | MATERIAL      MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF      PROCEEDS |
|----------------|----------------------------------------------------------------------------------------|

| ITEM 15.  | CONTROLS      AND PROCEDURES |
|----------------|------------------------------|

| ·     | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect the transactions and dispositions of the assets of the      Company; |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles, and that receipts and expenditures of the Company      are being made only in accordance with authorizations of management and      directors of the Company; and |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of the Company’s assets that      could have a material effect on the financial  statements. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ITEM      16A. | AUDIT      COMMITTEE FINANCIAL EXPERT. |
|----------------|----------------------------------------|

| ITEM      16B. | CODE      OF ETHICS. |
|----------------|----------------------|

| ITEM 16C. | PRINCIPAL      ACCOUNTANT FEES AND SERVICES. |
|----------------|----------------------------------------------|

----

| ITEM 16D.  | EXEMPTIONS      FROM THE LISTING STANDARDS FOR AUDITCOMMITTEES. |
|-----------------|-----------------------------------------------------------------|

| ITEM      16E.  | PURCHASES      OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED    PURCHASERS. |
|----------------------|---------------------------------------------------------------------------------|

| ITEM      17. | FINANCIAL      STATEMENTS |
|---------------|---------------------------|

| ITEM      18. | FINANCIAL      STATEMENTS |
|---------------|---------------------------|

| ITEM      19. | EXHIBITS |
|---------------|----------|

| Exhibit                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Number          |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 1.1                                                          |   | Memorandum      of Association of Registrant (incorporated by reference from Registration      Statement No. 333-132814 - Annex B)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 1.2                                                          |   | Articles      of Association of Registrant (incorporated by reference from Registration      Statement No. 333-132814 - Annex C)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.1                                                          |   | Specimen      Common Stock Certificate of Registrant (incorporated by reference from      Registration Statement No. 333-132814 – Exhibit 4.1)                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.1                                                          |   | Securities      Purchase Agreement among Registrant, Yucheng Technologies Limited,      Sihitech Company Limited, Mega Capital Group Services Limited, Profit      Loyal Consultants Limited, Elite Concord International Limited, China      Century Holdings Group Limited, Shinning Growth Investment Group Limited,      Chih Cheung, James Li, James Preissler, for the acquisition of Ahead      Billion Venture Limited, and Port Wing Development Company Limited, dated      December 20, 2005 (incorporated by reference from Registration Statement      No. 333-132814 – AnnexA) |

----

| 4.2                |   | Amendment      to Securities Purchase Agreement dated June 29, 2006 (incorporated by      reference from Registration Statement No. 333-132814 - Annex      A)                                                                             |
|--------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |   |                                                                                                                                                                                                                                       |
| 4.3                |   | Amendment      to Securities Purchase Agreement dated October 27, 2006 (incorporated by      reference from Registration Statement No. 333-132814 - Annex      A)                                                                          |
|               |   |                                                                                                                                                                                                                                       |
| 4.4                |   | Amendment      to Securities Purchase Agreement dated July 31, 2007 (incorporated by      reference from Foreign Issuer Report on Form 6-K, filed August 24,      2007)                                                                    |
|               |   |                                                                                                                                                                                                                                       |
| 4.5                |   | China      Unistone/Yucheng 2006 Performance Equity Plan (incorporated by reference      from Registration Statement No. 333-132814 –Annex D)                                                                                        |
|               |   |                                                                                                                                                                                                                                       |
| 4.6                |   | Form      of Registration Rights Agreement among China Unistone Acquisition      Corporation and the Initial Stockholders (incorporated by reference from      Registration Statement 333-117639, dated July 23, 2004, Exhibit      10.14) |
|     |   |                                                                                                                                                                                                                                       |
| 4.7                |   | Equity Interest      Transfer Agreement  re. Beijing Sunrisk Information Technology      Company Limited (incorporated by reference from Exhibit 4.1 to Form 6-K      filed February 13, 2007)                              |
|               |   |                                                                                                                                                                                                                                       |
| 4.8                |   | Form      of Employment Agreement between Yucheng Technologies Limited and Hong      Weidong (incorporated by reference from Registration Statement No.      333-132814 – Exhibit 10.18)                                             |
|               |   |                                                                                                                                                                                                                                       |
| 4.9                |   | Form      of Employment Agreement between Yucheng Technologies Limited and Zeng Shuo      (incorporated by reference from Registration Statement No. 333-132814 –      Exhibit 10.19)                                                |
|               |   |                                                                                                                                                                                                                                       |
| 8.1*               |   | List      of subsidiaries                                                                                                                                                                                                                  |
|               |   |                                                                                                                                                                                                                                       |
| 11.1               |   | Code      of Ethics (incorporated by reference from Registration Statement No.      333-132814 - Annex G)                                                                                                                                  |
|               |   |                                                                                                                                                                                                                                       |
| 12.1*              |   | CEO      Certification Pursuant to Rule 13a-14(a) (17 CFR 240.13a-14(a)) (17 CFR      240.13a-14(a)) or Rule 15d-1(a) (17 CFR 240.15d-14(a))                                                                                               |
|               |   |                                                                                                                                                                                                                                       |
| 12.2*              |   | CFO      Certification Pursuant to Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule      15d-1(a) (17 CFR 240.15d-14(a))                                                                                                                      |
|               |   |                                                                                                                                                                                                                                       |
| 13.1*              |   | CEO      Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002                                                                                                                                                      |
|               |   |                                                                                                                                                                                                                                       |
| 13.2*              |   | CFO      Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002                                                                                                                                                      |

|   | YUCHENG      TECHNOLOGIESLIMITED        |
|--------|----------------------------------------------|
|   |                                    |
|   | /s/      Weidong Hong                   |
|   | Name:                                        | Weidong      Hong   |
|   | Title:                                       | Chief      Executive Officer  |

----

|                                                                                                          | Page   |
|---------------------------------------------------------------------------------------------------------------|--------|
| Report      of Independent Registered Public Accounting Firm                                                  | F-1    |
|                                                                                                          |   |
| Consolidated      Balance Sheets as of December 31, 2007 and 2008                                             | F-2    |
|                                                                                                          |   |
| Consolidated      Statements of Income for the Years Ended December 31, 2006, 2007 and      2008              | F-4    |
|                                                                                                          |   |
| Consolidated      Statements of Stockholders Equity for the Years Ended December 31, 2006,      2007 and 2008 | F-5    |
|                                                                                                          |   |
| Consolidated      Statements of Cash Flows for the Years Ended December 31, 2006, 2007 and      2008          | F-6    |
|                                                                                                          |   |
| Notes      to the Consolidated Financial Statements for the Years Ended December 31,      2006, 2007 and 2008 | F-8    |

----

----

----

| Assets                                           |   | 2007   |        |   | 2008   |   |        | 2008              |   |
|--------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|-------------------|--------|
|                                             |   | RMB    |        |   | RMB    |   |        | USD               |   |
|                                             |   |   |        |   |   |   |        | (note      2 (c)) |   |
| Current      assets:                             |   |   |        |   |   |   |        |              |   |
| Cash      and cash equivalents                   |   |   | 222,493,839 |   |   |   | 239,751,056 |              |   |   | 35,079,018 |   |
| Trade      accounts receivable, net (note 3)     |   |   | 203,450,849 |   |   |   | 280,653,514 |              |   |   | 41,063,634 |   |
| Costs      and estimated earnings in             |   |   |        |   |   |   |        |              |   |   |   |   |
| excess      of billings on uncompleted           |   |   |        |   |   |   |        |              |   |   |   |   |
| contracts      (note 4)                          |   |   | 46,564,308  |   |   |   | 68,812,918  |              |   |   | 10,068,317 |   |
| Due      from related parties (note 22)          |   |   | 937,453     |   |   |   | 1,568,248   |              |   |   | 229,457 |   |
| Inventories                                      |   |   | 8,856,190   |   |   |   | 2,894,770   |              |   |   | 423,546 |   |
| Precontract      costs                           |   |   | 3,660,318   |   |   |   | 9,893,714   |              |   |   | 1,447,592 |   |
| Other      current assets (note 5)               |   |   | 86,341,261  |   |   |   | 43,737,165  |              |   |   | 6,399,374 |   |
|                                        |   |   |        |   |   |   |        |              |   |
| Total      current assets                        |   |   | 572,304,218 |   |   |   | 647,311,385 |              |   |   | 94,710,938 |   |
|                                             |   |   |        |   |   |   |        |              |   |   |   |   |
| Investments      under equity method (note 2(t)) |   |   | 2,255,210   |   |   |   | 2,250,225   |              |   |   | 329,240 |   |
|                                             |   |   |        |   |   |   |        |              |   |   |   |   |
| Fixed      assets, net (note 7)                  |   |   | 33,324,414  |   |   |   | 57,497,398  |              |   |   | 8,412,694 |   |
| Intangible      assets, net (note 8)             |   |   | 41,207,670  |   |   |   | 36,027,982  |              |   |   | 5,271,411 |   |
| Goodwill      (note 20)                          |   |   | 169,361,506 |   |   |   | 187,815,784 |              |   |   | 27,480,143 |   |
| Other      non-current assets                    |   |   | 708,037     |   |   |   | -           |              |   |   | - |   |
| Deferred      taxes (note 6)                     |   |   | 2,586,208   |   |   |   | 12,984,716  |              |   |   | 1,899,850 |   |
|                                        |   |   |        |   |   |   |        |              |   |
| Total      assets                                |   |   | 821,747,263 |   |   |   | 943,887,490 |              |   |   | 138,104,276 |   |

----

| Liabilities      and stockholders’ equity                                                                                                                                        |   | 2007   |        |   | 2008   |   |        | 2008              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|-------------------|--------|
|                                                                                                                                                                                   |   | RMB    |        |   | RMB    |   |        | USD               |   |
|                                                                                                                                                                                   |   |   |        |   |   |   |        | (note      2 (c)) |   |
| Current      liabilities                                                                                                                                                               |   |   |        |   |   |   |        |              |   |
| Short-term      loan (note 9)                                                                                                                                                          |   |   | 35,000,000  |   |   |   | 60,000,000  |              |   |   | 8,778,861 |   |
| Obligations      under capital leases (note 10)                                                                                                                                        |   |   | 1,450,841   |   |   |   | 2,867,754   |              |   |   | 419,594 |   |
| Trade      accounts payable                                                                                                                                                            |   |   | 93,759,731  |   |   |   | 145,048,310 |              |   |   | 21,222,648 |   |
| Billings      in excess of costs and estimated                                                                                                                                         |   |   |        |   |   |   |        |              |   |   |   |   |
| earnings      on uncompleted contracts (note 4)                                                                                                                                        |   |   | 6,928,568   |   |   |   | 10,013,178  |              |   |   | 1,465,071 |   |
| Employee      and payroll accruals                                                                                                                                                     |   |   | 8,686,638   |   |   |   | 12,483,980  |              |   |   | 1,826,585 |   |
| Dividends      payable to ex-owners                                                                                                                                                    |   |   | 26,273,407  |   |   |   | 5,521,408   |              |   |   | 807,861 |   |
| Deemed      distribution to ex-owners (note 1)                                                                                                                                         |   |   | 40,814,149  |   |   |   | 45,003,233  |              |   |   | 6,584,618 |   |
| Outstanding      payment in relation to                                                                                                                                                |   |   |        |   |   |   |        |              |   |   |   |   |
| business      acquisitions (note 20)                                                                                                                                                   |   |   | 55,352,938  |   |   |   | 22,403,149  |              |   |   | 3,277,902 |   |
| Income      taxes payable                                                                                                                                                              |   |   | 10,968,901  |   |   |   | 9,793,362   |              |   |   | 1,432,909 |   |
| Deferred      taxes – Current (note 6)                                                                                                                                           |   |   | -           |   |   |   | 980,549     |              |   |   | 143,468 |   |
| Other      current liabilities (note 11)                                                                                                                                               |   |   | 36,491,891  |   |   |   | 53,237,096  |              |   |   | 7,789,351 |   |
|                                                                                                                                                                              |   |   |        |   |   |   |        |              |   |
| Total      current liabilities                                                                                                                                                         |   |   | 315,727,064 |   |   |   | 367,352,019 |              |   |   | 53,748,868 |   |
|                                                                                                                                                                                   |   |   |        |   |   |   |        |              |   |   |   |   |
| Obligations      under capital leases (note 10)                                                                                                                                        |   |   | 2,410,464   |   |   |   | 2,597,032   |              |   |   | 379,983 |   |
| Deferred      taxes (note 6)                                                                                                                                                           |   |   | 5,312,346   |   |   |   | 3,379,185   |              |   |   | 494,423 |   |
|                                                                                                                                                                              |   |   |        |   |   |   |        |              |   |
| Total      liabilities                                                                                                                                                                 |   |   | 323,449,874 |   |   |   | 373,328,236 |              |   |   | 54,623,274 |   |
|                                                                                                                                                                                   |   |   |        |   |   |   |        |              |   |   |   |   |
| Minority      interests (note 12)                                                                                                                                                      |   |   | 5,199,312   |   |   |   | 12,023,643  |              |   |   | 1,759,231 |   |
|                                                                                                                                                                                   |   |   |        |   |   |   |        |              |   |   |   |   |
| Commitments      and contingencies (note 18)                                                                                                                                           |   |   |        |   |   |   |        |              |   |   |   |   |
|                                                                                                                                                                                   |   |   |        |   |   |   |        |              |   |   |   |   |
| Stockholders’      equity                                                                                                                                                        |   |   |        |   |   |   |        |              |   |   |   |   |
| Preferred      stock, $0.0001 par value, authorised 2,000,000 shares and none      issued;                                                                                             |   |   | -           |   |   |   | -           |              |   |   | - |   |
| Common      stock, $0.0001 par value, authorised 60,000,000 shares; 16,610,853 shares      and 17,575,685 shares issued and outstanding as of December 31, 2007 and      2008 (note 1) |   |   | 20,006,616  |   |   |   | 20,007,320  |              |   |   | 2,927,358 |   |
| Additional      paid-in capital                                                                                                                                                        |   |   | 361,624,414 |   |   |   | 347,254,459 |              |   |   | 50,808,308 |   |
| Reserves      (note 13)                                                                                                                                                                |   |   | 24,868,832  |   |   |   | 38,008,846  |              |   |   | 5,561,239 |   |
| Retained      earnings                                                                                                                                                                 |   |   | 88,162,065  |   |   |   | 156,017,235 |              |   |   | 22,827,559 |   |
| Accumulated      other comprehensive loss (note 14)                                                                                                                                    |   |   | (1,563,850  | )      |   |   | (2,752,249  | )                 |   |   | (402,693 | ) |
|                                                                                                                                                                              |   |   |        |   |   |   |        |              |   |
| Total      Stockholders’ equity                                                                                                                                                  |   |   | 493,098,077 |   |   |   | 558,535,611 |              |   |   | 81,721,771 |   |
|                                                                                                                                                                              |   |   |        |   |   |   |        |              |   |
| Total      liabilities and Stockholders’ equity                                                                                                                                  |   |   | 821,747,263 |   |   |   | 943,887,490 |              |   |   | 138,104,276 |   |

----

|                                                   |   | 2006   |         |   | 2007   |   |         | 2008   |   |   | 2008              |   |
|--------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|--------|-------------------|--------|
|                                                   |   | RMB    |         |   | RMB    |   |         | RMB    |   |   | USD               |   |
|                                                   |   |   |         |   |   |   |         |   |   |   | (note      2 (c)) |   |
| Revenues      (note 15):                               |   |   |         |   |   |   |         |   |   |   |              |   |
| Software      & Solutions                          |   |   | 81,250,438   |   |   |   | 198,459,951  |   |   |   | 269,360,417       |   |   |   | 39,411,292 |   |
| Platform      & maintenance Services               |   |   | 211,149,957  |   |   |   | 241,601,795  |   |   |   | 401,024,801       |   |   |   | 58,675,680 |   |
| POS                                                    |   |   | -            |   |   |   | 3,851,643    |   |   |   | 15,415,803        |   |   |   | 2,255,553 |   |
| Total      revenues                                    |   |   | 292,400,395  |   |   |   | 443,913,389  |   |   |   | 685,801,021       |   |   |   | 100,342,525 |   |
| Business      taxes                                    |   |   | (2,749,970   | )      |   |   | (8,394,547   | )      |   |   | (8,982,017        | )      |   |   | (1,314,198 | ) |
| Net      revenues                                      |   |   | 289,650,425  |   |   |   | 435,518,842  |   |   |   | 676,819,004       |   |   |   | 99,028,327 |   |
|                                                   |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Cost      of revenues:                                 |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Software      & Solutions                          |   |   | (35,740,507  | )      |   |   | (82,621,173  | )      |   |   | (118,167,472      | )      |   |   | (17,289,596 | ) |
| Platform      & Maintenance Services               |   |   | (179,591,916 | )      |   |   | (194,116,942 | )      |   |   | (321,952,491      | )      |   |   | (47,106,267 | ) |
| POS                                                    |   |   | -            |   |   |   | (1,088,023   | )      |   |   | (9,156,836        | )      |   |   | (1,339,776 | ) |
| Total      cost of revenues                            |   |   | (215,332,423 | )      |   |   | (277,826,138 | )      |   |   | (449,276,799      | )      |   |   | (65,735,639 | ) |
| Gross      profit                                      |   |   | 74,318,002   |   |   |   | 157,692,704  |   |   |   | 227,542,205       |   |   |   | 33,292,688 |   |
|                                                   |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Operating      expenses:                               |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Research      and development expenses                 |   |   | (901,833     | )      |   |   | (8,369,567   | )      |   |   | (10,148,304       | )      |   |   | (1,484,842 | ) |
| Selling      and marketing expenses                    |   |   | (13,989,741  | )      |   |   | (29,052,598  | )      |   |   | (49,382,763       | )      |   |   | (7,225,406 | ) |
| General      and administrative expenses (note 16)     |   |   | (14,170,129  | )      |   |   | (50,668,370  | )      |   |   | (95,425,234       | )      |   |   | (13,962,081 | ) |
| Total      operating expenses                          |   |   | (29,061,703  | )      |   |   | (88,090,535  | )      |   |   | (154,956,301      | )      |   |   | (22,672,329 | ) |
|                                                   |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Other      income (expense):                           |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Interest      income                                   |   |   | 116,954      |   |   |   | 1,818,536    |   |   |   | 1,259,336         |   |   |   | 184,259 |   |
| Interest      expense                                  |   |   | (1,262,652   | )      |   |   | (1,937,368   | )      |   |   | (3,783,067        | )      |   |   | (553,517 | ) |
| Income      (loss) from short-term investment          |   |   | -            |   |   |   | 3,494,446    |   |   |   | (529,036          | )      |   |   | (77,406 | ) |
| Loss      from equity method investees                 |   |   | (134,987     | )      |   |   | -            |   |   |   | (1,280,200        | )      |   |   | (187,312 | ) |
| Other      income (expense), net                       |   |   | 26,576       |   |   |   | 1,078,033    |   |   |   | 492,958           |   |   |   | 72,127 |   |
| Income      before minority interests and income taxes |   |   | 44,002,190   |   |   |   | 74,055,816   |   |   |   | 68,745,895        |   |   |   | 10,058,510 |   |
|                                                   |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Income      tax (expenses) benefits (note 6)           |   |   | (3,271,466   | )      |   |   | (5,528,247   | )      |   |   | 9,538,321         |   |   |   | 1,395,593 |   |
|                                                   |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Income      before minority interests                  |   |   | 40,730,724   |   |   |   | 68,527,569   |   |   |   | 78,284,216        |   |   |   | 11,454,103 |   |
|                                                   |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| Minority      interests                                |   |   | -            |   |   |   | (1,813,141   | )      |   |   | 2,710,968         |   |   |   | 396,654 |   |
| Net      income                                        |   |   | 40,730,724   |   |   |   | 66,714,428   |   |   |   | 80,995,184        |   |   |   | 11,850,757 |   |
| Earnings      per share (note 17)                      |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| –      basic                                     |   |   | 5.02         |   |   |   | 5.08         |   |   |   | 4.61              |   |   |   | 0.67 |   |
| –diluted                                         |   |   | 3.96         |   |   |   | 4.34         |   |   |   | 4.33              |   |   |   | 0.63 |   |
| Weighted      average common shares outstanding        |   |   |         |   |   |   |         |   |   |   |              |   |   |   |   |   |
| –      basic                                     |   |   | 8,118,335    |   |   |   | 13,144,681   |   |   |   | 17,566,898        |   |   |   | 17,566,898 |   |
| –diluted                                         |   |   | 10,292,308   |   |   |   | 15,370,197   |   |   |   | 18,691,852        |   |   |   | 18,691,852 |   |

----

|                                                                        |   |               |       |   |    |       |       |       |   |   |        |   |   |          |       |   | Accumulated         |       |        |          |   |   |       |   |
|----------------------------------------------------------------------------------|--------|--------------------|------------|--------|---------|------------|------------|------------|--------|--------|-------------|--------|--------|---------------|------------|--------|---------------------|------------|-------------|---------------|--------|--------|------------|--------|
|                                                                             |   |               |       |   |    |       |       | Additional |   |   |        |   |   |          |       |   | other               |       |        | Total         |   |   |       |   |
|                                                                             |   | Common      shares |       |   | paid-in |       |       |       |   |   | Retained    |   |   | comprehensive |       |   | stockholders’ |       |        | Comprehensive |   |
|                                                                             |   | Shares             |       |   | Amount  |       |       | capital    |   |   | Reserves    |   |   | earnings      |       |   | loss                |       |        | equity        |   |   | Income     |   |
|                                                                             |   |               |       |   | RMB     |       |       | RMB        |   |   | RMB         |   |   | RMB           |       |   | RMB                 |       |        | RMB           |   |   | RMB        |   |
|                                                                             |   |               |       |   |    |       |       |       |   |   |        |   |   |          |       |   |                |       |        |          |   |   |       |   |
|                                                                             |   |               |       |   |    |       |       |       |   |   |        |   |   |          |       |   |                |       |        |          |   |   |       |   |
| Balance      as at January 1, 2006                                               |   |  -            |       |   |    | 20,000,000 |       |       |   | 13,000 |        |   |   | 11,575,964    |       |   |                | 22,009,781 |        |          |   | -      |       |   |   | 53,598,745 |   |   |   |    |   |
|                                                                             |   |               |       |   |    |       |       |       |   |   |        |   |   |          |       |   |                |       |        |          |   |   |       |   |   |   |   |   |   |   |   |
| Recapitalization      in connection with the Share Exchange Transactions (note1) |   |               | 7,954,484  |   |    |       | -          |       |   |   | 126,221,524 |   |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | 126,221,524 |   |   |   | - |   |
| Deemed      distribution                                                         |   |               | -          |   |    |       | -          |       |   |   | (21,332,463 | )      |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | (21,332,463 | ) |   |   | - |   |
| Net      income                                                                  |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | -          |   |                |       | 40,730,724  |          |   |   | -          |   |   |   | 40,730,724 |   |   |   | 40,730,724 |   |
| Issuance      on acquisition of a subsidiary                                     |   |               | 1,573,836  |   |    |       | 1,229      |       |   |   | 71,548,899  |   |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | 71,550,128 |   |   |   | - |   |
| Transfer      to reserves                                                        |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | 7,409,180  |   |                |       | (7,409,180  | )             |   |   | -          |   |   |   | - |   |   |   | - |   |
| Dividend      appropriation                                                      |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | -          |   |                |       | (28,000,000 | )             |   |   | -          |   |   |   | (28,000,000 | ) |   |   | - |   |
| Foreign      currency translation adjustment                                     |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | -          |   |                |       | -           |          |   |   | (139,200   | )      |   |   | (139,200 | ) |   |   | (139,200 | ) |
|                                                                             |   |               |       |   |    |       |       |       |   |   |        |   |   |          |       |   |                |       |        |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance      as at December 31, 2006                                             |   |               | 9,528,320  |   |    |       | 20,001,229 |       |   |   | 176,450,960 |   |   |          | 18,985,144 |   |                |       | 27,331,325  |          |   |   | (139,200   | )      |   |   | 242,629,458 |   |   |   | 40,591,524 |   |
| Warrant      exercise                                                            |   |               | 6,866,486  |   |    |       | 5,229      |       |   |   | 252,601,693 |   |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | 252,606,922 |   |   |   | - |   |
| Unit      purchase option exercise                                               |   |               | 216,047    |   |    |       | 158        |       |   |   | (158        | )      |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | - |   |   |   | - |   |
| Deemed      distribution (note 1)                                                |   |               | -          |   |    |       | -          |       |   |   | (67,428,081 | )      |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | (67,428,081 | ) |   |   | - |   |
| Net      income                                                                  |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | -          |   |                |       | 66,714,428  |          |   |   | -          |   |   |   | 66,714,428 |   |   |   | 66,714,428 |   |
| Transfer      to reserves                                                        |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | 5,883,688  |   |                |       | (5,883,688  | )             |   |   | -          |   |   |   | - |   |   |   | - |   |
| Foreign      currency translation adjustment                                     |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | -          |   |                |       | -           |          |   |   | (1,424,650 | )      |   |   | (1,424,650 | ) |   |   | (1,424,650 | ) |
|                                                                             |   |               |       |   |    |       |       |       |   |   |        |   |   |          |       |   |                |       |        |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance      as at December 31, 2007                                             |   |               | 16,610,853 |   |    |       | 20,006,616 |       |   |   | 361,624,414 |   |   |          | 24,868,832 |   |                |       | 88,162,065  |          |   |   | (1,563,850 | )      |   |   | 493,098,077 |   |   |   | 65,289,778 |   |
| Bonus      shares                                                                |   |               | 952,832    |   |    |       | 696        |       |   |   | 43,290,856  |   |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | 43,291,552 |   |   |   | - |   |
| Shares      issued to independent                                                |   |               |       |   |    |       |       |       |   |   |        |   |   |          |       |   |                |       |        |          |   |   |       |   |   |   |   |   |   |   |   |   |
| directors                                                                        |   |               | 12,000     |   |    |       | 8          |       |   |   | 973,078     |   |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | 973,086 |   |   |   | - |   |
| Deemed      distribution (note 1)                                                |   |               | -          |   |    |       | -          |       |   |   | (41,540,598 | )      |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | (41,540,598 | ) |   |   | - |   |
| Decrease      of interests in Sunrisk                                            |   |               | -          |   |    |       | -          |       |   |   | (18,820,019 | )      |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | (18,820,019 | ) |   |   | - |   |
| Net      income                                                                  |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | -          |   |                |       | 80,995,184  |          |   |   | -          |   |   |   | 80,995,184 |   |   |   | 80,995,184 |   |
| Transfer      to reserves                                                        |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | 13,140,014 |   |                |       | (13,140,014 | )             |   |   | -          |   |   |   | - |   |   |   | - |   |
| Foreign      currency translation adjustment                                     |   |               | -          |   |    |       | -          |       |   |   | -           |   |   |          | -          |   |                |       | -           |          |   |   | (1,188,399 | )      |   |   | (1,188,399 | ) |   |   | (1,188,399 | ) |
| Reversal      of stock issuance cost                                             |   |               | -          |   |    |       | -          |       |   |   | 1,726,728   |   |   |          | -          |   |                |       | -           |          |   |   | -          |   |   |   | 1,726,728 |   |   |   | - |   |
|                                                                             |   |               |       |   |    |       |       |       |   |   |        |   |   |          |       |   |                |       |        |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance      as at December 31, 2008                                             |   |               | 17,575,685 |   |    |       | 20,007,320 |       |   |   | 347,254,459 |   |   |          | 38,008,846 |   |                |       | 156,017,235 |          |   |   | (2,752,249 | )      |   |   | 558,535,611 |   |   |   | 79,806,785 |   |
| In USD (note      2 (c))                                                         |   |               |       |   |    |       | 2,927,358  |       |   |   | 50,808,308  |   |   |          | 5,561,239  |   |                |       | 22,827,559  |          |   |   | (402,693   | )      |   |   | 81,721,771 |   |   |   | 11,676,877 |   |

----

|                                                                                                              |   | 2006   |        |   | 2007   |   |        | 2008   |   |   | 2008              |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|--------|-------------------|--------|
|                                                                                                              |   | RMB    |        |   | RMB    |   |        | RMB    |   |   | USD               |   |
|                                                                                                              |   |   |        |   |   |   |        |   |   |   | (note      2 (c)) |   |
| Cash      flows from operating activities:                                                                        |   |   |        |   |   |   |        |   |   |   |              |   |
|                                                                                                              |   |   |        |   |   |   |        |   |   |   |              |   |
| Net      income                                                                                                   |   |   | 40,730,724  |   |   |   | 66,714,428  |   |   |   | 80,995,184        |   |   |   | 11,850,757 |   |
|                                                                                                              |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                       |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
|                                                                                                              |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Depreciation      and amortization                                                                                |   |   | 3,644,380   |   |   |   | 16,585,488  |   |   |   | 28,481,819        |   |   |   | 4,167,299 |   |
| Loss      on disposal of fixed assets                                                                             |   |   | 56,368      |   |   |   | 217,107     |   |   |   | 243,958           |   |   |   | 35,695 |   |
| Loss      (gain) on disposal of subsidiary                                                                        |   |   | 204,902     |   |   |   | -           |   |   |   | (247,256          | )      |   |   | (36,177 | ) |
| Loss      (gain) on disposal of investments under equity method                                                   |   |   | 26,208      |   |   |   | (869,798    | )      |   |   | (2,102,566        | )      |   |   | (307,636 | ) |
| Minority      interests                                                                                           |   |   | -           |   |   |   | 1,813,141   |   |   |   | (2,710,968        | )      |   |   | (396,653 | ) |
| Losses      from equity method investees                                                                          |   |   | 134,987     |   |   |   | -           |   |   |   | 2,791,802         |   |   |   | 408,481 |   |
| Income      from short term investment                                                                            |   |   | -           |   |   |   | (3,494,446  | )      |   |   | -                 |   |   |   | - |   |
| Shares      issued to independent directors                                                                       |   |   | -           |   |   |   | -           |   |   |   | 973,086           |   |   |   | 142,376 |   |
| Increase      in trade accounts receivable                                                                        |   |   | (47,822,765 | )      |   |   | (70,622,155 | )      |   |   | (77,576,334       | )      |   |   | (11,350,530 | ) |
| Decrease      (increase) in costs and estimated earnings in excess of billings on      uncompleted contracts      |   |   | 927,703     |   |   |   | (29,541,323 | )      |   |   | (22,248,611       | )      |   |   | (3,255,291 | ) |
| Decrease (increase)      in due from related      parties                                                         |   |   | 2,212,389   |   |   |   | 386,867     |   |   |   | (1,568,105        | )      |   |   | (229,436 | ) |
| Decrease      (increase) in inventories                                                                           |   |   | 5,773,191   |   |   |   | (3,570,912  | )      |   |   | 5,682,947         |   |   |   | 831,497 |   |
| (Increase)      decrease in precontract costs                                                                     |   |   | (882,423    | )      |   |   | 3,188,660   |   |   |   | (6,968,278        | )      |   |   | (1,019,559 | ) |
| (Increase)      decrease in other current assets                                                                  |   |   | (495,033    | )      |   |   | (56,002,843 | )      |   |   | 44,470,781        |   |   |   | 6,506,712 |   |
| Decrease      in current deferred tax assets                                                                      |   |   | 149,155     |   |   |   | 427,601     |   |   |   | -                 |   |   |   | - |   |
| Increase      in non-current deferred tax assets                                                                  |   |   | (10,065     | )      |   |   | (2,442,782  | )      |   |   | (10,398,508       | )      |   |   | (1,521,451 | ) |
| (Decrease)      increase in trade accounts payable                                                                |   |   | (10,461,863 | )      |   |   | 51,805,698  |   |   |   | 51,288,579        |   |   |   | 7,504,255 |   |
| (Decrease)      increase in billings in excess of costs and estimated earnings on      uncompleted      contracts |   |   | (6,276,883  | )      |   |   | 5,950,320   |   |   |   | 3,091,360         |   |   |   | 452,310 |   |
| (Decrease)      increase in employee and payroll                                                                  |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| accruals                                                                                                          |   |   | (253,347    | )      |   |   | (249,769    | )      |   |   | 4,076,500         |   |   |   | 596,450 |   |
| Increase      (decrease) in income taxes payable                                                                  |   |   | 107,785     |   |   |   | 6,700,763   |   |   |   | (1,066,768        | )      |   |   | (156,083 | ) |
| (Decrease)      increase in other                                                                                 |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| current      liabilities                                                                                          |   |   | (1,216,259  | )      |   |   | (19,108,790 | )      |   |   | 9,875,681         |   |   |   | 1,444,954 |   |
| Decrease      in non-current                                                                                      |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| deferred      tax liabilities                                                                                     |   |   | (8,665      | )      |   |   | (1,208,111  | )      |   |   | (768,891          | )      |   |   | (112,500 | ) |
| Net      cash (used in) provided by operating activities                                                          |   |   | (13,459,511 | )      |   |   | (33,320,856 | )      |   |   | 106,315,412       |   |   |   | 15,555,470 |   |
|                                                                                                              |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Cash      flows from investing activities:                                                                        |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Capital      expenditure                                                                                          |   |   | (2,884,970  | )      |   |   | (34,295,309 | )      |   |   | (29,716,811       | )      |   |   | (4,347,996 | ) |
| Investment      in trust                                                                                          |   |   | -           |   |   |   | (80,000,000 | )      |   |   | -                 |   |   |   | - |   |
| Collection      of investment in trust                                                                            |   |   | -           |   |   |   | 83,494,446  |   |   |   | -                 |   |   |   | - |   |
|                                                                                                              |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Payment      of purchase of subsidiaries, net of cash acquired                                                    |   |   | (7,793,085  | )      |   |   | (51,811,896 | )      |   |   | (57,684,392       | )      |   |   | (8,440,054 | ) |
| Investment      in equity method investment                                                                       |   |   | -           |   |   |   | -           |   |   |   | (5,042,027        | )      |   |   | (737,721 | ) |
| (Increase)      decrease in deposits paid for                                                                     |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
|  acquisitions      of businesses                                                                             |   |   | (44,750,000 | )      |   |   | 20,000,000  |   |   |   | -                 |   |   |   | - |   |
| Advances      to affiliates                                                                                       |   |   | (23,464     | )      |   |   | (69,440     | )      |   |   | (1,828,333        | )      |   |   | (267,511 | ) |
| Collection      of advances to investments under equity method                                                    |   |   | -           |   |   |   | -           |   |   |   | 3,494,585         |   |   |   | 511,308 |   |
| Proceeds      from disposal of fixed assets                                                                       |   |   | 5,000       |   |   |   | 105,773     |   |   |   | 353,063           |   |   |   | 51,658 |   |
| Proceeds      from disposal of investment under equity method                                                     |   |   | 1,282,212   |   |   |   | -           |   |   |   | 3,628,834         |   |   |   | 530,950 |   |
| Proceeds      from disposal of subsidiary, net of cash disposed                                                   |   |   | 104,977     |   |   |   | -           |   |   |   | (2,025,391        | )      |   |   | (296,344 | ) |
| Net      cash used in investing activities                                                                        |   |   | (54,059,330 | )      |   |   | (62,576,426 | )      |   |   | (88,820,472       | )      |   |   | (12,995,710 | ) |

----

|                                                           |   | 2006   |        |   | 2007   |   |        | 2008   |   |   | 2008              |   |
|----------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|--------|-------------------|--------|
|                                                           |   | RMB    |        |   | RMB    |   |        | RMB    |   |   | USD               |   |
|                                                           |   |   |        |   |   |   |        |   |   |   | (note      2 (c)) |   |
| Cash      flows from financing activities:                     |   |   |        |   |   |   |        |   |   |   |              |   |
| Net      cash flow from the Share                              |   |   |        |   |   |   |        |   |   |   |              |   |
| Exchange      Transaction, net                                 |   |   |        |   |   |   |        |   |   |   |              |   |
| of      transaction costs                                      |   |   | 138,213,541 |   |   |   | -           |   |   |   | -                 |   |   |   | - |   |
| Proceeds      from warrant exercise                            |   |   | -           |   |   |   | 252,561,431 |   |   |   | -                 |   |   |   | - |   |
| Deemed      distribution                                       |   |   | (21,332,463 | )      |   |   | (26,613,939 | )      |   |   | -                 |   |   |   | - |   |
| Capital      received                                          |   |   | -           |   |   |   | -           |   |   |   | 4,460,000         |   |   |   | 652,562 |   |
| Proceeds      from bank borrowings                             |   |   | 20,000,000  |   |   |   | 55,000,000  |   |   |   | 60,000,000        |   |   |   | 8,778,861 |   |
| Proceeds      from (repayment of)                              |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| borrowing      from ex-owner                                   |   |   | (4,000,000  | )      |   |   | -           |   |   |   | -                 |   |   |   | - |   |
| Repayments      of borrowings                                  |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| from      investments under equity method                      |   |   | (500,001    | )      |   |   | -           |   |   |   | -                 |   |   |   | - |   |
| Repayments      of bank borrowings                             |   |   | (3,500,000  | )      |   |   | (55,500,000 | )      |   |   | (35,000,000       | )      |   |   | (5,121,002 | ) |
| Repayment      of capital leases                               |   |   | -           |   |   |   | (699,755    | )      |   |   | (3,167,113        | )      |   |   | (463,394 | ) |
| Dividends      paid to ex-owners                               |   |   | (5,720,291  | )      |   |   | (11,726,593 | )      |   |   | (20,751,999       | )      |   |   | (3,036,315 | ) |
| Contributions      from minority interests                     |   |   | -           |   |   |   | 7,012,320   |   |   |   | -                 |   |   |   | - |   |
| Dividends      paid to ex-owners                               |   |   | -           |   |   |   | -           |   |   |   | (5,778,611        | )      |   |   | (845,494 | ) |
| Net      cash provided by financing  activities      |   |   | 123,160,786 |   |   |   | 220,033,464 |   |   |   | (237,723          | )      |   |   | (34,782 | ) |
| Net      increase in cash and cash equivalents                 |   |   | 55,641,945  |   |   |   | 124,136,182 |   |   |   | 17,257,217        |   |   |   | 2,524,978 |   |
|                                                           |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Cash      and cash equivalents at beginning of year            |   |   | 42,715,712  |   |   |   | 98,357,657  |   |   |   | 222,493,839       |   |   |   | 32,554,040 |   |
|                                                           |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Cash      and cash equivalents at end of year                  |   |   | 98,357,657  |   |   |   | 222,493,839 |   |   |   | 239,751,056       |   |   |   | 35,079,018 |   |
|                                                           |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
|                                                           |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Supplemental      disclosures of cash flow information         |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Interest      paid                                             |   |   | 1,262,652   |   |   |   | 1,937,367   |   |   |   | 3,783,067         |   |   |   | 553,517 |   |
| Income      taxes paid                                         |   |   | 2,796,415   |   |   |   | 2,050,777   |   |   |   | 2,255,268         |   |   |   | 329,978 |   |
|                                                           |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Supplemental      disclosures of non-cash investing activities |   |   |        |   |   |   |        |   |   |   |              |   |   |   |   |   |
| Capital      lease obligation                                  |   |   | -           |   |   |   | 4,561,060   |   |   |   | 4,062,450         |   |   |   | 594,395 |   |
| Additional consideration on acquisitions                       |   |   | -           |   |   |   | 55,352,938  |   |   |   | 20,787,876        |   |   |   | 3,041,564 |   |
| Deemed      distributions to ex-owners                         |   |   | -           |   |   |   | 40,814,149  |   |   |   | 41,540,599        |   |   |   | 6,020,956 |   |

----

| 1 | Organization      and description of business |
|---|-----------------------------------------------|

----

| Name                                                                           |   | Date      of incorporation      or      establishment |   | Place      of incorporation      or      establishment    |   |   Percentage      of ownership |          |    Principal  activity |
|--------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|-----------------------------------------------------------|--------|------------------------------------------|---------------|-------------------------------------------------|
|                                                                           |   |                                                  |   |                                                      |   | 2006                                     |          | 2007                                            |   | 2008 |   |   |
|                                                                           |   |                                                  |   |                                                      |   |                                     |          |                                            |   |   |   |   |
| Port      Wing Development Co., Ltd. (“e-Channels BVI”)            |   | November      3, 2005                                 |   | BVI                                                       |   | 100                                      | %   | 100                                             | %   | 100 | %   | Investment      holding |
|                                                                           |   |                                                  |   |                                                      |   |                                     |          |                                            |   |   |   |   |
| Ahead      Billion Venture Ltd. (“Sihitech BVI”).                  |   | November      3, 2005                                 |   | BVI                                                       |   | 100                                      | %   | 100                                             | %   | 100 | %   | Investment      holding |
|                                                                           |   |                                                  |   |                                                      |   |                                     |          |                                            |   |   |   |   |
| Beijing      Yuxinyicheng Technologies Ltd. (“Yuxinyicheng”)       |   | October      19, 2006                                 |   | People’s      Republic of China (“PRC”) |   | 100                                      | %   | 100                                             | %   | 100 | %   | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                           |   |                                                  |   |                                                      |   |                                     |          |                                            |   |   |   |   |
| Beijing      e-Channels Century Technology Co., Ltd.(“e-Channels”) |   | February      5, 2001                                 |   | PRC                                                       |   | 100                                      | %   | 100                                             | %   | 100 | %   | Technology      development, technology transfer, consulting and training services, sales      of self-developed products, computer software, hardware and peripheral      equipment, communication equipment and undertaking computer network      projects |

----

| 1 | Organization      and description of business -Continued |
|---|----------------------------------------------------------|

| Name                                                                                                       |   | Date      of incorporation      or      establishment |   | Place      of incorporation      or      establishment |   | Percentage      of ownership |          | Principal  activity |
|------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------------------------------------------------------|--------|------------------------------|---------------|-------------------------------|
|                                                                                                       |   |                                                  |   |                                                   |   | 2006                         |          | 2007                          |   | 2008 |   |   |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Beijing      Sihitech Technology Co., Ltd.(“Beijing      Sihitech”)                            |   | June      16, 1999                                    |   | PRC                                                    |   | 100                          | %   | 100                           | %   | 100 | %   | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Beijing      Sihitech Software Co., Ltd.(“Beijing      Software”)                              |   | January      28, 2002                                 |   | PRC                                                    |   | 100                          | %   | 100                           | %   | 100 | %  | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Shanghai  Sihitech      Technology Co., Ltd.(“Shanghai      Sihitech”)               |   | June      20, 2001                                    |   | PRC                                                    |   | 100                          | %   | 100                           | %   | 100 | %   | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Shanghai      Sihitech Software Co., Ltd.(“Shanghai      Software”)                            |   | May      28, 2005                                     |   | PRC                                                    |   | 100                          | %   | 100                           | %   | 100 | %   | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Beijing      Sihitech Information Consulting Co., Ltd.(“Sihitech      Consulting”)*            |   | April      12, 2001                                   |   | PRC                                                    |   | -                            |          | -                             |   | - |   | Information      technology consulting |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Guangzhou      Sihitech Technology Co., Ltd.(“Guangzhou      Sihitech”)                        |   | January      5, 2000                                  |   | PRC                                                    |   | 100                          | %   | 100                           | %   | 100 | %   | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Beijing      Yuxinyicheng Information Technology Limited(“Yuxinyicheng      Information”) |   | January      15, 2007                                 |   | PRC                                                    |   | -                            |          | 80                            | %   | 80 | %   | Launching      Point of Sale (POS) merchant-acquiring outsourced services for bank in      China and providing related maintenance support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Shanghai      Yuxinhongzhi Information Technology Limited(“Hongzhi”)                           |   | July      18, 2007                                    |   | PRC                                                    |   | -                            |          | 60                            | %   | - |   | System      integration,Software      development, information technology consulting, maintenance and      support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Beijing      Yuxinhengsheng Information Technology Limited(“Sunrisk”)                          |   | April      14, 2005                                   |   | PRC                                                    |   | -                            |          | 100                           | %   | 51 | %   | Software      development, information technology consulting, maintenance and      support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Beijing      Easycon Electronics Limited(“Easycon”)                                            |   | December      25, 1997                                |   | PRC                                                    |   | -                            |          | 75                            | %   | 100 | %   | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                                                       |   |                                                  |   |                                                   |   |                         |          |                          |   |   |   |   |
| Chengdu      Recency Technologies Limited(“Recency”)                                           |   | July      15, 1997                                    |   | PRC                                                    |   | -                            |          | 100                           | %   | 100 | %   | Software      development, information technology consulting, maintenance and      support |

----

| 1 | Organization      and description of business -Continued |
|---|----------------------------------------------------------|

| Name                                                                                                            |   | Date      of incorporation      or      establishment |   | Place      of incorporation      or      establishment |   | Percentage      of ownership |   | Principal  activity |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------------------------------------------------------|--------|------------------------------|--------|-------------------------------|
|                                                                                                            |   |                                                  |   |                                                   |   | 2006                         |   |                          | 2007 |   |   | 2008 |   |   |
| Shanghai      Fujie BusinessConsulting      Limited(“Fujie”)                                        |   | December      13, 2005                                |   | PRC                                                    |   |                         | -      |                          |   |   | 100 | % |   |   | 100 | % | Software      development, information technology consulting, maintenance and      support |
|                                                                                                            |   |                                                  |   |                                                   |   |                         |   |                          |   |   |   |   |   |   |   |   |   |
| Shanghai      Fuyi Business Consulting      Limited(“Fuyi”)                                         |   | December      6, 2005                                 |   | PRC                                                    |   |                         | -      |                          |   |   | 100 | % |   |   | 100 | % | Software      development, information technology consulting, maintenance and      support |
|                                                                                                            |   |                                                  |   |                                                   |   |                         |   |                          |   |   |   |   |   |   |   |   |   |
| Beijing      Yuxinyicheng Software      Co. , Ltd.(“Yuxinyicheng      Software”)                    |   | August      6,2007                                    |   | PRC                                                    |   |                         | -      |                          |   |   | 100 | % |   |   | 100 | % | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                                                            |   |                                                  |   |                                                   |   |                         |   |                          |   |   |   |   |   |   |   |   |   |
| Guangzhou      Yuxinyicheng Information      Technology      Limited(“Guangzhou      Yuxinyicheng”) |   | November      26, 2007                                |   | PRC                                                    |   |                         | -      |                          |   |   | 100 | % |   |   | 100 | % | System      integration, software development, information technology consulting,      maintenance and support |
|                                                                                                            |   |                                                  |   |                                                   |   |                         |   |                          |   |   |   |   |   |   |   |   |   |
| Xiamen      Yucheng Technology      Limited(“Xiamen      Yucheng”)                                  |   | April      9,2007                                     |   | PRC                                                    |   |                         | -      |                          |   |   | 100 | % |   |   | 100 | % | System      integration, software development, information technology consulting,      maintenance andsupport |

----

----

| 1 | Organization      and description of business -Continued |
|---|----------------------------------------------------------|

----

| 1 | Organization      and description of business -Continued |
|---|----------------------------------------------------------|

|  | (1) | Yucheng      will pay an additional USD5,000,000 to Sihitech BVI Shareholders,      e-Channels BVI Shareholders and their designee if Yucheng receives at      least USD34,500,000 in gross proceeds in additional financing, including      from the exercise of outstanding public warrants, the successful      completion of a secondary offering, or a private investment by a strategic      investor. According to an amendment agreement dated on August 24, 2007      (the “Amendment”), the additional USD5,000,000 was changed to      USD4,960,000. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Yucheng      will pay an additional USD1,000,000 if the average closing price of the      stock of Yucheng in any sixty consecutive trading days of 2006 is above      USD10.00; USD2,000,000 if the average closing price of the stock of      Yucheng in any sixty consecutive trading days of 2007 is above USD12.00;      and USD3,000,000 if the average closing price of the stock of Yucheng in      any sixty consecutive trading days of 2008 is above    USD14.40. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1 | Organization      and description of business -Continued |
|---|----------------------------------------------------------|

| Year ended/ ending December    31, |   | Net Profit                            |
|------------------------------------|--------|---------------------------------------|
|                               |   |                                  |
| 2007                               |   | USD   8.5      million |
| 2008                               |   | USD      11.9 million                 |
| 2009                               |   | USD      16.7 million                 |
| 2010                               |   | USD      23.3million                  |

----

| 1 | Organization      and description of business -Continued |
|---|----------------------------------------------------------|

| 2 | Summary      of significant      accounting      policies and      practices |
|---|------------------------------------------------------------------------------|

|  | (a) | Principles      of consolidation |
|--|-----|----------------------------------|

|  | (b) | Use      of estimates |
|--|-----|-----------------------|

|  | (c)  | Convenience      translation into United Statesdollars |
|--|-----------|--------------------------------------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (d)  | Cash      and cash equivalents |
|--|-----------|--------------------------------|

|  | (e)  | Inventories |
|--|-----------|-------------|

|  | (f)  | Fixed      assets |
|--|-----------|-------------------|

|                                | Estimated      useful life            |
|-------------------------------------|---------------------------------------|
| Property                            | 20      years                         |
| Office      equipment and furniture | 3-5      years                        |
| Machinery                           | 3-5      years                        |
| Motor      vehicles                 | 5-10      years                       |
| Leasehold      improvements         | Shorter      of lease terms or 5years |

|  | (g)  | Leases |
|--|-----------|--------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (h) | Intangible      assets |
|--|-----|------------------------|

|  | (i) | Cost      of intangible assets |
|--|-----|--------------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (h) | Intangible      assets - Continued |
|--|-----|------------------------------------|

|  | (ii) | Amortization |
|--|------|--------------|

|                            | Estimated      useful life |
|---------------------------------|----------------------------|
| Software      development costs |                       |
| -      Internal-use software    | 3      years               |
| -      Marketable software      | 3      years               |
| Customer      relationships     | 3-5      years             |
| Other      technology           | 3-5      years             |
| Purchased      software         | 5-10      years            |

|  | (i)  | Impairment      of long-lived assets |
|--|-----------|--------------------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (j)  | Goodwill |
|--|-----------|----------|

|  | (k)  | Revenue      recognition |
|--|-----------|--------------------------|

|  | (i) | Software &      Solutions–they mainly consist of services including implementation,      customization, training, consulting and post-contract customer support      (“PCS”). Revenue from software and solutions services is generated      primarily from customer orders in which customers purchase bundled      solutions that include the Company’s software or software system and      services, and third party hardware. Our bundled solutions generally      require significant production, modifications, or customization of      software or software system, contract accounting is therefore applied in      accordance with Accounting Research Bulletin (ARB) No. 45, Long-Term      Construction-Type Contracts (“ARB No. 45”) and the relevant guidance in      SOP No. 81-1, Accounting for Performance of Construction-Type and Certain      Product-Type Contracts (“SOP 81-1”), and in Statement of Position (SOP)      97-2 Software Revenue Recognition (“SOP 97-2”). Based on our fact pattern,      we apply the percentage-of-completion method of revenue recognition to      account for the bundled solutions to the period from the start of the      significant production, modification, or customization through to the last      element delivered, which is the end of the PCS service period. Labor costs      and direct project expenses are used to determine the stage of completion.      Revisions in estimated contract profits are made in the period in which      the circumstances requiring the revision become known. Provisions, if any,      are made for anticipated losses on uncompleted  contracts. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (k) | Revenue      recognition - Continued |
|--|-----|--------------------------------------|

|  | (i) | Continued |
|--|-----|-----------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (k) | Revenue      recognition - Continued |
|--|-----|--------------------------------------|

|  | (ii) | Platform      & Maintenance Services –Platform &      Maintenance Services consist of system integration service, agency sales      and maintenance services. System integration services mainly consist of      value added services of planning, designing, installing, integrating and      testing of hardware sold to customers.  Revenue from system      integration services is recognized in accordance with SAB Topic 13,      Revenue Recognition, when the following conditions are all      met:  persuasive evidence of an arrangement exists, system      integration services have been rendered and products have been delivered      and accepted, the price is fixed or determinable and, collectibility is      reasonably assured. Customer’s acknowledgement evidences their acceptance      of the system integration work being completed at which time revenue is      recognized. The contract revenue and related costs are deferred if the      customer’s acknowledgement is notobtained. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | POS      service –POS service is a business process outsourcing service, including      merchant acquisition, deployment, installation and maintenance of POS      terminals, merchant training and technical support. POS revenue is      recognized in accordance with SAB Topic 13, Revenue Recognition, when the      following conditions are all met: persuasive evidence of an arrangement      exists, service is performed, the price is fixed or determinable and,      collectibility is reasonablyassured. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (l) | Pre-contract      costs |
|--|-----|-------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (l) | Pre-contract      costs - Continued |
|--|-----|-------------------------------------|

|  | (m) | Net      earnings per common share |
|--|-----|------------------------------------|

|  |  (n) | Retirement      benefits |
|--|-----------|--------------------------|

|  | (o) | Interest |
|--|-----|----------|

|  | (p) | Income      taxes |
|--|-----|-------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (q) | Government      subsidies |
|--|-----|---------------------------|

|  | (r) | Tax      refunds |
|--|-----|------------------|

|  | (s) | Financial      instruments |
|--|-----|----------------------------|

|  | (t) | Investments      under equity method |
|--|-----|--------------------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (t) | Investments      under equity method - Continued |
|--|-----|--------------------------------------------------|

|   |   | 2007   |      |   | 2008   |   |      | 2008   |   |
|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|   |   | RMB    |      |   | RMB    |   |      | USD    |   |
|   |   |   |      |   |   |   |      |   |   |
| Hengli |   |   | 2,255,210 |   |   |   | -         |   |   |   |   |
| Elegon |   |   | -         |   |   |   | 2,250,225 |   |   |   | 329,240 |   |
| Total  |   |   | 2,255,210 |   |   |   | 2,250,225 |   |   |   | 329,240 |   |

|                                    |   | 2006   |      |   | 2007   |   |      | 2008   |   |   | 2008       |   |
|-----------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|------------|--------|
|                                    |   | RMB    |      |   | RMB    |   |      | RMB    |   |   | USD        |   |
| Financial      position                 |   |   |      |   |   |   |      |   |   |   |       |   |
| Current      assets                     |   |   | 3,485,813 |   |   |   | 1,949,665 |   |   |   | 4,249,670  |   |   |   | 621,787 |   |
| Property,      plant and equipment, net |   |   | 3,091,770 |   |   |   | 2,553,756 |   |   |   | 2,736,155  |   |   |   | 400,339 |   |
| Other      non-current assets           |   |   | 10,130    |   |   |   | -         |   |   |   | 47,417     |   |   |   | 6,938 |   |
| Total      assets                       |   |   | 6,587,713 |   |   |   | 4,503,421 |   |   |   | 7,033,242  |   |   |   | 1,029,064 |   |
| Current      liabilities                |   |   | 865,105   |   |   |   | 795,442   |   |   |   | 2,459,459  |   |   |   | 359,854 |   |
| Total      liabilities                  |   |   | 865,105   |   |   |   | 795,442   |   |   |   | 2,459,459  |   |   |   | 359,854 |   |
| Owners’      equity               |   |   | 5,722,608 |   |   |   | 3,707,979 |   |   |   | 4,573,783  |   |   |   | 669,210 |   |
| Total      liabilities and equity       |   |   | 6,587,713 |   |   |   | 4,503,421 |   |   |   | 7,033,242  |   |   |   | 1,029,064 |   |
| Results      of operations              |   |   |      |   |   |   |      |   |   |   |       |   |   |   |   |   |
| Sales                                   |   |   | -         |   |   |   | -         |   |   |   | 92,172     |   |   |   | 13,486 |   |
| Operating      loss                     |   |   | (269,973  | )      |   |   | (53,189   | )      |   |   | (7,605,154 | )      |   |   | (1,112,743 | ) |
| Net      loss                           |   |   | (269,973  | )      |   |   | (53,189   | )      |   |   | (5,697,554 | )      |   |   | (833,634 | ) |

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (u) | Share-based      compensation |
|--|-----|-------------------------------|

|  | (v) | Segment      Information |
|--|-----|--------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (x) | Recently      Issued Accounting Standards |
|--|-----|-------------------------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (x) | Recently      Issued Accounting Standards -Continued |
|--|-----|------------------------------------------------------|

----

| 2 | Summary      of significant      accounting      policies and      practices -      Continued |
|---|-----------------------------------------------------------------------------------------------|

|  | (x) | Recently      Issued Accounting Standards |
|--|-----|-------------------------------------------|

| 3 | Trade      accounts receivable, net |
|---|-------------------------------------|

|                                             |   | December 31 |        |
|--------------------------------------------------|--------|-------------|-------------|
|                                             |   | 2007        |        |   | 2008 |   |   | 2008 |   |
|                                             |   | RMB         |        |   | RMB |   |   | USD |   |
|                                             |   |        |        |   |   |   |   |   |   |
| Primary      bank customers and its subsidiaries |   |        | 92,738,487  |   |   |   | 110,433,492 |   |   |   | 16,158,004 |   |
| Other      bank customers                        |   |        | 80,825,045  |   |   |   | 117,976,557 |   |   |   | 17,261,662 |   |
| General      contractors                         |   |        | 29,887,317  |   |   |   | 52,243,465 |   |   |   | 7,643,968 |   |
| Total                                            |   |        | 203,450,849 |   |   |   | 280,653,514 |   |   |   | 41,063,634 |   |

----

| 4 | Costs      and estimated earnings on uncompletedcontracts |
|---|-----------------------------------------------------------|

|                                         |   | December 31 |        |
|----------------------------------------------|--------|-------------|-------------|
|                                         |   | 2007        |        |   | 2008 |   |   | 2008 |   |
|                                         |   | RMB         |        |   | RMB |   |   | USD |   |
|                                         |   |        |        |   |   |   |   |   |   |
| Costs      incurred on uncompleted contracts |   |        | 46,610,915  |   |   |   | 68,293,420 |   |   |   | 9,992,307 |   |
| Estimated      earnings                      |   |        | 48,699,105  |   |   |   | 80,431,044 |   |   |   | 11,768,215 |   |
|                                         |   |        | 95,310,020  |   |   |   | 148,724,464 |   |   |   | 21,760,522 |   |
| Less:      Billings to date                  |   |        | (55,674,280 | ) |   |   | (89,924,724 | ) |   |   | (13,157,276 | ) |
|                                         |   |        | 39,635,740  |   |   |   | 58,799,740 |   |   |   | 8,603,246 |   |

| Costs      and estimated earnings in excess of billings on uncompleted      contracts |   |   | 46,564,308 |   |   |   | 68,812,918  |   |   |   | 10,068,317 |   |
|---------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|--------|--------|--------|------------|--------|
|                                                                                  |   |   |       |   |   |   |        |   |   |   |       |   |
| Billings      in excess of costs and estimated earnings on uncompleted      contracts |   |   | (6,928,568 | )      |   |   | (10,013,178 | )      |   |   | (1,465,071 | )      |
|                                                                                  |   |   | 39,635,740 |   |   |   | 58,799,740  |   |   |   | 8,603,246  |   |

| 5 | Other      current assets |
|---|---------------------------|

|                     |   | December 31 |       |
|--------------------------|--------|-------------|------------|
|                     |   | 2007        |       |   | 2008 |   |   | 2008 |   |
|                     |   | RMB         |       |   | RMB |   |   | USD |   |
|                     |   |        |       |   |   |   |   |   |   |
| Payments      in advance |   |        | 60,640,507 |   |   |   | 5,516,656 |   |   |   | 807,166 |   |
| Other      receivables   |   |        | 24,726,872 |   |   |   | 37,070,231 |   |   |   | 5,423,906 |   |
| Prepaid      expenses    |   |        | 973,882    |   |   |   | 1,150,278 |   |   |   | 168,302 |   |
| Total                    |   |        | 86,341,261 |   |   |   | 43,737,165 |   |   |   | 6,399,374 |   |

----

| 6 | Income      taxes |
|---|-------------------|

|                                                                       |   | 2006   |       |   | 2007   |   |       | 2008   |   |   | 2008        |   |
|----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-------------|--------|
|                                                                       |   | RMB    |       |   | RMB    |   |       | RMB    |   |   | USD         |   |
| Income      before minority interests and income taxes                     |   |   | 44,002,190 |   |   |   | 74,055,816 |   |   |   | 68,745,895  |   |   |   | 10,058,510 |   |
| Expected      PRC income tax expense (note (i))                            |   |   | 6,600,329  |   |   |   | 11,108,372 |   |   |   | 17,186,474  |   |   |   | 2,514,628 |   |
| Tax      holiday benefits and preferential tax rates                       |   |   | (3,950,604 | )      |   |   | (4,726,606 | )      |   |   | (31,249,966 | )      |   |   | (4,572,319 | ) |
| Tax      effect related to foreign entities not subject to income    taxes |   |   | -          |   |   |   | -          |   |   |   | 570,147     |   |   |   | 83,421 |   |
| Differential      tax rate on subsidiaries’ income                   |   |   | -          |   |   |   | (1,858,893 | )      |   |   | (656,967    | )      |   |   | (96,124 | ) |
| Non-taxable      income                                                    |   |   | (119,540   | )      |   |   | (236,647   | )      |   |   | (538,568    | )      |   |   | (78,800 | ) |
| Additional      deductible research and development expense                |   |   | (176,621   | )      |   |   | (500,198   | )      |   |   | (379,810    | )      |   |   | (55,572 | ) |
| Non-deductible      expenses                                               |   |   |       |   |   |   |       |   |   |   |        |   |   |   |   |   |
| -Non-deductible      salaries and welfare                                  |   |   | 471,696    |   |   |   | 415,618    |   |   |   | -           |   |   |   | - |   |
| -Non-deductible      entertainment expenses                                |   |   | 214,271    |   |   |   | 366,233    |   |   |   | 814,718     |   |   |   | 119,205 |   |
| -Others                                                                    |   |   | 252,183    |   |   |   | 196,641    |   |   |   | 1,467,258   |   |   |   | 214,681 |   |
| Under      provision in prior years                                        |   |   | -          |   |   |   | 223,041    |   |   |   | 493,203     |   |   |   | 72,163 |   |
| Under      provision of deferred tax in prior years                        |   |   | -          |   |   |   | -          |   |   |   | 842,751     |   |   |   | 123,307 |   |
| Loss      from equity method investees                                     |   |   | (20,248    | )      |   |   | -          |   |   |   | -           |   |   |   | - |   |
| Utilization      of tax loss previously not recognized                     |   |   | -          |   |   |   | (842,751   | )      |   |   | -           |   |   |   | - |   |
| Tax      rate difference (note (ii))                                       |   |   | -          |   |   |   | 791,353    |   |   |   | 710,500     |   |   |   | 103,956 |   |
| Change      in valuation allowance                                         |   |   | -          |   |   |   | -          |   |   |   | 1,383,117   |   |   |   | 202,370 |   |
| Others                                                                     |   |   | -          |   |   |   | 592,084    |   |   |   | (181,178    | )      |   |   | (26,509 | ) |
| Actual      income tax expenses (benefits)                                 |   |   | 3,271,466  |   |   |   | 5,528,247  |   |   |   | (9,538,321  | )      |   |   | (1,395,593 | ) |
|                                                                       |   |   |       |   |   |   |       |   |   |   |        |   |   |   |   |   |
| Representing:                                                              |   |   |       |   |   |   |       |   |   |   |        |   |   |   |   |   |
| Current      tax expenses                                                  |   |   | 3,056,181  |   |   |   | 8,751,539  |   |   |   | 786,327     |   |   |   | 115,051 |   |
| Deferred      tax expenses (benefits)                                      |   |   | 215,285    |   |   |   | (3,223,292 | )      |   |   | (10,324,648 | )      |   |   | (1,510,644 | ) |
| Total      income tax expenses (benefits)                                  |   |   | 3,271,466  |   |   |   | 5,528,247  |   |   |   | (9,538,321  | )      |   |   | (1,395,593 | ) |

----

| 6 | Income      taxes - Continued |
|---|-------------------------------|

|  | (i) | Yucheng,      and its subsidiaries, Port Wing and Ahead Billion are incorporated in the      British Virgin Islands and are not subject to taxation under the British      Virgin Islands. Yuxinyicheng and its major subsidiaries (together, the      “PRC entities”) are incorporated in the PRC and governed by the PRC      laws. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   | The      normal statutory rate of the tax rate of PRC Enterprise Income tax (“EIT”)      is 33% (30% of state income tax plus 3% local income tax) before January      1, 2008. On March 1, 2007, the Fifth Plenary Session of the Tenth National      People’s Congress passed the Corporate Income Tax Law of the PRC (“New Tax      Law”) which was taken effect on January  1, 2008.  As      a result of the new tax law, the statutory income tax rate changed from      33% to 25% with effect from January 1, 2008.  The preferential      tax rate previously enjoyed by the Company would be gradually transitioned      to the new standard rate of 25% over a five-year transitional      period.  In addition, article 28 of the New Tax Law states that      the income tax rate of the “high-tech” company will remain at      15%.  Accordingly, the carrying amount of the deferred tax      assets and liabilities, as a result of the change in tax rate, was      adjusted in the consolidated statements of operations of the Company for      year ended December 31, 2008. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   | Beijing      Sihitech was subject to the EIT rate of 15% for 2006 and      2007.  In 2008, the applicable EIT rate was 25% pursuant to the      New Tax Law. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6 | Income      taxes - Continued |
|---|-------------------------------|

|  | (i) | Continued |
|--|-----|-----------|

|                          |   | 2006   |   |   | 2007   |                 |   | 2008   |                 |
|-------------------------------|--------|--------|--------|--------|--------|----------------------|--------|--------|----------------------|
|                          |   |   |   |   |   |                 |   |   |                 |
| Port      Wing                |   |   | 0      | %      |   |                 | 0      | %      |                 |   | 0 | % |
| Ahead      Billion            |   |   | 0      | %      |   |                 | 0      | %      |                 |   | 0 | % |
| Beijing      Sihitech         |   |   | 15     | %      |   |                 | 15     | %      |                 |   | 25 | % |
| e-Channels                    |   |   | 7.5    | %      |   |                 | 15     | %      |                 |   | 15 | % |
| Beijing      Software         |   |   | 7.5    | %      |   |                 | 7.5    | %      |                 |   | 15 | % |
| Shanghai      Sihitech        |   |   | 15     | %      |   |                 | 15     | %      |                 |   | 18 | % |
| Shanghai      Software        |   |   | 0      | %      |   |                 | 0      | %      |                 |   | 9 | % |
| Guangzhou      Sihitech       |   |   | 15     | %      |   |                 | 15     | %      |                 |   | 25 | % |
| Yuxinyicheng                  |   |   | 33     | %      |   |                 | 0      | %      |                 |   | 0 | % |
| Sunrisk                       |   |   | N/A    |   |   |                 | 0      | %      |                 |   | 25 | % |
| Easycon                       |   |   | N/A    |   |   |                 | 15     | %      |                 |   | 25 | % |
| Recency                       |   |   | N/A    |   |   |                 | 15     | %      |                 |   | 25 | % |
| Hongzhi                       |   |   | N/A    |   |   |                 | 15     | %      |                 |   | 25 | % |
| Fujie                         |   |   | N/A    |   |   | 3.3%      of revenue |   |   | 2.5%      of revenue |   |
| Fuyi                          |   |   | N/A    |   |   | 3.3%      of revenue |   |   | 2.5%      of revenue |   |
| Yuxinyicheng      Information |   |   | N/A    |   |   |                 | 33     | %      |                 |   | 25 | % |
| Yuxinyicheng      Software    |   |   | N/A    |   |   |                 | 33     | %      |                 |   | 25 | % |
| Guangzhou      Yuxinyicheng   |   |   | N/A    |   |   |                 | 33     | %      |                 |   | 25 | % |
| Xiamen      Yucheng           |   |   | N/A    |   |   |                 | 33     | %      |                 |   | 25 | % |

----

| 6 | Income      taxes - Continued |
|---|-------------------------------|

|  | (ii) | Pre-tax      income and income tax expenses are both  domestic. |
|--|------|-----------------------------------------------------------------|

|                                                       |   | December 31 |       |
|------------------------------------------------------------|--------|-------------|------------|
|                                                       |   | 2007        |       |   | 2008 |   |   | 2008 |   |
|                                                       |   | RMB         |       |   | RMB |   |   | USD |   |
| Deferred      tax assets:                                  |   |        |       |   |   |   |   |   |   |
| Intangible      assets                                     |   |        | 113,231    |   |   |   | 158,036 |   |   |   | 23,123 |   |
| Future      benefit of tax losses                          |   |        | 2,472,977  |   |   |   | 14,209,797 |   |   |   | 2,079,097 |   |
| Total      deferred tax assets                             |   |        | 2,586,208  |   |   |   | 14,367,833 |   |   |   | 2,102,220 |   |
| Less:      valuation allowance                             |   |        | -          |   |   |   | (1,383,117 | ) |   |   | (202,370 | ) |
| Net      deferred tax assets                               |   |        | 2,586,208  |   |   |   | 12,984,716 |   |   |   | 1,899,850 |   |
| Deferred      tax liabilities:                             |   |        |       |   |   |   |   |   |   |   |   |   |
| Deferred      costs on unsigned contracts for tax purposes |   |        | (225,059   | ) |   |   | (980,549 | ) |   |   | (143,468 | ) |
| Capitalized      internal-use and marketable software      |   |        | (761,045   | ) |   |   | (797,161 | ) |   |   | (116,636 | ) |
| Additional      intangible assets through acquisition      |   |        | (4,326,242 | ) |   |   | (2,582,024 | ) |   |   | (377,787 | ) |
| Total      deferred tax liabilities                        |   |        | (5,312,346 | ) |   |   | (4,359,734 | ) |   |   | (637,891 | ) |
| Net      deferred tax (liabilities)/assets                 |   |        | (2,726,138 | ) |   |   | 8,624,982 |   |   |   | 1,261,959 |   |

|                                              |   | December 31 |       |
|---------------------------------------------------|--------|-------------|------------|
|                                              |   | 2007        |       |   | 2008 |   |   | 2008 |   |
|                                              |   | RMB         |       |   | RMB |   |   | USD |   |
| Deferred      tax assets - current                |   |        | -          |   |   |   | - |   |   |   | - |   |
| Deferred      tax assets – non-current      |   |        | 2,586,208  |   |   |   | 12,984,716 |   |   |   | 1,899,850 |   |
| Deferred      tax liabilities – current     |   |        | -          |   |   |   | (980,549 | ) |   |   | (143,468 | ) |
| Deferred      tax liabilities – non current |   |        | (5,312,346 | ) |   |   | (3,379,185 | ) |   |   | (494,423 | ) |
|                                              |   |        | (2,726,138 | ) |   |   | 8,624,982 |   |   |   | 1,261,959 |   |

|                                                                            |   | 2006   |     |   | 2007   |   |   | 2008   |   |   | 2008      |   |
|---------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
|                                                                            |   | RMB    |     |   | RMB    |   |   | RMB    |   |   | USD       |   |
| Valuation      allowance on deferred tax assets at the beginning of the    year |   |   | 113,472  |   |   |   | -      |   |   |   | -         |   |   |   | - |   |
| (Decrease)      increase  in valuation allowance                      |   |   | (113,472 | )      |   |   | -      |   |   |   | 1,383,117 |   |   |   | 202,370 |   |
| Total                                                                           |   |   | -        |   |   |   | -      |   |   |   | 1,383,117 |   |   |   | 202,370 |   |

----

| 6 | Income      taxes - Continued |
|---|-------------------------------|

|  | (ii) | Continued |
|--|------|-----------|

|                                                     |   | December 31 |      |
|----------------------------------------------------------|--------|-------------|-----------|
|                                                     |   | 2007        |      |   | 2008 |   |   | 2008 |   |
|                                                     |   | RMB         |      |   | RMB |   |   | USD |   |
| Year      ending December 31,                            |   |        |      |   |   |   |   |   |   |
| 2007                                                     |   |        | -         |   |   |   | - |   |   |   | - |   |
| 2008                                                     |   |        | -         |   |   |   | - |   |   |   | - |   |
| 2009                                                     |   |        | -         |   |   |   | - |   |   |   | - |   |
| 2010                                                     |   |        | -         |   |   |   | - |   |   |   | - |   |
| 2011                                                     |   |        | -         |   |   |   | - |   |   |   | - |   |
| 2012                                                     |   |        | 9,891,908 |   |   |   | 9,891,908 |   |   |   | 1,447,328 |   |
| 2013                                                     |   |        | -         |   |   |   | 42,473,273 |   |   |   | 6,214,449 |   |
| Tax      losses that can be carried forward indefinitely |   |        | -         |   |   |   | - |   |   |   | - |   |
|                                                     |   |        |      |   |   |   |   |   |   |   |   |   |
|                                                     |   |        | 9,891,908 |   |   |   | 52,365,181 |   |   |   | 7,661,777 |   |

----

| 6 | Income      taxes - Continued |
|---|-------------------------------|

|  | (ii) | Continued |
|--|------|-----------|

| 7 | Fixed      assets, net |
|---|------------------------|

|                                |   | December 31 |        |
|-------------------------------------|--------|-------------|-------------|
|                                |   | 2007        |        |   | 2008 |   |   | 2008 |   |
|                                |   | RMB         |        |   | RMB |   |   | USD |   |
| Gross      fixed assets             |   |        |        |   |   |   |   |   |   |
| Property                            |   |        | 3,925,312   |   |   |   | 3,925,312 |   |   |   | 574,329 |   |
| Office      equipment and furniture |   |        | 17,872,146  |   |   |   | 24,036,930 |   |   |   | 3,516,948 |   |
| Machinery                           |   |        | 14,501,167  |   |   |   | 39,260,392 |   |   |   | 5,744,358 |   |
| Motor      vehicles                 |   |        | 4,168,461   |   |   |   | 4,113,163 |   |   |   | 601,815 |   |
| Leasehold      improvements         |   |        | 3,852,499   |   |   |   | 6,036,410 |   |   |   | 883,214 |   |
| Total      gross fixed assets       |   |        | 44,319,585  |   |   |   | 77,372,207 |   |   |   | 11,320,664 |   |
| Accumulated      depreciation       |   |        | (10,995,171 | ) |   |   | (19,874,809 | ) |   |   | (2,907,970 | ) |
| Total      fixed assets, net        |   |        | 33,324,414  |   |   |   | 57,497,398 |   |   |   | 8,412,694 |   |

----

| 7 | Fixed      assets, net - Continued |
|---|------------------------------------|

| 8 | Intangible      assets, net |
|---|-----------------------------|

|                                                          |   |   |   |      |       |   | Capitalized |   |       | Capitalized  |   |   | Customer  |   |   |       |       |   |   |   |
|---------------------------------------------------------------|--------|--------|--------|-----------|------------|--------|-------------|--------|------------|--------------|--------|--------|-----------|--------|--------|------------|------------|--------|--------|--------|
|                                                          |   |   |   | Purchased |       |   | marketable  |   |       | internal-use |   |   | relation- |   |   | Other      |       |   |   |   |
|                                                          |   |   |   | software  |       |   | software    |   |       | software     |   |   | ships     |   |   | technology |       |   | Total  |   |
| Balance      as at  January 1, 2007                 |   | RMB    |   |      | 1,024,736  |   |        |   | 5,157,354  |         |   |   | 196,203   |   |   |       | 9,682,788  |   |   |   | 20,146,446 |   |   |   | 36,207,527 |   |
|                                                          |   |   |   |      |       |   |        |   |       |         |   |   |      |   |   |       |       |   |   |   |   |   |   |   |   |   |
| Additions      through acquisitions of subsidiaries (note 20) |   |   |   |      | -          |   |        |   | -          |         |   |   | -         |   |   |       | 1,964,400  |   |   |   | 2,946,600 |   |   |   | 4,911,000 |   |
| Additions                                                     |   |   |   |      | 5,145,600  |   |        |   | 2,328,100  |         |   |   | -         |   |   |       | -          |   |   |   | 5,000,000 |   |   |   | 12,473,700 |   |
| Amortization                                                  |   |   |   |      | (232,820   | )      |        |   | (2,678,088 | )            |   |   | (51,027   | )      |   |       | (3,227,596 | )      |   |   | (6,195,026 | ) |   |   | (12,384,557 | ) |
| Balance      as at December 31, 2007                          |   | RMB    |   |      | 5,937,516  |   |        |   | 4,807,366  |         |   |   | 145,176   |   |   |       | 8,419,592  |   |   |   | 21,898,020 |   |   |   | 41,207,670 |   |
|                                                          |   |   |   |      |       |   |        |   |       |         |   |   |      |   |   |       |       |   |   |   |   |   |   |   |   |   |
| Additions                                                     |   |   |   |      | 411,800    |   |        |   | 3,572,570  |         |   |   | -         |   |   |       | -          |   |   |   | 8,000,000 |   |   |   | 11,984,370 |   |
| Elimination      from disposal of subsidiary                  |   |   |   |      | (1,173,613 | )      |        |   | -          |         |   |   | -         |   |   |       | -          |   |   |   | - |   |   |   | (1,173,613 | ) |
| Amortization                                                  |   |   |   |      | (1,260,918 | )      |        |   | (2,505,094 | )            |   |   | (145,176  | )      |   |       | (3,816,916 | )      |   |   | (8,262,341 | ) |   |   | (15,990,445 | ) |
| Balance      as at December 31, 2008                          |   | RMB    |   |      | 3,914,785  |   |        |   | 5,874,842  |         |   |   | -         |   |   |       | 4,602,676  |   |   |   | 21,635,679 |   |   |   | 36,027,982 |   |
| (note      2(c))                                              |   |   |   |      |       |   |        |   |       |         |   |   |      |   |   |       |       |   |   |   |   |   |   |   |   |   |
|                                                          |   |   |   |      |       |   |        |   |       |         |   |   |      |   |   |       |       |   |   |   |   |   |   |   |   |   |
|                                                          |   | USD    |   |      | 572,789    |   |        |   | 859,574    |         |   |   | -         |   |   |       | 673,438    |   |   |   | 3,165,610 |   |   |   | 5,271,411 |   |

| Year      ending                                                       |   |   |       |
|------------------------------------------------------------------------|--------|--------|------------|
| December 31                                                            |   | RMB    |       |
|            2009 |   |   | 15,754,595 |   |
|            2010 |   |   | 6,780,633  |   |
|            2011 |   |   | 6,037,454  |   |
|            2012 |   |   | 3,811,048  |   |
|            2013 |   |   | 1,736,184  |   |
|                                                                   |   |   | 34,119,914 |   |

----

| 9 | Short-term      loan |
|---|----------------------|

|                                |   | December 31 |       |
|-------------------------------------|--------|-------------|------------|
|                                |   | 2007        |       |   | 2008 |   |   | 2008 |   |
|                                |   | RMB         |       |   | RMB |   |   | USD |   |
|                                |   |        |       |   |   |   |   |   |   |
| Short-term      borrowing from bank |   |        | 35,000,000 |   |   |   | 60,000,000 |   |   |   | 8,778,861 |   |

|  | (i) | the      borrowing of RMB20,000,000 effective from December 14, 2007 to December      14, 2008 with an annual interest rate of 8.019%;  and |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the      borrowing of RMB15,000,000 effective from September 7, 2007 to March 7,      2008 with an annual interest rate of6.831%. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | the      borrowing of RMB20,000,000 effective from April 24, 2008 to April 23, 2009      with an annual interest rate of8.217%; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the      borrowing of RMB20,000,000 effective from May 23, 2008 to May 22, 2009      with an annual interest rate of  8.217%;  and |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | the      borrowing of RMB20,000,000 effective from November 12, 2008 to November      11, 2009 with an annual interest rate  of  7.326%. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | Capital      leases |
|----|---------------------|

|                                                      |   | RMB    |       |   | USD    |   |
|-----------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Year      ending December 31:                             |   |   |       |   |   |   |
| 2009                                                      |   |   | 3,118,336  |   |   |   | 456,257 |   |
| 2010                                                      |   |   | 2,373,829  |   |   |   | 347,325 |   |
| 2011                                                      |   |   | 320,751    |   |   |   | 46,931 |   |
|                                                      |   |   |       |   |   |   |   |   |
| Total      net minimum lease payments                     |   |   | 5,812,916  |   |   |   | 850,513 |   |
|                                                      |   |   |       |   |   |   |   |   |
| Less:      Amount representing interest                   |   |   | (348,130   | )      |   |   | (50,936 | ) |
|                                                      |   |   |       |   |   |   |   |   |
| Present      value of net minimum lease payments          |   |   | 5,464,786  |   |   |   | 799,577 |   |
| Less:      current portion                                |   |   | (2,867,754 | )      |   |   | (419,594 | ) |
|                                                      |   |   |       |   |   |   |   |   |
| Obligations      under capital leases – non-current |   |   | 2,597,032  |   |   |   | 379,983 |   |

----

| 11 | Other      current liabilities |
|----|--------------------------------|

|                                     |   | December 31 |       |
|------------------------------------------|--------|-------------|------------|
|                                     |   | 2007        |       |   | 2008 |   |   | 2008 |   |
|                                     |   | RMB         |       |   | RMB |   |   | USD |   |
|                                     |   |        |       |   |   |   |   |   |   |
| Advances      from customers             |   |        | 10,067,724 |   |   |   | 12,199,004 |   |   |   | 1,784,889 |   |
| Taxes      payable, excluding income tax |   |        | 12,887,053 |   |   |   | 23,220,563 |   |   |   | 3,397,502 |   |
| Accrued      expenses                    |   |        | 3,727,646  |   |   |   | 3,313,148 |   |   |   | 484,761 |   |
| Education      surcharge payable         |   |        | 392,480    |   |   |   | - |   |   |   | - |   |
| Commission      payable                  |   |        | 1,500,000  |   |   |   | - |   |   |   | - |   |
| Others                                   |   |        | 7,916,988  |   |   |   | 14,504,381 |   |   |   | 2,122,199 |   |
| Total                                    |   |        | 36,491,891 |   |   |   | 53,237,096 |   |   |   | 7,789,351 |   |

| 12 | Minority      interests |
|----|-------------------------|

|                                      |   | December 31 |      |
|-------------------------------------------|--------|-------------|-----------|
|                                      |   | 2007        |      |   | 2008 |   |   | 2008 |   |
|                                      |   | RMB         |      |   | RMB |   |   | USD |   |
|                                      |   |        |      |   |   |   |   |   |   |
| Balance      as of January 1              |   |        | -         |   |   |   | 5,199,312 |   |   |   | 760,734 |   |
| Addition      for the year                |   |        | 5,199,312 |   |   |   | 9,059,494 |   |   |   | 1,325,533 |   |
| Decrease      on disposal of a subsidiary |   |        | -         |   |   |   | (2,235,163 | ) |   |   | (327,036 | ) |
| Balance      as of December 31            |   |        | 5,199,312 |   |   |   | 12,023,643 |   |   |   | 1,759,231 |   |

| 13 | Reserves |
|----|----------|

----

| 14 | Accumulated      other comprehensive income (loss) |
|----|----------------------------------------------------|

| 15 | Revenues |
|----|----------|

|                                      |   | 2006   |        |   | 2007   |   |        | 2008   |   |   | 2008        |   |
|-------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|--------|-------------|--------|
|                                      |   | RMB    |        |   | RMB    |   |        | RMB    |   |   | USD         |   |
| Revenues                                  |   |   |        |   |   |   |        |   |   |   |        |   |
|                                      |   |   |        |   |   |   |        |   |   |   |        |   |
| Software      & Solutions             |   |   |        |   |   |   |        |   |   |   |        |   |
| Channel      Solutions                    |   |   | 19,616,230  |   |   |   | 50,050,552  |   |   |   | 99,207,955  |   |   |   | 14,515,546 |   |
| Management      Solutions                 |   |   | 10,794,706  |   |   |   | 102,594,941 |   |   |   | 96,092,473  |   |   |   | 14,059,707 |   |
| Business      Solutions                   |   |   | 50,839,502  |   |   |   | 45,814,458  |   |   |   | 74,059,990  |   |   |   | 10,836,039 |   |
| Platform      & Maintenance Services  |   |   |        |   |   |   |        |   |   |   |        |   |   |   |   |   |
| Platform      services                    |   |   | 192,020,760 |   |   |   | 204,947,047 |   |   |   | 339,773,531 |   |   |   | 49,713,741 |   |
| Maintenance      & Ancillary Services |   |   | 19,129,197  |   |   |   | 36,654,748  |   |   |   | 61,251,269  |   |   |   | 8,961,939 |   |
| POS                                       |   |   | -           |   |   |   | 3,851,643   |   |   |   | 15,415,803  |   |   |   | 2,255,553 |   |
| Total      revenues                       |   |   | 292,400,395 |   |   |   | 443,913,389 |   |   |   | 685,801,021 |   |   |   | 100,342,525 |   |
| Business      taxes                       |   |   | (2,749,970  | )      |   |   | (8,394,547  | )      |   |   | (8,982,017  | )      |   |   | (1,314,198 | ) |
| Net      revenues                         |   |   | 289,650,425 |   |   |   | 435,518,842 |   |   |   | 676,819,004 |   |   |   | 99,028,327 |   |

| 16 | General      and administrative expenses |
|----|------------------------------------------|

|                                                              |   | 2006RMB |      |   | 2007RMB |   |      | 2008RMB |   |   | 2008USD   |   |
|-------------------------------------------------------------------|--------|---------|-----------|--------|---------|--------|-----------|---------|--------|--------|-----------|--------|
| Value-added      tax refund for software  products sold |   |    | 1,281,395 |   |    |   | 2,554,227 |    |   |   | 4,317,995 |   |   |   | 631,785 |   |
| Technology      subsidy                                           |   |    | 1,041,000 |   |    |   | 3,302,741 |    |   |   | 1,313,732 |   |   |   | 192,218 |   |
| Business      tax and surcharges refund                           |   |    | -         |   |    |   | 1,459,746 |    |   |   | -         |   |   |   | - |   |
| Other                                                             |   |    | 837,968   |   |    |   | -         |    |   |   | 530,777   |   |   |   | 77,660 |   |
| Total                                                             |   |    | 3,160,363 |   |    |   | 7,316,714 |    |   |   | 6,162,504 |   |   |   | 901,663 |   |

----

| 17 | Earnings      per share |
|----|-------------------------|

|                                                                                                                        |   | 2006   |       |   | 2007   |   |       | 2008   |   |   | 2008       |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                                                        |   | RMB    |       |   | RMB    |   |       | RMB    |   |   | USD        |   |
| Net      income (numerator)                                                                                                 |   |   |       |   |   |   |       |   |   |   |       |   |
| -      basic and diluted                                                                                                    |   |   | 40,730,724 |   |   |   | 66,714,428 |   |   |   | 80,995,184 |   |   |   | 11,850,757 |   |
| Shares      (denominator):                                                                                                  |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted      average ordinary shares  outstanding used in      computing  basic net earnings per share |   |   | 8,118,335  |   |   |   | 13,144,681 |   |   |   | 17,566,898 |   |   |   | 17,566,898 |   |
| Incremental      weighted average  common shares from assumed exercise of Warrants (note      19)                 |   |   | 2,173,973  |   |   |   | 1,191,573  |   |   |   | -          |   |   |   | - |   |
| common      shares from assumed exercise of  UPOs (note 19)                                                       |   |   | -          |   |   |   | 81,111     |   |   |   | 172,122    |   |   |   | 172,122 |   |
| contingent      considerations in  relation to Share Exchange transaction (note      1)                           |   |   | -          |   |   |   | 952,832    |   |   |   | 952,832    |   |   |   | 952,832 |   |
| Weighted      average common share  outstanding used in      computing  diluted net earnings per share  |   |   | 10,292,308 |   |   |   | 15,370,197 |   |   |   | 18,691,852 |   |   |   | 18,691,852 |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      earnings per share - basic                                                                                         |   |   | 5.02       |   |   |   | 5.08       |   |   |   | 4.61       |   |   |   | 0.67 |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      earnings per share - diluted                                                                                       |   |   | 3.96       |   |   |   | 4.34       |   |   |   | 4.33       |   |   |   | 0.63 |   |

----

| 18 | Commitments      and contingencies |
|----|------------------------------------|

|                  |   | RMB    |       |   | USD    |   |
|-----------------------|--------|--------|------------|--------|--------|--------|
| Payable:              |   |   |       |   |   |   |
| Within      1 year    |   |   | 8,439,208  |   |   |   | 1,234,777 |   |
| Within      1-2 years |   |   | 5,847,273  |   |   |   | 855,540 |   |
| Within      2-3 years |   |   | 4,799,852  |   |   |   | 702,287 |   |
|                  |   |   | 19,086,333 |   |   |   | 2,792,604 |   |

----

| 18 | Commitments      and contingencies - Continued |
|----|------------------------------------------------|

| 19 | Warrants      and unit purchase options |
|----|-----------------------------------------|

----

| 20 | Acquisition      of subsidiaries |
|----|----------------------------------|

|                                                                                  |   | RMB    |        |
|---------------------------------------------------------------------------------------|--------|--------|-------------|
|                                                                                  |   |   |        |
| Plant      and equipment                                                              |   |   | 1,153,323   |   |
| Intangible      assets                                                                |   |   | 32,178,383  |   |
| Goodwill                                                                              |   |   | 82,963,040  |   |
| Inventories                                                                           |   |   | 1,085,475   |   |
| Trade      receivables                                                                |   |   | 13,574,386  |   |
| Cost      and estimated earnings in excess of billings on uncompleted      Contracts  |   |   | 10,302,776  |   |
| Pre-contract      costs                                                               |   |   | 77,815      |   |
| Other      current assets                                                             |   |   | 4,033,438   |   |
| Cash      and bank balances                                                           |   |   | 2,109,202   |   |
| Short      term loan                                                                  |   |   | (2,000,000  | ) |
| Trade      payables                                                                   |   |   | (1,864,975  | ) |
| Billings      in excess of costs and estimated earnings on uncompleted      Contracts |   |   | (1,250      | ) |
| Other      current liabilities                                                        |   |   | (859,087    | ) |
| Income      taxes payables                                                            |   |   | (800,804    | ) |
| Dividend      payables to subsidiary ex-owners                                        |   |   | (10,000,000 | ) |
| Deferred      taxes                                                                   |   |   | (4,809,874  | ) |
| Long-term      liability                                                              |   |   | -           |   |
| Total      purchase price                                                             |   |   | 127,141,848 |   |

----

| 20 | Acquisition      of subsidiaries -      Continued |
|----|---------------------------------------------------|

|                |   | RMB    |        |
|---------------------|--------|--------|-------------|
| Satisfied      by:  |   |   |        |
| Cash      paid      |   |   | 23,484,137  |   |
| Other      payables |   |   | 19,310,524  |   |
| Common      stock   |   |   | 84,347,187  |   |
|                |   |   | 127,141,848 |   |

|                                                                  |   | RMB    |        |
|-----------------------------------------------------------------------|--------|--------|-------------|
|                                                                  |   |   |        |
| Cash      consideration                                               |   |   | (23,484,137 | ) |
| Cash      and bank balances acquired in the acquisition               |   |   | 2,109,202   |   |
| Total      net cash paid in the acquisition                           |   |   | (21,374,935 | ) |
| Less:      cash paid during the year ended December 31, 2006 and 2007 |   |   | 18,952,026  |   |
| Net      cash paid during the year ended December 31, 2008            |   |   | (2,422,909  | ) |

|                                   |   | Amount |       | Estimateduseful life |
|----------------------------------------|--------|--------|------------|----------------------|
|                                   |   | RMB    |       |                 |
| Purchased      software                |   |   | 185,243    |                 | 5      years |
| Capitalized      marketable software   |   |   | 2,029,692  |                 | 3      years |
| Capitalized      internal-use software |   |   | 134,214    |                 | 3      years |
| Customer      relationships            |   |   | 9,682,788  |                 | 3      years |
| Other      technology                  |   |   | 20,146,446 |                 | 3-5      years |
|                                   |   |   | 32,178,383 |                 |   |

----

| 20 | Acquisition      of subsidiaries -      Continued |
|----|---------------------------------------------------|

----

| 20 | Acquisition      of subsidiaries -      Continued |
|----|---------------------------------------------------|

|                           |   | RMB    |        |
|--------------------------------|--------|--------|-------------|
|                           |   |   |        |
| Plant      and equipment       |   |   | 2,296,850   |   |
| Intangible      assets         |   |   | 4,911,000   |   |
| Goodwill                       |   |   | 124,829,269 |   |
| Trade      receivables         |   |   | 16,222,361  |   |
| Pre-contract      costs        |   |   | 5,243,183   |   |
| Other      current assets      |   |   | 11,469,185  |   |
| Cash      and bank balances    |   |   | 3,097,045   |   |
| Trade      payables            |   |   | (5,211,542  | ) |
| Other      current liabilities |   |   | (37,492,048 | ) |
| Income      taxes payables     |   |   | (74,253     | ) |
| Long-term      liability       |   |   | (770,000    | ) |
| Deferred      taxes            |   |   | (384,999    | ) |
| Minority      interests        |   |   | 3,159,181   |   |
| Total      purchase price      |   |   | 127,295,232 |   |
|                           |   |   |        |   |
| Satisfied      by:             |   |   |        |   |
| Cash                           |   |   | 123,761,483 |   |
| Other      payables            |   |   | 3,533,749   |   |
|                           |   |   | 127,295,232 |   |

|                                                                  |   | RMB    |         |
|-----------------------------------------------------------------------|--------|--------|--------------|
|                                                                  |   |   |         |
| Cash      consideration                                               |   |   | (123,761,483 | ) |
| Cash      and bank balances acquired in the acquisition               |   |   | 3,097,045    |   |
| Total      net cash paid in the acquisition                           |   |   | (120,664,438 | ) |
| Less:      cash paid during the year ended December 31, 2006 and 2007 |   |   | 65,402,955   |   |
| Net      cash paid during the year ended December 31, 2008            |   |   | (55,261,483  | ) |

|                        |   | Amount |      | Estimateduseful life |
|-----------------------------|--------|--------|-----------|----------------------|
|                        |   | RMB    |      |                 |
| Customer      relationships |   |   | 1,964,400 |                 | 5      years |
| Other      technology       |   |   | 2,946,600 |                 | 5      years |
|                        |   |   | 4,911,000 |                 |   |

----

| 20 | Acquisition      of subsidiaries -      Continued |
|----|---------------------------------------------------|

|                                                              |   | 2006   |         |   | 2007   |   |         | 2007              |   |
|-------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|-------------------|--------|
|                                                              |   | RMB    |         |   | RMB    |   |         | USD               |   |
|                                                              |   |   |         |   |   |   |         | (note      2 (c)) |   |
| Revenues:                                                         |   |   |         |   |   |   |         |              |   |
| Software      & Solutions                                     |   |   | 177,725,847  |   |   |   | 211,343,087  |              |   |   | 28,932,876 |   |
| Platform      & Maintenance Services                          |   |   | 215,273,111  |   |   |   | 251,806,813  |              |   |   | 34,472,362 |   |
| POS                                                               |   |   | -            |   |   |   | 3,643,916    |              |   |   | 498,852 |   |
|                                                              |   |   |         |   |   |   |         |              |   |   |   |   |
| Total      revenues                                               |   |   | 392,998,958  |   |   |   | 466,793,816  |              |   |   | 63,904,090 |   |
|                                                              |   |   |         |   |   |   |         |              |   |   |   |   |
| Software      & Solutions                                     |   |   | (77,245,974  | )      |   |   | (94,831,324  | )                 |   |   | (12,982,412 | ) |
| Platform      & Maintenance Services                          |   |   | (183,077,482 | )      |   |   | (195,949,155 | )                 |   |   | (26,825,446 | ) |
| POS                                                               |   |   | -            |   |   |   | (1,088,024   | )                 |   |   | (148,950 | ) |
|                                                              |   |   |         |   |   |   |         |              |   |   |   |   |
| Total      cost of revenues                                       |   |   | (260,323,456 | )      |   |   | (291,868,503 | )                 |   |   | (39,956,808 | ) |
|                                                              |   |   |         |   |   |   |         |              |   |   |   |   |
| Gross      profit                                                 |   |   | 132,675,502  |   |   |   | 174,925,313  |              |   |   | 23,947,282 |   |
| Operating      incomes (expenses):                                |   |   |         |   |   |   |         |              |   |   |   |   |
| Research      and development expenses                            |   |   | (3,764,931   | )      |   |   | (8,369,567   | )                 |   |   | (1,145,794 | ) |
| Selling      and marketing expenses                               |   |   | (28,459,647  | ))     |   |   | (35,719,639  | )                 |   |   | (4,890,020 | ) |
| General      and administrative expenses                          |   |   | (43,555,893  | )      |   |   | (55,452,862  | )                 |   |   | (7,591,499 | ) |
|                                                              |   |   |         |   |   |   |         |              |   |   |   |   |
| Total      operating expenses                                     |   |   | (75,780,471  | )      |   |   | (99,542,068  | )                 |   |   | (13,627,313 | ) |
| Other      income (expenses):                                     |   |   |         |   |   |   |         |              |   |   |   |   |
| Interest      income                                              |   |   | 169,082      |   |   |   | 1,833,507    |              |   |   | 251,007 |   |
| Interest      expense                                             |   |   | (1,624,712   | )      |   |   | (2,452,510   | )                 |   |   | (335,749 | ) |
| Income      from short-term investment                            |   |   | -            |   |   |   | 3,494,446    |              |   |   | 478,390 |   |
| Loss      from equity method investees                            |   |   | (134,986     | )      |   |   | -            |              |   |   | - |   |
| Other      income (expense), net                                  |   |   | 48,493       |   |   |   | (474,155     | )                 |   |   | (64,912 | ) |
|                                                              |   |   |         |   |   |   |         |              |   |
| Income      before income taxes  and minority interests |   |   | 55,352,908   |   |   |   | 77,784,533   |              |   |   | 10,648,705 |   |
| Income      tax expense                                           |   |   | (3,982,389   | )      |   |   | (5,833,532   | )                 |   |   | (798,611 | ) |
|                                                              |   |   |         |   |   |   |         |              |   |   |   |   |
| Income      before minority interests                             |   |   | 51,370,519   |   |   |   | 71,951,001   |              |   |   | 9,850,094 |   |
| Minority      interests                                           |   |   | -            |   |   |   | (1,813,141   | )                 |   |   | (248,219 | ) |
|                                                              |   |   |         |   |   |   |         |              |   |
| Net      income                                                   |   |   | 51,370,519   |   |   |   | 70,137,860   |              |   |   | 9,601,875 |   |
|                                                              |   |   |         |   |   |   |         |              |   |   |   |   |
| Earnings      Per Share                                           |   |   |         |   |   |   |         |              |   |   |   |   |
| –      Basic                                                |   |   | 6.33         |   |   |   | 5.34         |              |   |   | 0.73 |   |
| –      Diluted                                              |   |   | 4.99         |   |   |   | 4.56         |              |   |   | 0.62 |   |
|                                                              |   |   |         |   |   |   |         |              |   |   |   |   |
| Weighted      average common shares outstanding                   |   |   |         |   |   |   |         |              |   |   |   |   |
| –      basic                                                |   |   | 8,118,335    |   |   |   | 13,144,681   |              |   |   | 13,144,681 |   |
|                                                              |   |   |         |   |   |   |         |              |   |   |
| –diluted                                                    |   |   | 10,292,308   |   |   |   | 15,370,197   |              |   |   | 15,370,197 |   |

----

| 21 | Disposal      of subsidiaries |
|----|-------------------------------|

| 22 | Significant      related partytransactions |
|----|--------------------------------------------|

|   | (a) | Identity of      related parties |
|--------|-----|----------------------------------|

|                                   |   | Relationship with   |   | Shareholding in Yucheng or shareholding beingheld by the Company |   |
|----------------------------------------|--------|--------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                   |   | the Company         |   | for 2006                                                                                            |   |   | for 2007 |   |   | for 2008 |   |
|                                   |   |                     |   |                                                                                                     |   |   |   |   |   |   |   |
| Mr.      Weidong Hong                  |   | Shareholder      and CEO |   |                                                                                                     | 23.64  | % |   |   | 13.56 | % |   |   | 15.10 | % |
|                                   |   |                     |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Mr.      Shuo Zeng                     |   | Shareholder      and COO |   |                                                                                                     | 7.12   | % |   |   | 4.91 | % |   |   | 4.65 | % |
|                                   |   |                     |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Beijing      Hengli Plastic            |   | Investment      under    |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Machine      Co., Ltd.                 |   | equity      method       |   |                                                                                                     | 50     | % |   |   | 50 | % |   |   | - |   |
|                                   |   |                     |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Shanghai      Sihitech                 |   |                     |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Sanjian      Technology                |   | Investment      under    |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Co.,      Ltd. (“Sanjian”) |   | equity      method       |   |                                                                                                     | 50     | % |   |   | 0 | % |   |   | 0 | % |
|                                   |   |                     |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Chengdu      Yuxinruizhi               |   | Investment      under    |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Information      Technologies          |   | equity      method       |   |                                                                                                     | 0      | % |   |   | 0 | % |   |   | 49 | % |
| Limited      (“Elegon”)    |   |                     |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                     |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Sihitech      (HK) Co., Ltd.           |   | Controlled      by       |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |
|                                   |   | Mr.      Weidong Hong    |   |                                                                                                     | N/A    |   |   |   | N/A |   |   |   | N/A |   |

|  | Note      1: | Before      the Share Exchange Transaction was completed on November 24, 2006, Mr.      Weidong Hong held 42% ofSihitech. |
|--|--------------|---------------------------------------------------------------------------------------------------------------------------|

|  | Note      2: | Before      the Share Exchange Transaction was completed on November 24, 2006, Mr.      Shuo Zeng held 43% ofe-Channels. |
|--|--------------|--------------------------------------------------------------------------------------------------------------------------|

----

| 22 | Significant      related      party transactions -Continued |
|----|-------------------------------------------------------------|

|   | (b) | Related      party transactions |
|--------|-----|---------------------------------|

|                                                             |   | 2006   |       |   | 2007   |   |     | 2008   |   |   | 2008       |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|----------|--------|--------|--------|------------|--------|
|                                                             |   | RMB    |       |   | RMB    |   |     | RMB    |   |   | USD        |   |
|                                                             |   |   |       |   |   |   |     |   |   |   |       |   |
| Advances      to investments under equity method                 |   |   |       |   |   |   |     |   |   |   |       |   |
| -Hengli                                                          |   |   | 23,464     |   |   |   | 69,440   |   |   |   | -          |   |   |   | - |   |
| -Elegon                                                          |   |   | -          |   |   |   | -        |   |   |   | 1,828,333  |   |   |   | 267,511 |   |
|                                                             |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| Collection      of advances to investments under equity method   |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| -Hengli                                                          |   |   | -          |   |   |   | -        |   |   |   | (728,942   | )      |   |   | (106,655 | ) |
| -Sanjian                                                         |   |   | -          |   |   |   | -        |   |   |   | (937,457   | )      |   |   | (137,163 | ) |
| -Elegon                                                          |   |   | -          |   |   |   | -        |   |   |   | (1,828,190 | )      |   |   | (267,490 | ) |
|                                                             |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| Repayment      of borrowing from investments under equity method |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| -Shuyi                                                           |   |   | 500,000    |   |   |   | -        |   |   |   | -          |   |   |   | - |   |
|                                                             |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| Repayment      of borrowing from shareholder                     |   |   | 4,000,000  |   |   |   | -        |   |   |   | -          |   |   |   | - |   |
|                                                             |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| Advances      to shareholders                                    |   |   | 3,609,155  |   |   |   | 53,804   |   |   |   | 173,022    |   |   |   | 25,316 |   |
|                                                             |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| Collection      of advances to shareholders                      |   |   | (1,056,234 | )      |   |   | (333,063 | )      |   |   | (173,022   | )      |   |   | (25,316 | ) |
|                                                             |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| Sales      to Sihitech (HK) Co., Ltd.                            |   |   | -          |   |   |   | -        |   |   |   | 57,296,777 |   |   |   | 8,383,340 |   |
|                                                             |   |   |       |   |   |   |     |   |   |   |       |   |   |   |   |   |
| Collection      from Sihitech (HK) Co., Ltd                      |   |   | -          |   |   |   | -        |   |   |   | 55,728,672 |   |   |   | 8,153,904 |   |

|   | (c) | Related      party balances |
|--------|-----|-----------------------------|

|                                            |   | December 31 |    |
|-------------------------------------------------|--------|-------------|---------|
|                                            |   | 2007        |    |   | 2008 |   |   | 2008 |   |
|                                            |   | RMB         |    |   | RMB |   |   | USD |   |
|                                            |   |        |    |   |   |   |   |   |   |
| Due      from an investment under equity method |   |        | 937,457 |   |   |   | 143 |   |   |   | 21 |   |
| Due      from Sihitech (HK) Co., Ltd.           |   |        | -       |   |   |   | 1,568,105 |   |   |   | 229,436 |   |
|                                            |   |        | 937,457 |   |   |   | 1,568,248 |   |   |   | 229,457 |   |

----

| 23 | Share      option plan |
|----|------------------------|

| 24 | Subsequent      events |
|----|------------------------|

----