----

----

| Nevada                                                         | 13-3422912                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |

----

|                                                                                          |                                                                                                                                 | Page No.    |
|-----------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|-------------|
|                                                                                          |                                                                                                                                 |        |
| PART I                                                                                        |                                                                                                                                 |
|                                                                                          |                                                                                                                                 |        |
| Item 1. Financial Statements                                                                  |                                                                                                                                 |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Condensed Consolidated Balance Sheet - September 30, 2010 (unaudited)                                                                | 3           |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Condensed Consolidated Statements of Operations And Comprehensive Income - Nine months Ended September 30, 2010 and 2009 (unaudited) | 4           |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Condensed Consolidated Statements of Cash Flows - Nine months Ended September 30, 2010 and 2009 (unaudited)                          | 5           |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Notes to Condensed Consolidated Financial Statements (unaudited)                                                                     |  6 - 9 |
|                                                                                          |                                                                                                                                 |        |
| Item 2. Management's Discussion and Analysis of Financial Condition And Results of Operations | 10                                                                                                                                   |
|                                                                                          |                                                                                                                                 |        |
| Item 4. Controls and Procedures                                                               | 12                                                                                                                                   |
|                                                                                          |                                                                                                                                 |        |
| PART II                                                                                       |                                                                                                                                 |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Item 1. Legal Proceedings                                                                                                            |  13    |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                  |  13    |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Item 3. Defaults Upon Senior Securities                                                                                              |  13    |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Item 4. Reserved                                                                                                                     |  13    |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Item 5. Other Information                                                                                                            |  13    |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Item 6. Exhibits                                                                                                                     |  13    |
|                                                                                          |                                                                                                                                 |        |
|                                                                                          | Signatures                                                                                                                           |  14    |

----

| ASSETS                                                                    |   |               |        |   |              |   |
|---------------------------------------------------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                                                                      |   | September 30, 2010 |        |   | December 31, 2009 |   |
|                                                                      |   | (Unaudited)        |        |   | (Audited)         |   |
| CURRENT ASSETS                                                            |   |               |        |   |              |   |
| Cash and cash equivalents                                                 |   | $                  | 397,817     |   |              | $      | 1,639,971 |   |
|  Restricted cash                                                     |   |               | 1,951,847   |   |              |   | 1,960,612 |   |
|  Accounts receivable, net of allowances                              |   |               | 2,362,373   |   |              |   | 1,449,800 |   |
|  Inventories, net                                                    |   |               | 789,539     |   |              |   | 658,734 |   |
|  Other receivables and prepaid expenses                              |   |               | 94,640      |   |              |   | 308,519 |   |
|  Due from a related company                                          |   |               | 112,008     |   |              |   | 238,016 |   |
|  Deferred tax asset                                                  |   |               | 1,144,093   |   |              |   | 1,064,552 |   |
|  Total Current Assets                                                |   |               | 6,852,317   |   |              |   | 7,320,204 |   |
|                                                                      |   |               |        |   |              |   |   |   |
|  INTANGIBLE ASSETS, NET of impairment of $3,996,595                  |   |               | 324,330     |   |              |   | 324,330 |   |
|  PROPERTY AND EQUIPMENT, NET of impairment of $7,777,071             |   |               | 7,089,806   |   |              |   | 18,067,189 |   |
|  TOTAL ASSETS                                                        |   | $                  | 14,266,453  |   |              | $      | 25,711,723 |   |
|                                                                      |   |               |        |   |              |   |   |   |
|  LIABILITIES AND STOCKHOLDERS' EQUITY                                |   |               |        |   |              |   |   |   |
|  CURRENT LIABILITIES                                                 |   |               |        |   |              |   |   |   |
|  Convertible debentures, net of discount                             |   | $                  | 950,000     |   |              | $      | 2,864,250 |   |
|  Bank loans                                                          |   |               | 4,032,258   |   |              |   | 4,149,135 |   |
|  Accounts payable                                                    |   |               | 5,463,790   |   |              |   | 7,505,024 |   |
|  Other payables and accrued liabilities                              |   |               | 1,778,300   |   |              |   | 1,413,979 |   |
|  Due to directors                                                    |   |               | 307,186     |   |              |   | 180,157 |   |
|  Due to a stockholder                                                |   |               | 9,270       |   |              |   | 9,270 |   |
|  Due to related companies                                            |   |               | 483,325     |   |              |   | 464,566 |   |
|  Business and other tax payable                                      |   |               | 2,937       |   |              |   | 19,015 |   |
|  Income tax payable                                                  |   |               | 617,728     |   |              |   | 620,458 |   |
|  Total Current Liabilities                                           |   |               | 13,644,794  |   |              |   | 17,225,854 |   |
|                                                                      |   |               |        |   |              |   |   |   |
|  LONG TERM LIABILITIES                                               |   |               |        |   |              |   |   |   |
|  Convertible debentures, net of discount                             |   |               | 1,814,250   |   |              |   | - |   |
|  Accounts payable                                                    |   |               | 479,079     |   |              |   | 2,125,773 |   |
|  Total Long Term Liabilities                                         |   |               | 2,293,329   |   |              |   | 2,125,773 |   |
|                                                                      |   |               |        |   |              |   |   |   |
|  COMMITMENTS AND CONTINGENCIES                                       |   |               | -           |   |              |   | - |   |
|                                                                      |   |               |        |   |              |   |   |   |
|                                                                      |   |               |        |   |              |   |   |   |
| STOCKHOLDERS' EQUITY                                                      |   |               |        |   |              |   |   |   |
| Series A convertible preferred stock ($0.001 par value, 40,000,000 shares |   |               |        |   |              |   |   |   |
|  authorized,1,875,000 shares issued and outstanding as of            |   |               |        |   |              |   |   |   |
| September 30, 2010 and December 31, 2009)                                 |   |               | 1,875       |   |              |   | 1,875 |   |
| Common stock ($0.001 par value, 500,000,000 shares authorized,            |   |               |        |   |              |   |   |   |
| 42,706,363 shares issued and outstanding as of September 30, 2010         |   |               |        |   |              |   |   |   |
|  and December 31, 2009)                                              |   |               | 42,706      |   |              |   | 42,706 |   |
| Additional paid-in capital                                                |   |               | 14,984,021  |   |              |   | 14,984,021 |   |
| Retained earnings                                                         |   |               |        |   |              |   |   |   |
|    Unappropriated                                          |   |               | (19,839,283 | )      |              |   | (12,136,140 | ) |
|    Appropriated                                            |   |               | 1,521,997   |   |              |   | 1,521,997 |   |
| Accumulated other comprehensive income                                    |   |               | 1,617,014   |   |              |   | 1,945,637 |   |
| Total Stockholders' Equity                                                |   |               | (1,671,670  | )      |              |   | 6,360,096 |   |
|                                                                      |   |               |        |   |              |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                |   | $                  | 14,266,453  |   |              | $      | 25,711,723 |   |
|                                                                      |   |               |        |   |              |   |   |   |

----

|                                                 |   | For the three months ended |        |   | For the nine months ended |   |
|------------------------------------------------------|--------|----------------------------|-------------|--------|---------------------------|--------|
|                                                 |   | September 30               |        |   | September 30              |   |
|                                                 |   | 2010                       |        |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |
| NET SALES                                            |   |                       |        |   |                      |   |   |   |   |   |   |   |
| Revenue from digitalization of television signals    |   |  $                    | 2,190,892   |   |                      | $      | 2,560,278 |   |   | $ | 6,641,290 |   |   |  $ | 6,367,291 |   |
| Revenue from television advertising                  |   |                       | 500,297     |   |                      |   | 94,984 |   |   |   | 961,580 |   |   |   | 239,287 |   |
| Revenue from software development                    |   |                       | -           |   |                      |   | 33,621 |   |   |   | - |   |   |   | 33,621 |   |
|                                                 |   |                       | 2,691,189   |   |                      |   | 2,688,883 |   |   |   | 7,602,870 |   |   |   | 6,640,199 |   |
| COST OF SALES                                        |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales - digitalization of television signals |   |                       | (199,008)   |   |                      |   | (531,531 | ) |   |   | (689,642 | ) |   |   | (1,025,858 | ) |
| Depreciation - digitalization of television signals  |   |                       | (1,028,582) |   |                      |   | (1,156,772 | ) |   |   | (3,582,315) |   |   |   | (3,433,479 | ) |
| Cost of Sales - television advertising               |   |                       | (391,090)   |   |                      |   | (125,186 | ) |   |   | (782,165 | ) |   |   | (203,852 | ) |
|                                                 |   |                       | (1,618,680) |   |                      |   | (1,813,489 | ) |   |   | (5,054,122 | ) |   |   | (4,663,189 | ) |
| GROSS PROFIT                                         |   |                       | 1,072,509   |   |                      |   | 875,394 |   |   |   | 2,568,748 |   |   |   | 1,977,010 |   |
|                                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                   |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses         |   |                       | (836,844    | )      |                      |   | (777,031 | ) |   |   | (2,366,359 | ) |   |   | (1,962,391 | ) |
| Impairment loss of tangible assets                   |   |                       | (7,777,071  | )      |                      |   | - |   |   |   | (7,777,071 | ) |   |   | - |   |
| Depreciation and amortization                        |   |                       | (19,974     | )      |                      |   | (19,394 | ) |   |   | (56,172 | ) |   |   | (62,309 | ) |
| Total Operating Expenses                             |   |                       | (8,633,889  | )      |                      |   | (796,425 | ) |   |   | (10,199,602 | ) |   |   | (2,024,700 | ) |
|                                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS) INCOME FROM OPERATION                         |   |                       | (4,160,001  | )      |                      |   | 78,969 |   |   |   | (4,249,475 | ) |   |   | (47,690 | ) |
|                                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                              |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                      |   |                       | 3,370       |   |                      |   | 477 |   |   |   | 24,407 |   |   |   | 1,401 |   |
| Other income                                         |   |                       | 170,361     |   |                      |   | 985,582 |   |   |   | 474,209 |   |   |   | 1,268,100 |   |
| Interest expense                                     |   |                       | (137,852    | )      |                      |   | (89,649 | ) |   |   | (336,061 | ) |   |   | (254,344 | ) |
| Interest paid to related companies and directors     |   |                       | (4,993      | )      |                      |   | (5,676 | ) |   |   | (14,346 | ) |   |   | (17,438 | ) |
| Other expenses                                       |   |                       | (98,869     | )      |                      |   | (500 | ) |   |   | (115,644 | ) |   |   | (2,225 | ) |
| Total Other Income, net                              |   |                       | (67,983     | )      |                      |   | 890,234 |   |   |   | 32,565 |   |   |   | 995,494 |   |
|                                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| NET (LOSS) INCOME BEFORE TAXES                       |   |                       | (7,629,363  | )      |                      |   | 969,203 |   |   |   | (7,618,289 | ) |   |   | 947,804 |   |
|                                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income tax (expense) income                          |   |                       | (71,603     | )      |                      |   | 1,118,824 |   |   |   | (84,853 | ) |   |   | 1,071,466 |   |
| NET (LOSS) INCOME                                    |   |                       | (7,700,966  | )      |                      |   | 2,088,027 |   |   |   | (7,703,142 | ) |   |   | 2,019,270 |   |
|                                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                           |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation loss                    |   |                       | (274,913    | )      |                      |   | (224,626 | ) |   |   | (328,623 | ) |   |   | (209,992 | ) |
|                                                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   |  $                    | (7,978,879  | )      |                      | $      | 1,863,401 |   |   | $ | (8,031,765 | ) |   |  $ | 1,809,278 |   |

----

|                                                                     |   | 2010   |       |   | 2009   |   |
|--------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                     |   |   |       |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                     |   |   |       |   |   |   |
| Total net loss                                                           |   | $      | (7,703,143 | )      |   | $      | (68,757 | ) |
| Adjusted to reconcile net loss to cash provided by operating activities: |   |   |       |   |   |   |   |   |
| Depreciation-cost of sales                                               |   |   | 3,582,315  |   |   |   | 2,276,707 |   |
| Depreciation and amortization                                            |   |   | 56,172     |   |   |   | 42,915 |   |
| Provision for doubtful debts                                             |   |   | (276,825   | )      |   |   | - |   |
| Impairment loss of tangible assets                                       |   |   | 7,777,071  |   |   |   | - |   |
| Changes in operating assets and liabilities                              |   |   |       |   |   |   |   |   |
| (Increase) decrease in:                                                  |   |   |       |   |   |   |   |   |
|   Accounts receivable                                          |   |   | (635,748   | )      |   |   | (695,792 | ) |
|   Other receivables and prepaid expenses                       |   |   | 134,338    |   |   |   | (637,173 | ) |
| Due from a related company                                               |   |   | 126,008    |   |   |   | - |   |
|   Inventories                                                  |   |   | 352,961    |   |   |   | 265,256 |   |
| Increase (decrease) in:                                                  |   |   |       |   |   |   |   |   |
|   Accounts payable                                             |   |   | (3,687,928 | )      |   |   | 928,455 |   |
|   Other payables and accrued liabilities                       |   |   | 364,321    |   |   |   | (177,616 | ) |
|   Business tax payable                                         |   |   | (16,078    | )      |   |   | (1,646 | ) |
|   Income tax payable                                           |   |   | (2,730     | )      |   |   | 47,285 |   |
| Net cash provided by operating activities                                |   |   | 70,734     |   |   |   | 1,979,634 |   |
|                                                                     |   |   |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                     |   |   |       |   |   |   |   |   |
| Purchase of property and equipment                                       |   |   | (1,362,120 | )      |   |   | (1,856,677 | ) |
| Net cash used in investing activities                                    |   |   | (1,362,120 | )      |   |   | (1,856,677 | ) |
|                                                                     |   |   |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                     |   |   |       |   |   |   |   |   |
| Due to related companies                                                 |   |   | 18,759     |   |   |   | 66,098 |   |
| Convertible debentures redeemed                                          |   |   | (100,000   | )      |   |   | - |   |
| Bank loans drawn down                                                    |   |   | (116,877   | )      |   |   | - |   |
| Due to a stockholder                                                     |   |   | -          |   |   |   | (387,061 | ) |
| Due to directors                                                         |   |   | 127,029    |   |   |   | 187 |   |
| Net cash used in financing activities                                    |   |   | (71,089    | )      |   |   | (320,776 | ) |
|                                                                     |   |   |       |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE ON CASH                                          |   |   | 111,556    |   |   |   | 13,327 |   |
|                                                                     |   |   |       |   |   |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                                |   |   | (1,250,919 | )      |   |   | (184,492 | ) |
|                                                                     |   |   |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                         |   |   | 3,600,583  |   |   |   | 436,062 |   |
|                                                                     |   |   |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                               |   | $      | 2,349,664  |   |   | $      | 251,570 |   |
|                                                                     |   |   |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                         |   |   |       |   |   |   |   |   |
| Cash paid for interest                                                   |   | $      | 221,831    |   |   | $      | 247,650 |   |
| Cash paid for income tax                                                 |   | $      | 2,787      |   |   | $      | - |   |
|                                                                     |   |   |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:                |   |   |       |   |   |   |   |   |
| No non-cash financing actiivities were noted during the period           |   |   |       |   |   |   |   |   |
|                                                                     |   |   |       |   |   |   |   |   |

----

| (B)   | Principles of Consolidation |
|-----------------|-----------------------------|

| (C)   | Revenue Recognition |
|-----------------|---------------------|

| (D)   | Property and Equipment |
|-----------------|------------------------|

----

| (E)   | Valuation of Financial Instruments |
|-----------------|------------------------------------|

| (F)   | Recent Accounting Pronouncements |
|-----------------|----------------------------------|

----

|                                |   | Digitalization |       |   |        |   |      |        |   |   | Investments   |   |   |   |     |
|-------------------------------------|--------|----------------|------------|--------|-------------|--------|-----------|-------------|--------|--------|---------------|--------|--------|--------|----------|
|                                |   | of Television  |       |   | Television  |   |      | Software    |   |   | in Television |   |   |   |     |
|                                |   | Signals        |       |   | Advertising |   |      | Development |   |   | Series        |   |   | Total  |     |
| 2010                                |   |           |       |   |        |   |      |        |   |   |          |   |   |   |     |
|  Revenues                      |   | $              | 6,641,290  |   |        | $      | 961,580   |        |   | $      | -             |   |   | $      | -        |   |   | $ | 7,602,870 |   |
|  Gross profit                  |   |           | 2,369,334  |   |        |   | 179,414   |        |   |   | -             |   |   |   | -        |   |   |   | 2,548,748 |   |
|  Net loss                      |   |           | (6,871,309 | )      |        |   | (47,788   | )           |   |   | (104,867      | )      |   |   | (108,349 | ) |   |   | (7,132,313 | ) |
|  Total assets                  |   |           | 11,274,701 |   |        |   | 1,336,867 |        |   |   | 1,651,823     |   |   |   | 3,062    |   |   |   | 14,266,453 |   |
|  Capital expenditure           |   |           | (742,197   | )      |        |   | 114,084   |        |   |   | -             |   |   |   | (2,394   | ) |   |   | (630,507 | ) |
|  Depreciation and amortization |   | $              | 3,617,992  |   |        | $      | -         |        |   | $      | 20,495        |   |   | $      | -        |   |   | $ | 3,638,487 |   |
|                                |   |           |       |   |        |   |      |        |   |   |          |   |   |   |     |   |   |   |   |   |
| 2009                                |   |           |       |   |        |   |      |        |   |   |          |   |   |   |     |   |   |   |   |   |
|  Revenues                      |   | $              | 6,367,291  |   |        | $      | 239,287   |        |   | $      | 33,621        |   |   | $      | -        |   |   | $ | 6,640,199 |   |
|  Gross profit                  |   |           | 1,907,954  |   |        |   | 35,435    |        |   |   | 33,621        |   |   |   | -        |   |   |   | 1,977,010 |   |
|  Net Income (loss)             |   |           | 2,773,396  |   |        |   | (54,862   | )           |   |   | (142,625      | )      |   |   | (10,285  | ) |   |   | 2,565,624 |   |
|  Total assets                  |   |           | 18,800,158 |   |        |   | 984,207   |        |   |   | 1,553,554     |   |   |   | 104,758  |   |   |   | 21,442,677 |   |
|  Capital expenditure           |   |           | 4,515,325  |   |        |   | 8,430     |        |   |   | 38,108        |   |   |   | 454      |   |   |   | 4,562,317 |   |
|  Depreciation and amortization |   | $              | 3,472,757  |   |        | $      | -         |        |   | $      | 22,748        |   |   | $      | 283      |   |   | $ | 3,495,788 |   |

| A reconciliation is provided for unallocated amounts relating to corporate operations which is not included in the segment information. |   |   |       |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                                                    |   |   |       |   |   |   |
|                                                                                                                                    |   | 2010   |       |   | 2009   |   |
|                                                                                                                                    |   |   |       |   |   |   |
| Total net (loss) income for reportable segments                                                                                         |   | $      | (7,132,313 | )      |   | $      | 2,565,624 |   |
| Unallocated amounts relating to corporate operations                                                                                    |   |   |       |   |   |   |   |   |
| Interest expenses                                                                                                                       |   |   | 205,615    |   |   |   | 239,889 |   |
| Interest paid to related companies and directors                                                                                        |   |   | 14,346     |   |   |   | 17,438 |   |
| Administration expenses                                                                                                                 |   |   | 161,100    |   |   |   | 233,246 |   |
| Professional fees                                                                                                                       |   |   | 74,125     |   |   |   | 53,555 |   |
| Other expense                                                                                                                           |   |   | 115,644    |   |   |   | 2,225 |   |
|                                                                                                                                    |   |   |       |   |   |   |   |   |
| Total net (loss) income                                                                                                            |   | $      | (7,703,142 | )      |   | $      | 2,019,270 |   |

| -   | 42,706,363 shares of common stock;                                                                                          |   |   |
|---------------|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|
| -   | 1,875,000 shares of preferred stock;                                                                                        |   |   |   |
| -   | 6,888,882 shares of common stock to be issued upon conversion of convertible debenture;                                     |   |
| -   | warrants to purchase 6,888,882 shares of common stock at an exercise price of $0.80 per share, expire in November 2012;     |
| -   | warrants to purchase 6,888,882 shares of common stock at an exercise price of $1.20 per share, expire in November 2012; and |
| -   | warrants to purchase 3,444,441 shares of common stock at an exercise price of $2.25 per share, expire in November 2012.     |
|          |                                                                                                                        |   |   |   |   |

|                                              |   | 2010   |       |   | 2009   |   |
|---------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                              |   |   |       |   |   |   |
| Net (Loss) Income                                 |   | $      | (7,703,142 | )      |   | $      | 2,019,270 |   |
|                                              |   |   |       |   |   |   |   |   |
| Basic - 2 classes method                          |   |   |       |   |   |   |   |   |
| (Loss) Income available to common stockholders    |   | $      | (7,703,142 | )      |   | $      | 2,019,270 |   |
|                                              |   |   |       |   |   |   |   |   |
| Weighted-average common stock outstanding         |   |   | 42,706,363 |   |   |   | 42,706,363 |   |
|                                              |   |   |       |   |   |   |   |   |
| Basic earnings per share - Common Stock           |   | $      | (0.18      | )      |   | $      | 0.05 |   |
|                                              |   |   |       |   |   |   |   |   |
| Diluted                                           |   |   |       |   |   |   |   |   |
| (Loss) Income available to common stockholders    |   | $      | (7,703,142 | )      |   | $      | 2,019,270 |   |
|                                              |   |   |       |   |   |   |   |   |
| Diluted weighted-average common stock outstanding |   |   | 63,005,030 |   |   |   | 63,005,030 |   |
|                                              |   |   |       |   |   |   |   |   |
| Diluted earnings per share                        |   | $      | (0.12      | )      |   | $      | 0.03 |   |

----

|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   | September 30,                                             |   | December 31,                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-----------|---------------------------------------------------------------------|-----------------------------------------------------|--------|--------|--------|-----------------------------------------------------------|--------|-----------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   | 2010                                                      |   | 2009                                                |
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   | (Unaudited)                                               |   | (Audited)                                           |
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   |                                                      |   |                                                |
|                                                                                                                                                                                                                                                                                                                                     |
|  $2,150,000 Convertible Debentures, net of $135,000 conversions, $100,750 redemption and unamortized discount of $0 as of September 30, 2010 and December 31, 2009 and another $100,000 redemption as of September 30, 2010 at 10% interest per annum due each quarter end in 2010 and 2011 which expires on December 31, 2011 | $       | 1,814,250 | $                                                                   |        1,914,250 |
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   |                                                      |   |                                                |
|                                                                                                                                                                                                                                                                                                                                |
| $500,000 Convertible Debentures, net of unamortized discount of $0 as of September 30, 2010 and December 31, 2009 at 13% interest per annum for the year 2009 due at the end of 2009, and at 14% interest per annum for the year 2010 which expired on December 31, 2010.                                                                | 500,000 |      |           500,000 |
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   |                                                      |   |                                                |
|                                                                                                                                                                                                                                                                                                                                |
| $200,000 Convertible Debentures, net of unamortized discount of $0 as of September 30, 2010 and December 31, 2009 respectively at 4% interest per annum which expired in May 2008, in default                                                                                                                                            | 200,000 |      |           200,000 |
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   |                                                      |   |                                                |
|                                                                                                                                                                                                                                                                                                                                |
| $150,000 Convertible Debentures, net of unamortized discount of $0 as of September 30, 2010 and December 31, 2009 at 10% per annum respectively which expires on December 31, 2010                                                                                                                                                       | 150,000 |      |           150,000 |
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   |                                                      |   |                                                |
|                                                                                                                                                                                                                                                                                                                                |
| $100,000 Convertible Debentures, net of unamortized discount of $0 as of September 30, 2010 and December 31, 2009 at 4% interest per annum which expired in June 2008, in default                                                                                                                                                        | 100,000 |      |           100,000 |
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   |   |                                                      |   |                                                |
|                                                                                                                                                                                                                                                                                                                                     |    |      |                                                                |                                                |   |   | $      |         2,764,250 | $      |        2,864,250 |

----

| -   | Through a subsidiary, Arcotect (Guangzhou) Limited (“AGL”), converting analog cable television subscribers to digital television and providing various value added and broadband services to the digital subscribers; and |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -   | Television advertising sales                                                                                                                                                                                                          |   |   |

----

----

----

| EXHIBIT NO |   | DESCRIPTION OF EXHIBIT                                                                                                                                                              |
|------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                |
| 31.1       |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|       |   |                                                                                                                                                                                |
| 31.2       |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|       |   |                                                                                                                                                                                |
| 32         |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002       |

----

|  Date: November 10, 2010 /s/ Ng Chi ShingNg Chi ShingChief Executive Officer Date:November 10, 2010 /s/ Chung Lai LokChung Lai LokChief Financial Officer |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|