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

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

----

| Delaware                                                      |   | 13-5661446                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                          |   |                                 |
| Wenyang Town, Feicheng City, ShanDong, China                  |   | 271603                               |
| (Address of principal executive offices)                      |   | (Zip Code)                           |

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

----

| PART I—FINANCIAL INFORMATION |                                                                                  |   |
|------------------------------------|---------------------------------------------------------------------------------------|--------|
|                               |                                                                                  |   |
| Item 1.                            | Financial Statements                                                                  |   | 2 |
|                               |                                                                                  |   |   |
|                               | Consolidated Balance Sheets                                                           |   | 2 |
|                               |                                                                                  |   |   |
|                               | Consolidated Statements of Income and Comprehensive Income                            |   | 3 |
|                               |                                                                                  |   |   |
|                               | Consolidated Statements of Cash Flows                                                 |   | 4 |
|                               |                                                                                  |   |   |
|                               | Notes to Unaudited Consolidated Financial Statements                                  |   | 5 |
|                               |                                                                                  |   |   |
| Item 2.                            | Management's Discussion and Analysis of Financial Condition and Results of Operations |   | 18 |
|                               |                                                                                  |   |   |
| Item 3.                            | Quantitative and Qualitative Disclosures About Market Risk                            |   | 22 |
|                               |                                                                                  |   |   |
| Item 4.                            | Controls and Procedures                                                               |   | 22 |
|                               |                                                                                  |   |   |
| PART II—OTHER INFORMATION    |                                                                                  |   |
|                               |                                                                                  |   |
| Item 1.                            | Legal Proceedings                                                                     |   | 22 |
|                               |                                                                                  |   |   |
| Item 1A.                           | Risk Factors                                                                          |   | 22 |
|                               |                                                                                  |   |   |
| Item 2.                            | Unregistered Sales of Equity Securities and Use of Proceeds                           |   | 23 |
|                               |                                                                                  |   |   |
| Item 3.                            | Defaults Upon Senior Securities                                                       |   | 23 |
|                               |                                                                                  |   |   |
| Item 4.                            | (Removed and Reserved)                                                                |   | 23 |
|                               |                                                                                  |   |   |
| Item 5.                            | Other Information                                                                     |   | 23 |
|                               |                                                                                  |   |   |
| Item 6.                            | Exhibits                                                                              |   | 23 |
|                               |                                                                                  |   |   |
| Signatures                         |                                                                                  | 24     |

----

----

| ITEM 1. | Financial Statements |
|--------------|----------------------|

|                                                                                                                                             |   |               |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|
|                                                                                                                                             |   | March 31,2011 |        |   | December 31, 2010 |   |
|                                                                                                                                             |   | (Unaudited)        |        |   |   |   |
| ASSETS                                                                                                                                           |   |               |        |   |   |   |
| Current Assets:                                                                                                                                  |   |               |        |   |   |   |
| Cash and cash equivalents                                                                                                                        |   | $                  | 15,764,161  |   |   | $ | 25,286,619 |   |
| Restricted cash                                                                                                                                  |   |               | 15,311,791  |   |   |   | 10,254,394 |   |
| Accounts receivable, net                                                                                                                         |   |               | 7,835,553   |   |   |   | 4,896,665 |   |
| Notes receivable                                                                                                                                 |   |               | 2,814,074   |   |   |   | 2,736,496 |   |
| Advances to suppliers, net                                                                                                                       |   |               | 2,367,966   |   |   |   | 1,171,477 |   |
| Inventories                                                                                                                                      |   |               | 10,758,530  |   |   |   | 9,468,211 |   |
| Other receivables, net                                                                                                                           |   |               | 898,932     |   |   |   | 1,023,337 |   |
| Total current assets                                                                                                                             |   |               | 55,751,007  |   |   |   | 54,837,199 |   |
| Property and equipment, net                                                                                                                      |   |               | 13,813,051  |   |   |   | 14,014,923 |   |
| Commercial leasing assets, net                                                                                                                   |   |               | 37,092,812  |   |   |   | 37,079,584 |   |
| Advance payment for equipment purchase, net                                                                                                      |   |               | 222,020     |   |   |   | - |   |
| Land use rights, net                                                                                                                             |   |               | 5,049,759   |   |   |   | 5,045,883 |   |
|                                                                                                                                             |   | $                  | 111,928,649 |   |   | $ | 110,977,589 |   |
| LIABILITIES AND EQUITY                                                                                                                           |   |               |        |   |   |   |   |   |
| Current liabilities:                                                                                                                             |   |               |        |   |   |   |   |   |
| Short-term bank loans                                                                                                                            |   | $                  | 42,608,179  |   |   | $ | 42,339,454 |   |
| Accounts payable                                                                                                                                 |   |               | 6,742,824   |   |   |   | 7,691,017 |   |
| Notes payable                                                                                                                                    |   |               | 11,567,556  |   |   |   | 15,124,474 |   |
| Notes payable- related party                                                                                                                     |   |               | 7,914,644   |   |   |   | 3,024,895 |   |
| Advances from customers                                                                                                                          |   |               | 974,372     |   |   |   | 687,408 |   |
| Due to related party                                                                                                                             |   |               | 1,288,680   |   |   |   | 2,526,474 |   |
| Income tax payable                                                                                                                               |   |               | 4,662,831   |   |   |   | 4,336,457 |   |
| Other payables                                                                                                                                   |   |               | 4,026,099   |   |   |   | 3,872,549 |   |
| Loan from employees                                                                                                                              |   |               | 1,303,551   |   |   |   | 1,470,138 |   |
| Total current liabilities                                                                                                                        |   |               | 81,088,736  |   |   |   | 81,072,866 |   |
| Total Liabilities                                                                                                                                |   |               | 81,088,736  |   |   |   | 81,072,866 |   |
|                                                                                                                                             |   |               |        |   |   |   |   |   |
| Commitments and contingencies                                                                                                                    |   |               |        |   |   |   |   |   |
|                                                                                                                                             |   |               |        |   |   |   |   |   |
| Equity                                                                                                                                           |   |               |        |   |   |   |   |   |
| Shareholders’ equity:                                                                                                                      |   |               |        |   |   |   |   |   |
|                                                                                                                                             |   |               |        |   |   |   |   |   |
| Common stock ($.001 par value; 50,000,000 shares authorized shares issued and outstanding 26,000,000 as of March 31, 2011 and December 31, 2010) |   |               | 26,000      |   |   |   | 26,000 |   |
| Additional paid-in capital                                                                                                                       |   |               | 2,908,171   |   |   |   | 2,908,171 |   |
| Statutory reserve                                                                                                                                |   |               | 1,369,652   |   |   |   | 1,369,652 |   |
| Retained earnings                                                                                                                                |   |               | 23,779,280  |   |   |   | 23,043,387 |   |
| Accumulated other comprehensive income                                                                                                           |   |               | 2,453,880   |   |   |   | 2,264,049 |   |
| Total China Ruitai Shareholders’ Equity                                                                                                    |   |               | 30,536,983  |   |   |   | 29,611,259 |   |
| Non-controlling interest                                                                                                                         |   |               | 302,930     |   |   |   | 293,464 |   |
| Total Equity                                                                                                                                     |   |               | 30,839,913  |   |   |   | 29,904,723 |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                     |   | $                  | 111,928,649 |   |   | $ | 110,977,589 |   |

----

|                                                                 |   | Three months ended March 31, |       |
|----------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                 |   | 2011                         |       |   | 2010 |   |
|                                                                 |   |                         |       |   |   |   |
| Sales                                                                |   | $                            | 9,586,817  |   |   | $ | 10,238,256 |   |
| Cost of sales (See note below)                                       |   |                         | 6,784,133  |   |   |   | 6,929,872 |   |
| Gross margin                                                         |   |                         | 2,802,684  |   |   |   | 3,308,384 |   |
| Operating expenses:                                                  |   |                         |       |   |   |   |   |   |
| General and administrative expenses                                  |   |                         | 721,495    |   |   |   | 284,252 |   |
| Selling expenses                                                     |   |                         | 528,529    |   |   |   | 359,075 |   |
| Total operating expenses                                             |   |                         | 1,250,024  |   |   |   | 643,327 |   |
|                                                                 |   |                         |       |   |   |   |   |   |
| Income from operations                                               |   |                         | 1,552,660  |   |   |   | 2,665,057 |   |
|                                                                 |   |                         |       |   |   |   |   |   |
| Other income/(expense)                                               |   |                         |       |   |   |   |   |   |
| Interest income                                                      |   |                         | 87,441     |   |   |   | 391,180 |   |
| Interest expense                                                     |   |                         | (739,953   | ) |   |   | (578,487 | ) |
| Commercial leasing income                                            |   |                         | 368,783    |   |   |   | 303,183 |   |
| Cost of commercial leasing                                           |   |                         | (221,462   | ) |   |   | (214,007 | ) |
| Other income/(expense)                                               |   |                         | (6,166     | ) |   |   | 38,295 |   |
| Total other income/(expense), net                                    |   |                         | (511,357   | ) |   |   | (59,836 | ) |
|                                                                 |   |                         |       |   |   |   |   |   |
| Income before income tax expense                                     |   |                         | 1,041,303  |   |   |   | 2,605,221 |   |
|                                                                 |   |                         |       |   |   |   |   |   |
| Income taxes expense                                                 |   |                         | 297,976    |   |   |   | 646,302 |   |
| Net income before allocation to non-controlling interests            |   |                         | 743,327    |   |   |   | 1,958,919 |   |
|                                                                 |   |                         |       |   |   |   |   |   |
| Less: Net income attributable to the non-controlling interest        |   |                         | 7,434      |   |   |   | 19,389 |   |
|                                                                 |   |                         |       |   |   |   |   |   |
| Net income attributable to China Ruitai                              |   |                         | 735,893    |   |   |   | 1,939,530 |   |
| Comprehensive income                                                 |   |                         |       |   |   |   |   |   |
| Net Income before allocation to non-controlling interest             |   |                         | 743,327    |   |   |   | 1,958,919 |   |
| Foreign Currency Translation Adjustment                              |   |                         | 191,863    |   |   |   | 67,027 |   |
| Comprehensive income                                                 |   |                         | 935,190    |   |   |   | 2,025,946 |   |
| Less: Comprehensive income attributable to non-controlling interests |   |                         | 9,466      |   |   |   | 19,389 |   |
| Comprehensive income attributable to China Ruitai                    |   | $                            | 925,724    |   |   | $ | 2,006,557 |   |
|                                                                 |   |                         |       |   |   |   |   |   |
| Earnings per share-Basic and diluted                                 |   | $                            | 0.03       |   |   | $ | 0.07 |   |
|                                                                 |   |                         |       |   |   |   |   |   |
| Weighted average number of common shares outstanding                 |   |                         |       |   |   |   |   |   |
| -Basic and diluted                                                   |   |                         | 26,000,000 |   |   |   | 26,000,000 |   |

----

|                                                                                                                        |   | Three months ended March 31, |        |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|-------------|
|                                                                                                                        |   | 2011                                             |        |   | 2010 |   |
|                                                                                                                        |   |                                             |        |   |   |   |
| Cash flows from operating activities:                                                                                       |   |                                             |        |   |   |   |
| Net income before allocation to non-controlling interests                                                                   |   | $                                                | 743,327     |   |   | $ | 1,958,919 |   |
| Adjustments to reconcile net income before non-controlling interests to net cash provided by/(used in) operating activities |   |                                             |        |   |   |   |   |   |
| Depreciation                                                                                                                |   |                                             | 612,956     |   |   |   | 564,625 |   |
| Amortization of land use rights                                                                                             |   |                                             | 28,067      |   |   |   | 27,122 |   |
| Bad debt provision                                                                                                          |   |                                             | 134,208     |   |   |   | (280,793 | ) |
| Changes in operating assets and liabilities:                                                                                |   |                                             |        |   |   |   |   |   |
| Restricted cash                                                                                                             |   |                                             | (4,977,691  | ) |   |   | 879,900 |   |
| Accounts receivable                                                                                                         |   |                                             | (2,917,333  | ) |   |   | (3,477,901 | ) |
| Notes receivable                                                                                                            |   |                                             | (60,033     | ) |   |   | (556,011 | ) |
| Advances to suppliers                                                                                                       |   |                                             | (1,212,063  | ) |   |   | 201,892 |   |
| Inventories                                                                                                                 |   |                                             | (1,226,621  | ) |   |   | 575,753 |   |
| Other receivables                                                                                                           |   |                                             | 104,922     |   |   |   | (284,794 | ) |
| Accounts payable                                                                                                            |   |                                             | (994,087    | ) |   |   | 770,749 |   |
| Notes payable                                                                                                               |   |                                             | (3,642,213  | ) |   |   | (1,613,150 | ) |
| Other payables                                                                                                              |   |                                             | 128,592     |   |   |   | 1,191,228 |   |
| Advances from customers                                                                                                     |   |                                             | 281,773     |   |   |   | 491,841 |   |
| Income taxes payable                                                                                                        |   |                                             | 297,976     |   |   |   | 281,188 |   |
| Net cash (use in)/provided by operating activities                                                                          |   |                                             | (12,698,220 | ) |   |   | 730,568 |   |
|                                                                                                                        |   |                                             |        |   |   |   |   |   |
| Cash flows from investing activities:                                                                                       |   |                                             |        |   |   |   |   |   |
| Advanced payment to purchase equipment                                                                                      |   |                                             | (285,451    | ) |   |   | - |   |
| Purchase of property and equipment                                                                                          |   |                                             | (101,520    | ) |   |   | (609,265 | ) |
| Net cash used in investing activities                                                                                       |   |                                             | (386,971    | ) |   |   | (609,265 | ) |
|                                                                                                                        |   |                                             |        |   |   |   |   |   |
| Cash flows from financing activities:                                                                                       |   |                                             |        |   |   |   |   |   |
| Proceeds from bank loans                                                                                                    |   |                                             | 10,158,740  |   |   |   | 6,003,851 |   |
| Repayment of bank loans                                                                                                     |   |                                             | (10,158,740 | ) |   |   | (7,910,301 | ) |
| Proceeds from loan from a related party                                                                                     |   |                                             | 4,856,285   |   |   |   | - |   |
| Repayment in loan from a related party                                                                                      |   |                                             | (1,250,157  | ) |   |   | (347,609 | ) |
| Repayment in loan from employee                                                                                             |   |                                             | (175,403    | ) |   |   | (118,513 | ) |
| Net cash provided by/(used in) financing activities                                                                         |   |                                             | 3,430,725   |   |   |   | (2,372,572 | ) |
|                                                                                                                        |   |                                             |        |   |   |   |   |   |
| Effect of foreign exchange rate fluctuation on cash and cash equivalents                                                    |   |                                             | 132,008     |   |   |   | 29,931 |   |
| Net decrease in cash and cash equivalents                                                                                   |   |                                             | (9,522,458  | ) |   |   | (2,221,338 | ) |
|                                                                                                                        |   |                                             |        |   |   |   |   |   |
| Cash and cash equivalents- beginning of period                                                                              |   |                                             | 25,286,619  |   |   |   | 10,174,528 |   |
| Cash and cash equivalents-end of period                                                                                     |   | $                                                | 15,764,161  |   |   | $ | 7,953,190 |   |
|                                                                                                                        |   |                                             |        |   |   |   |   |   |
| Supplementary disclosure of cash flow information:                                                                          |   |                                             |        |   |   |   |   |   |
| Cash paid for interest expense                                                                                              |   | $                                                | 739,953     |   |   | $ | 578,487 |   |
| Cash paid for income tax                                                                                                    |   | $                                                | -           |   |   | $ | 365,239 |   |

----

| 1. | ORGANIZATION AND DESCRIPTION OF BUSINESS |
|----|------------------------------------------|

| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|----|--------------------------------------------|

----

----

| 3. | ACCOUNTS RECEIVABLE, NET |
|----|--------------------------|

|                                  |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                  |   | (Unaudited)              |       |   |                        |   |
|                                  |   |                     |       |   |                        |   |
| Accounts receivable                   |   | $                        | 9,322,449  |   |                        | $      | 6,356,204 |   |
|                                  |   |                     |       |   |                        |   |   |   |
| Less: Allowance for doubtful accounts |   |                     | (1,486,896 | )      |                        |   | (1,459,539 | ) |
|                                  |   |                     |       |   |                        |   |   |   |
|                                  |   | $                        | 7,835,553  |   |                        | $      | 4,896,665 |   |

|                       |   | December 31,2010 |       |   | Provision |   |     | Reverse |   |   | Write-off |   |   | March 31,2011 |   |
|---------------------------------|--------|-----------------------|------------|--------|-----------|--------|----------|---------|--------|--------|-----------|--------|--------|--------------------|--------|
| Allowance for doubtful accounts |   | $                     | (1,459,539 | )      |      | $      | (203,998 | )       |   | $      | 176,641   |   |   | $                  | -      |   |   | $ | (1,486,896 | ) |

| 4. | NOTES RECEIVABLE |
|----|------------------|

----

| 5. | OTHER RECEIVABLES, NET |
|----|------------------------|

|                                  |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                  |   | (Unaudited)              |       |   |                        |   |
|                                  |   |                     |       |   |                        |   |
| Other receivables                     |   | $                        | 2,015,065  |   |                        | $      | 2,106,923 |   |
|                                  |   |                     |       |   |                        |   |   |   |
| Less: Allowance for doubtful accounts |   |                     | (1,116,133 | )      |                        |   | (1,083,586 | ) |
|                                  |   |                     |       |   |                        |   |   |   |
|                                  |   | $                        | 898,932    |   |                        | $      | 1,023,337 |   |

|                       |   | December 31,2010 |       |   | Provision |   |     | Reverse |   |   | Write-off |   |   | March 31,2011 |   |
|---------------------------------|--------|-----------------------|------------|--------|-----------|--------|----------|---------|--------|--------|-----------|--------|--------|--------------------|--------|
| Allowance for doubtful accounts |   | $                     | (1,083,586 | )      |      | $      | (206,651 | )       |   | $      | 174,104   |   |   | $                  | -      |   |   | $ | (1,116,133 | ) |

| 6. | ADVANCES PAYMENT, NET |
|----|-----------------------|

|                                  |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                  |   | (Unaudited)              |       |   |                        |   |
|                                  |   |                     |       |   |                        |   |
| Advances payment to suppliers         |   | $                        | 6,016,070  |   |                        | $      | 4,770,170 |   |
|                                  |   |                     |       |   |                        |   |   |   |
| Less: Allowance for doubtful accounts |   |                     | (3,648,104 | )      |                        |   | (3,598,693 | ) |
|                                  |   |                     |       |   |                        |   |   |   |
|                                  |   | $                        | 2,367,966  |   |                        | $      | 1,171,477 |   |

|                       |   | December 31,2010 |       |   | Provision |   |     | Reverse |   |   | Write-off |   |   | March 31,2011 |   |
|---------------------------------|--------|-----------------------|------------|--------|-----------|--------|----------|---------|--------|--------|-----------|--------|--------|--------------------|--------|
| Allowance for doubtful accounts |   | $                     | (3,598,693 | )      |      | $      | (237,961 | )       |   | $      | 188,550   |   |   | $                  | -      |   |   | $ | (3,648,104 | ) |

|                                    |   | March 31, 2011 |       |   | December 31, 2010 |   |
|-----------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                    |   | (Unaudited)              |       |   |                        |   |
|                                    |   |                     |       |   |                        |   |
| Advances payment for equipment purchase |   | $                        | 1,372,190  |   |                        | $      | 1,079,052 |   |
|                                    |   |                     |       |   |                        |   |   |   |
| Less: Allowance for doubtful accounts   |   |                     | (1,150,170 | )      |                        |   | (1,079,052 | ) |
|                                    |   |                     |       |   |                        |   |   |   |
|                                    |   | $                        | 222,020    |   |                        | $      | - |   |

----

|                       |   | December 31,2010 |       |   | Provision |   |    | Reverse |   |   | Write-off |   |   | March 31,2011 |   |
|---------------------------------|--------|-----------------------|------------|--------|-----------|--------|---------|---------|--------|--------|-----------|--------|--------|--------------------|--------|
| Allowance for doubtful accounts |   | $                     | (1,079,052 | )      |      | $      | (71,118 | )       |   | $      | -         |   |   | $                  | -      |   |   | $ | (1,150,170 | ) |

| 7. | INVENTORIES |
|----|-------------|

|             |   | March 31, 2011 |       |   | December 31,2010 |   |
|------------------|--------|--------------------------|------------|--------|-----------------------|--------|
|             |   | (Unaudited)              |       |   |                  |   |
| Raw materials    |   | $                        | 3,499,806  |   |                  | $      | 3,791,070 |   |
| Work in progress |   |                     | 1,578,437  |   |                  |   | 977,302 |   |
| Finished goods   |   |                     | 5,680,287  |   |                  |   | 4,699,839 |   |
|             |   |                     |       |   |                  |   |   |   |
|             |   | $                        | 10,758,530 |   |                  | $      | 9,468,211 |   |

| 8. | PROPERTY AND EQUIPMENT, NET |
|----|-----------------------------|

|                           |   | March 31, 2011 |       |   | December 31,2010 |   |
|--------------------------------|--------|--------------------------|------------|--------|-----------------------|--------|
|                           |   | (Unaudited)              |       |   |                  |   |
| Buildings                      |   | $                        | 9,213,109  |   |                  | $      | 9,109,630 |   |
| Machinery and equipment        |   |                     | 11,685,047 |   |                  |   | 11,565,294 |   |
| Office equipment and furniture |   |                     | 95,715     |   |                  |   | 85,364 |   |
| Motor vehicles                 |   |                     | 560,703    |   |                  |   | 557,167 |   |
|                           |   |                     | 21,554,574 |   |                  |   | 21,317,455 |   |
| Less: Accumulated depreciation |   |                     | (7,744,232 | )      |                  |   | (7,305,224 | ) |
|                           |   |                     | 13,810,342 |   |                  |   | 14,012,231 |   |
| Construction in progress       |   |                     | 2,709      |   |                  |   | 2,692 |   |
|                           |   | $                        | 13,813,051 |   |                  | $      | 14,014,923 |   |

| 9. | LAND USE RIGHTS, NET |
|----|----------------------|

|                           |   |                     |      |
|--------------------------------|--------|--------------------------|-----------|
|                           |   | March 31, 2011 |      |   | December 31, 2010 |   |
|                           |   | (Unaudited)              |      |   |   |   |
| Land use right                 |   | $                        | 5,629,888 |   |   | $ | 5,594,381 |   |
| Less: Accumulated amortization |   |                     | (580,129  | ) |   |   | (548,498 | ) |
|                           |   |                     |      |   |   |   |   |   |
|                           |   | $                        | 5,049,759 |   |   | $ | 5,045,883 |   |

----

| 10. | COMMERCIAL LEASING ASSETS, NET |
|-----|--------------------------------|

|                           |   |                     |       |
|--------------------------------|--------|--------------------------|------------|
|                           |   | March 31, 2011 |       |   | December 31, 2010 |   |
|                           |   | (Unaudited)              |       |   |   |   |
| Buildings                      |   | $                        | 38,203,376 |   |   | $ | 37,940,688 |   |
| Less: Accumulated depreciation |   |                     | (1,110,564 | ) |   |   | (861,104 | ) |
|                           |   |                     |       |   |   |   |   |   |
|                           |   | $                        | 37,092,812 |   |   | $ | 37,079,584 |   |

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| 11. | SHORT-TERM BANK LOANS |
|-----|-----------------------|

|                                                                                                                                                                      |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                                                                                                                                                                      |   | (unaudited)              |       |   |                        |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |
| Loan from Feicheng Rural Credit Union with interest rate of 5.31%, guaranteed by Shandong Juyuan Mining Group Co. Ltd. & Mr. Lu Xingfu. Matured on January 19, 2011   |   | $                        | -          |   |                        | $      | 1,155,510 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Feicheng Rural Credit Union with interest rate of 5.31%, guaranteed by Shandong Juyuan Mining Group Co. Ltd. & Mr. Lu Xingfu. Matured on January 19, 2011.  |   |                     | -          |   |                        |   | 1,255,331 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Feicheng Rural Credit Union with interest rate of 5.31%, guaranteed by Shandong Juyuan Mining Group Co. Ltd. & Mr. Lu Xingfu. Matured on January 18, 2011.  |   |                     | -          |   |                        |   | 1,512,447 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Bank of China Taian Branch with interest rate of 5.31%, guaranteed by Feicheng Acid Chemicals Co. Ltd. Maturing on May 28, 2011.                                |   |                     | -          |   |                        |   | 1,058,713 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Bank of China Taian Branch with interest rate of 5.31%, guaranteed by Feicheng Acid Chemicals Co. Ltd. Maturing on May 1, 2011.                                 |   |                     | -          |   |                        |   | 1,361,203 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Bank of China Taian Branch with interest rate of 5.31%, guaranteed by Feicheng Acid Chemicals Co. Ltd. Maturing on April 14, 2011.                              |   |                     | -          |   |                        |   | 1,512,447 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Bank of China Taian Branch with interest rate of 5.31%, guaranteed by Feicheng Acid Chemicals Co. Ltd. Matured on March 9, 2011.                                |   |                     | -          |   |                        |   | 2,268,671 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Bank of China Taian Branch with interest rate of 5.31%, guaranteed by Feicheng Acid Chemicals Co. Ltd. maturing on October 14, 2011.                            |   |                     | 1,522,047  |   |                        |   | 1,512,447 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Bank of China Taian Branch with interest rate of 5.31%, guaranteed by Feicheng Acid Chemicals Co. Ltd. maturing on September 18, 2011.                          |   |                     | 1,978,661  |   |                        |   | 1,966,182 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Agricultural Bank of China Wenyang Branch with interest rate of 6.06%, guaranteed by Feicheng Golden Dragon Co., Ltd., Maturing on May 16, 2011.           |   |                     | 3,044,093  |   |                        |   | 3,024,895 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Agricultural Bank of China Wenyang Branch with interest rate of 6.67%, guaranteed by Feicheng Golden Dragon Co., Ltd., Maturing on October 19, 2011.       |   |                     | 1,522,047  |   |                        |   | 1,512,448 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Agricultural Bank of China Wenyang Branch with interest rate of 0%, guaranteed by Feicheng Golden Dragon Co., Ltd., Maturing on December 28, 2011.         |   |                     | 608,819    |   |                        |   | 604,979 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Shanghai Pudong Development Bank Jinan Branch with interest rate of 6.06%, guaranteed by Feicheng Acid Chemicals Co. Ltd., Maturing on September 2, 2011.       |   |                     | 6,088,187  |   |                        |   | 6,049,790 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Citic Bank Qingdao Branch with interest rate of 6.67%, guaranteed by Mr. Lu Xingfu., Maturing on September 28, 2011.                                            |   |                     | 3,044,093  |   |                        |   | 3,024,896 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Weihai Commercial Bank with interest rate of 6.06%, guaranteed by Shandong RunYin Biological Co., Ltd., Maturing on June 8, 2011.                               |   |                     | 3,044,093  |   |                        |   | 3,024,896 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Shenzhen Development Bank Jinan Branch with interest rate of 6.06%, guaranteed by Shangdong Ruitai Cellulose Co., Ltd., Maturing on November 26, 2011.          |   |                     | 4,566,141  |   |                        |   | 4,537,342 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Qingdao Bank Jinan Branch with interest rate of 6.67%, guaranteed by Feicheng Acid Chemicals Co. Ltd., Maturing on August 27, 2011.                             |   |                     | 4,566,141  |   |                        |   | 4,537,342 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Feicheng Rural Credit Union with interest rate of 5.31%, guaranteed by Shandong Juyuan Mining Group Co. Ltd. & Mr. Lu Xingfu. Maturing on May 17, 2011.     |   |                     | 913,228    |   |                        |   | 907,468 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Feicheng Rural Credit Union with interest rate of 6.67%, guaranteed by Shandong Juyuan Mining Group Co. Ltd. & Mr. Lu Xingfu. Maturing on June 18, 2011.    |   |                     | 1,522,047  |   |                        |   | 1,512,447 |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Feicheng Rural Credit Union with interest rate of 6.06%, guaranteed by Shandong Juyuan Mining Group Co. Ltd. & Mr. Lu Xingfu. Maturing on January 21, 2012. |   |                     | 1,162,844  |   |                        |   | - |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Feicheng Rural Credit Union with interest rate of 6.06%, guaranteed by Shandong Juyuan Mining Group Co. Ltd. & Mr. Lu Xingfu. Maturing on January 21, 2012. |   |                     | 1,263,299  |   |                        |   | - |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Bank of China Taian Branch with interest rate of 6.06%, guaranteed by Feicheng Acid Chemicals Co. Ltd. Maturing on February 15, 2012.                           |   |                     | 4,870,550  |   |                        |   | - |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Bank of China Taian Branch with interest rate of 6.06%, guaranteed by Shangdong Acid Chemicals Co. Ltd. Maturing on February 16, 2012.                          |   |                     | 1,369,842  |   |                        |   | - |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
| Loan from Feicheng Rural Credit Union with interest rate of 7.27%, guaranteed by Shandong Juyuan Mining Group Co. Ltd. & Mr. Lu Xingfu. Maturing on January 29, 2011. |   |                     | 1,522,047  |   |                        |   | - |   |
|                                                                                                                                                                      |   |                     |       |   |                        |   |   |   |
|                                                                                                                                                                      |   | $                        | 42,608,179 |   |                        | $      | 42,339,454 |   |

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| 12. | RELATED PARTY BALANCE TRANSACTIONS AND BALANCES |
|-----|-------------------------------------------------|

----

| 13. | NOTES PAYABLE |
|-----|---------------|

| 14. | OTHER PAYABLES |
|-----|----------------|

|                      |   | March 31, 2011 |      |   | December 31, 2010 |   |
|---------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
|                      |   |                     |      |   |                        |   |
|                      |   | (Unaudited)              |      |   |                        |   |
| Other taxes payable       |   | $                        | 1,739,921 |   |                        | $      | 1,458,147 |   |
| Payroll                   |   |                     | 161,796   |   |                        |   | 149,210 |   |
| Employee security deposit |   |                     | 26,765    |   |                        |   | 28,638 |   |
| Loan from third party     |   |                     | 62,617    |   |                        |   | 540,473 |   |
| Sales commission payable  |   |                     | 1,759,855 |   |                        |   | 1,260,692 |   |
| Accrued expenses          |   |                     | 155,592   |   |                        |   | 317,037 |   |
| Others                    |   |                     | 119,553   |   |                        |   | 118,352 |   |
|                      |   |                     |      |   |                        |   |   |   |
|                      |   | $                        | 4,026,099 |   |                        | $      | 3,872,549 |   |

| 15. | LOAN FROM EMPLOYEES |
|-----|---------------------|

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| 16. | INCOME TAXES |
|-----|--------------|

| 17. | STATUTORY RESERVES |
|-----|--------------------|

| 18. | CONCENTRATIONS AND CREDIT RISKS |
|-----|---------------------------------|

----

| 19. | WARRANT |
|-----|---------|

| Grant Date Stock Price |   | Exercise Price |   | Warrant Life |   | Risk Free Interest Rate |   | Expected Volatility |
|-----------------------------|--------|----------------|--------|--------------|--------|------------------------------|--------|---------------------|
| $2.90                       |   | $3.05          |   | 4 years      |   | 2.00%                        |   | 51%                 |

| Grant Date Stock Price |   | Exercise Price |   | Warrant Life |   | Risk Free Interest Rate |   | Expected Volatility |
|-----------------------------|--------|----------------|--------|--------------|--------|------------------------------|--------|---------------------|
| $4.00                       |   | $4.00          |   | 5 years      |   | 2.00%                        |   | 51%                 |

| 20. |  EARNINGS PER SHARE |
|-----|--------------------------|

|                                                                                                                                                                                                       |   | Three Months Ended March 31, |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|------------|
|                                                                                                                                                                                                       |   | 2011                                             |       |   | 2010 |   |
| Numerator used in basic net income per share:                                                                                                                                                              |   | (unaudited)                                      |       |   | (unaudited) |   |
| Net income attributable to China Ruitai Shares                                                                                                                                                             |   | $                                                | 735,893    |   |   | $ | 1,939,530 |   |
| Weighted average common shares outstanding                                                                                                                                                                 |   |                                             | 26,000,000 |   |   |   | 26,000,000 |   |
| Weighted average common shares outstanding used in computing diluted earnings per ordinary shareWeighted average common shares outstanding used in computing diluted earnings per ordinary share |   |                                             | 26,000,000 |   |   |   | 26,000,000 |   |
|                                                                                                                                                                                                       |   |                                             |       |   |   |   |   |   |
| Earnings per common share-basic and diluted                                                                                                                                                                |   | $                                                | 0.03       |   |   | $ | 0.07 |   |

----

| 21. |  COMMITMENTS AND CONTINGENCIES |
|-----|-------------------------------------|

| Financial institutions                           |   | Amount |      | Duration |                                  | Borrower |
|-------------------------------------------------------|--------|--------|-----------|----------|---------------------------------------|----------|
|                                                  |   |   |      |     |                                  |     |
| Agriculture development bank of China Feicheng branch |   | $      | 2,435,275 |     | May 10, 2010 to May 10, 2011     |     | Taipeng Group |
|                                                  |   |   |      |     |                                  |     |   |
| Bank of China Feicheng branch                         |   |   | 1,430,724 |     | October 21, 2010 to October 8,2011    |     | Shandong Acid Chemicals Ltd., Co. |
|                                                  |   |   |      |     |                                  |     |   |
| Bank of China Feicheng branch                         |   |   | 890,000   |     | October 23, 2010 to October 23, 2011  |     | Feicheng Acid Chemicals Ltd., Co. |
|                                                  |   |   |      |     |                                  |     |   |
| Bank of China Feicheng branch                         |   |   | 2,587,480 |     | October 13, 2010 to September 13,2011 |     | Taipeng Household Items Ltd., Co. |
|                                                  |   |   |      |     |                                  |     |   |
| Bank of China Feicheng branch                         |   |   | 1,019,771 |     | October 13, 2010 to September 13,2011 |     | Taipeng Nonwoven  Ltd., Co. |
|                                                  |   |   |      |     |                                  |     |   |

----

| Financial institutions               |   | Amount |       | Duration |                                  | Borrower |
|-------------------------------------------|--------|--------|------------|----------|---------------------------------------|----------|
|                                      |   |   |       |     |                                  |     |
| Bank of China Feicheng branch             |   |   | 456,614    |     | October 13, 2010 to September 13,2011 |     | Shandong Acid Chemicals Ltd., Co. |
|                                      |   |   |       |     |                                  |     |   |
| Bank of China Feicheng branch             |   |   | 2,748,817  |     | October 13, 2010 to September 13,2011 |     | Taipeng New Material Ltd., Co. |
|                                      |   |   |       |     |                                  |     |   |
| Bank of China Feicheng branch             |   |   | 2,587,480  |     | November 12, 2010 to November 12,2011 |     | Feicheng Jinlong Textile  Ltd., Co. |
|                                      |   |   |       |     |                                  |     |   |
| Bank of China Feicheng branch             |   |   | 2,283,070  |     | January 20, 2011 to January 20,2012   |     | Shandong Yinbao Food  Ltd., Co. |
|                                      |   |   |       |     |                                  |     |   |
| Shenzhen development bank Jinan branch    |   |   | 1,522,047  |     | February 2, 2011 to February 2,2012   |     | Shandong RunYin Biological Chemicals Co., Ltd. |
|                                      |   |   |       |     |                                  |     |   |
| Shenzhen development bank Jinan branch    |   |   | 3,805,117  |     | May 10, 2010 to May 10, 2011     |     | Shandong Yinbao Food  Ltd., Co. |
|                                      |   |   |       |     |                                  |     |   |
| Bank of Communication Taian Branch        |   |   | 3,805,117  |     | May 21, 2010 to May 21, 2011     |     | Shandong Yinbao Food  Ltd., Co. |
|                                      |   |   |       |     |                                  |     |   |
| Agriculture bank of China Feicheng branch |   |   | 3,500,708  |     | October 27, 2010 to October 26, 2011  |     | Shandong Yinbao Food  Ltd., Co. |
|                                      |   | $      | 29,072,220 |     |                                  |     |   |

| Financial institutions |   | Amount |       | Duration |                                 | Borrower |
|-----------------------------|--------|--------|------------|----------|--------------------------------------|----------|
| Shenzhen development bank   |   | $      | 4,566,141  |     | August 24, 2010 to August 24, 2011   |     | Taipeng Nonwoven Ltd., Co. |
|                        |   |   |       |     |                                 |     |   |
| Industrial bank             |   |   | 6,088,187  |     | March 20,2011 to September 20, 2011  |     | Feicheng Acid Chemicals Ltd., Co. |
|                        |   |   |       |     |                                 |     |   |
| Shenzhen development bank   |   |   | 3,044,094  |     | October 26, 2010 to October 26, 2011 |     | Shandong Lulong Group Ltd., Co. |
|                        |   | $      | 13,698,422 |     |                                 |     |   |

| 22. | SUBSEQUENT EVENTS |
|-----|-------------------|

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------------|---------------------------------------------------------------------------------------------|

----

----

----

----

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|--------------|------------------------------------------------------------|

| ITEM 4. | CONTROLS AND PROCEDURES |
|--------------|-------------------------|

| ITEM 1. | LEGAL PROCEEDINGS |
|--------------|-------------------|

| ITEM 1A. | RISK FACTORS |
|---------------|--------------|

----

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|--------------|---------------------------------|

| ITEM 4. | (REMOVED AND RESERVED) |
|--------------|------------------------|

| ITEM 5. | OTHER INFORMATION |
|--------------|-------------------|

| ITEM 6. | EXHIBITS |
|--------------|----------|

|   | (a) The following exhibits are filed herewith: |
|--------|------------------------------------------------|

| ExhibitNumber |   | Description                                                                                             |
|---------------|--------|---------------------------------------------------------------------------------------------------------|
| 31.1          |   | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2          |   | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1          |   | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2          |   | Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

----

|               | CHINA RUITAI INTERNATIONAL HOLDINGS CO., LTD. |
|--------------------|-----------------------------------------------|
|               |                                          |
| Date: May 16, 2011 | By:                                           | /s/ Dian Min Ma |
|               |                                          | Dian Min Ma, Chief Executive Officer(Principal Executive Officer) |
|               |                                          |   |
| Date: May 16, 2011 | By:                                           | /s/ Gang Ma |
|               |                                          | Gang Ma, Chief Financial Officer(Principal Financial Officer and Chief Accounting Officer) |

----