UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549


FORM
      10-KSB


o
      ANNUAL REPORT UNDER
      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For
      the fiscal year ended September 30, 2007


xTRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934


For
      the transition period from ________________
      to  ________________








Commission
      file number 000-52080


INTERNET
        ACQUISITION GROUP, INC.


(Exact
      name of small business issuer as specified in its charter)


California
            20-0624181(State
                or other jurisdiction of incorporation or organization)
            (I.R.S
                Employer Identification No.)


c/o
                American Union Securities100
                Wall St. 15th
                Floor
            10005(Address
                of principal executive offices)
            (Zip
                Code)


(212)
        232-0120


(Issuer’s
      telephone number)


Securities
      registered pursuant to Section 12(b) of the Exchange Act: None


Securities
      registered pursuant to Section 12(g) of the Exchange Act: None


Check
      whether the issuer is not required to file reports pursuant to Section 13 or
      15(d) of the Exchange Act. o


Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes x No o




Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B contained in this form, and no disclosure will be contained,
      to
      the best of registrant's knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB or any
      amendment to this Form 10-KSB. o


Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


Yes
                o 
                No
                x


The
      issuer's revenues for the fiscal year ended September 30, 2007: $0.


1




The
      aggregate market value of the voting and non-voting common equity held by
      non-affiliates computed by reference to the average bid and ask price, as of
      February 14, 2008 was $800,000 based on a share value of $0.008.


The
      number of shares of Common Stock, $0.001 par value, outstanding on February
      14,
      2008 was 100,000,000 shares.


Transitional
      Small Business Disclosure Format (check one): Yes o No x





FORWARD-LOOKING
      STATEMENTS


In
      addition to historical information, this Transition Report for the
      year ended September 30, 2007 contains forward-looking statements, which
      are generally identifiable by use of the words “believes,” “expects,” “intends,”
“anticipates,” “plans to,” “estimates,” “projects,” or similar expressions.
      These forward-looking statements represent Management’s belief as to the future
      of Internet Acquisition Group, Inc.  Whether those beliefs become reality
      will depend on many factors that are not under Management’s control.  Many
      risks and uncertainties exist that could cause actual results to differ
      materially from those reflected in these forward-looking statements. Factors
      that might cause such a difference include, but are not limited to, those
      discussed in the section entitled “Management’s Discussion and Analysis of
      Financial Condition and Results of Operations—Risk Factors That May Affect
      Future Results.” Readers are cautioned not to place undue reliance on these
      forward-looking statements. We undertake no obligation to revise or publicly
      release the results of any revision to these forward-looking
      statements.


PART
      I


ITEM
      1. DESCRIPTION OF BUSINESS





(b)
      Background


Internet
      Acquisition Group, Inc. (“IAG”) was a development stage company incorporated in
      the State of California in January of 2004. The original concept of the company
      was to acquire existing Internet based businesses (hence the word “Acquisition”
in the company name) and achieve economies of scale and develop cross-marketing
      opportunities between these businesses.


Following
      a failed merger, the business plan was revised to focus on developing Internet
      based businesses. With the minimal barriers to entry for Internet based
      businesses, IAG determined that it was more cost-effective to develop its
      business rather than to seek to acquire existing businesses. As a result, IAG
      developed three online stores that were fully functional websites with the
      ability to place orders through a secure shopping cart/checkout process. The
      three different internet stores for marketing, selling and distributing products
      included an electronics store, a DVD movie store, and a specialty
      giftshop.


For
      operating these websites, IAG relied on a virtual operating model that included
      outsourcing the majority of its operating infrastructure to distribution and
      fulfillment companies. We entered into an agreement with Dynamic Storefront
      to
      facilitate all our needs with regards to maintaining inventory, providing our
      ordering system to the consumer, and shipping the products directly from their
      warehouse. Unfortunately as of December 31, 2006, IAG had to sever its
      relationship with Dynamic Storefront and shut down its Internet stores due
      to
      problems with the fulfillment of orders under this agreement.


IAG
      then
      launched a new professional services business specializing in professional
      purchasing management for clients. Initially, IAG has focused its attention
      on
      the purchasing and management of electronic goods and software specific to
      our
      clients’ needs.





On
      June
      29, 2007, Matt Lettau, our sole officer and director, entered into a stock
      purchase agreement with Dr. Huakang Zhou whereby Mr. Lettau agreed to sell
      41,270,000 shares of his IAG shares of common stock to Dr. Zhou in a private
      transaction.  The 41,270,000 shares of IAG represented approximately
      59% of the issued and outstanding shares. As a result of the change in control,
      IAG has discontinued its professional purchasing management services and does
      not anticipate generating further revenues of any significance from this line
      of
      business.


2


On
      September 27, 2007, the Company, China Renyuan International, Inc. a Delaware
      corporation (“CRI”), and the shareholders of CRI entered into a Share Exchange
      and Reorganization Agreement (the “Exchange Agreement”) by which the former CRI
      shareholders (the “Former CRI Shareholders”) received shares of the Company in
      exchange for transferring to the Company all the outstanding shares of CRI’s
      capital stock. Pursuant to this transaction (the “Reverse Acquisition”), the
      Former CRI Shareholders received control of the Company and CRI became the
      Company’s wholly-owned subsidiary.  Dr. Huakang Zhou, CRI’s President
      and our majority shareholder, assisted in facilitating the
      transaction.,  CRI’s principal asset is its wholly-owned subsidiary,
      Renyuan Bio-Chemicy Co. (“Renyuan Bio-Chemicy”) a limited liability company
      organized in 2001 in the People’s Republic of China (“China” or the
“PRC”).   In July 2007 and prior to the Exchange
      Transaction,  Mr. Chaozhong Ren, who is currently an officer, director
      and major shareholder of the Company,  transferred Renyuan Bio-Chemicy
      to CRI in return for receiving a note and a majority of CRI’s outstanding common
      stock.  In this transaction, CRI acquired 100% of the outstanding
      capital stock of Renyuan Bio-Chemicy in return for issuing a note payable to
      Mr.
      Ren for RMB 2,080,000 (approximately $277,333 USD) and issuing to Mr. Ren and
      his designees approximately 25,756 shares of the outstanding 30,000 shares.
      The
      terms of the non-interest bearing note payable were for repayment within a
      one-year period. Mr. Ren subsequently forgave this note on September 30,
      2007.








(b)
      Our Business






Overview






Our
      business is principally that of our
      wholly-owned subsidiary, Renyuan Bio-Chemicy. Renyuan Bio-Chemicy is a
      high-technology biochemical enterprise located in the Jizhou City High & New
      Tech Industrial Zone of Hebei Province near
      Beijing.  Renyuan’s  business is the research, production
      and management of chemicals, bio-pharma and pharmaceutical intermediates,
      however Renyuan’s ability to produce any products or conduct any research unless
      we are able to raise additional funds.






Principal
      products and their markets






At
      the present time, Renyuan
      Bio-Chemicy is not producing any products and cannot provide any assurance
      that
      it will produce products in the future..  Formerly, its principal
      products were D-Hydroxyphenlyglycine, an intermediate products used by
      pharmaceutical companies, and DL-Serine, another pharmaceutical
      intermediate.  Both products can be produced using current production
      lines and equipment.  The company has also developed the capability to
      produce D-phenylalanine, an amino acid used in pharmaceuticals and
      foods.






Renyuan’s
      D-Hydroxyphenlyglycin (or
      D-PHG) is produced with a non-proprietary advanced one-step enzymatic technology
      as opposed to the more traditional optical resolution method.  Its
      plant was put into production in 2002 to produce high purity, high quality,
      and
      low cost D-PHG with low environmental impact.  D-PHG is an
      intermediate used in manufacturing amoxicillin and cefadroxil.






The
      D-PHG plant was designed to allow
      the production of up to 1,500 tons  of D-PHG per year, but a
      significant design flaw limited  actual production capacity to only
      approximately only 720-750 tons per year.  With the reduced capacity,
      the cost of production was considerably higher than expected.  Despite
      these unforeseen difficulties, Renyuan’s management continued producing into
      2003.  At that time the SARS epidemic swept China, and local
      governments closed inbound traffic to try to prevent the spread of the
      disease.  Renyuan’s locality was affected for approximately three
      months, during which time the company depleted its inventory of principal
      ingredient Benzene hydantoin and could not resupply.


3




In
      July 2003, Renyuan Bio-Chemicy
      recommenced production of D-PHG, but a joint directive issued by the State
      Reform and Development Commission and the State Drug Administration in October
      2003 eventually made it impossible to continue manufacturing. Therefore, the
      Company was limited in 2005 and 2006 to selling the products it held in
      inventory which were manufactured prior to October 2003. The directive set
      price
      caps on antibiotics following reports that certain pharmaceutical companies
      reaped windfall profits sales of antibiotics during the SARS epidemic despite
      the fact that Amoxycillin is not effective against SARS and that its price
      had
      not risen abnormally.  Nevertheless, the directive provided for a 30%
      cut of the price of Amoxycillin and certain other antibiotics.  As a
      result, the 30% price cut made it unprofitable to produce the
      product.  The company discontinued production and has not resumed
      production. However, with some technical adjustment and investment, the D-PHG
      plant can be redeployed to produce DL-Serine or vitamin B-2
      (riboflavin).  At the present time we lack sufficient funds to make
      the switch, but we intend to do so if and when we can secure needed
      funds.  At this time we cannot provide any meaningful estimates as to
      the time and expenses needed to redeploy the D-PHG plant for the production
      of
      DL-Serine or vitamin B-2 and we cannot provide any assurances that we will
      be
      able to make such redeployment.






Renyuan’s
      second product, DL-Serine is
      a synthetic amino acid that has applications in pharmaceutical and food
      fields.  Related compounds of DL-Serine can be converted to L-ser,
      D-ser, and after hydrolysis, 3-Chloroalanine.  The latter is used in
      treatments for tuberculosis and also to make agents for foods, nutritional
      supplements, and animal fodder.  Because of special moisture
      properties, it can be used in cosmetics to improve skin
      elasticity.  DL-Serine is in short supply within China and throughout
      the world.  Renyuan has the capacity to produce 24 tons of DL-Serine
      per year.  As it did for D-PHG, the company gradually wound down and
      then ceased production of DL-Serine due to a shortage of working capital
      following the disruption caused by the SARS epidemic.  But in contrast
      to D-PHG, we plan to be able to produce DL-Serine going forward, and intend
      to
      resume production if and when we have the working capital to do so.






Renyuan
      plans to develop the capability
      to produce D-phenylalanine, an amino acid used in pharmaceuticals and
      foods.  It is an ingredient in a treatment for diabetes, and is also
      used to make medicines that treat tumors and obesity.  The company’s
      believes its enzymatic synthesis production technology for D-phenylalanine
      is
      superior to traditional chemical synthesis methods in terms of efficiency and
      cost.  Because of the shortage of funds discussed in connection with
      D-PHG and DL-Serine above, the company is currently delayed in its effort to
      commercialize its D-phenylalanine production process.  We cannot
      provide any assurance that we will ever be able to successfully commercialize
      this process. Nor, at this time, are we able to provide any meaningful estimates
      as to the time and expenses needed to commercialize this process.






Distribution
      methods of the products






Formerly
      when Renyuan was in full
      production and actively promoting its products, it used a variety of methods
      to
      market and distribute them.  These included direct sales by its
      internal sales force, Internet sales, and active participation in various trade
      shows and events within China.  If and when we are able to resume
      production, we intend to utilize similar means as our financial resources may
      allow..






Competition






In
      selling D- Hydroxyphenlyglycine,
      Renyuan’s two biggest competitors were two other Chinese manufacturers of
      pharmaceutical intermediate products, Zhejiang Puluo Medical Sci-Tech Co. Ltd.
      and Shijiazhuang Hongyuan Chemical Engineering Corporation. Zhejiang TX
      Pharmaceutical Company is the principal competitor in the DL-Serine
      market.  When Renyuan enters the D-phenylalanine market, substantial
      competitors include Shandong Aocter Chemical Co., Ltd., and Anhui Horae New
      Technology Development Co., Ltd.


4




In
      general, these companies are larger, better established and generally have
      greater financial, production and marketing resources then Renyuan has. These
      companies also have achieved some considerable market share in the sale of
      their
      respective products already.  The company believes that competition in
      the sale of fine chemical intermediates is on the basis of cost, quality, timely
      delivery, and customer service.  For Renyuan to re-enter the market
      for DL-Serine or begin sales of D-phenylalanine, it will endeavor to
      re-establish relationships with former customers and win over new ones by
      producing excellent quality and selling it at competitive prices.  It
      will also rely on its strategic location in Hebei Province, near national
      transportation links and within easy distance of Beijing, to help it manage
      raid
      deliveries and superior customer service in the key capital
      region.  Renyuan intends to resume a meaningful sales and marketing
      effort if and when production begins again.






Major
      customers






As
      we currently are not producing any
      products, we have no current customers. Renyuan’s former main customers which
      accounted for revenue generated in 2005 and 2006 for D-Hydroxyphenlyglycine
      were
      Shanghai Huade Chemical Co. Ltd., and Zibo Shunjing Fine Chemicals
      Inc.  Sales of D-Hydroxyphenlyglycine to Shanghai Huade in 2005-06 was
      RMB 365,400 (approximately $48,700), or roughly 95% of the total. Our sales
      to
      Zibo Shunjing were RMB 16,000 (approximately $2,130), or roughly
      5%.  The main customers for DL-Serine were Hubei Gongan Xinyuan Inc.,
      Yangzhou Baosheng Bioengineering Co. Ltd., Runfeng Industry & Trade Co.,
      Luotian Hengxingyuan Chemical Inc., and Wuhan Yanhuang Chemical Inc. Sales
      of
      DL-Serine in 2005-06 to the largest two customers, Hubei Gongan Xinyuan and
      Yangzhou Baosheng 2005-06 amounted to RMB 287,200 (approximately $38,300),
      or
      46.8% of total DL-Serine sales, and RMB 214,200 (approximately $28,560), or
      34.90%, respectively.  Because production in the 2005-06 period was
      considerably reduced, sales in the period included inventory reduction to a
      significant degree.






Sources
      and availability of raw materials and the names of principal
      suppliers






The
      principal raw material necessary
      for the production of D- Hydroxyphenlyglycine is DL-P-hydroxyphenyl hydantoin,
      for the production of which Renyuan provided in its original plant
      design.  DL-P-hydroxyphenyl hydantoin is synthesized from benzene
      hydantoin.  However, problems with the DL-P-hydroxyphenyl hydantoin
      line forced the company to abandon production of this intermediate from the
      more
      basic input and buy it from other sources instead.  When Renyuan was
      producing D-PHG, its suppliers for DL-P-hydroxyphenyl hydantoin were Zhejiang
      Taizhou Sanhua Chemical Company, Shanxi Huayang Chemical Staining Co. Ltd.,
      and
      Xinji Taida Petrochemical Corporation, in respective proportions of 50%, 30%
      and
      20%.  Other raw materials used in the production of D-
      Hydroxyphenlyglycine are corn syrup and liquid sugar, which are widely available
      from a variety of sources.  The principal raw material necessary for
      the production of DL-Serine is ammonium chloride, which Renyuan secured from
      Nanjing Tiancheng Bio-chemical Co. Ltd.  This material is widely
      available, and inexpensive.  D-phenylalanine is bio-catalysed from
      other amino acids, which are available from a number of national and
      international sources.  Like many commodities, chemical raw materials
      are subject to price changes according to supply and demand.






Intellectual
      Property






We
      do not hold any trademarks or
      patents. Our production methods are, to our knowledge, not protected by
      patents.




5


Government
      Approvals for Products






We
      have already obtained the relevant
      business licenses and permits necessary for our operations in China from the
      Hebei Provincial Commerce Department.






Effect
      of Government Regulations






Currently,
      the Chinese government is
      not imposing regulations or conditions that prevent the company from carrying
      out its former chemicals business.  However, government regulations in
      the China can and sometimes do impose a material adverse impact on the chemical
      and pharmaceutical business.  During the SARS epidemic of 2003, the
      local government effectively locked down Renyuan’s locality and made shipment in
      and out of our plant problematic.  Immediately after the outbreak,
      government price controls on Amoxycillin removed the profit from manufacture
      of
      the antibiotic and therefore made it unprofitable for us to produce
      D-Hydroxyphenlyglycine for drug makers.  No such price controls
      currently are currently in place, but we cannot foreclose the possibility that
      such price controls may be imposed again in the future.






Research
      and Development Expenses.






During
      the fiscal year ended
      September 30, 2007 and 2006, we have not made any expenditure on research
      development activities.  Because of our declining sales following the
      SARS emergency, we conserved or financial resources by cutting spending on
      research and development activities.






Costs
      and Effects of Compliance with Environmental Laws






The
      Company invested approximately RMB
      600,000 (approximately $80,000) in a 1,200 square meter sewage treatment system
      in addition to sewage and wastewater treatment facilities provided by the
      managers of the industrial zone in which Renyuan’s plant is
      situated.  The extra investment was undertaken because the company’s
      original process included the synthesis of DL-P-hydroxyphenyl hydantoin from
      benzene hydantoin as an input for D-PHG.  This process is somewhat
      polluting, which is why the company invested in systems to treat the effluent.
      However, when the company ceased carrying out this intermediate operation and
      began buying all its DL-P-hydroxyphenyl hydantoin instead, it also substantially
      decreased its pollution.  The manufacturing processes that the company
      has pursued most recently and intends to engage in prospectively are not highly
      polluting. Its emissions of inorganic salts in waste water conform to national
      pollution standards and do not affect the local environment
      adversely.






Employees






Renyuan
      currently has 22 full-time paid
      employees, including two officers, six administrative staff members, and eight
      R&D staff members. More than 80% of the Company’s employees possess at least
      a junior college degree. Two employees have a PhD degree, and three have
      Master’s degrees. Our management believes that our staffing levels are adequate
      for the moment and no significant changes are envisioned. Despite not being
      to
      manufacture any new products due the government restrictions listed above,
      the
      Company still employs laborers and staff for the maintenance of
      facilities.




ITEM
      2. DESCRIPTION OF PROPERTY


Our
      offices in the United States are
      currently located at 100 Wall Street c/o American Union Securities New York,
      NY
      10005. American Union Securities serves as the Company’s agent and does not
      receive any remuneration for the use of its property. In the near future we
      do
      not anticipate requiring additional office space and additional personnel in
      the
      United States.




Our
      subsidiary, Renyuan Bio-Chemicy,
      has facilities in China, located in Jizhou City High & New Technology
      Industrial Zone of the Hebei Province near Beijing.  The total area of
      the Renyuan Bio-Chemicy’s premises is 24,000 square meters, including 12,000
      square meters of physical plant.  Land use rights for the property
      used by the company were awarded until October 2051.  This form of
      land tenure is the norm in China, and is roughly comparable to a leasehold
      interest under our system of land tenure.  These facilities are close
      to major road and rail lines, and served by dedicated power lines from the
      local
      substation and steam pipelines provided by the local thermal power
      plant.  Water is drawn from three wells, one of which is at a depth of
      400 meters, and benefits from available sewage treatment facilities, some of
      which the company has developed itself.


6


ITEM
      3. LEGAL PROCEEDINGS


None.


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


Not
      applicable.


ITEM
      5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS


(a)
      Market Information


IAG’s
      Stock was approved for trading on
      the National Association of Security Dealers’ over-the-counter bulletin board
      market (OTC:BB) under the symbol IAGR on January 8, 2007. Prior to that there
      was no public market for our securities.  The closing sales price of
      our common stock on September 29, 2007, the last business day of the transition
      period ending September 30, 2007 was $0.10 per share.





The
      following table indicates quarterly
      high and low price per share for our common stock during the fiscal year ended
      September 30 2007 and the fiscal year ended December 31, 2006. These prices
      represent quotations among dealers without adjustments for retail mark-ups,
      markdowns or commissions, and may not represent actual transactions. The market
      for our shares has been sporadic and at times very limited.





BidQuarter
                ending
            High
            LowMarch
                31, 2006
            n/a
            n/aJune
                30, 2006
            n/a
            n/aSeptember
                30, 2006
            n/a
            n/aDecember
                31, 2006
            n/a
            n/aMarch
                31, 2007
            $0.35
            $0.04June
                30, 2007
            $0.07
            $0.012September
                30, 2007
            $0.03
            $0.0171





(b)
      Holders of Common Stock




As
      of
      February 14, 2008 there were approximately 100,000,000 outstanding shares of
      IAG’s Common Stock and approximately 84 stockholders of
      record.   This figure does not include beneficial owners of
      common stock held in nominee or street name, as we cannot accurately estimate
      the number of these beneficial owners.


7


(c)
      Dividends


We
      have
      never declared or paid dividends on our Common Stock.  We intend to
      follow a policy of retaining earnings, if any, to finance the growth of the
      business and do not anticipate paying any cash dividends in the foreseeable
      future. The declaration and payment of future dividends on the Common Stock
      will
      be the sole discretion of the Board of Directors and will depend on our
      profitability and financial condition, capital requirements, statutory and
      contractual restrictions, future prospects and other factors deemed
      relevant.




(d)
      Securities Authorized for Issuance Under Equity Compensation Plans




We
      do not have any securities
      authorized for issuance under any equity compensation plans.







(e)
      Sale of Unregistered Securities








Pursuant
      to the Exchange Agreement
      executed on September 27, 2007, we committed to issue an aggregate total of
      6,926,399,370 shares of common stock to the eight Former CRI Shareholders in
      compensation for receiving from them all of the outstanding shares of
      CRI.  The Former CRI Shareholders were issued 30,036,370 shares (the
“Initial Purchase Price Shares”) on September 27, 2007 and the remaining
      6,896,363,000  shares (the “Remaining Purchase Price Shares are to be
      issued when the Company has sufficient shares of authorized unissued shares
      to
      effect such issuance.  As all of the Former CRI Shareholders are
      accredited investors, we believe the issuance of these shares is exempt from
      registration pursuant to Regulation D and Section 4(2) of the Securities Act
      of
      1933, as amended.  Other then the sale of these shares to the Former CRI
      Shareholders, we have not sold any unregistered securities during the period
      completed September 30, 2007.





ITEM
      6.  MANAGEMENT’S DISCUSSION AND ANALYSIS


The
      following presentation of Management's Discussion and Analysis has been prepared
      by internal management and should be read in conjunction with the financial
      statements and notes thereto included in Item 7 of this Transition Report on
      Form 10-KSB. Except for the historical information contained herein, the
      discussion in this report contains certain forward-looking statements that
      involve risks and uncertainties, such as statements of our business plans,
      objectives, expectations and intentions as of the date of this filing. The
      cautionary statements about reliance on forward-looking statements made earlier
      in this document should be given serious consideration with respect to all
      forward-looking statements wherever they appear in this report, notwithstanding
      that the "safe harbor" protections available to some publicly reporting
      companies under applicable federal securities law do not apply to us as an
      issuer of penny stocks. Our actual results could differ materially from those
      discussed here.




The
      following discussion relates solely to the operations of our operating
      subsidiary, Renyuan Bio-Chemicy, and not to CRI or our former discontinued
      businesses of developing Internet based businesses and providing professional
      purchasing management.






Prior
      to
      September 27, 2007, our fiscal years ended on December 31. On September 27,
      2007, we changed for fiscal year end to September 30, to coincide with the
      fiscal year end of our operating subsidiary , Renyuan Bio-Chemicy which we
      acquired on that date.




8






RESULTS
      OF OPERATIONS








Year
      Ended September 30, 2007 compared to Year Ended September  30,
      2006






Our
      level of operations decreased
      considerably during our fiscal year ending September 30,
      2007.   In the year ended September 30, 2007 we had no
      revenues compared to the Year ended September 30, 2006 when our net sales
      totaled $81,207.  The primary reason for the lack in revenue was the
      lack of operating capital to manufacture our products.






Due
      to the joint directive issued by
      the State Reform and Development Commission and the State Drug Administration
      in
      October of 2003, we have been forced to discontinue the manufacture of our
      previous products which include D-PHG and DL-Serine. The primary cause of the
      stoppage in manufacture was due to the fact that the government saw a need
      to
      tightly regulate the sale of pharmaceutical intermediates in response to the
      chaos in the marketplace caused by the introduction of products for the SARS
      epidemic.






In
      fiscal
      year 2006, we merely sold the remaining inventory.






Our
      selling, general and administrative
      expenses nonetheless has increased from $453,021 in the Year ended September
      30,
      2006 to $583,419 in the Year ended September 30, 2007.  The
      primary reasons for the increase were:






·
            increased
                administrative salaries in fiscal year 2007, as we developed a staff
                capable of managing our company in light of the new government
                regulations.






·
            expenses
                incurred during the process of merger acquisition with Renyuan Bio-Chemicy
                Co.






We
      expect that in the next two years
      our selling, general and administrative expense will remain at its fiscal 2007
      level or higher, as we will incur the expenses attributable to being a U.S.
      public company and as we continue to expand the focus of our business
      operations, necessitating a staff of skilled administrators.






LIQUIDITY AND CAPITAL
      RESOURCES




During
      fiscal year 2007, the
      operations of Renyuan Bio-Chemicy Co. used $114,778 in cash, primarily due
      to
      $532,440 in net loss as compared to a total of 228,621 cash used in fiscal
      year
      2006.




The
      resulting balance sheet at
      September  30, 2007 shows that the company with $1,838 in cash among
      its assets.  We do not  have adequate resources to fund our
      operations for the foreseeable future and we will need to raise funds going
      forward in order to fund our operations. Even as the government relaxes their
      directives on the products we used to sell, without sufficient working capital,
      we will not be able to resume production. Since Renyuan Bio-Chemicy was
      organized in February 2001, its operations have been funded primarily by capital
      contributions from Mr. Chaozhong Ren, who is our Vice President and who will
      be
      our majority shareholder following the issuance of the Remaining Purchase Price
      Shares its President and majority shareholder.  As of September 30,
      2007, our liability to Mr. Chaozhong Ren was $296,850 which is payable on demand
      and non-interest- bearing.  We expect that Mr. Chaozhong Ren will
      continue to fund our working capital needs through 2008 and we will accrue
      a
      further liability due to him for such costs. However, Mr. Chaozhong Ren is
      under
      no obligation to provide us with working capital and we can offer no assurance
      that he will provide these funds as he could discontinue doing so at any
      time.


9





Off-Balance
      Sheet Arrangements





We
      do not
      have any off-balance sheet arrangements that have or are reasonably likely
      to
      have a current or future effect on our financial condition or results of
      operations.




CURRENCY
      INFORMATION






“RMB”
refers
      to Renminbi, the currency
      of the People's Republic of China. Since the Company operates primarily in
      the
      PRC, the Company's functional currency is the RMB. Revenue and expense accounts
      are translated at the average exchange rates during the period, and balance
      sheet items are translated at year-end rates.  Translation adjustments
      arising from the use of differing exchange rates from period to period are
      included as a component of stockholders' equity.  Gains and losses
      from foreign currency transactions are recognized in current operations.











RISK
      FACTORS


You
      should carefully consider the
      risks described below before making an investment decision. The risks described
      below are not the only ones facing our company. Additional risks not presently
      known to us or that we currently believe are immaterial may also impair our
      business operations. Our business could be harmed by any of these risks. The
      trading price of our common stock could decline due to any of these risks and
      you may lose all or part of your investment. In assessing these risks, you
      should also refer to the other information contained in this prospectus,
      including our consolidated financial statements and related
      notes.





Risks
      Related to Our
      Securities





Our
      auditor has expressed substantial doubt as to our ability to continue as a
      going
      concern. An inability to continue as a going concern would likely lead to a
      loss
      of your entire investment.





Our
      independent certified public accountant's report on our financial statements
      for
      the fiscal years ended September 30, 2006 and 2007 contains an explanatory
      paragraph indicating that we have suffered net losses during the past two years,
      and as of September 30, 2007, our liabilities exceeded our current
      assets. The accompanying financial statements do not include any
      adjustments that might result from the outcome of this uncertainty.




Products
      Risks


Although
      our operating subsidiary, Renyuan Bio-Chemicy  commenced operations in
      2001, we have never achieved profitability.  We may never reach
      profitability due to our possible inability to compete with competitors, our
      possible failure to generate sufficient revenues from sales of our products,
      our
      possible inability to expand our internal financial, administrative and product
      development systems to accommodate our potential growth, and our possible
      inability to retain and qualified personnel. There can be no assurance that
      we
      will be successful in addressing such risks.




10


We
      have incurred losses in the past and expect to continue to incur losses, which
      could be significant and impact the value of our stock.





As
      of
      September 30, 2007, we had an accumulated deficit of $6,404,012. We expect
      to
      derive our revenues solely from sales of our products. We will significantly
      increase our operating expenses related to purchasing raw materials, producing
      our products, and expanding our marketing operations to promote sales of our
      products.  To the extent such expenses precede or are not subsequently
      followed by increased revenues, these expenses will make us unprofitable.
 Our planned expense levels will be based in part on our expectations
      concerning future revenue, however, we may be unable to adjust spending in
      a
      timely manner to compensate for any unexpected revenue shortfall.








Our
      management and affiliates have significant control of our business, which they
      could exercise against your best interest.





The
      eight
      Former CRI Shareholders currently own 59% of our outstanding shares. Following
      the planned issuance of the Remaining Purchase Price Shares, the Former CRI
      Shareholders will own in excess of 99% of our outstanding shares.  Our
      President, Mr. Qingfu Ren will own approximately 75.8% following the issuance
      of
      the Remaining Purchase Price Shares, giving him the ability to control all
      matters submitted to our shareholders for approval and to control our management
      and affairs. Matters that would require shareholder approval include the
      following:





·
            election
                and removal of directors;


·
            merger
                or consolidation of our company;
                and


·
            sale
                of all or substantially all of our
                assets.





We
      have committed to issue additional shares of our common stock to the Former
      CRI
      Shareholders which will result in immediate and drastic dilution to the equity
      interests of our other shareholders.





Pursuant
      to the terms of the Exchange Agreement, we have issued 30,036,000 shares of
      our
      common stock (the “Initial Purchase Price Shares”) to the Former CRI
      Shareholders and have committed to issue an additional 6,996,363,000 shares
      of
      our common stock at such time as we have available authorized and unissued
      shares to do so.  The cumulative effect of such issuances will likely
      result in the massive dilution of our other shareholders. Our certificate of
      incorporation currently authorizes the issuance of up to 100,000,000 shares
      of
      common stock, par value $.001 per share all of which are issued and outstanding.
      Although we have no commitments as of the date of this offering to issue our
      securities, we may issue a substantial number of additional shares of our common
      stock, to complete a business combination or to raise capital. The issuance
      of
      additional shares of our common stock:





··
            Immediately
                and drastically dilute the equity interest of our other shareholders;
                and





··
            Significantly
                depress the prevailing market prices for our common
                stock.


11


We
      may issue additional shares of our capital stock or debt securities to raise
      capital or complete acquisitions, which would reduce the equity interest of
      our
      shareholders.





We
      plan
      to increase make available authorized and unissued shares of common stock by
      amending our certificate of incorporation to implement a reverse stock split
      or
      by authorizing the issuance additional shares.  The Exchange Agreement
      commits us to issue an additional 6,996,363,000 shares of common stock (the
      “Remaining Purchase Price Shares”) to the Former CRI Shareholders as part of the
      purchase price we paid for CRI and its operating subsidiary, China Renyuan.
       In addition to issuing the Remaining Purchase Price Shares, we may issue a
      substantial number of additional shares of our common stock, to complete a
      business combination or to raise capital. We have no commitments at this time
      to
      make such issuances. However, such issuances





··
            may
                significantly reduce the equity interest of investors in this offering;
                and





··
            may
                adversely affect prevailing market prices for our common
                stock.








Our
      common stock price is subject to significant volatility, which could result
      in
      substantial losses for investors.





Prices
      for our shares are determined in the marketplace and may accordingly be
      influenced by many factors, including, but not limited to:





··
            the
                depth and liquidity of the market for the
                shares;





··
            quarter-to-quarter
                variations in our operating
                results;





··
            announcements
                about our performance as well as the announcements of our competitors
                about the performance of their
                businesses;





··
            investors'
                evaluations of our future prospects and the food industry
                generally;





··
            changes
                in earnings estimates by, or failure to meet the expectations of,
                securities analysts;





··
            our
                dividend policy; and





··
            general
                economic and market conditions.


12


In
      addition, the stock market often experiences significant price fluctuations
      that
      are unrelated to the operating performance of the specific companies whose
      stock
      is traded. These market fluctuations could adversely affect the trading price
      of
      our shares.





The
      price
      at which investors purchase shares of our common stock may not be indicative
      of
      the price that will prevail in the trading market. Investors may be unable
      to
      sell their shares of common stock at or above their purchase price, which may
      result in substantial losses.





Shares
      of our common stock lack a significant trading market.





Shares
      of
      our common stock are not eligible as yet for trading on any national securities
      exchange. Our common stock is eligible for quotation in the over-the-counter
      market on the OTC Bulletin Board pursuant to Rule 15c2-11 of the Securities
      Exchange Act of 1934. This market tends to be highly illiquid. There can be
      no
      assurance that an active trading market in our common stock will develop, or
      if
      such a market develops, that it will be sustained. In addition, there is a
      greater chance for market volatility for securities that trade on the OTC
      Bulletin Board as opposed to securities that trade on a national exchange or
      quotation system. This volatility may be caused by a variety of factors,
      including the lack of readily available quotations, the absence of consistent
      administrative supervision of “bid” and “ask” quotations and generally lower
      trading volume.





Future
      sales of shares of our common stock by our shareholders could cause our stock
      price to decline.





We
      cannot
      predict the effect, if any, that market sales of shares of our common stock
      or
      the








availability
      of shares of common stock for sale will have on the market price prevailing
      from
      time to time. Sales of shares of our common stock in the public market covered
      under an effective registration statement, or the perception that those sales
      may occur, could cause the trading price of our common stock to decrease or
      to
      be lower than it might be in the absence of those sales or
      perceptions.


13


The
      application of the “penny stock” rules could adversely affect the market price
      of our common stock and increase your transaction costs to sell those
      shares.





Holders
      of shares of our common stock may have difficulty selling those shares because
      our common stock will probably be subject to the penny stock rules. Shares
      of
      our common stock are subject to rules adopted by the Securities and Exchange
      Commission that regulate broker-dealer practices in connection with transaction
      in “penny stocks.” Penny stocks are generally equity securities with a price of
      less than $5.00 which are not registered on a national securities exchange,
      provided that current price and volume information with respect to transaction
      in those securities is provided by the exchange or system. The penny stock
      rules
      require a broker-dealer, prior to a transaction in a penny stock not otherwise
      exempt from those rules, to deliver a standardized risk disclosure document
      prepared by the Securities and Exchange Commission, which contains the
      following:





-
                ·
            a
                description of the nature and level of risk in the market for penny
                stocks
                in both public offerings and secondary
                trading;





-
                ·
            a
                description of the broker's or dealer's duties to the customer and
                of the
                rights and remedies available to the customer with respect to violation
                to
                such duties or other requirements of securities
                laws;





-
                ·
            a
                brief, clear, narrative description of a dealer market, including
“bid”
                and “ask” prices for penny stocks and the significance of the spread
                between the “bid” and “ask” price;





-
                ·
            a
                toll-free telephone number for inquiries on disciplinary
                actions;





-
                ·
            definitions
                of significant terms in the disclosure document or in the conduct
                of
                trading in penny stocks; and








-
                ·
            such
                other information and is in such form (including language, type,
                size and
                format), as the Securities and Exchange Commission shall require
                by rule
                or regulation.





Prior
      to
      effecting any transaction in penny stock, the broker-dealer also must provide
      the customer with the following:





-
                ·
            the
                bid and offer quotations for the penny
                stock;





-
                ·
            the
                compensation of the broker-dealer and our salesperson in the
                transaction;





-
                ·
            the
                number of shares to which such bid and ask prices apply, or other
                comparable information relating to the depth and liquidity of the
                market
                for such stock; and





-
                ·
            monthly
                account statements showing the market value of each penny stock held
                in
                the customer's account.


14


In
      addition, the penny stock rules require that, prior to a transaction in a penny
      stock not otherwise exempt from those rules, the broker-dealer must make a
      special written determination








that
      the
      penny stock is a suitable investment for the purchaser and receive the
      purchaser's written acknowledgment of the receipt of a risk disclosure
      statement, a written agreement to transactions involving penny stocks, and
      a
      signed and dated copy of a written suitability statement. These disclosure
      requirements may have the effect of reducing the trading activity in the
      secondary market for a stock that becomes subject to the penny stock
      rules.


Capital
      outflow policies in The People's Republic of China may hamper our ability to
      declare and pay dividends to our shareholders.





The
      People's Republic of China has adopted currency and capital transfer
      regulations. These regulations may require us to comply with complex regulations
      for the movement of capital. Although our management believes that we will
      be in
      compliance with these regulations, should these regulations or the
      interpretation of them by courts or regulatory agencies change, we may not
      be
      able to pay dividends to our shareholders outside of The People's Republic
      of
      China. In addition, under current Chinese law, we must retain a reserve equal
      to
      10 percent of net income after taxes, not to exceed 50 percent of registered
      capital. Accordingly, this reserve will not be available to be distributed
      as
      dividends to our shareholders. We presently do not intend to pay dividends
      in
      the foreseeable future. Our management intends to follow a policy of retaining
      all of our earnings to finance the development and execution of our strategy
      and
      the expansion of our business.








Risks
      Related to Our
      Business





We
      will need additional financing to fully implement our business plan, and if
      we
      fail to obtain additional funding it will impact our ability to sustain our
      operations and would likely reduce the value of your investment.





At
      the
      present time, we have insufficient working capital. We expect that Mr. Chaozhong
      Ren, who is our Vice President and who will be our majority shareholder
      following the issuance of the Remaining Purchase Price Shares, will fund our
      working capital needs through at least the end of 2007 and we will accrue a
      liability due to him for such costs. However, Mr. Chaozhong Ren is under no
      obligation to provide us with working capital and we can offer no assurance
      that
      he will provide these funds as he could discontinue doing so at any time. We
      will need to raise funds in the future to fund our operations If additional
      funds are raised through the issuance of equity or convertible debt securities,
      the percentage ownership  of the purchasers in this offering will be
      reduced and such securities may have rights, preferences or privileges senior
      to
      those of the rights of our common stock. There can be no assurance that
      additional financing will be available on terms favorable to us or at all.
      If
      adequate funds are not available or not available on acceptable terms, we may
      not be able to proceed with our business plan, and, possibly, may be forced
      to
      discontinue operations. Any such inability would reduce our ability to generate
      revenues and would ultimately reduce the value of your investment.


15


If
      we resume production of our products, we will need to purchase commodities
      that
      we use for raw materials in the manufacturing process of our products, and
      price
      changes for these commodities we depend on may adversely affect our
      profitability.





With
      the
      rapid growth of China's economy, the demand for certain raw materials is great
      while the supply may be more limited. This may affect our ability to secure
      the
      necessary raw materials we need in a cost-effective manner, including chemicals
      and other items needed for production of our products at the volume of purchase
      orders that we anticipate receiving.


Our
      success depends on our management team and other key personnel, the loss of
      any
      of whom could disrupt our business operations.





Our
      future success will depend in substantial part on the continued service of
      our
      senior management and founders. The loss of the services of one or more of
      our
      key personnel could impede implementation and execution of our business strategy
      and result in the failure to reach our goals. We do not carry key person life
      insurance in respect of any of our officers or employees. Our future success
      will also depend on the continued ability to attract, retain and motivate highly
      qualified personnel in many fields of our operations. The rapid growth of the
      economy in China has caused intense competition for qualified personnel. We
      cannot assure you that we will be able to retain our key personnel or that
      we
      will be able to attract, train or retain qualified personnel in the
      future.





The
      technology we utilize is not proprietary  and can be utilized by
      competitors.





We
      currently do not hold any patents or have any pending patent applications.
      To
      the knowledge of our management, the  technology that we utilize in
      manufacturing our products is non-proprietary, not protected by patent rights,
      and open to use by competitors.  Our lack of proprietary technology be
      reduce or ability to  compete, diminishing the prospects for revenue
      growth.  Additionally if our products, methods, processes and other
      technologies infringe on the intellectual property rights of other parties,
      we
      could incur substantial costs.





We
      currently have no customers and success will depend  in part on our ability
      to market our products.





As
      we
      have not recently produced or sold any products, in the event we are able to
      reassume production of products, we will need to resume marketing our products
      to potential customers. We can provide no assurance that we will have the funds
      and other resources necessary to successfully market our products and develop
      a
      customer base.  Our inability to do so would have an adverse effect on our
      net revenues and operating income.





Competition
      could prevent us from achieving a significant market position.





We
      face
      intense competition. Our competitors have longer operating histories, larger
      customer bases, greater brand name recognition and significantly greater
      financial, marketing and other resources than we do.  Our competitors may
      devote substantially greater resources to developing product lines, marketing
      and promotional campaigns, and to developing their production facilities than
      we
      can. We cannot assure you that we will be able to compete successfully against
      current and future competitors, and competitive pressures may have a material
      adverse effect on our business, prospects, financial condition and results
      of
      operations. Further as a strategic response to changes in the competitive
      environment, our management may, from time to time, make certain service or
      marketing decisions or acquisitions that could have a material adverse effect
      on
      our business, prospects, financial condition and results of operations. New
      technologies and the expansion of existing technologies may increase the
      competitive pressures on us.  Of we are unable to compete effectively, we
      may be unable to achieve profitability.


16


We
      will need additional funding to meet our immediate capital needs and  to
      fully implement our business plan, and if we fail to obtain additional funding
      it will impact our ability to sustain our operations and would likely reduce
      the
      value of your investment.





At
      the
      present time, we have insufficient working capital to meet even our immediate
      capital needs. We expect that Mr. Chaozhong Ren, who is our Vice President
      and
      who will be our majority shareholder following the issuance of the Remaining
      Purchase Price Shares, will fund our working capital needs through at least
      the
      end of 2008 and we will accrue a liability due to him for such costs.
      However, Mr. Chaozhong Ren is under no obligation to provide us with working
      capital and we can offer no assurance that he will provide these funds as he
      could discontinue doing so at any time. We will need to raise funds in the
      future to fund our operations If additional funds are raised through the
      issuance of equity or convertible debt securities, the percentage ownership
      of
      the purchasers in this offering will be reduced and such securities may have
      rights, preferences or privileges senior to those of the rights of our common
      stock. There can be no assurance that additional financing will be available
      on
      terms favorable to us or at all. If adequate funds are not available or not
      available on acceptable terms, we may not be able to proceed with our business
      plan, and, possibly, may be forced to discontinue operations. Any such inability
      would reduce our ability to generate revenues and would ultimately reduce the
      value of your investment.





Increased
      environmental regulation could diminish our profits.





The
      production of our products involves the production of pollutants.  At the
      present time our operations comply with all applicable government regulations
      designed to protect the environment.  There is increasing concern in China,
      however, over the degradation of the environment that has accompanied its recent
      industrial growth.  It is likely that additional government regulation will
      be introduced in order to protect the environment.  Compliance with such
      new regulations could impose on us substantial costs, which would reduce our
      profits.





Our
      business and growth will suffer
      if we are unable to hire and retain key personnel that are in high
      demand.





Our
      future success depends on our ability to attract and retain highly skilled
      biochemists, engineers, production supervisors, and marketing personnel.
 In general, qualified individuals are in high demand in China, and there
      are insufficient experienced personnel to fill the demand.  In a
      specialized scientific field, such as ours, the demand for qualified individuals
      is even greater.  If we are unable to successfully attract or retain the
      personnel we need to succeed, we will be unable to implement our business
      plan.


17


Risks
      Related to Our
      Business being Conducted in the People's Republic of China





We
      are subject to international economic and political risks over which we have
      little or no control and may be unable to alter our business practice in time
      to
      avoid the possibility of reduced revenues.





A
      substantial portion of our business is conducted in The People's Republic of
      China (“China”).  Doing business outside the United States, particularly in
      China, subjects us to various risks, including changing economic and political
      conditions, major work stoppages, exchange controls, currency fluctuations,
      armed conflicts and unexpected changes in United States and foreign laws
      relating to tariffs, trade restrictions, transportation regulations, foreign
      investments and taxation. We have no control over most of these risks and may
      be
      unable to anticipate changes in international economic and political conditions
      and, therefore, unable to alter out business practice in time to avoid the
      possibility of reduced revenues.





China's
      economic policies could affect our business.





Substantially
      all of our assets are located in China and a substantially all of our revenues
      are derived from our operations in China. Accordingly, our results of operations
      and prospects are subject, to a significant extent, to the economic, political
      and legal developments in China. While China's economy has experienced
      significant growth in the past twenty years, such growth has been uneven, both
      geographically and among various sectors of the economy. The Chinese government
      has implemented various measures to encourage economic growth and guide the
      allocation of resources. Some of these measures benefit the overall economy
      of
      China, but they may also have a negative effect on us. For example, operating
      results and financial condition may be adversely affected by the government
      control over capital investments or changes in tax regulations. The economy
      of
      China has been changing from a planned economy to a more market-oriented
      economy. In recent years China’s government has implemented measures emphasizing
      the utilization of market forces for economic reform and the reduction of state
      ownership of productive assets, and the establishment of corporate governance
      in
      business enterprises; however, a substantial portion of productive assets in
      China  are still owned by the government. In addition, China’s government continues to play a significant
      role in
      regulating industry development by imposing industrial policies. It also
      exercises significant control over China's economic growth through the
      allocation of resources, the control of payment of foreign currency-denominated
      obligations, the setting of monetary policy and the provision of preferential
      treatment to particular industries or companies.





Our
      bank accounts are not insured or protected against loss.





We
      maintain our cash with various banks and trust companies located in China.
      Our
      cash accounts are not insured or otherwise protected. Should any bank or trust
      company holding our cash deposits become insolvent, or if we are otherwise
      unable to withdraw funds, we would lose the cash on deposit with that particular
      bank or trust company.





As
      we have limited business insurance coverage in China, any loss which we suffer
      may not be insured or may be insured to only a limited extent.





The
      insurance industry in China is still in an early state of development and
      insurance companies located in The China offer limited business insurance
      products. In the event of damage or loss to our properties, our insurance may
      not provide as much coverage as if we were insured by insurance companies in
      the
      United States.


18


Tax
      laws and regulations in China are subject to substantial revision, some of
      which
      may adversely affect our profitability.





The
      Chinese tax system is in a state of flux, and it is anticipated that the
      People's Republic of China's tax regime will be altered in the coming years.
      Tax
      benefits that we presently enjoy may not be available in the wake of these
      changes, and we could incur tax obligations to our government that are
      significantly higher than anticipated. These increased tax obligations could
      negatively impact our financial condition and our revenues, gross margins,
      profitability and results of operations may be adversely affected as a
      result.





If
      relations between the United States and China worsen, investors may be unwilling
      to hold or buy our stock and our stock price may decrease.





At
      various times during recent years, the United States and China have had
      significant disagreements over political and economic issues. Controversies
      may
      arise in the future between these two countries. Any political or trade
      controversies between the United States and China, whether or not directly
      related to our business, could reduce the price of our common
      stock.





The
      government of China could change its policies toward private enterprise or
      even
      nationalize or expropriate private enterprises, which could result in the total
      loss of your investment.





Our
      business is subject to significant political and economic uncertainties and
      may
      be affected by political, economic and social developments in  China. Over
      the past several years, the government of China has pursued economic reform
      policies including the encouragement of private economic activity and greater
      economic decentralization. The government of China may not continue to pursue
      these policies or may significantly alter them to our detriment from time to
      time with little, if any, prior notice. Changes in policies, laws and
      regulations or in their interpretation or the imposition of confiscatory
      taxation, restrictions on currency conversion, restrictions or prohibitions
      on
      dividend payments to shareholders, or devaluations of currency could cause
      a
      decline in the price of our common stock, should a market for our common stock
      ever develop. Nationalization or expropriation could even result in the total
      loss of your investment.





The
      nature and application of many laws of China create an uncertain environment
      for
      business operations and they could have a negative effect on us.





The
      legal
      system in China is a civil law system. Unlike the common law system, the civil
      law system is based on written statutes in which decided legal cases have little
      value as precedents. In 1979, The People's Republic of China began to promulgate
      a comprehensive system of laws and has since introduced many laws and
      regulations to provide general guidance on economic and business practices
      in
      China and to regulate foreign investment. Progress has been made in the
      promulgation of laws and regulations dealing with economic matters such as
      corporate organization and governance, foreign investment, commerce, taxation
      and trade. The promulgation of new laws, changes of existing laws and the
      abrogation of local regulations by national laws could cause a decline in the
      price of our common stock. In addition, as these laws, regulations and legal
      requirements are relatively recent, their interpretation and enforcement involve
      significant uncertainty.


19


As
      we import goods into and export goods out of China, fluctuation of the Renminbi
      may affect our financial condition by affecting the volume of cross-border
      money
      flow.





Although
      we use the United States dollar for financial reporting purposes, many of the
      transactions effected by our operating subsidiaries are denominated in the
      People's Republic of China's Renminbi. The value of the Renminbi fluctuates
      and
      is subject to changes in China's political and economic conditions. We do not
      currently engage in hedging activities to protect against foreign currency
      risks. Even if we chose to engage in such hedging activates, we may not be
      able
      to do so effectively. Future movements in the exchange rate of the Renminbi
      could adversely affect our financial condition as we may suffer financial losses
      when transferring money raised outside of China into the country or paying
      vendors for services performed outside of China.


We
      may not be able to obtain regulatory approvals for our products.





The
      manufacture and sale of our products in China is regulated by China’s central
      and the provincial governments. Although our licenses and regulatory filings
      are
      current, the uncertain legal environment in The People's Republic of China
      and
      our industry may be vulnerable to local government agencies or other parties
      who
      wish to renegotiate the terms and conditions of, or terminate their agreements
      or other understandings with us.





It
      will be extremely difficult to acquire jurisdiction and enforce liabilities
      against our officers, directors and assets based in China.





As
      our
      executive officers and our director nominees are Chinese citizens, it may be
      difficult, if not impossible, to acquire jurisdiction over these persons in
      the
      event a lawsuit is initiated against us and/or our officers and directors by
      a
      stockholder or group of  shareholders in the United States. Also, because
      our operating subsidiary and assets are located in China, it may be extremely
      difficult or impossible for you to access those assets to enforce judgments
      rendered against us or our directors or executive offices by United States
      courts. In addition, the courts in China may not permit the enforcement of
      judgments arising out of United States federal and state corporate, securities
      or similar laws. Accordingly, United States investors may not be able to enforce
      judgments against us for violation of United States securities
      laws.





We
      may have difficulty establishing adequate management and financial controls
      in
      China.





China
      has
      only recently begun to adopt the management and financial reporting concepts
      and
      practices that investors in the United States are familiar with.  We may
      have difficulty in hiring and retaining employees in China who have the
      experience necessary to implement the kind of management and financial controls
      that are expected of a United States public company.  If we cannot
      establish such controls, we may experience difficulty in collecting financial
      data and preparing financial statements, books of account and corporate records
      and instituting business practices that meet U.S. standards.








Government
      regulation may hinder our ability to function efficiently.





The
      national, provincial and local governments in China are highly bureaucratized.
       The day-to-day operations of our business require frequent interaction
      with representatives of the Chinese government institutions.  The effort to
      obtain the registrations, licenses and permits necessary to carry out our
      business activities can be daunting.  Significant delays can result from
      the need to obtain governmental approval of our activities.  These delays
      can have an adverse effect on the profitability of our operations.  In
      addition, compliance with regulatory requirements applicable to biochemical
      and
      pharmaceutical production may increase the cost of our operations, which would
      adversely affect our profitability.


20


Capital
      outflow policies in China may hamper our ability to pay dividends to
      shareholders in the United States.





China
      has
      adopted currency and capital transfer regulations. These regulations require
      that we comply with complex regulations for the movement of capital. Although
      Chinese governmental policies were introduced in 1996 to allow the
      convertibility of RMB into foreign currency for current account items,
      conversion of RMB into foreign exchange for capital items, such as foreign
      direct investment, loans or securities, requires the approval of the State
      Administration of Foreign Exchange. We may be unable to obtain all of the
      required conversion approvals for our operations, and Chinese regulatory
      authorities may impose greater restrictions on the convertibility of the RMB
      in
      the future. Because most of our future revenues will be in RMB, any inability
      to
      obtain the requisite approvals or any future restrictions on currency exchanges
      will limit our ability to pay dividends to our shareholders.







ITEM
      7. FINANCIAL STATEMENTS


See
      Index
      to Financial Statements and Financial Statement Footnotes appearing on page
      F-1
      through F-9 of this Form 10-KSB.


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


None.


ITEM
      8A. CONTROLS AND PROCEDURES


Evaluation
        of Disclosure Controls and Procedures.  Qingfu Ren, our Chief
        Executive Officer and Chief Financial Officer, carried out an evaluation
        of the
        effectiveness of the Company's disclosure controls and
        procedures as of September 30, 2007.  Pursuant to
        Rule13a-15(e) promulgated
        by the Securities and Exchange Commission pursuant to the Securities
        Exchange Act of 1934, "disclosure controls and procedures" means
        controls and other procedures that are designed to insure that information
        required to be disclosed by the Company in the reports that
        it
        files with the Securities and Exchange Commission is recorded, processed,
        summarized and reported within the time limits specified in the
        Commission's rules.  "Disclosure controls and procedures"
        include, without
        limitation, controls and procedures designed to insure that information
        the Company is required to disclose in the reports it
 files
        with the Commission is accumulated and communicated to our Chief Executive
        Officer and Chief Financial Officer as appropriate to allow timely
        decisions regarding required disclosure.  Based on his evaluation,
        Mr. Ren concluded that the Company's system of disclosure controls
        and procedures was effective as of September 30, 2007 for the
 purposes
        described in this paragraph.
 
 Changes
        in Internal Controls.  There was no change in internal controls
        over financial reporting (as defined in Rule 13a-15(f) promulgated
        under the Securities Exchange Act or 1934) identified in connection
        with the evaluation described in the preceding paragraph that
        occurred during the Company's fourth fiscal quarter that has materially
        affected or is reasonably likely to materially affect the Company's
        internal control over financial reporting.


21


ITEM
      8A(T). OTHER INFORMATION





Not
      Applicable.





ITEM
      8B. OTHER INFORMATION


None.


22


PART
      III


ITEM
      9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE
      GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT





The
      members of the Board of Directors of the Company serve until the next annual
      meeting of stockholders, or until their successors have been elected. The
      officers serve at the pleasure of the Board of Directors. Officers are elected
      by the Board and their terms of office are, except to the extent governed by
      employment contract, at the discretion of the Board. Information as to our
      current director and executive officer is as follows:





NAME
            AGE
            POSITIONQingfu
                Ren
            66
            President,
                Chief Executive Officer, DirectorChaozhong
                Ren
            38
            Vice
                President, Treasurer, Secretary, Director





Duties,
      Responsibilities and
      Experience





Mr.
      Qingfu Ren has served as
      our President since September 27, 2007 and as a director since October 25,
      2007.
      From 1997 through the present, Mr. Qingfu Ren has served as the Chairman and
      principal owner of the Hebei Renyuan Group, an informal group of companies
      which
      formerly included Renyuan Biochemicy. Mr. Quingfu Ren has also served as Vice
      Chairman of Jizhou City Chinese People’s Political Consultive Conference since
      2000.





Mr.
      Chaozhong Ren serves as
      our Vice President, Treasurer and Secretary since September 27, 2007 and as
      a
      director since October 25, 2007.  From 1997 through the present, Mr.
      Chaozhong Ren has served as the Deputy General Manager of the Hebei Renyuan
      Group, an informal group of companies owned by Mr. Qingfu Ren which formerly
      included Renyuan Biochemicy. Mr. Quingfu Ren is also a director of Jizhou City
      Electro-Protection Co. Ltd.  Mr. Chaozhong Ren has also served as a Deputy
      in the Jizhou City People’s Congress since February 2007.





Mr.
      Chaozhong  Ren is the son of Mr. Qingfu Ren.





Other
                Control Persons





Dr.
      Huakang Zhou is President
      and sole director of CRI, our wholly-owned subsidiary which in turn owns Renyuan
      Bio-Chemicy. In connection with the signing of the Share Exchange, Dr. Zhou
      will
      resign from these duties and yield control to the management of the Company.
      Dr.
      Zhou is also chairman of the board of Warner Technology and Investment Corp.
      ("Warner") a company which provides international consulting services. Warner
      is
      licensed with the Chinese government as an official host for Chinese government
      officials and business executives in the US. Since 1999, Warner has been one
      of
      a few consulting firms that has assisted Chinese private companies to go public
      in the U. S. In 1989 Dr. Zhou received a Ph.D. degree in Operations Research
      from Polytechnic University of New York, Brooklyn.





Election
      of Directors and Officers


Directors
      are elected to serve until the next annual meeting of stockholders and until
      their successors have been elected and qualified. Officers are appointed to
      serve until the meeting of the Board of Directors following the next annual
      meeting of stockholders and until their successors have been elected and
      qualified.


No
      Executive Officer or Director of the Corporation has been the subject of any
      Order, Judgment, or Decree of any Court of competent jurisdiction, or any
      regulatory agency permanently or temporarily enjoining, barring suspending
      or
      otherwise limiting him from acting as an investment advisor, underwriter, broker
      or dealer in the securities industry, or as an affiliated person, director
      or
      employee of an investment company, bank, savings and loan association, or
      insurance company or from engaging in or continuing any conduct or practice
      in
      connection with any such activity or in connection with the purchase or sale
      of
      any securities.


No
      Executive Officer or Director of the Corporation has been convicted in any
      criminal proceeding (excluding traffic violations) or is the subject of a
      criminal proceeding, which is currently pending.


No
      Executive Officer or Director of the Corporation is the subject of any pending
      legal proceedings.


23


No
                Independent Directors


Both
      of
      our directors also serve as executive officers and are major stockholders.
      Therefore, we have no independent directors.


Audit
      Committee and Financial Expert


We
      do not
      have an Audit Committee, our two directors, who are both also executive
      officers,  perform some of the same functions of an Audit Committee,
      such as: recommending a firm of independent certified public accountants to
      audit the annual financial statements; reviewing the independent auditors
      independence, the financial statements and their audit report; and reviewing
      management’s administration of the system of internal accounting
      controls.  Given the small number of directors and the lack of
      independent directors, our Board does not believe establishing such committees
      would benefit the Company The Company does not currently have a written audit
      committee charter or similar document.





Report
      of the
      Board  Regarding Audit.





As
      we do not have an Audit Committee,
      our entire Board performs the functions which would otherwise be performed
      by
      such committee.





Our
      Board
      confirms all of the following:





·
            The
                Board has reviewed and discussed the audited financial statements
                included
                with this Transition Report on Form
                10-KSB;





·
            The
                Board has discussed with the independent auditor the matters required
                to
                be discussed by the statement on Auditing Standards No. 61, as amended
                (AICPA, Professional Standards, Vol. 1, AU section 380),1 as adopted
                by
                the Public Company Accounting Oversight Board in Rule
                3200T;





·
            The
                Board has  received the written disclosures and the letter from
                the independent auditor  required by Independence Standards
                Board Standard No. 1 (Independence Standards Board Standard No. 1,
                Independence Discussions with Audit Committees),2 as adopted by the
                Public
                Company Accounting Oversight Board in Rule 3600T, and has discussed
                with
                the independent accountant the independent accountant’s independence;
                and





·
            Based
                on the review and discussions referred to in paragraphs (d)(3)(i)(A)
                through (d)(3)(i)(C) of this Item, the Board determined that
                the  audited financial statements be included in our Transition
                Report on Form 10-KSB for the period ended September 30, 2007 for
                filing
                with the Securities and Exchange
                Commission..




THE BOARD OF DIRECTORS






Chaozhong
 Ren






Qingfu
      Ren




We
      have
      no financial expert. We believe the cost related to retaining a financial expert
      at this time is prohibitive. Further, because of our start-up operations, we
      believe the services of a financial expert are not warranted.


24


Code
      of Ethics


INTERNET
        ACQUISITION GROUP, INC. CODE OF CONDUCT POLICY
 
 Internet
        Acquisition Group, Inc. ("the Company") is dedicated to
        conducting its business in accordance with the applicable laws,
 regulations
        and with highest standards of business ethics. This code is intended
        to provide guidance in identifying ethical issues, offer
 mechanisms
        to report unethical conduct, and to help foster a culture of honesty
        and accountability.
 
 Each
        officer, director, and employees is expected to comply with the letter
        and spirit of this Code. The Directors and employees of the
 Company
        mentioned above must not only comply with the applicable regulations
        but should also actively advance the promotion of honest
 and
        ethical conduct of the business. They must abide by the policies and
        procedures that govern the conduct of the Company's business.
 
 This
        Code
        illustrates some of the potential problem areas that could develop
        below:
 
 CONFLICTS
        OF INTEREST - A conflict situation can arise:
 
 a.
        When
        an employee or Director takes action or has interests that may make
        it
        difficult to perform his or her work, objectively and effectively,
 
 b.
        The
        receipt of improper personal benefits by a member of his or her family
        as
        a result of one's position in the Company,
 
 c.
        Any
        outside business activity that detracts an individual's ability to
        devote
        appropriate time and attention to his or her responsibilities with
        the
        Company,
 
 d.
        The
        receipt of non-nominal gifts or excessive entertainment from any person/company
        with which the Company has current or prospective business
        dealings,
 
 e.
        Any
        significant ownership interest in any supplier, customer, development
        partner or competitor of the Company,
 
 f.
        Any
        consulting or employment relationship with any supplier, customer,
        business associate or competitor of the Company. The
        Directors and employees should be scrupulous in avoiding "conflicts of
        interest" with the Company. In case there is likely to be a conflict of
        interest, he/she should make full disclosure of all facts and circumstances
        thereof to the Board of Directors or any Committee/officer
        nominated for this purpose by the Board and a prior written
        approval should be obtained.
 
 HONEST
        AND ETHICAL CONDUCT: The Directors and employees shall act in accordance
        with the highest standards of personal and professional integrity,
        honesty and ethical conduct not only on Company's premises and
        off
        site but also at Company sponsored business, social events as well
        as
        any places. They shall act and conduct free from fraud and
 deception.
        Their conduct shall conform to the best-accepted professional
        standards of conduct.
 
 
 CORPORATE
        OPPORTUNITIES: Directors and employees owe a duty to the Company
        to advance its legitimate interests when the opportunity to do
 so
        arises. Directors and employees are expressly prohibited from:
 
 a.
        Taking
        for themselves, personally, opportunities that are discovered through
        the use of Company's property, information, or position;
 
 b.
        Competing directly with the business of the Company or with any business
        that the Company is considering.
 
 c.
        Using
        Company's property, information, or position for personal gain.  If
        the Company has finally decided not to pursue an opportunity that relates
        to the Company's business activity, he/she may pursue such activity only
        after disclosing the same to the Board of directors or the nominated person/committee.
 
 CONFIDENTIALITY:
        The Directors and employees shall maintain the confidentiality
        of confidential information of the Company or that of any
        customer, supplier or business associate of the Company to which Company
        has a duty to maintain confidentiality, except when disclosure is
        authorized or legally mandated. The Confidential information includes
        all non-public information (including private, proprietary and other)
        that might be of use to competitors or harmful to the Company or its
        associates. The use of confidential information for his/her own
 advantage
        or profit is also prohibited.
 
 FAIR
        DEALING: Each Director and employee should deal fairly with customers,
        suppliers, competitors and employees of group companies, They
        should not take unfair advantage of anyone through manipulation, concealment,
        abuse of confidential proprietary or trade secret information,
        misrepresentation of material facts, or any other unfair dealing
        practices.
 
 PROTECTION
        AND PROPER USE OF COMPANY'S ASSETS: All Directors and employees
        should protect Company's assets and property and ensure its efficient
        use. Theft, carelessness, and waste of the Company's assets and
        property have a direct impact on the Company's profitability. Company's
        assets should be used only for legitimate business purposes.
 
 COMPLIANCE
        WITH LAWS, RULES AND REGULATIONS: The Directors and employees
        shall comply with all applicable laws, rules and regulations. Transactions,
        directly or indirectly, involving securities of the Company
        should not be undertaken without pre-clearance from the Company's
        Compliance Officer. Any Director or employee who is
 unfamiliar
        or uncertain about the legal rules involving Company business
        conducted by him/her should consult the Legal Department of the
        Company before taking any action that may jeopardize the Company or that
        individual.
 
 COMPLIANCE
        WITH CODE OF CONDUCT: If any director or employee who knows of
        or
        suspects of a violation of applicable laws, rules or regulations or
        this
        Code of Conduct, he/she must immediately report the same to the Board
        of
        Directors or any designated person/committee thereof. Such person
        should as far as possible provide the details of suspected
 violations
        with all known particulars relating to the issue. The Company
        recognizes that resolving such problems or concerns will advance
        the overall interests of the Company that will help to safeguard
        the Company's assets, financial integrity and reputation. Violations
        of this Code of Ethics will result in disciplinary action, which
        may
        even include termination of services of the employee. The Company's
        Board or any Committee/person designated by the Board for this
        purpose shall determine appropriate action in response to violations
        of this Code of Ethics.
 
 INTERPRETATION
        OF CODE: Any question or interpretation under this Code of
        Ethics
        and Business Conduct will be handled by the Board or any person/ Committee
        authorized by the Board of the Company. The Board of Directors or any
        designated person/committee has the authority to waive compliance with this
        Code
        of business conduct for any Director or employee of the Company.
        The person-seeking waiver of this Code shall make full disclosure
        of the particular circumstances to the Board or the designated
        person/committee.
  25




Nominating
      Committee


We
      do not
      have a Nominating Committee or Nominating Committee Charter. Our sole director
      performs some of the functions associated with a Nominating Committee. We have
      elected not to have a Nominating Committee in that we are a development stage
      company with limited operations and resources.




Limitation
      of Liability of
      Directors




Pursuant
      to General Corporation Law of California, our Bylaws has excluded personal
      liability on the part of our directors for monetary damages based on any
      violation of their fiduciary duties as directors, except as to liability for
      any
      acts or omissions which involve intentional misconduct, fraud, or a knowing
      violation of law, or improper payment of dividends. This exclusion of liability
      does not limit any right which a director may have to be indemnified and does
      not affect any director’s liability under federal securities or applicable state
      securities laws.


ITEM
      10. EXECUTIVE COMPENSATION


Executive
      Compensation





Summary
      Compensation Table





The
      following table reflects compensation paid or accrued during fiscal year ended
      September 30, 2007 and the fiscal year ended December 31, 2006 with respect
      to
      compensation paid or accrued by us to or on behalf of our executive
      officers.








Name
                and Principal Position
            Year
            Salary
                ($)
            Bonus
              ($)
            Stock
                Awards ($)
            Option
                Awards
            Non-Equity
                Incentive Plan Com-
              Pensation
                ($)pensation ($)
            Non-Qualified
                Deferred Compen-sation Earnings ($)
            All
                other Compen-sation
              ($)
            Total
              ($)(a)
            (b)
            (c)
            (d)
            (e)
            (f)
            (g)
            (h)
            (i)
            (j)Matt
                Lettau, President, Secretary, Treasurer, Director
            2007
              2006
            $0
              $0
            
            
            
            
            
            $9,000(1)
            $9,000Qingfu
                Ren, President, Chief Executive Officer, Director
            2007
            $0
            
            
            
            
            
            
            $0Chaozhong
                Ren, Vice President, Treasurer, Secretary, Director
            2007
            $0
            
            
            
            
            
            
            $0





(1)           
      Pursuant to the terms of the restated Stock Purchase Agreement entered into
      between Mr. Lettau, Dr. Zhou and the Company on July 27, 2007, Mr. Lettau
      received $3,000 per month for his services for at least three months commencing
      on July 27, 2007. Pursuant to this agreement he received a total of $9,000.


26


Employee
      Agreements





The
      Company currently has no written employment or compensation agreements with
      any
      of its officers or directors. On September 27, 2007, our Board appointed Mr.
      Qingfu Ren to serve as President and his son, Mr. Chaozhong Ren to serve as
      our
      Vice President, Secretary, and Treasurer. We do not have any written employment
      agreements with Mr. Qingfu Ren or Mr. Chaozhong Ren and they do not recieve
      annual salaries.




Prior
      to
      July 27, 2007, Mr. Lettau  provide services to us without compensation
      as a result of the stock position Mr. Lettau held in the
      Company.  Pursuant to the terms of the restated Stock Purchase
      Agreement entered into between Mr. Lettau, Dr. Zhou and the Company on July
      27,
      2007, Mr. Lettau received $3,000 per month for his services for at least three
      months commencing on July 27, 2007. Pursuant to this agreement he received
      a
      total of $9,000. On the completion of the Exchange Transaction on September
      27,
      2007, Mr. Lettau resigned from his officer position and on October
      10, he resigned as a director.





There
      are
      no compensatory plans or arrangements, including payments to be received from
      the Company, with respect to any person associated with the Company which would
      in any way result in payments to any such person because of his resignation,
      retirement, or other termination of such person’s employment with the Company or
      its subsidiaries, or any change in control of the Company, or a change in the
      person’s responsibilities following a change in control of the
      Company.


Outstanding
      Equity Awards





The
      Company has no outstanding
      compensatory equity awards and therefore the chart of outstanding equity awards
      is omitted.





Director
      Compensation





Our
      two directors, Mr. Qingfu
      Ren  and Mr. Chaozhong Ren, do not receive any additional compensation
      for serving as directors, and therefore the director compensation chart is
      omitted.





Compensation
      Committee


For
      the
      fiscal year ended September 30, 2007, IAG did not have a compensation committee
      as a result of not providing any compensation to our sole officer and director.
      Additionally, we elected not to have a compensation committee in that we are
      a
      development stage company with limited operations and
      resources.  Because we do not have a compensation committee, our
      entire Board performs the functions of a compensation committee.




As
      of the
      date of this report, our Board has not adopted any formal policies and
      procedures for the consideration of executive and director
      compensation.  Mr. Chaozhong Ren and Mr. Quinfu Ren serve both as our
      executive officers and as our only two directors, and both participate in the
      consideration of executive and director compensation.






The
      Board has not conducted any formal analysis of  appropriate executive
      and director compensation, nor has the Board employed any compensation
      consultants. Rather the Board’s determination as to the compensation to be
      received by officers is based on the compensation received by such officers
      in
      their capacities as the officers of Renyuan Biochemicy prior to the Exchange
      Transaction. Both Mr. Chaozhong Ren and Mr. Quinfu Ren continue to receive
      approximately the same about of compensation as they received as officers of
      Renyuan Biochemicy.




ITEM
      11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
      STOCKHOLDER MATTERS.





The
      following table sets forth the number of shares of voting stock owned by each
      person who, as of the record date, owned beneficially more than 5% of any class
      of Internet Acquisition Group Inc.’s voting stock, as well as the ownership of
      such shares by each member of Internet Acquisition Group Inc.’s Board of
      Directors and the shares beneficially owned by its officers and directors as
      a
      group.


Following
                Issuance of Initial Purchase Price Shares (Without Giving Effect
                to the
                Planned Issuance of Remaining Purchase Price Shares)
            After
                Giving Effect to the Planned Issuance of Remaining Purchase Price
                Shares
                following the Reverse Split(1)Name
                of Directors, Officers, & Beneficial Holders (2)
            Number
              of
                Shares
            Percent
              Of
                Class (3)
            Number
              of
                Shares
            Percent
              Of
                Class (3)Qingfu
                Ren,
              President,
                Director
            1,960,374
            2%
            450,102,625
            6.4%Chaozhong
                Ren
              Vice
                President, Treasurer, Secretary, Director
            23,105,978
            23.1%
            5,305,142,177
            75.8%All
                Directors & Officers as a Group
            25,066,352
            25.1%
            575,5244,802
            82.2%Dr.
                Huakang Zhou
              18
                Kimberly Ct.
              East
                Hanover, NJ 07936
            43,090,204(4)
                (6)
            43.2%
            460,189,598(5)
                (6)
            6.6%Warner
                Technology & Investment Group(6)
            1,820,204(6)
            1.8%
            417,919,598(6)
            5.9%





(1)
                Assumes the issuance of all Remaining Purchase Price Shares. The
                Remaining
                Purchase Price Shares are the 6,896,362,000 sharesto
                be issued pursuant to the
                Exchange Agreement following the Reverse Split. For more information
                regarding the Exchange Agreement and the Remaining Purchase Price
                Shares,
                see the discussion under the caption, “Exchange Agreement,” below.


(2)
                “Beneficial ownership” means the sole or shared power to vote or to direct
                the voting of, a security, or the sole or shared investment power
                with
                respect to a security (i.e., thepower to
                dispose
                of or to direct the disposition of, a security).  In addition, for
                purposes of this table, a person is deemed, as of any date, to have
                “beneficial ownership” of any security that such person has the right to
                acquire within 60 days from September 27, 2007.


(3)
                Figures are rounded to the nearest tenth of a percent.


(4)
                Includes 1,820,204 shares held by Warner Technology & Investment
                Group.


(5)
                Includes 417,919,598 shares held by Warner Technology & Investment
                Group.


(6)
                Dr. Huakang Zhou is the Chairman and owner of Warner Technology &
                Investment Group (“Warner”) and has sole voting and investment power over
                the Company shares held by Warner.








Equity
      Compensation Plan Information





The
      information set forth in the table below regarding equity compensation plans
      (which include individual compensation arrangements) was determined as of
      September 30, 2007.





Number
                of securities to be issued upon exercise of outstanding options,
                warrants
                and rights
            Weighted
                average exercise price of outstanding options, warrants and
                rights
            Number
                of securities remaining available for future issuance under equity
                compensation plansEquity
                compensation plans approved by security holders.......
            0
            
            0Equity
                compensation plans not approved by security holders......
            0
            
            0Total..............
            0
            
            0




27





ITEM
      12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS; DIRECTOR
      INDEPENDENCE


Transactions
      with Related Persons




Except
      for the transactions listed
      below, none of our directors or executive officers, any nominee for election
      as
      a director, any persons who beneficially owned, directly or indirectly, shares
      with more than 5% of the voting power of our common stock or any relatives
      of
      any of the foregoing had or is to have a direct or indirect material interest
      in
      any transaction to which the Company was or is a party since the beginning
      of
      our 2006 fiscal year to date,  or any currently proposed transaction
      which may materially affect the Company.






Pursuant
      to the restated Stock Purchase
      Agreement entered into between Mr. Lettau, Dr. Zhou and the Company on July
      27,
      2007, for at least three months commencing on July 27, 2007 Mr. Lettau was
      entitled to receive $3,000 per month for his services to the Company during
      this
      period.  During this three month period, Mr. Lettau was required
      continue to prepare and file all reports required to be filed by the Company
      for
      so long as requested by Dr. Zhou and to provide such additional assistance
      with
      the business and affairs of the Company as Dr Zhou or the Company
      requested  from time to time.  Pursuant to this arrangement,
      Mr. Lettau received a total of $9,000.






Pursuant
      to the Exchange Agreement
      executed on September 27, 2007, we committed to issue an aggregate total of
      6,926,399,370 shares of common stock to the eight Former CRI Shareholders in
      compensation for receiving from them all of the outstanding shares of
      CRI.  The Former CRI Shareholders were issued 30,036,370 shares (the
“Initial Purchase Price Shares”) on September 27, 2007 and the remaining
      6,896,363,000  shares (the “Remaining Purchase Price Shares are to be
      issued when the Company has sufficient shares of authorized unissued shares
      to
      effect such issuance.






In
      July 2007, and prior to the closing
      of the Reverse Acquisition,  Mr. Qingfu Ren transferred Renyuan
      Bio-Chemicy to CRI in return for receiving a note and a majority of CRI’s
      outstanding common stock.  In this transaction, CRI
      acquired  100% of the outstanding capital stock of Renyuan Bio-Chemicy
      in return for issuing a note payable to Mr. Qingfu Ren for RMB 2,080,000
      (approximately $277,333 USD) and issuing to Mr. Qingfu Ren and has designees
      approximately 25,756 shares of CRI’s outstanding 30,000 shares. Mr. Ren
      subsequently forgave the note in September 30, 2007.






Dr.
      Huakang Zhou is the President and
      controlling shareholder of Warner Technology & Investment Corp., which held
      voting control of the Company prior to the reverse merger of CRI and the
      Company.  Prior to the reverse merger, Dr. Zhou was the sole member of
      CRI’s Board of Directors, and was CRI’s Chief Executive Officer.  Warner
      Technology & Investment served as an advisor to Renyuan Bio-Chemicy Co. in
      connection with the Share Exchange.  In consideration of its services,
      Warner Technology & Investment was issued shares in the Company that, upon
      completion of the reverse merger, will be converted into 1,801,458 shares of
      the
      Company’s common stock.






Promoters
      and Control Persons






From
      the Company’s inception until June
      29, 2007, Matt Lettau held a majority of the Company’s common stock . On June
      29, 2007, Mr. Lettau and an associate sold all of their Company stock to three
      individuals. Mr. Lettau  sold 41,270,000 shares to Dr. Zhou for
      $450,000 in cash.




ITEM
      13. EXHIBITS







Incorporated
                by referenceExhibit
            Exhibit
                Description
            Filed
                herewith
            Form
            Period
                ending
            Exhibit
            Filing
                date3.1(i)
            Articles
                of Incorporation
            
            SB-2
            
            3.1(i)
            02/02/20043.1(ii)
            Bylaws
                of the Internet Acquisition Group. Inc.
            
            SB-2
            
            3.1(ii)
            02/02/200410.1
            Stock
                Purchase Agreement, between Huakang Zhou and Matt Lettau, dated June
                29.
                2007
            
            8-K
            
            10.1
            08/02/200710.2
            Stock
                Purchase Agreement, between Huakang Zhou and Matt Lettau, dated July
                27.
                2007
            
            8-K
            
            10.2
            08/02/200710.3
            Share
                Exchange and Reorganization Agreement dated as of September 27, 2007
                by
                and among Internet Acquisition Group, China Renyuan International,
                Inc.,
                and the beneficial stockholders of China Renyuan International,
                Inc.
            
            8-K
            
            1
            09/28/200731.1
            Rule
                13a-14(a) Certification – CEO
            X31.2
            Rule
                13a-14(a) Certification – CFO
            X32
            Rule
                13a-14(b) Certification
            X


28


ITEM
      14. PRINCIPAL ACCOUNTANT FEES AND SERVICES





On
      January 16, 2008, Paritz & Co., P.A. was appointed as our independent
      accountant of record to audit our fiscal year ended September 30,
      2007.  Prior to this appointment, Paritz & Co. served as the
      auditor of our subsidiary, China Renyuan-International, Inc. and its subsidiary,
      Renyuan Bio-Chemicy Co.  Jaspers + Hall, P.C. served as our
      independent accountant during our 2006 fiscal year and for the transition period
      ended September 30, 2007, but the audit report provided with this Transition
      Report was prepared by Paritz & Co.


During
      the fiscal year ended September 30, 2007 and the fiscal year ended 2006, accrued
      fees owed by us to Paritz & Co or to Jaspers + Hall, P.C. are as
      follows:










Audit
      Fees





2007
            2006Paritz
                & Co., P.A.
            $25,000
            $25,000Jaspers
                + Hall, P.C.
            0
            $7,500





Audit
      Related Fees





2007
            2006Paritz
                & Co., P.A.
            0
            0Jaspers
                + Hall, P.C.
            0
            0





Audit
      Fees and Audit Related Fees consist of fees billed for professional services
      rendered for auditing our financial statements, reviews of interim financial
      statements included in quarterly reports, services performed in connection
      with
      other filings with the SEC and related comfort letters and other services that
      are normally provided in connection with statutory and regulatory filings or
      engagements.





Tax
      Fees





2007
            2006Paritz
                & Co., P.A.
            0
            0Jaspers
                + Hall, P.C.
            0
            0





Tax
      Fees
      consists of fees billed for professional services for tax compliance, tax advice
      and tax planning.  These services include assistance regarding
      federal, state and local tax compliance and consultation in connection with
      various transactions and acquisitions.





All
      Other Fees





2007
            2006Paritz
                & Co., P.A.
            0
            0Jaspers
                + Hall, P.C.
            0
            0





SIGNATURES




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






INTERNET
      ACQUISITION GROUP, INC.




By:
                /s/ Qingfu
                Ren





Qingfu
                Ren, Chief Executive Officer


Date:
      February
      14,
      2008




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




Name
            Title
            Date/s/
                Qingfu
                Ren
            Chief
                Executive Officer & Director
            February 14,
                2008Qingfu
                Ren/s/
                Chaozhong
                Ren
            Secretary
                & Director
            February 14,2008Chaozhong
                Ren


29


Internet
      Acquisition Group, Inc.


Index
      To Consolidated Financial Statements


Report
                of Independent Registered Public Accounting Firm
            
            
            F-1Consolidated
                Balance Sheets, September 30, 2007
            
            
            F-2Consolidated
                Statement of Operations for the Years Ended September 30, 2007 and
                2006
            
            
            F-3Consolidated
                Statement of Stockholders' Equity for the years ended September 30,
                2007
                and 2006
            
            
            F-4Consolidated
                Statement of Cash Flows for the Year Ended September 30, 2007 and
                2006
            
            
            F-5Notes
                to Consolidated Financial Statements
            
            
            F-6
              – F-9




REPORT
          OF INDEPENDENT
          REGISTERED PUBLIC ACCOUNTING FIRM
 
 
 
 Board
          of
          Directors
 Internet
          Acquisition Group, Inc.
 
 
 
 We
          have
          audited the accompanying balance sheet of Internet Acquisition Group, Inc.
          as of
          September 30, 2007 and the related statements of operations, changes in
          shareholders’ equity and cash flows for the years ended September 30, 2007 and
          2006.  These financial statements are the responsibility of the
          Company's management.  Our responsibility is to express an opinion on
          these financial statements based on our audit.
 
 We
          conducted our audit in accordance with auditing standards of the Public
          Company
          Accounting Oversight Board (United States).  Those standards require
          that we plan and perform the audit to obtain reasonable assurance about
          whether
          the financial statements are free of material misstatement.  An audit
          includes examining, on a test basis, evidence supporting the amounts and
          disclosures in the financial statements.  An audit also includes
          assessing the accounting principles used and significant estimates made
          by
          management, as well as evaluating the overall financial statement
          presentation.  We believe that our audit provides a reasonable basis
          for our opinion.
 
 The
          accompanying financial statements have been prepared assuming that the
          Company
          will continue as a going concern.  As of September 30, 2007 the
          Company had no operations and its current liabilities exceeded its current
          assets by $2,860,100.  These factors, among others, raise substantial
          doubt about the Company’s ability to continue as a going concern.  The
          accompanying financial statements do not include any adjustments that might
          result from the outcome of this uncertainty.
 
 In
          our
          opinion, the financial statements referred to above present fairly, in
          all
          material respects, the financial position of Internet Acquisition Group,
          Inc. as
          of September 30, 2007, and the results of its operations and its cash flows
          for
          the years ended September 30, 2007 and 2006 in conformity with
          accounting principles generally accepted in the United States of
          America.
 
 
 
 /s/
          Paritz & Company,
          P.A.
 
 Hackensack,
          New Jersey
 December
          20, 2007
  F-1
  INTERNET
          ACQUISITION GROUP INC.
 
 BALANCE
          SHEET
 
 SEPTEMBER
          30, 2007
 
 ASSETS
 CURRENT
                    ASSETS:Cash
                $1,838Inventories
                9,028Purchase
                    deposit
                33,350TOTAL
                    CURRENT
                    ASSETS
                44,216Property
                    and equipment, net of
                    accumulated depreciation
                3,614,607TOTAL
                    ASSETS
                $3,658,823LIABILITIES
                    ANDSHAREHOLDERS’EQUITYCURRENT
                    LIABILITIES:Accounts
                    payable
                $459,179Notes
                    payable–bank
                1,840,920Duetoaffiliated
                    company
                23,780Due
                    to
                    shareholder
                296,850Accrued
                    expenses
                283,587TOTAL
                    CURRENT LIABILITIES
                2,904,316SHAREHOLDERS’EQUITY:Common
                    stock, $0.001
                    par value,
                  100,000,000
                    shares authorized100,000,000shares
                    issued and
                    outstanding
                  6,896,363,000
                    shares to be issued upon authorization
                6,996,363Accumulated
                    deficit
                (6,404,012)Accumulated
                    other comprehensive
                    income
                162,156TOTALSHAREHOLDERS’EQUITY
                754,507TOTAL
                    LIABILITIES ANDSHAREHOLDERS’EQUITY
                $3,658,823
 
 See
          notes to financial
          statements
 
 
 F-2
 
 
 
 
 INTERNET
          ACQUISITION GROUP,
          INC.
 
 STATEMENTS
          OF
          OPERATIONS
 YEAR ENDED SEPTEMBER 30,2007
                2006SALES
                $            -
                
                $  81,207COST
                    OF SALES
                -
                
                72,664GROSS
                    PROFIT
                -
                
                8,543COSTS
                    AND EXPENSES:General
                    and administrative expenses
                583,419
                
                453,021Interest
                    expense
                140,632
                
                157,034TOTAL
                    COSTS AND EXPENSES
                724,051
                
                610,055LOSS
                    FROM OPERATIONS
                (724,051)
                
                (601,512)OTHER
                    INCOME
                191,611
                
                -NET
                    LOSS
                $(532,440)
                
                $(601,512)Basic
                    and diluted earnings per common share
                $      (0.01)
                
                $             -Weighted
                    average number of shares outstanding
                100,000,000
                
                N/A
 
 See
          notes
          to financial statements
  F-3
  
 INTERNET
          ACQUISITION GROUP,
          INC.
 
 STATEMENT
          OF CHANGES IN SHAREHOLDERS’ EQUITY
 
 
 ----COMMON
                    STOCK-----
                  SHARES               AMOUNT
                ADDITIONAL
                  PAID-IN
                  CAPITAL
                ACCUMULATED
                  DEFICIT
                OTHER
                  COMPREHENSIVE
                  INCOME
                TOTAL
 
 BALANCE
                    – SEPTEMBER 30, 2005
                -
                
                $  251,008
                
                $3,286,879
                
                $(1,811,585)
                
                $  29,656
                
                $1,755,958Foreign
                    currency translation adjustment
                -
                
                -
                
                -
                
                -
                
                78,118
                
                78,118Net  loss
                -
                
                -
                
                -
                
                (601,512)
                
                -
                
                (601,512)BALANCE
                    – SEPTEMBER 30, 2006
                -
                
                251,008
                
                3,286,879
                
                (2,413,097)
                
                107,774
                
                1,232,564Effect
                    of reverse merger
                100,000,000
                
                (151,008)
                
                151,008
                
                -
                
                -
                
                -Shares
                    to be issued upon authorization
                6,896,363,000
                
                6,896,363
                
                (3,437,887)
                
                (3,458,476)
                
                -
                
                -Foreign
                    currency translation adjustment
                -
                
                -
                
                -
                
                -
                
                54,382
                
                54,382Net  loss
                -
                
                -
                
                -
                
                (532,439)
                
                -
                
                (532,439)BALANCE
                    – SEPTEMBER 30, 2007
                6,996,363,000
                
                $6,996,363
                
                $               -
                
                $(6,404,012)
                
                $162,155
                
                $  754,507
 
 See
          notes
          to financial statements
 
  F-4
  INTERNET
          ACQUISITION GROUP, INC.
 
 STATEMENTS
          OF CASH FLOWS
 YEAR ENDED SEPTEMBER 30,2007
                2006OPERATING
                    ACTIVITIES:Net
                    loss
                $  (532,440)
                
                $  (601,512)Adjustments
                    to reconcile net lossto
                    net cash used in operating activities:Depreciation
                470,814
                
                448,731Forgiveness
                    of debt
                (34,673)
                
                -Gain
                    on sale of fixed assets to vendors in repayment of
                  accounts
                    payable
                (6,177)
                
                -Changes
                    in operating assets and liabilities:Accounts
                    receivable
                -
                
                18,324Inventories
                36,137
                
                94,930Other
                    current assets
                31,015
                
                3,429Accounts
                    payable
                (173,901)
                
                (248,063)Accrued
                    expenses
                94,447
                
                55,540NET
                    CASH USED IN OPERATING ACTIVITIES
                (114,778)
                
                (228,621)INVESTING
                    ACTIVITIES:Acquisition
                    of property and equipment
                -
                
                (86,618)NET
                    CASH USED IN INVESTING ACTIVITIES
                -
                
                (86,618)FINANCING
                    ACTIVITIES:Advance
                    (repayment to) shareholder
                (23,472)
                
                168,377Proceeds
                    from affiliated company
                142,336
                
                98,046NET
                    CASH PROVIDED BY FINANCING ACTIVITIES
                118,864
                
                266,423EFFECT
                    OF EXCHANGE RATE ON CASH
                (3,170)
                
                47,438INCREASE
                    (DECREASE) IN CASH
                916
                
                (1,378)CASH
                    – BEGINNING OF YEAR
                922
                
                2,300CASH
                    – END OF YEAR
                $         1,838
                
                $            922Supplemental
                    disclosures of cash flow information:Cash
                    paid during the year
                    for:Interest
                $     140,632
                
                $         48,960
 
 See
          notes
          to financial statements
 
 F-5
 
 INTERNET
          ACQUISITION GROUP, INC.
 
 NOTES
          TO
          FINANCIAL STATEMENTS
 
 SEPTEMBER
          30, 2007
 
 
 1           
          BUSINESS DESCRIPTION AND ACQUISITION
 
 Internet
          Acquisition Group, Inc. (“IAG”) was incorporated in the State of California in
          January of 2004. The original concept of the company was to acquire existing
          Internet based businesses and achieve economies of scale and develop
          cross-marketing opportunities between these businesses.
  After
          the
          acquisition referred to in Note 2 the Company’s business is principally that of
          its wholly-owned subsidiary, Renyuan Bio-Chemicy (“Renyuan”). Renyuan is a
          high-technology biochemical enterprise located in the Jizhou City High
          and New
          Tech Industrial Zone of Hebei Province near Beijing, China.  Renyuan’s
          business is the research, production and management of chemicals, bio-pharma
          and
          pharmaceutical intermediates; however Renyuan’s ability to produce any products
          or conduct any research is dependent upon its ability to raise additional
          funds.
  
 2           
          ACQUISITION
 
 On
          September 27, 2007, the Company consummated the Reverse Acquisition in
          which
          China Renyuan International, Inc. a Delaware corporation (“CRI”) became the
          Company’s wholly-owned subsidiary.  The agreement provides for former
          CRI shareholders to receive 6,926,399,370 shares of common stock (the “Purchase
          Price Shares”), which will constitute up to 99% of the issued and outstanding
          stock.  As the Company is currently authorized by its Articles of
          Incorporation to issue 100,000,000 shares of common stock, and prior to
          the
          Reverse Acquisition, the Company had only 30,036,370 authorized by unissued
          shares of common stock available for issuance, the Exchange Agreement provided
          for the former CRI shareholders to receive 30,036,370 shares of the
          6,926,399,370 shares (the “Initial Purchase Price Shares”) immediately, with the
          remaining 6,896,363,000 shares (the “Remaining Purchase Price Shares”) to be
          issued as soon as the Company has sufficient authorized common stock to
          effect
          such issuance.
 
 The
          above
          acquisition has been accounted for as a reverse merger, since the former
          shareholder of CRI effectively control the Company and the only operations
          of
          the Company are solely those of CRI.
 
 3           
          GOING CONCERN
 
 The
          financial statements have been prepared using accounting principles generally
          accepted in the United States of America applicable for a going concern,
          which
          assumes that the Company will realize its assets and discharge its liabilities
          in the ordinary course of business.  The Company’s ability to continue
          as a going concern is dependent on, among other things, its ability to
          achieve
          profitable operations, to maintain its existing financing and to obtain
          additional financing to meet its obligations and to pay its liabilities
          when
          they come due.  The Company is currently pursuing new debt and equity
          financing in conjunction with proposed future acquisitions and
          operations.
 
 At
          the
          present time, the Company does not have sufficient working capital to meet
          its
          needs.  The Company intends to raise additional funds through the
          issuance of equity or convertible debt securities.  There can be no
          assurance that additional financing will be available on terms favorable
          to the
          Company, or at all.  The inability to raise the additional funds could
          cause the Company to cease all operations.
 
 
 F-6
 The
            financial statements do not include any adjustments relating to the
            recoverability and classification of recorded asset amounts or amounts
            and
            classification of liabilities that might be necessary should the Company
            be
            unable to continue in existence.
  4           
          SIGNIFICANT ACCOUNTING POLICIES
 
 Accounting
          methods
 
 The
          Company's financial statements are prepared using the
          accrual method of accounting.  The Company has elected a fiscal year
          ending on September 30th.
 
 Uses
          of estimates in the preparation of financial statements
 
 The
          preparation of financial statements in conformity with generally accepted
          accounting principles requires management to make estimates and assumptions
          that
          affect the reported amounts of assets and liabilities and disclosure of
          contingent assets and liabilities at the date of the financial statements
          and
          the reported amounts of net revenue and expenses during each reporting
          period.  Actual results could differ from those
          estimates.
 
 Inventories
 
 Inventories,
          consisting of supplies, are valued at the lower of cost as determined by
          the
          first-in, first-out method or market.
 
 Property
          and equipment
 
 Property
          and equipment are recorded at cost.  Depreciation is provided in
          amounts sufficient to amortize the cost of the related assets over their
          useful
          lives using the straight line method for financial reporting purposes,
          whereas
          accelerated methods are used for tax purposes.
 
 Maintenance,
                    repairs and minor renewals are charged to expense when incurred.
                    Replacements and major renewals are capitalized.
 
  Impairment
                    of long-lived assets
  The
          Company accounts for the impairment of long-lived assets in accordance
          with SFAS
          No. 144, “Accounting for the
          Impairment or Disposal of Long-Lived Assets”.  Long-lived
          assets are reviewed for impairment when circumstances indicate the carrying
          value of an asset may not be recoverable.  For assets that are to be
          held and used, an impairment is recognized when the estimated undiscounted
          cash
          flows associated with the asset or group of assets is less than their carrying
          value.  If impairment exists, an adjustment is made to write the asset
          down to its fair value, and a loss is recorded as the difference between
          the
          carrying value and fair value.  Fair values are determined based on
          quoted market values, discounted cash flows or internal and external appraisals,
          as applicable.  Assets to be disposed of are carried at the lower of
          carrying value or estimated net realizable value.
 
 Deferred
          income taxes
 
 The
          Company accounts for income taxes in accordance with Statement of Financial
          Accounting Standards No. 109 (ASFAS
          109") which requires that deferred tax assets and liabilities be recognized
          for
          future tax consequences attributable to differences between financial statement
          carrying amounts of existing assets and liabilities and their respective
          tax
          bases.  In addition, SFAS 109 requires recognition of future tax
          benefits, such as carryforwards, to the extent that realization of such
          benefits
          is more likely than not and that a valuation allowance be provided when
          it is
          more likely than not that some portion of the deferred tax asset will not
          be
          realized.
 
 F-7
 Currency
          translation
 
 Since
          the
          Company operates primarily in the PRC, the Company’s functional currency is the
          Chinese Yuan (RMB).  Revenue and expense accounts are translated at
          the average rates during the period, and balance sheet items are translated
          at
          year-end rates.  Translation adjustments arising from the use of
          differing exchange rates from period to period are included as a component
          of
          stockholders’ equity.  Gains and losses from foreign currency
          transactions are recognized in current operations.
 
 5           
          DUE TO AFFILIATED COMPANY
 
 Amounts
          due to affiliated company are non-interest bearing and due on
          demand.
 
 6
                PROPERTY
                    AND EQUIPMENT
 
 A
          summary
          of property and equipment and the estimated lives used in the computation
          of
          depreciation and amortization as of September 30, 2007 is as
          follows:
  
 Amount
                
                Life
 
 Machinery
                    and equipment
                $2,957,546
                
                7
                    yearsBuilding
                    and building improvements
                1,971,064
                
                39.5
                    yearsAutomobile
                5,191
                
                3
                    yearsLand
                287,765
                
                50
                    years5,221,566Accumulated
                    depreciation
                1,606,959$3,614,607
    
 7           
          NOTES PAYABLE – BANK
 
 Notes
          payable – bank consist of the
          following:
 
 Note
                    payable – bank bearing interest at 5.58% and due March 21,
                    2008
                
                $    667,000Note
                    payable – bank bearing interest at 5.58% and due March 21,
                    2008
                
                800,400Note
                    payable – bank bearing interest at 10.8225% and due April 29,
                    2008
                
                160,080Note
                    payable – bank bearing interest at 10.8225% and due April 29,
                    2008
                
                213,440$1,840.920
 
 The
          above notes are collateralized by
          substantially all assets of the Company.
 
 8           
          DUE TO SHAREHOLDER
 
 Amounts
          due to shareholder are non-interest bearing and due on demand.
 
 
 
 
 F-8
 9           
          EARNINGS PER SHARE
 
 Outstanding
          shares prior to September 27, 2007, the date of the merger, are
          undeterminable.  The total shares issued are therefore used as the
          average shares outstanding.
 
 10           
          OTHER INCOME
 
 Other
          income consists of the
          following:
 
 Net
                    gain on sale of assets in repayment of accounts payable
                
                $    6,177Recovery
                    of bad debt from prior period
                
                150,762Forgiveness
                    of debt
                
                34,672$191,611
 
 11
                RISK
                    FACTORS
 
 Vulnerability
          due to Operations in PRC
 
 The
          Company's
          operations may be adversely affected by significant political, economic
          and
          social uncertainties in the PRC.  Although the PRC government has been
          pursuing economic reform policies for more than twenty years, no assurance
          can
          be given that the PRC government will continue to pursue such policies
          or that
          such policies may not be significantly altered, especially in the event
          of a
          change in leadership, social or political disruption or unforeseen circumstances
          affecting the PRC’s political, economic and social conditions.  There
          is also no guarantee that the PRC government's
          pursuit of economic reforms will be consistent or effective.
 
 Substantially
          all of the Company's
          businesses are transacted in RMB, which is not freely
          convertible.  The People’s Bank of China or other banks are authorized
          to buy and sell foreign currencies at the exchange rates quoted by the
          People's
          Bank of China.  Approval of foreign currency payments by the People’s
          Bank of China or other institutions requires submitting a payment application
          form together with suppliers’ invoices, shipping documents and signed
          contracts.
 
 Since
          the
          Company has its primary operations in the PRC, the majority of its revenues
          will
          be settled in RMB, not U.S. Dollars. Due to certain restrictions on currency
          exchanges that exist in the PRC, the Company’s ability to use revenue generated
          in RMB to pay any dividend payments to its shareholders may be
          limited.
 
 Concentration
          of Credit Risk
 
 Cash
          is
          currently the only financial instrument that potentially subjects the Company
          to
          significant concentration of credit risk is primarily cash.  The
          Company maintains its cash with various banks and trust companies located
          in
          China which are not insured or otherwise protected.  Should any of
          these institutions holding the Company’s cash become insolvent, or if the
          Company is unable to withdraw funds for any reason, the Company could lose
          the
          cash on deposit with that institution.
 
 Environmental
          issues
 
 The
          Company conducts business in an industry that is subject to a broad array
          of
          environmental laws and regulations.  The production of the products
          the Company intends to produce will create pollutants.  The Company
          will incur significant costs if additional government regulations are introduced
          to protect the environment.
  F-9