**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-Q**




**x** **QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**


**SECURITIES
      EXCHANGE ACT OF 1934**




**For
      the quarterly period ended June 30, 2007**





**OR**





**o** **TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**


**SECURITIES
      EXCHANGE ACT OF 1934**





**Commission
      File Number**


**000-51981**




**ASIA
      TIME CORPORATION**


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





**Delaware**
              *(State
                or other jurisdiction of incorporation*
              *or
                organization)*
            **N/A**
              *(I.R.S.
                Employer Identification*
              *No.)***Room
                1601-1604, 16/F., CRE Centre**
              **889
                Cheung Sha Wan Road,**
              **Kowloon,
                Hong Kong******
              *(Address
                of principal executive offices)*
            **N/A**
              *(Zip
                Code)*





**(852)-23100101**


*(Registrant’s
      telephone number, including area code)*





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
      during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such filing requirements for the past 90 days. Yes x No  o




Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of “accelerated
      filer and large accelerated filer” in Rule 12b-2 of the Exchange
      Act.





Large
      accelerated filer o Accelerated filer o Non-accelerated filer x




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




There
      were 23,156,629 shares outstanding of registrant’s common stock, par value
      $.0001 per share, as of August 14, 2007.














**ASIA
      TIME CORPORATION.**


**FORM
      10-Q QUARTERLY REPORT**





**TABLE
      OF CONTENTS**





**Page**PART
                I - FINANCIAL INFORMATION
            
            1ITEM
                1.
            FINANCIAL
                STATEMENTSCondensed
                Consolidated Balance Sheet (Unaudited)
            
            2Condensed
                Consolidated Income Statement (Unaudited)
            
            4Condensed
                Consolidated Statement of Cash Flows (Unaudited)
            
            5Notes
                to Condensed Consolidated Financial Statements (Unaudited)
            
            7ITEM
                2.
            MANAGEMENT’S
                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                OPERATION
            
            26ITEM
                3.
            QUANTITATIVE
                AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
            
            31ITEM
                4.
            CONTROLS
                AND PROCEDURES
            
            32PART
                II - OTHER INFORMATIONITEM
                1.
            LEGAL
                PROCEEDINGS
            
            33ITEM
                1A.
            RISK
                FACTORS
            
            33ITEM
                2.
            UNREGISTERED
                SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
            
            33ITEM
                3.
            DEFAULTS
                UPON SENIOR SECURITIES
            
            33ITEM
                4.
            SUBMISSION
                OF MATTERS TO A VOTE OF SECURITY HOLDERS
            
            33ITEM
                5.
            OTHER
                INFORMATION
            
            33ITEM
                6.
            EXHIBITS
            
            33SIGNATURES
            
            
            34









**PART
      I - FINANCIAL INFORMATION**





**ITEM
      1.**  **FINANCIAL
      STATEMENTS**





The
      accompanying unaudited financial statements have been prepared in accordance
      with accounting principles generally accepted in the United States of America
      for interim financial information and with the instructions to Form 10-Q.
      Accordingly, they do not include all of the information and footnotes required
      by generally accepted accounting principles for complete financial statements.
      The accompanying unaudited financial statements reflect all adjustments that,
      in
      the opinion of management, are considered necessary for a fair presentation
      of
      the financial position, results of operations, and cash flows for the periods
      presented. The results of operations for such periods are not necessarily
      indicative of the results expected for the full fiscal year or for any future
      period. The accompanying unaudited financial statements should be read in
      conjunction with the audited financial statements of Asia Time Corporation
      included in the Form 10-K for the fiscal year ended December 31, 2006 as filed
      with the Securities and Exchange Commission on April 17, 2007.




1


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





CONDENSED
      CONSOLIDATED BALANCE SHEET


AS
      OF
      JUNE 30, 2007 AND DECEMBER 31, 2006


(Stated
      in US Dollars)




***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$*****ASSETS**Current
                Assets :Cash
                and cash equivalents
            
            
            74,710
            
            
            316,621Restricted
                cash
            
            
            5,940,642
            
            
            4,523,679Accounts
                receivable
            
            
            14,463,214
            
            
            8,188,985Prepaid
                expenses and other receivables - Note 10
            
            
            6,044,193
            
            
            2,101,133Tax
                prepayment
            
            
            -
            
            
            767Inventories,
                net - Note 11
            
            
            4,229,168
            
            
            6,620,361Prepaid
                lease payments - Note 13
            
            
            22,840
            
            
            22,958Total
                Current Assets
            
            
            30,774,767
            
            
            21,774,504Deferred
                tax assets - Note 7
            
            
            13,920
            
            
            14,042Plant
                and equipment, net - Note 12
            
            
            754,958
            
            
            890,258Leasehold
                lands - Note 13
            
            
            879,219
            
            
            895,322Held-to-maturity
                investments - Note 14
            
            
            299,654
            
            
            301,196Intangible
                assets - Note 15
            
            
            274,210
            
            
            337,836Restricted
                cash
            
            
            255,984
            
            
            257,301**TOTAL
                ASSETS**
            
            
            33,252,712
            
            
            24,470,459**LIABILITIES
                AND STOCKHOLDERS’ EQUITY****LIABILITIES**Current
                Liabilities :Accounts
                payable
            
            
            1,514,350
            
            
            770,360Other
                payables and accrued liabilities - Note 16
            
            
            51,232
            
            
            190,358Advance
                from a related party - Note 17
            
            
            23,938
            
            
            -Income
                tax payable
            
            
            2,093,132
            
            
            1,453,051Bank
                borrowings - Note 18
            
            
            15,608,181
            
            
            13,205,167Total
                Current Liabilities
            
            
            19,290,833
            
            
            15,618,936Deferred
                tax liabilities - Note 7
            
            
            31,498
            
            
            31,711**TOTAL
                LIABILITIES**
            
            
            19,322,331
            
            
            15,650,647




**COMMITMENTS
                AND CONTINGENCIES - Note
                21**




2


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





CONDENSED
      CONSOLIDATED BALANCE SHEET (Cont’d)


AS
      OF
      JUNE 30, 2007 AND DECEMBER 31, 2006


(Stated
      in US Dollars)




***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$*****STOCKHOLDERS’
                EQUITY**Preferred
                stock - Note 19Par
                value : 2007 - US$0.0001 (2006 - US$0.0001)Authorized:
                2007 - 10,000,000 shares (2006 - 10,000,000)Issued
                and outstanding: 2007 - 2,250,348 shares (2006 - none)
            
            
            225
            
            
            -Common
                stock - Note 19Par
                value : 2007 - US$0.0001 (2006 - US$0.0001)Authorized:
                2007 - 100,000,000 shares (2006 - 100,000,000)Issued
                and outstanding: 2007 - 23,156,629 shares (2006 -
                3,702,209)
            
            
            2,316
            
            
            370Additional
                paid-in capital
            
            
            2,970,386
            
            
            655,874Accumulated
                other comprehensive income
            
            
            (40,672
            )
            
            7,470Retained
                earnings
            
            
            10,998,126
            
            
            8,156,098**TOTAL
                STOCKHOLDERS’ EQUITY**
            
            
            13,930,381
            
            
            8,819,812**TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY**
            
            
            33,252,712
            
            
            24,470,459





See
      notes
      to condensed consolidated financial statements


3




ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





CONDENSED
      CONSOLIDATED INCOME STATEMENT


FOR
      THE
      THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006


(Stated
      in US Dollars)





***Three
                months ended***
            
            ***Six
                months ended******June
                30,***
            
            ***June
                30,***
            
            ***June
                30,***
            
            ***June
                30,******2007***
            
            ***2006***
            
            ***2007***
            
            ***2006******(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)******$***
            
            ***$***
            
            ***$***
            
            ***$***Net
                sales
            
            
            20,869,437
            
            
            22,924,095
            
            
            41,987,579
            
            
            43,227,186Cost
                of sales
            
            
            (18,288,887
            )
            
            (21,700,076
            )
            
            (36,544,870
            )
            
            (39,780,894
            )Gross
                profit
            
            
            2,580,550
            
            
            1,224,019
            
            
            5,442,709
            
            
            3,446,292Other
                income - Note 5
            
            
            48,281
            
            
            41,875
            
            
            96,778
            
            
            83,780Depreciation
            
            
            (63,433
            )
            
            (95,935
            )
            
            (128,864
            )
            
            (159,366
            )Administrative
                and other operating expenses
            
            
            (518,215
            )
            
            (298,113
            )
            
            (953,058
            )
            
            (612,245
            )Income
                from operations
            
            
            2,047,183
            
            
            871,846
            
            
            4,457,565
            
            
            2,758,461Professional
                expenses related to Restructuring and Share Exchange
            
            
            -
            
            
            -
            
            
            (419,197
            )
            
            -Other
                income - Note 5
            
            
            48,452
            
            
            67,383
            
            
            78,381
            
            
            110,296Interest
                expenses - Note 6
            
            
            (274,990
            )
            
            (297,298
            )
            
            (514,419
            )
            
            (497,854
            )Income
                before taxes
            
            
            1,820,645
            
            
            641,931
            
            
            3,602,330
            
            
            2,370,903Income
                taxes - Note 7
            
            
            (354,630
            )
            
            (122,159
            )
            
            (760,302
            )
            
            (419,309
            )Net
                income
            
            
            1,466,015
            
            
            519,772
            
            
            2,842,028
            
            
            1,951,594Earnings
                per share of common stock (cents) - Note 9-
                Basic
            
            
            6.33
            
            
            2.24
            
            
            12.27
            
            
            8.42-
                Diluted
            
            
            5.77
            
            
            2.24
            
            
            11.33
            
            
            8.42Weighted
                average number of common stock - Note 9-
                Basic
            
            
            23,156,629
            
            
            23,156,629
            
            
            23,156,629
            
            
            23,156,629-
                Diluted
            
            
            25,406,977
            
            
            23,156,629
            
            
            25,086,369
            
            
            23,156,629




See
      notes
      to condensed consolidated financial statements




4


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





CONDENSED
      CONSOLIDATED STATEMENT OF CASH FLOWS


(Stated
      in US Dollars)





***Six
                months ended June 30,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Unaudited)******$***
            
            ***$*****Cash
                flows from operating activities**Net
                income
            
            
            2,842,028
            
            
            1,951,594Adjustments
                to reconcile net income to net cash flowsprovided
                by operating activities :Amortization
                of intangible assets
            
            
            61,907
            
            
            77,413Amortization
                of leasehold lands
            
            
            11,522
            
            
            9,294Depreciation
            
            
            128,864
            
            
            159,366Loss
                on disposal of plant and equipment
            
            
            5,404
            
            
            7,735Income
                taxes
            
            
            760,302
            
            
            419,309Professional
                expenses related to Restructuring and Share Exchange
            
            
            419,197
            
            
            -Changes
                in operating assets and liabilities :Accounts
                receivable
            
            
            (6,317,232
            )
            
            (3,528,823
            )Prepaid
                expenses and other receivables
            
            
            (3,929,492
            )
            
            (963,219
            )Inventories
            
            
            2,357,702
            
            
            2,628,448Accounts
                payable
            
            
            748,048
            
            
            68,807Other
                payables and accrued liabilities
            
            
            (138,176
            )
            
            (20,293
            )Income
                tax payable
            
            
            (111,908
            )
            
            (33,977
            )Unearned
                income
            
            
            -
            
            
            (1,597,305
            )Net
                cash flows used in operating activities
            
            
            (3,161,834
            )
            
            (821,651
            )**Cash
                flows from investing activities**Cash
                acquired in connection with reverse acquisition
            
            
            3,193
            
            
            -Acquisition
                of plant and equipment
            
            
            (3,824
            )
            
            (1,164,127
            )Proceeds
                from disposal of plant and equipment
            
            
            320
            
            
            2,037Net
                cash flows used in investing activities
            
            
            (311
            )
            
            (1,162,090
            )**Cash
                flows from financing activities**Proceeds
                from issuance of Series A convertible preferred stock
            
            
            2,641,683
            
            
            -Repayment
                of short-term bank loans
            
            
            (28,187,384
            )
            
            (27,682,224
            )Net
                advancement of other bank borrowings
            
            
            30,725,349
            
            
            31,314,380Increase
                in restricted cash
            
            
            (1,440,370
            )
            
            (1,172,601
            )Advance
                (from) / to related parties
            
            
            (9,057
            )
            
            541,978Decrease
                / (increase) in bank overdrafts
            
            
            (66,923
            )
            
            167,638Dividends
                paid
            
            
            -
            
            
            (1,608,572
            )Recapitalization
                costs
            
            
            (739,390
            )
            
            -Net
                cash flows provided by financing activities
            
            
            2,923,908
            
            
            1,560,599Net
                decrease in cash and cash equivalents
            
            
            (238,237
            )
            
            (423,142
            )Effect
                of foreign currency translation on cash and cash
                equivalents
            
            
            (3,674
            )
            
            (3,449
            )Cash
                and cash equivalents - beginning of period
            
            
            316,621
            
            
            780,090Cash
                and cash equivalents - end of period
            
            
            74,710
            
            
            353,499




5





ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





CONDENSED
      CONSOLIDATED STATEMENT OF CASH FLOWS (Cont’d)


(Stated
      in US Dollars)




***Six
                months ended June 30,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Unaudited)******$***
            
            ***$***Supplemental
                disclosures for cash flow information:Cash
                paid for:Interest
            
            
            514,419
            
            
            497,854Income
                taxes
            
            
            111,908
            
            
            33,977





See
      notes
      to condensed consolidated financial statements


6


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**1.**
            **Change
                of company name**





Effective
      from January 23, 2007, the Company changed its name from SRKP 9, Inc. to Asia
      Time Corporation (the “Company”).





**2.**
            **Corporation
                information****and
                reorganization**





Asia
      Time
      Corporation (the “Company”) (formerly SRKP 9, Inc.) was incorporated in the
      State of Delaware on January 3, 2006.





Recapitalization





The
      Company entered into an Exchange Agreement dated December 15, 2006 (the
“Exchange Agreement”) with Times Manufacture & E-Commerce Corporation
      Limited, a British Virgin Islands corporation (“Times Manufacture”) and Mr.
      Kwong Kai Shun, the sole shareholder of the 100% of the capital shares of Times
      Manufacture, (“Original Shareholder”). The closing of the Exchange Agreement
      occurred on January 23, 2007.





The
      Company effectuated a 1.371188519-for-one stock reverse split in the course
      of
      the share exchange process such that there were 3,702,209 shares of common
      stock
      outstanding immediately prior to the closing of the Exchange Agreement. These
      financial statements give retroactive effect to this share split.





At
      the
      closing of the Exchange Agreement, the Company acquired all of Times
      Manufacture’s capital shares (the “Times Manufacture Shares”) from the Original
      Shareholder, and the Original Shareholder transferred and contributed all of
      his
      Times Manufacture Shares to the Company. In exchange, the Company issued
      19,454,420 shares of its Common Stock to the Original Shareholder.





The
      former stockholders of Times Manufacture acquired 84% of the Company’s issued
      and outstanding common stock as a result of completion of the share exchange
      transaction. Therefore, although Times Manufacture became the Company’s
      wholly-owned subsidiary, the transaction was accounted for as a recapitalization
      of the Company, whereby Times Manufacture is deemed to be the accounting
      acquirer and is deemed to have adopted the Company’s capital structure. Since
      the Merger was accounted for as a reverse acquisition, the accompanying
      consolidated financial statements reflect the historical financial statements
      of
      Times Manufacture, the accounting acquirer, as adjusted for the effects of
      the
      exchange of shares on its equity accounts, the inclusion of net liabilities
      of
      the accounting subsidiary as of the date of the merger on their historical
      basis
      and the inclusion of the accounting subsidiary’s results of operations from that
      date. Although the Company is the legal acquirer, Times Manufacture will be
      treated as having acquired the Company for accounting purposes and all of the
      operations reported represent the historical financial statements of Times
      Manufacture.




7


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**2.**
            **Corporation
                information****and
                reorganization (Cont’d)**





The
      net
      deficits of the Company at the completion date on January 23, 2007 are as
      follows:





***(Unaudited)******$****Current
                assets*Cash
                and cash equivalents
            
            
            3,193Prepaid
                expenses
            
            
            25,00028,193*Current
                liabilities*Advance
                from related parties
            
            
            (33,000
            )Net
                deficits acquired
            
            
            (4,807
            )





**3.**
            **Description
                of business**





The
      Company and its subsidiaries are engaged in trading of completed watches and
      watch components.





**Name
                of company**
            **Place
                and date of**
              **incorporation**
            **Issued
                and fully**
              **paid
                capital**
            **Principal**
              **activities**Times
                Manufacture & E-Commerce Corporation Ltd
            British
                Virgin Islands
              March
                21, 2002
            US$20,002
              Ordinary
            Investment
                holdingTimes
                Manufacturing & E-Commerce Corporation Ltd(“TMEHK”)
            British
                Virgin Islands
              January
                2, 2002
            US$20,000
              Ordinary
            Investment
                holdingBillion
                Win International Enterprise Ltd (“BW”)
            Hong
                Kong
              March
                5, 2001
            HK$5,000,000
              Ordinary
            Trading
                of watch componentsGoldcome
                Industrial Ltd (“GI”)
            Hong
                Kong
              March
                2, 2001
            HK$10,000
              Ordinary
            Trading
                of watch componentsCitibond
                Industrial Ltd (“CI”)
            Hong
                Kong
              February
                28, 2003
            HK$1,000
              Ordinary
            Trading
                of watch componentsMegamooch
                International Ltd (“MI”)
            Hong
                Kong
              April
                2, 2001
            HK$100
              Ordinary
            Trading
                of watches and watch componentsTME
                Enterprise Ltd
            British
                Virgin Islands
              November
                28, 2003
            US$2
              Ordinary
            Investment
                holdingCitibond
                Design Ltd
            British
                Virgin Islands
              August
                1, 2003
            US$2
              Ordinary
            InactiveMegamooch
                Online Ltd
            British
                Virgin Islands
              June
                6, 2003
            US$2
              Ordinary
            Trading
                of watches and watch components




8


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**4.**
              **Summary
                  of significant accounting
                  policies**





Basis
      of presentation and consolidation





The
      accompanying condensed consolidated financial statements of the Company and
      its
      subsidiaries have been prepared in accordance with generally accepted accounting
      principles in the United States of America for interim consolidated financial
      information. Accordingly, they do not include all the information and notes
      necessary for comprehensive consolidated financial statements.





In
      the
      opinion of the management of the Company, all adjustments, which are of a normal
      recurring nature, necessary for a fair statement of the results for the
      three-month periods have been made. Results for the interim period presented
      are
      not necessarily indicative of the results that might be expected for the entire
      fiscal year. These condensed financial statements should be read in conjunction
      with the consolidated financial statements of Times Manufacture & E-Commerce
      Corporation Ltd and the notes for the year ended December 31, 2006.





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




Use
      of
      estimates





In
      preparing financial statements in conformity with accounting principles
      generally accepted in the United States of America, management makes estimates
      and assumptions that affect the reported amounts of assets and liabilities
      and
      disclosures of contingent assets and liabilities at the dates of the financial
      statements, as well as the reported amounts of revenues and expenses during
      the
      reporting periods. These accounts and estimates include, but are not limited
      to,
      the valuation of accounts receivable, inventories, deferred income taxes and
      the
      estimation on useful lives of plant and equipment and intangible assets. Actual
      results could differ from those estimates.




Restricted
      cash





Deposits
      in banks for securities of bank overdrafts and borrowings that are restricted
      in
      use are classified as restricted cash.




9


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**4.**
            **Summary
                of significant accounting policies
                (Cont’d)**





Accounts
      receivable





Accounts
      receivable are stated at original amount less allowance made for doubtful
      receivables, if any, based on a review of all outstanding amounts at the period
      end. An allowance is also made when there is objective evidence that the Group
      will not be able to collect all amounts due according to original terms of
      receivables. Bad debts are written off when identified. The Group extends
      unsecured credit to customers in the normal course of business and believes
      all
      accounts receivable in excess of the allowances for doubtful receivables to
      be
      fully collectible. The Group does not accrue interest on trade accounts
      receivable.





During
      the reporting period, the Group had no bad debt experienced and, accordingly,
      did not make any allowance for doubtful debts.




Rebate
      receivable





Rebate
      receivables are recognized as a reduction of cost of sales at fair value, less
      provision for impairment. A provision for impairment of rebate receivables
      is
      established when there is objective evidence that the company will not be able
      to collect all amounts due according to the original terms of receivables.
      The
      amount of provision is recognized in the income statement.




Inventories





Inventories
      are stated at the lower of cost or market. Cost is determined on a first-in,
      first-out basis and includes only purchase costs. There are no significant
      freight charges, inspection costs and warehousing costs incurred for any of
      the
      periods presented. In assessing the ultimate realization of inventories, the
      management makes judgments as to future demand requirements compared to current
      or committed inventory levels. The Group’s reserve requirements generally
      increase as the management projected demand requirements; decrease due to market
      conditions, product life cycle changes. During the reporting period, the Company
      did not make any allowance for slow-moving or defective
      inventories.




Leasehold
      land





Leasehold
      lands, representing upfront payment for land use rights, are capitalized at
      their acquisition cost and amortized using the straight-line method over the
      lease terms.





10


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**4.**
            **Summary
                of significant accounting policies
                (Cont’d)**





Intangible
      assets





Intangible
      assets with limited useful lives are stated at cost less accumulated
      amortization and accumulated impairment losses.





Amortization
      of intangible assets is provided using the straight-line method over their
      estimated useful lives at the following annual rates :-





Trademarks
            
            
            20
            %Websites
            
            
            20
            %




Held-to-maturity
      investments





The
      company’s policies for investments in debt and equity securities are as
      follows:





Non-derivative
      financial assets with fixed or determinable payments and fixed maturities that
      the company has the positive ability and intention to hold to maturity are
      classified as held-to-maturity securities. Held-to-maturity securities are
      initially recognized in the balance sheet at fair value plus transaction costs.
      Subsequently, they are stated in the balance sheet at amortized cost using
      the
      effective interest method less any identified impairment losses.





Investments
      are recognized / derecognized on the date the company commits to  purchase
      / sell the investments or they expire.




Plant
      and equipment





Plant
      and
      equipment are stated at cost less accumulated depreciation. Cost represents
      the
      purchase price of the asset and other costs incurred to bring the asset into
      its
      existing use. Maintenance, repairs and betterments, including replacement of
      minor items, are charged to expense; major additions to physical properties
      are
      capitalized.





Depreciation
      of plant and equipment is provided using the straight-line method over their
      estimated useful lives at the following annual rates :-





Buildings
            
            over
                the unexpired lease termFurniture
                and fixtures
            
            
            20
                - 25
            %Office
                equipment
            
            
            25
                - 33
            %Machinery
                and equipment
            
            
            25
                - 33
            %Moulds
            
            
            33
            %Motor
                vehicles
            
            
            25
                - 33
            %





Upon
      sale
      or disposition, the applicable amounts of asset cost and accumulated
      depreciation are removed from the accounts and the net amount less proceeds
      from
      disposal is charged or credited to income.




11


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**4.**
            **Summary
                of significant accounting policies
                (Cont’d)**





Impairment
      of long-lived assets





Long-lived
      assets are reviewed for impairment whenever events or changes in circumstances
      indicate that the carrying amount of the assets may not be recoverable. The
      Group recognizes impairment of long-lived assets in the event that the net
      book
      values of such assets exceed the future undiscounted cashflows attributable
      to
      such assets.





No
      impairment of long-lived assets was recognized for any of the periods
      presented.




Revenue
      recognition





Revenue
      from sales of the Group’s products is recognized when the significant risks and
      rewards of ownership have been transferred to the buyer at the time of delivery
      and the sales price is fixed or determinable and collection is reasonably
      assured.




Basic
      and diluted earnings per share





The
      Company reports basic earnings or loss per share in accordance with SFAS No.
      128, “Earnings Per Share”. Basic earnings per share is computed using the
      weighted average number of shares outstanding during the periods presented.
      The
      weighted average number of shares of the Company represents the common stock
      outstanding during the years.




Recent
      accounting pronouncements





In
      July
      2006, the FASB issued FIN 48 “Accounting for Uncertainty in Income Taxes.” This
      interpretation requires that we recognize in our financial statements, the
      impact of a tax position, if that position is more likely than not of being
      sustained on audit, based on the technical merits of the position. The
      provisions of FIN 48 are effective as of the beginning of our 2007 fiscal year,
      with the cumulative effect of the change in accounting principle recorded as
      an
      adjustment to opening retained earnings, if any, adoption
      of FIN 48 did not have an effect on our results of operations or financial
      condition. We did not have any material unrecognized tax benefits as of
      January 1, 2007 or June 30, 2007.




12


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**4.**
            **Summary
                of significant accounting policies
                (Cont’d)**





Recent
      accounting pronouncements (Cont’d)





In
      September 2006, the FASB issued SFAS No. 157 “Fair Value Measurement” (“SFAS
      157”). SFAS 157 defines fair value, establishes a framework for measuring fair
      value, and expands disclosures about fair value measurements. This Statement
      shall be effective for financial statements issued for fiscal years beginning
      after November 15, 2007, and interim periods within those fiscal years. Earlier
      application is encouraged, provided that the reporting entity has not yet issued
      financial statements for that fiscal year, including any financial statements
      for an interim period within that fiscal year. The provisions of this statement
      should be applied prospectively as of the beginning of the fiscal year in which
      this Statement is initially applied, except in some circumstances where the
      statement shall be applied retrospectively. The Company is currently evaluating
      the effect, if any, of SFAS 157 on its financial statements. Although
      we will continue to evaluate the provisions of SFAS No.157, management currently
      does not believe the adoption of SFAS No. 157 will have a material
      impact on our consolidated financial statements.





In
      September 2006, the SEC issued SAB No. 108, which provides guidance on the
      process of quantifying financial statement misstatements. In SAB No. 108, the
      SEC staff establishes an approach that requires quantification of financial
      statement errors, under both the iron-curtain and the roll-over methods, based
      on the effects of the error on each of the Company’s financial statements and
      the related financial statement disclosures. SAB No. 108 is generally effective
      for annual financial statements in the first fiscal year ending after November
      15, 2006. The transaction provisions of SAB No.108 permits existing public
      companies to record the cumulative effect in the first year ending after
      November 15, 2006 by recording correcting adjustments to the carrying values
      of
      assets and liabilities as of the beginning of that year with the offsetting
      adjustment recorded to the opening balance of retained earnings. The adoption
      of
      SAB No. 10 has no material effect on our financial statement.





On
      February 15, 2007, the FASB issued SFAS No. 159, “ The Fair Value Option for
      Financial Assets and Financial Liabilities - Including an Amendment of SFAS
      No.
      115.” The fair value option established by SFAS No. 159 permits all entities to
      choose to measure eligible items at fair value at specified election dates.
      A
      business entity will report unrealized gains and losses on items for which
      the
      fair value option has been elected in earnings (or another performance indicator
      if the business entity does not report earnings) at each subsequent reporting
      date. The fair value option: (a) may be applied instrument by instrument, with
      a
      few exceptions, such as investments otherwise accounted for by the equity
      method; (b) is irrevocable (unless a new election date occurs); and (c) is
      applied only to entire instruments and not to portions of instruments. SFAS
      No.
      159 is effective as of the beginning of an entity’s first fiscal year that
      begins after November 15, 2007. Early adoption is permitted as of the beginning
      of the previous fiscal year provided that the entity makes that choice in the
      first 120 days of that fiscal year and also elects to apply the provisions
      of
      SFAS. No.157. The Company does not early adopt this statement. Although
      we will continue to evaluate the provisions of SFAS No.159, management currently
      does not believe the adoption of SFAS No. 159 will have a material
      impact on our consolidated financial statements.




13


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**5.**
            **Other
                income**





***Three
                months ended***
            
            ***Six
                months ended******June
                30,***
            
            ***June
                30,***
            
            ***June
                30,***
            
            ***June
                30,******2007***
            
            ***2006***
            
            ***2007***
            
            ***2006******(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)******$***
            
            ***$***
            
            ***$***
            
            ***$****Operating
                income*License
                fee of intangible assets
            
            
            32,571
            
            
            41,875
            
            
            65,287
            
            
            83,780Rental
                income
            
            
            15,710
            
            
            ***-***
            
            
            31,491
            
            
            -48,281
            
            
            41,875
            
            
            96,778
            
            
            83,780*Non-operating
                income*Bank
                interest income
            
            
            47,904
            
            
            57,661
            
            
            76,906
            
            
            94,004Net
                exchange gains
            
            
            548
            
            
            189
            
            
            1,475
            
            
            298Other
                interest income
            
            
            -
            
            
            9,506
            
            
            -
            
            
            15,967Sundry
            
            
            -
            
            
            27
            
            
            -
            
            
            2748,452
            
            
            67,383
            
            
            78,381
            
            
            110,29696,733
            
            
            109,258
            
            
            175,159
            
            
            194,076




**6.**
            **Interest
                expenses**




***Three
                months ended***
            
            ***Six
                months ended******June
                30,***
            
            ***June
                30,***
            
            ***June
                30,***
            
            ***June
                30,******2007***
            
            ***2006***
            
            ***2007***
            
            ***2006******(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)******$***
            
            ***$***
            
            ***$***
            
            ***$***Interest
                on bank trust receipts
            
            
            248,538
            
            
            277,748
            
            
            468,040
            
            
            457,302Interest
                on short-term bank loans
            
            
            7,181
            
            
            3,199
            
            
            16,764
            
            
            8,374Interest
                on bank overdrafts
            
            
            10,847
            
            
            16,351
            
            
            21,191
            
            
            32,178Interest
                on other loans
            
            
            8,424
            
            
            -
            
            
            8,424
            
            
            -274,990
            
            
            297,298
            
            
            514,419
            
            
            497,854


14


ASIA
      TIME
      CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**7.**
            **Income
                taxes**





***Three
                months ended***
            
            ***Six
                months ended******June
                30,***
            
            ***June
                30,***
            
            ***June
                30,***
            
            ***June
                30,******2007***
            
            ***2006***
            
            ***2007***
            
            ***2006******(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)******$***
            
            ***$***
            
            ***$***
            
            ***$***Hong
                Kong profits taxCurrent
                period
            
            
            354,630
            
            
            122,159
            
            
            760,302
            
            
            419,309





The
      Company’s subsidiaries operating in Hong Kong are subject to profits tax of
      17.5% on the estimated assessable profits during the periods.





Deferred
      tax (assets) liabilities as of June 30, 2007 and December 31, 2006 are composed
      of the following:





***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$***Temporary
                  difference on accelerated tax depreciation on plant and
                  equipment
            
            
            17,578
            
            
            17,669Deferred
                tax liabilities, net
            
            
            17,578
            
            
            17,669Recognized
                in the balance sheet:Net
                deferred tax assets
            
            
            (13,920
            )
            
            (14,042
            )Net
                deferred tax liabilities
            
            
            31,498
            
            
            31,71117,578
            
            
            17,669





**8.**
            **Comprehensive
                income**





***Three
                months ended***
            
            ***Six
                months ended******June
                30,***
            
            ***June
                30,***
            
            ***June
                30,***
            
            ***June
                30,******2007***
            
            ***2006***
            
            ***2007***
            
            ***2006******(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)***
            
            ***(Unaudited)******$***
            
            ***$***
            
            ***$***
            
            ***$***Net
                income
            
            
            1,466,015
            
            
            519,772
            
            
            2,842,028
            
            
            1,951,594Foreign
                currency translation adjustment
            
            
            3,935
            
            
            6,206
            
            
            (48,142
            )
            
            (10,273
            )**Total
                comprehensive income**
            
            
            1,469,950
            
            
            525,978
            
            
            2,793,886
            
            
            1,941,321




15


ASIA
        TIME
        CORPORATION
 (Formerly
        SRKP 9, Inc.)
 
 NOTES
        TO
        CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (Stated
        in US Dollars)





**9.**
              **Earnings
                  per share**





As
      per
      Note 19, the Company has placed 1,749,028 and 501,320 shares of Convertible
      preferred stock on January 23, 2007 and February 9, 2007 respectively. These
      2,250,348 shares of convertible preferred stock are issued at $1.29 and being
      eligible to be converted in the ratio of 1:1 into each share of common stock.
      The Earnings Per Share on a dilutive basis has been calculated with the
      assumption that all such convertible preferred stock have been fully converted
      into common stock on the day of issue as if in the periods presented that form
      the basis for the number of common stock being outstanding on a dilutive
      earnings per share calculation.





**10.**
            **Prepaid
                expenses and other
                receivables**





***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$***Rebate
                receivable
            
            
            1,365,746
            
            
            -Interest
                receivable
            
            
            -
            
            
            20,218Rental
                receivable
            
            
            -
            
            
            46,314Other
                receivable
            
            
            14,932
            
            
            -Purchase
                deposits paid
            
            
            2,543,961
            
            
            1,530,372Sales
                proceeds of intangible assets receivable
            
            
            299,501
            
            
            301,042Other
                deposits and prepayments
            
            
            1,820,053
            
            
            203,1876,044,193
            
            
            2,101,133








**11.**
            **Inventories**




***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$***Merchandises,
                at cost - completed watches
            
            
            311,051
            
            
            1,745,648Merchandises,
                at cost - watch movements
            
            
            3,918,117
            
            
            4,874,7134,229,168
            
            
            6,620,361




16




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**12.**
            **Plant
                and equipment**





***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$****Cost*Buildings
            
            
            241,109
            
            
            242,350Furniture
                and fixtures
            
            
            487,642
            
            
            492,866Office
                equipment
            
            
            145,047
            
            
            145,911Machinery
                and equipment
            
            
            319,980
            
            
            321,626Moulds
            
            
            382,696
            
            
            384,665Motor
                vehicles
            
            
            44,092
            
            
            45,9281,620,566
            
            
            1,633,346*Accumulated
                depreciation*Buildings
            
            
            11,339
            
            
            8,441Furniture
                and fixtures
            
            
            283,042
            
            
            237,508Office
                equipment
            
            
            114,810
            
            
            100,612Machinery
                and equipment
            
            
            124,994
            
            
            93,475Moulds
            
            
            302,387
            
            
            276,936Motor
                vehicles
            
            
            29,036
            
            
            26,116865,608
            
            
            743,088*Net*Buildings
            
            
            229,770
            
            
            233,909Furniture
                and fixtures
            
            
            204,600
            
            
            255,358Office
                equipment
            
            
            30,237
            
            
            45,299Machinery
                and equipment
            
            
            194,986
            
            
            228,151Moulds
            
            
            80,309
            
            
            107,729Motor
                vehicles
            
            
            15,056
            
            
            19,812754,958
            
            
            890,258








Depreciation
      expenses included in administrative and other operating expenses for the six
      months ended June 30, 2007 and June 30, 2006 are $128,864 (unaudited) and
      $159,366 (unaudited) respectively.





As
      at June 30, 2007 and December 31, 2006, the carrying amount of buildings pledged
      as security for the Group’s banking facilities amounted to $229,770 (unaudited)
      and $233,909 (audited) respectively.




17




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)




**13.**
              **Leasehold
                  lands**




***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$****Cost*
            
            
            944,653
            
            
            949,514*Accumulated
                amortization*
            
            
            42,594
            
            
            31,234*Net*
            
            
            902,059
            
            
            918,280Analyzed
                for reporting purposes as:Current
                asset
            
            
            22,840
            
            
            22,958Non-current
                asset
            
            
            879,219
            
            
            895,322902,059
            
            
            918,280





Amortization
      expenses included in administrative and other operating expenses for the six
      months ended June 30, 2007 and June 30, 2006 are $11,522 (unaudited) and $9,294
      (unaudited) respectively.





As
      at June 30, 2007 and December 31, 2006, the carrying amount of leasehold lands
      pledged as security for the Group’s banking facilities amounted to $902,059
      (unaudited) and $919,280 (audited) respectively.




**14.**
              **Held-to-maturity
                  investments**





***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$***Hang
                Seng Capital Guarantee Investment Fund-
                30,000 units at $10 each, interest rate at 10.5% in 3.75
                years*Cost*
            
            
            299,654
            
            
            301,196





As
      at June 30, 2007 and December 31, 2006, the carrying amount of held-to-maturity
      investments pledged as security for the Group’s banking facilities amounted to
      $299,654 (unaudited) and $301,196 (audited) respectively.




18




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**15.**
              **Intangible
                  assets**





***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$****Cost*Trademarks
            
            
            199,667
            
            
            200,695Websites
            
            
            419,301
            
            
            421,459618,968
            
            
            622,154*Accumulated
                amortization*Trademarks
            
            
            131,780
            
            
            112,389Websites
            
            
            212,978
            
            
            171,929344,758
            
            
            284,318*Net*Trademarks
            
            
            67,887
            
            
            88,306Websites
            
            
            206,323
            
            
            249,530274,210
            
            
            337,836





Amortization
      expenses included in administrative and other operating expenses for the six
      months ended June 30, 2007 and June 30, 2006 are $61,907 (unaudited) and
      $77,413 (unaudited) respectively.








**16.**
              **Other
                  payables and accrued
                  liabilities**





***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$***Accrued
                expenses
            
            
            42,273
            
            
            181,352Sales
                deposits received
            
            
            8,959
            
            
            9,00651,232
            
            
            190,358




19




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**17.**
              **Advance
                  from a related****party**





Advance
      from a related party for working capital is as follows:





***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$***Advance
                from a director
            
            
            23,938
            
            
            -





The
      above advance is interest-free, unsecured and the has no fixed repayment
      terms.





**18.**
            **Bank
                borrowings**




***As
                of******June
                30,***
            
            ***December
                31,******2007***
            
            ***2006******(Unaudited)***
            
            ***(Audited)******$***
            
            ***$***Secured:Bank
                overdrafts repayable on demand
            
            
            481,978
            
            
            551,714Repayable
                within one yearNon-recurring
                bank loans
            
            
            2,030,973
            
            
            1,469,866Other
                bank borrowings
            
            
            13,095,230
            
            
            11,183,58715,608,181
            
            
            13,205,167





As
      of
      June 30, 2007, the above banking borrowings were secured by the
      following:





(a)
            first
                fixed legal charge over leasehold land and buildings with carrying
                amounts
                of $1,131,829 (note 12 and 13);





(b)
            charge
                over bank deposits of $6,196,626;





(c)
            charge
                over held-to-maturity investments of $299,654 (note
                14);and





(d)
            personal
                guarantee executed by a director of the
                Company;





One
      of the subsidiaries, Billion Win International Enterprise Limited, should
      maintain a minimum net worth of $3,839,754.




20




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**19.**
              **Common
                  stock and convertible preferred
                  stock**




***Common
                  stock***
              
              ***Series
                  A***
              
              ***Additional***
                ***paid
                  in******No.
                  of shares***
              
              ***Amount***
              
              ***No.
                  of shares***
              
              ***Amount***
              
              ***capital***$
              
              
              
              $
              
              ***$***Balance,
                  January 1, 2007
              
              
              3,702,209
              
              
              370
              
              
              -
              
              
              -
              
              
              655,874Recapitalization
              
              
              19,454,420
              
              
              1,946
              
              
              -
              
              
              -
              
              
              (9,946
              )Payment
                  to shareholders
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (317,000
              )Issuance
                  of Series A convertible preferred stock
              
              
              -
              
              
              -
              
              
              2,250,348
              
              
              225
              
              
              2,641,45823,156,629
              
              
              2,316
              
              
              2,250,348
              
              
              225
              
              
              2,970,386





The
      Company entered into two subscription agreements (the “Subscription Agreement”)
      with certain investors pursuant to which the Company sold an aggregate of
      2,250,348 shares of Series A Convertible Preferred Stock (“Series A Preferred
      Stock”) at $1.29 per share for an aggregate gross proceeds of $2,952,946





At
      the
      initial closing of the Subscription Agreement on January 23, 2007, the Company
      sold an aggregate of 1,749,028 shares of Series A Preferred Stock. At the second
      and final closing of the Subscription Agreement on February 9, 2007, the Company
      sold an aggregate of 501,320 shares of Series A Preferred Stock.





Each
      share of the Company’s Series A Preferred Stock is convertible into shares of
      common stock at a conversion price equal to the share purchase price, subject
      to
      adjustments.





However,
      if the Company at any time prior to the first trading day on which the common
      stock is quoted on the American Stock Exchange, the Nasdaq Capital Market,
      the
      Nasdaq Global Market or the New York Stock Exchange (each a “Trading Market”)
      sells or issues any shares of common stock in one or a series of transactions
      at
      an effective price less than such conversion price where the aggregate gross
      proceeds to the Company are at least $1.0 million, then the aforementioned
      conversion price shall be reduced to such effective price. Each share of
      Series A Convertible Preferred Stock shall automatically convert into
      shares of common stock if (i) the closing price of the common stock on the
      Trading Market for any 10 consecutive trading day period exceeds $3.00 per
      share, (ii) the shares of common stock underlying the Series A
      Convertible Preferred Stock are subject to an effective registration statement,
      and (iii) the daily trading volume of the common stock on a Trading Market
      exceeds 25,000 shares per day for 10 out of 20 prior trading days.




21




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)




**19.**
              **Common
                  stock and convertible preferred stock
                  (continued)**





If
      the Company pays a stock dividend on the shares of common stock, subdivide
      outstanding shares of common stock into a larger number of shares, combine,
      through a reverse stock split, outstanding shares of the common stock into
      a
      smaller number of shares or issues, in the event of a reclassification of shares
      of the common stock, any shares of the capital stock, then the conversion price
      of the Series A Preferred Stock will be adjusted as follows: the conversion
      price will be multiplied by a fraction, of which (i) the numerator will be
      the
      number of shares of common stock outstanding immediately before one of the
      events described above and (ii) the denominator will be the number of shares
      of
      common stock outstanding immediately after such event.





Holder
      of the Series A Convertible Preferred Stock have the right to one vote per
      share
      of common stock issuable upon conversion of the shares underlying any shares
      of
      Preferred Stock outstanding as of the record date for purposes of determining
      which holders have the right to vote with respect to any matters brought to
      a
      vote before the Company’s holders of common stock.





In
      the event of any liquidation, dissolution or winding up of our company, the
      holders of the Series A Convertible Preferred Stock are entitled to receive
      in
      preference to the holders of common stock an amount per share of $1.29 plus
      any
      accrued but unpaid dividends. If the Company’s assets are insufficient to pay
      the above amounts in full, then all of the Company’s assets will be ratably
      distributed among the holders of the Series A Convertible Preferred Stock in
      accordance with the respective amounts that would be payable on such shares
      if
      all amounts payable were paid in full.





There
      are no additional specific dividend rights or redemption rights of holders
      of
      the Series A Convertible Preferred Stock.





If
      the Company redeems or acquired any shares of the Series A Convertible Preferred
      Stock are converted, those shares will resume the status of authorized but
      unissued shares of preferred stock and will no longer be designated as Series
      A
      Convertible Preferred Stock.





As
      long as any shares of Series A Convertible Preferred Stock are outstanding,
      the
      Company cannot alter or adversely change the powers, preference or rights given
      to the Series A Convertible Preferred Stock holders, without the affirmative
      vote of those holders.




22




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**20.**
              **Pension
                  plans**





The
      Group participates in a defined contribution pension scheme under the Mandatory
      Provident Fund Schemes Ordinance “MPF Scheme” for all its eligible employees in
      Hong Kong.





The
      MPF Scheme is available to all employees aged 18 to 64 with at least 60 days
      of
      service in the employment in Hong Kong. Contributions are made by the Group’s
      subsidiary operating in Hong Kong at 5% of the participants’ relevant income
      with a ceiling of HK$20,000. The participants are entitled to 100% of the
      Group’s contributions together with accrued returns irrespective of their length
      of service with the Group, but the benefits are required by law to be preserved
      until the retirement age of 65. The only obligation of the Group with respect
      to
      MPF Scheme is to make the required contributions under the plan.





The
      assets of the schemes are controlled by trustees and held separately from those
      of the Group. Total pension cost was $7,623 and $4,274 for the three months
      ended June 30, 2007 and 2006 respectively.




**21.**
              **Commitments
                  and contingencies**





Operating
      leases commitments





The
      Group leases office premises under various non-cancelable operating lease
      agreements that expire at various dates through years 2007 to 2008,  with
      an option to renew the lease. All leases are on a fixed repayment basis. None
      of
      the leases includes contingent rentals. Minimum future commitments under these
      agreements payable as of June 30, 2007 are as follows :-





Period
                ending June 30
            
            ***$***2007
                - 2008
            
            
            82,4122008
                - 2009
            
            
            31,778114,190





Rental
      expenses for the years six months ended June 30, 2007 and 2006 were $50,302
      and
      $38,403 respectively.





23




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**22.**
              **Segment
                  Information**





For
      management purposes, the Group is currently organized into two major principal
      activities - trading of watch movements (components) and trading of completed
      watches. These principal activities are the basis on which the Group reports
      its
      primary segment information.





**Watch**
            
            **Completed****Movements**
            
            **Watches**
            
            **Total****Six
                months ended****June
                30, 2007**
            
            **(unaudited)**
            
            **(unaudited)**
            
            **(unaudited)*****$***
            
            ***$***
            
            ***$***Sales
            
            
            38,234,543
            
            
            3,753,036
            
            
            41,987,579Cost
                of sales
            
            
            (34,535,028
            )
            
            (2,009,842
            )
            
            (36,544,870
            )Segment
                result
            
            
            3,699,515
            
            
            1,743,194
            
            
            5,442,709




**Watch**
            
            **Completed****Movements**
            
            **Watches**
            
            **Total****Six
                months ended****June
                30, 2006**
            
            **(unaudited)**
            
            **(unaudited)**
            
            **(unaudited)*****$***
            
            ***$***
            
            ***$***Sales
            
            
            37,877,213
            
            
            5,349,973
            
            
            43,227,186Cost
                of sales
            
            
            (36,997,634
            )
            
            (2,783,260
            )
            
            (39,780,894
            )Segment
                result
            
            
            879,579
            
            
            2,566,713
            
            
            3,446,292





**Watch**
            
            **Completed****Movements**
            
            **Watches**
            
            **Total****Three
                months ended****June
                30, 2007**
            
            **(unaudited)**
            
            **(unaudited)**
            
            **(unaudited)*****$***
            
            ***$***
            
            ***$***Sales
            
            
            19,010,476
            
            
            1,858,961
            
            
            20,869,437Cost
                of sales
            
            
            (17,255,898
            )
            
            (1,032,989
            )
            
            (18,288,887
            )Segment
                result
            
            
            1,754,578
            
            
            825,972
            
            
            2,580,550




**Watch**
            
            **Completed****Movements**
            
            **Watches**
            
            **Total****Three
                months ended****June
                30, 2006**
            
            **(unaudited)**
            
            **(unaudited)**
            
            **(unaudited)*****$***
            
            ***$***
            
            ***$***Sales
            
            
            19,692,462
            
            
            3,231,633
            
            
            22,924,095Cost
                of sales
            
            
            (20,031,834
            )
            
            (1,668,242
            )
            
            (21,700,076
            )Segment
                result
            
            
            (339,372
            )
            
            1,563,391
            
            
            1,224,019





24




ASIA
      TIME CORPORATION


(Formerly
      SRKP 9, Inc.)





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Stated
      in US Dollars)





**22.**
              **Segment
                  Information
                  (continued)**





The
      Group’s operations are primarily in Hong Kong and China and the Group’s sales,
      gross profit and total assets attributable to other geographical areas are
      less
      than **** 10%
      of
      the Group’s corresponding consolidated totals for the six months ended June 30,
      2007 and 2006. Consequently, no segment information by geographical areas is
      presented.





25




**ITEM
      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATION**





*The
      following discussion should be read in conjunction with our consolidated
      financial statements and related notes included elsewhere in this quarterly
      report. This report contains forward-looking statements. The words
“anticipated,” “believe,” “expect, “plan,” “intend,” “seek,” “estimate,”
“project,” “could,” “may,” and similar expressions are intended to identify
      forward-looking statements. These statements include, among others, information
      regarding future operations, future capital expenditures, and future net cash
      flow. Such statements reflect our management’s current views with respect to
      future events and financial performance and involve risks and uncertainties,
      including, without limitation, general economic and business conditions, changes
      in foreign, political, social, and economic conditions, regulatory initiatives
      and compliance with governmental regulations, the ability to achieve further
      market penetration and additional customers, and various other matters, many
      of
      which are beyond our control. Should one or more of these risks or uncertainties
      occur, or should underlying assumptions prove to be incorrect, actual results
      may vary materially and adversely from those anticipated, believed, estimated
      or
      otherwise indicated. Consequently, all of the forward-looking statements made
      in
      this quarterly report are qualified by these cautionary statements and there
      can
      be no assurance of the actual results or developments.*





**Overview**





We
      are a
      distributor of watch movements components used in the manufacture and assembly
      of watches to a wide variety of timepiece manufacturers. There are two
      categories of watch movements, quartz and mechanical. The main parts of an
      analog quartz watch movement are the battery; the oscillator, a piece of quartz
      that vibrates in response to the electric current; the integrated circuit,
      which
      divides the oscillations into seconds; the stepping motor, which drives the
      gear
      train; and the gear train itself, which makes the watch’s hands move. A digital
      watch movement has the same timing components as an analog quartz movement
      but
      has no stepping motor or gear train. To a lesser extent we also distribute
      complete analog-quartz and automatic watches with pricing between $20.00 to
      $50.00. Manufacturing for these watches is currently outsourced to third party
      factories in China.





Our
      core
      customer base consists primarily of large wholesalers, online retailers and
      small and medium-sized watch manufacturers that produce watches primarily for
      sale to customers in Hong Kong and China. To a lesser extent, we design watches
      for manufacturers and exporters of watches and manufacture and distribute
      complete watches primarily to online retailers and internet
      marketers.





We
      are
      mainly engaged in watch movement distribution business in Hong Kong and China
      which accounted for approximately 90% of our revenue for the year ended December
      31, 2006 and 91% for the six months ended June 30, 2007. We have distribution
      centers and strategically located sales offices throughout Hong Kong and the
      People’s Republic of China (“China” or “PRC”). We distribute more than 350
      products from over 30 vendors, including such market leaders as Citizen Group,
      Seiko Corporation and ETA SA Manufacture Horlogere Suisse, to a base of over
      300
      customers primarily through our direct sales force. To enhance our ability
      to
      distribute watch movements we provide a variety of value-added services,
      including automated inventory management services; integration, design and
      development, management, and extended and post-sale support
      services.





**Corporate
      Structure**





We
      were
      incorporated in the State of Delaware on January 3, 2006. We were originally
      organized as a “blank check” shell company to investigate and acquire a target
      company or business seeking the perceived advantages of being a publicly held
      corporation. On January 23, 2007, we closed a share exchange transaction (“Share
      Exchange”) pursuant to which we (i) issued 19,454,420 shares of our common stock
      to acquire 100% equity ownership of Times Manufacture & E-Commerce
      Corporation Limited, a British Virgin Islands corporation (“Times Manufacture”),
      which has eight wholly-owned subsidiaries, (ii) assumed the operations of Times
      Manufacture and its subsidiaries, and (iii) changed our name from SRKP 9, Inc.
      to Asia Time Corporation. Times Manufacture also paid an aggregate of $350,000
      to the stockholders of SRKP 9, Inc. Times Manufacture was founded in January
      2002 and is based in Hong Kong.





In
      2005,
      we re-aligned the structure and business functions of our subsidiaries to
      clearly define the scopes our business objectives in order to strengthen our
      ability to effectively conduct our business operations. Billion Win
      International Enterprise Limited, or Billion Win, is our central sourcing
      component. Billion Win, which is held indirectly through Times Manufacture,
      procures and imports watch movements and distributes them to suppliers, volume
      users in China, and two of our subsidiaries, Goldcome Industrial Limited, or
      Goldcome, and Citibond Industrial Limited, or Citibond. Goldcome mainly focuses
      it distributions to wholesalers and large manufacturers and Citibond focuses
      on
      distributions to small to medium size manufacturers. Megamooch International
      Limited is a complete watch distributor and exporter targeting overseas buyers.
      Another two subsidiaries, TME Enterprise Ltd. and Citibond Design Ltd., are
      responsible for complete watch design for manufacturers and exporters and
      handles large volume watch movement transactions between buyers and sellers
      solely on a commission basis. Megamooch Online Ltd. operations are focused
      on
      complete watch marketing and distribution, with manufacturing being outsourced,
      and it concentrates on overseas markets.




26




**Watch
      Movement Segment**





Presently,
      Hong Kong does not generally have watch movement manufacturing. Watch movements
      are largely imported from Japan and Switzerland. The revenue for the watch
      movement segment of our business for the six months ended June 30, 2007 was
      $38.23 million, with a gross profit $3.70 million, a 0.9% and 320.6% increase, respectively,
      as compared to $37.87 million in revenue and $0.36 million in gross profit
      for
      the six
      months ended
      June 30, 2006. The gross profit margin increased to 9.7% for the six months
      ended June 30, 2007 from 2.3% for the same
      period in 2006,
      primarily due to more diversified products being promoted to customers and
      higher selling prices as a result of extended credit terms to our customers. We
      provide a wide product spectrum of products carrying major brands as well as
      middle-low end China movements. We believe carrying a wide product spectrum
      enables us to provide a convenient one-stop provider for our customers, which
      may result in higher sales per customer. We
      began to target small to medium manufacturers in mid-2005 and our customer
      base
      has expanded to more than 300 watch manufacturers. In addition, we have extended
      our credit period from an average to 30 days to 60 days to major customers
      that
      have maintained a history of timely settlement of receivables. We believe that
      this extension lead to an increase of purchase orders from those customers.
      We
      review the credit status of each customer and periodically adjust the credit
      period to specific customers in an attempt to maximize business with each
      customer without suffering significant credit risk.





**Complete
      Watch Segment**





Revenue
      of our complete watch segment was $3.75 million for the six months ended June
      30, 2007, a 29.9% decrease compared to the same period in 2006 in which revenue
      was $5.35 million. This segment contributed approximately 8.9% of our revenue
      for the six months ended June 30, 2007, as compared to 12.4% of revenue for
      the
      period ended June 30, 2006. Our main market positioning in China is on the
      middle-class adult, daily, sporty and classy design.





**Critical
      Accounting Policies and Estimates**





Financial
      Reporting Release No. 60 recommends that all companies include a discussion
      of
      critical accounting policies used in the preparation of their financial
      statements. The Securities and Exchange Commission (“SEC”) defines critical
      accounting policies as those that are, in management's view, most important
      to
      the portrayal of our financial condition and results of operations and those
      that require significant judgments and estimates.





The
      preparation of these consolidated financial statements requires our management
      to make estimates and assumptions that affect the reported amounts of assets,
      liabilities, revenues and expenses, as well as the disclosure of contingent
      assets and liabilities at the date of our financial statements. We base our
      estimates on historical experience, actuarial valuations and various other
      factors that we believe to be reasonable under the circumstances, the results
      of
      which form the basis for making judgments about the carrying value of assets
      and
      liabilities that are not readily apparent from other sources. Some of those
      judgments can be subjective and complex and, consequently, actual results may
      differ from these estimates under different assumptions or conditions. While
      for
      any given estimate or assumption made by our management there may be other
      estimates or assumptions that are reasonable, we believe that, given the current
      facts and circumstances, it is unlikely that applying any such other reasonable
      estimate or assumption would materially impact the financial statements. The
      accounting principles we utilized in preparing our consolidated financial
      statements conform in all material respects to generally accepted accounting
      principles in the United States of America.





***Accounting
      for the impairment of long-lived assets***





The
      long-lived assets held and used by us are reviewed for impairment whenever
      events or changes in circumstances indicate that the carrying amount of assets
      may not be recoverable. It is reasonably possible that these assets could become
      impaired as a result of technology or other industry changes. Determination
      of
      recoverability of assets to be held and used is by comparing the carrying amount
      of an asset to future net undiscounted cash flows to be generated by the
      assets.





If
      such
      assets are considered to be impaired, the impairment to be recognized is
      measured by the amount by which the carrying amount of the assets exceeds the
      fair value of the assets. Assets to be disposed of are reported at the lower
      of
      the carrying amount of fair value less costs to sell.





***Inventories***





Our
      inventories are stated at the lower of cost and net realizable value. Cost
      is
      determined using the first-in, first-out (FIFO) method. It excludes borrowing
      costs. Net realizable value is the estimated selling price in the ordinary
      course of business, less applicable variable selling expenses.




27




We
      evaluate our inventories for excess, obsolescence or other factors rendering
      inventories as unsellable at normal gross profit margins. Write-downs are
      recorded so that inventories reflect the approximate market value and take
      into
      account our contractual provisions with our suppliers governing price
      protections and stock rotations. Due to the large number of transactions and
      complexity of managing the process around price protections and stock rotations,
      estimates are made regarding the valuation of inventory at market
      value.





In
      addition, assumptions about future demand, market conditions and decisions
      to
      discontinue certain product lines can impact the decision to write-down
      inventories. If assumptions about future demand change and/or actual market
      conditions are different than those projected by management, additional
      write-downs of inventories may be required. In any case, actual results may
      be
      different than those estimated.





***Trade
      receivables***





Trade
      and
      other receivables are recognized initially at fair value and subsequently
      measured at amortized cost using the effective interest method, less provision
      for impairment. A provision for impairment of trade and other receivables is
      established when there is objective evidence that we will not be able to collect
      all amounts due according to the original terms of receivables. The amount
      of
      the provision is the difference between the asset’s carrying amount and the
      present value of estimated future cash flows, discounted at the effective
      interest rate. The amount of the provision is recognized in the income
      statement.





***Foreign
      currency translation***





Our
      consolidated financial statements are presented in United States dollars. Our
      functional currency is the Hong Kong Dollar (HKD). Our consolidated financial
      statements are translated into United States dollars from HKD at period-end
      exchange rates as to assets and liabilities and average exchange rates as to
      revenues and expenses. Capital accounts are translated at their historical
      exchange rates when the capital transactions occurred.





***Revenue
      recognition***





Sales
      of
      goods are recognized when a company has delivered goods to the customer, the
      customer has accepted the goods and collectibility of the related receivables
      is
      reasonably assured. Commission income is recognized in the accounting period
      in
      which the services are rendered, by reference to completion of the specific
      transaction assessed on the basis of the actual service provided as a proportion
      of the total services to be provided. Interest income is recognized on a
      time-proportion basis using the effective interest method. When a receivable
      is
      impaired, we reduce the carrying amount to our recoverable amount, being the
      estimated future cash flow discounted at original effective interest rate of
      the
      instrument, and continue unwinding the discount as interest income. Dividend
      income and insurance claims are recognized when the right to receive payment
      is
      established.





***Deferred
      income tax***





Deferred
      income tax is provided in full, using the liability method, on temporary
      differences arising between the tax bases of assets and liabilities and their
      carrying amounts in the consolidated financial statements. However, if the
      deferred income tax arises from initial recognition of an asset or liability
      in
      a transaction other than a business combination that at the time of the
      transaction affects neither accounting nor taxable profit or loss, it is not
      accounted for. Deferred income tax is determined using tax rates (and laws)
      that
      have been enacted or substantially enacted by the balance sheet date and are
      expected to apply when the related deferred income tax assets is realized or
      the
      deferred income tax liability is settled.





Deferred
      income tax assets are recognized to the extent that it is probable that future
      taxable profit will be available against which the temporary differences can
      be
      utilized.





***Income
      taxes***





We
      account for income tax using an asset and liability approach and allow for
      recognition of deferred tax benefits in future years. Under the asset and
      liability approach, deferred taxes are provided for the net tax effects of
      temporary differences between the carrying amounts of assets and liabilities
      for
      financial reporting purposes and the amounts used for income tax purposes.
      A
      valuation allowance is provided for deferred tax assets if it is more likely
      than not these items will either expire before we are able to realize its
      benefits, or that future realization is uncertain.




28




**Results
      of Operations**





The
      following table sets forth certain items in our statement of operations as
      a
      percentage of net sales for the periods shown:





**Three
                months ended**
            
            **Six
                months ended****June
                30, 2007**
            
            **June
                30, 2006**
            
            **June
                30, 2007**
            
            **June
                30, 2006**Net
                Sales
            
            
            100.00
            %
            
            100.00
            %
            
            100.00
            %
            
            100.00
            %Cost
                of Sales
            
            
            87.63
            %
            
            94.66
            %
            
            87.04
            %
            
            92.03
            %Gross
                Profit
            
            
            12.37
            %
            
            5.34
            %
            
            12.96
            %
            
            7.97
            %Other
                income form operating
            
            
            0.23
            %
            
            0.18
            %
            
            0.23
            %
            
            0.19
            %Depreciation
            
            
            0.30
            %
            
            0.42
            %
            
            0.30
            %
            
            0.37
            %Administrative
                Expenses
            
            
            2.48
            %
            
            1.29
            %
            
            2.27
            %
            
            1.42
            %Income
                from non-operating
            
            
            9.82
            %
            
            3.81
            %
            
            10.62
            %
            
            6.37
            %Professional
                expenses related to Restructuring and Share Exchange
            
            
            
            
            
            
            
            
            1.00
            %Other
                Income
            
            
            0.23
            %
            
            0.29
            %
            
            0.19
            %
            
            0.26
            %Interest
                Expenses
            
            
            1.32
            %
            
            1.30
            %
            
            1.23
            %
            
            1.15
            %Profit
                Before Tax
            
            
            8.73
            %
            
            2.80
            %
            
            8.58
            %
            
            5.48
            %Taxation
            
            
            1.70
            %
            
            0.53
            %
            
            1.81
            %
            
            0.97
            %Net
                Income
            
            
            7.03
            %
            
            2.27
            %
            
            6.77
            %
            
            4.51
            %





***Comparison
      of the three months ended June 30, 2007 with the three months ended
      June 30, 2006***





Net
      sales
      for the three months ended June 30, 2007 was $20.87 million as compared to
      $22.92 million for the same period in 2006, a decrease of $2.0 million, or
      8.9%. This decrease was primarily due to the decreased sales of completed
      watches, which decreased from $3.23 million during the three months ended June
      30, 2006 to $1.86 million for the comparable period in 2007. The watch movement
      segment remained almost the same from $19.69 million in net sales for the three
      months ended June 30, 2006 to $19.01 million for the three months ended June
      30,
      2007. The decrease in sales of completed watches was due to the delay in new
      product launches which affected new order placements during the period.





Cost
      of
      sales for the three months ended June 30, 2007 was $18.29 million, or 87.6%
      of
      net sales, as compared to $21.70 million, or 94.7% of net sales, for the same
      period in 2006. The decrease in cost of sales as a percentage of net sales
      was
      largely attributable to the rebate receivables for the three months ended June
      30, 2007.





Gross
      profit for the three months ended June 30, 2007 was $2.58 million, or 12.4%
      of
      net sales, compared to $1.22 million, or 5.3% of net sales for the same period
      in 2006. The increase in our gross profit margin was primarily attributable
      to
      the decrease in cost as a result of rebate receivables for the three months
      ended June 30, 2007. Gross profit margins are usually a factor of product mix
      and demand for product. The gross profit of watch movements as a percentage
      of
      net sales increased from -1.7% for the three months ended June 30, 2006 to
      9.2%
      of net sales for same period in 2007. There was a slight decrease of gross
      profit for completed watches for the three months ended June 30, 2007, which
      was
      44.4% of net sales as compared to 48.4% of net sales for the same period in
      2006, as the product mix had no significant change.





Administrative
      and other operating expenses were $0.58 million, or 2.8% of net sales for the
      three months ended June 30, 2007, as compared to $0.39 million, or 1.7% of
      net
      sales for comparable period in 2006. The increase was primarily due to increased
      professional fees related to company restructuring and reporting requirements
      as
      a public company.





Other
      income was $0.10 million, or 0.5% of net sales for the three months ended June
      30, 2007, as compared to $0.11 million, or 0.5% of nets sales for the three
      months ended June 30, 2006. The slight decrease was primarily due to a decrease
      in income received from the license fees of intangible assets, which was $0.03
      million for the three months ended June 30, 2007, and a decrease in bank
      interest income, which was $0.05 million for the three months ended June 30,
      2007, partially offset by an increase in rental income, which was $0.02 million
      for the three months ended June 30, 2007.




29




Income
      taxes for the three months ended June 30, 2007 were $0.35 million, or 1.7%
      of
      net sales, as compared to $0.12 million for the three months ended June 30,
      2006, or 0.5% of net sales. The increase in incomes taxes is primarily due
      to an
      increase in the profit margin to 8.7% for the three months ended June 30, 2007
      compared to a profit margin of only 2.8% for the three months ended June 30,
      2006.





Interest
      expense for the three months ended June 30, 2007 was $0.27 million, or 1.3%
      of
      net sales, as compared to $0.30 million, or 1.3% of net sales, in 2006, which
      was consistent in the comparable period.





Net
      income for the three months ended June 30, 2007 was $1.47 million, or 7.0%
      of
      net sales, as compared to $0.52 million, or 2.3% of the net sales for the
      comparable period in 2006.





***Comparison
      of the six months ended June 30, 2007 with the six months ended
      June 30, 2006***





Net
      sales
      for the six months ended June 30, 2007 was $41.99 million as compared to
      $43.23 million for the comparable period in 2006, a decrease of $1.24
      million, or 2.87%. This decrease was primarily due to the decreased sales of
      completed watches partially offset by the increase in sales of watch movements.
      The decrease in sales of completed watches was due to the delay in new product
      launch which affected new order placements in the period.





Cost
      of
      sales for the six months ended June 30, 2007 was $36.54 million, or 87.0% of
      net
      sales, as compared to $39.78 million, or 92.0% of net sales, for the same
      period in 2006. The decrease in cost of sales as a percentage of net sales
      was
      largely attributable to the improved economies of scale and rebate receivables
      for the six months ended June 30, 2007.





Gross
      profit for the six months ended June 30, 2007 was $5.42 million, or 13.0% of
      net
      sales, compared to $3.45 million, or 8.0% of net sales for the same period
      in 2006. The increase in our gross profit margin was primarily attributable
      to
      the increase in sales of higher-margin products as a result of diversification
      of products, a decrease in costs due to rebate receivables in the six months
      ended June 30, 2007 and improved economies of scale.





Administrative
      and other operating expenses were $1.08 million for the six months ended
      June 30, 2007, as compared to $0.77 million for the comparable period in
      2006. The increase was primarily due to increased professional fees related
      to
      reporting requirements as a public company and additional employees and upgraded
      staff benefits.





Other
      income was $0.18 million, or 0.4% of net sales for the six months ended June
      30,
      2007, as compared to $0.19 million, or 0.5% of nets sales for the six months
      ended June 30, 2006. The slight decrease was primarily due to a decrease in
      income received from the license fees of intangible assets, which was $0.07
      million for the six months ended June 30, 2007, and a decrease in bank interest
      income, which was $0.08 million for the six months ended June 30, 2007,
      partially offset by an increase in rental income, which was $0.03 million for
      the six months ended June 30, 2007.





Income
      taxes for the six months ended June 30, 2007 were $0.76 million, or 1.8% of
      net
      sales, as compared to $0.42 million for the six months ended June 30, 2006,
      or
      1.0% of net sales. The increase in income taxes is primarily due to an increase
      in the profit margin to 8.58% for the six months ended June 30, 2007 compared
      to
      a profit margin of only 5.48% for the six months ended June 30, 2006.





Interest
      expense for the six months ended June 30, 2007 was $0.51 million, or 1.2% of
      net
      sales, as compared to $0.50 million, or 1.2% of net sales, in 2006 which
      was consistent in the comparable period.





Net
      income for the six months ended June 30, 2007 was $2.8 million, or 6.8% of
      net
      sales, as compared to $1.9 million, or 4.5% of the net sales for the comparable
      period in 2006.





**Liquidity
      and Capital Resources**





To
      provide liquidity and flexibility in funding our operations, we borrow amounts
      under bank facilities and other external sources of financing. As of June 30,
      2007 we had general banking facilities amounted to $15.61 million for overdraft,
      letter of credit, trust receipt, invoice financing and export loans granted
      by
      nine banks. The amount increased by $2.40 million compared to $13.20 million
      as
      at June 30, 2006. Interest on the facilities ranged from minus 2.0 to 0.75%
      over
      the Bank’s Best Lending Rate of Hong Kong (Prime Rate) or Hong Kong Inter Bank
      Offered Rate (HIBOR). These banking facilities were secured by the leasehold
      properties, time deposits and held-to maturity investments of the group and
      personal guarantees executed by our Chairman of the Board.





On
      January 23, 2007, concurrently with the close of the Share Exchange, we
      conducted an initial closing of a private placement transaction pursuant to
      which we sold an aggregate of 1,749,028 shares of Series A Convertible Preferred
      Stock at $1.29 per share. On February 9, 2007, we conducted a second and final
      closing of the private placement pursuant to which we sold 501,320 shares of
      Series A Convertible Preferred Stock at $1.29 per share. Accordingly, a total
      of
      2,250,348 shares of Series A Convertible Preferred Stock were sold in the
      private placement for an aggregate gross proceeds of $2,902,946 (the “Private
      Placement”). Of the gross proceeds, $50,000 is represented by a subscription
      receivable from one investor. WestPark Capital, Inc. (“WestPark”) acted as the
      placement agent for the Private Placement. For its services as placement agent,
      WestPark received an aggregate fee of approximately $261,265, which consisted
      of
      a commission equal to 9.0% of the gross proceeds from the financing. After
      commissions and expenses, we received net proceeds of approximately $2.3 million
      in the Private Placement.




30




For
      the
      six months ended June 30, 2007, net cash used by operating activities was
      approximately $3.2 million, as compared to net cash used in operating activities
      of $0.8 million for the comparable period in 2006. The increase in net cash
      used
      by operating activities was primarily attributable to an increase in accounts
      receivable, an increase in prepaid expenses and other receivables and a decrease
      in advance from related parties, partially offset by the lack of unearned
      income. The increase in accounts receivable was due to an increase in sales
      and
      extended aging in the completed watches segment. The increase in prepaid
      expenses and other receivables was attributable to the deposit of potential
      acquisition of plant facilities. No acquisition was completed as of the date
      of
      this quarterly report.





Net
      cash
      used in investing activities was $311 for the six months ended June 30, 2007,
      compared to $1.2 million in the comparable period in 2006. The decrease in
      net
      cash used was primarily due to the decrease in expenditures for acquiring plant
      and equipment and no significant investment was made during the six months
      ended
      June 30, 2007.





Net
      cash
      provided by financing activities was $2.9 million for the six months ended
      June
      30, 2007 and $1.6 million for the comparable period in 2006. The increase in
      net
      cash provided by financing activities for the six months ended June 30, 2007
      was
      primarily attributable to an increase in our issuance of equity securities
      in a
      private placement in the amount of $2.6 million and the lack of dividends paid,
      partially offset by a an increase in recapitalization costs.





For
      the
      six months ended June 30, 2007 and the same period in 2006, our average
      inventory turnover was 27 days and 24 days, respectively. The average days
      outstanding of our accounts receivable for the six months ended June 30, 2007
      was 49 days, as compared to 27 days for the same period in 2006. The increase
      in
      the average days outstanding of our accounts receivable was due to the change
      in
      our credit policy. Since January 2007, we have extended our credit terms from
      30
      days to 60 day to customers who have a good credit history in order to improve
      our profit margin and competitiveness. Inventory turnover and average days
      outstanding are key operating measures that management relies on to monitor
      our
      business.





In
      an
      attempt to reduce our reliance on third-party watch movement manufacturers,
      we
      have plans to manufacture our own brands of quartz movements and mechanical
      movements in-house. To manufacture our own brands of quartz and mechanical
      movements in-house, we would need to acquire watch movement facilities in China
      and invest in new equipments and research and development. We expect that up
      to
      $5.5 million will be required to obtain the equipment and facilities to
      manufacture branded proprietary watch movements. We will be required to raise
      the appropriate amount of capital needed for our future operations from future
      equity sales or through debt financings. Failure to obtain funding when needed
      may force us to delay, reduce, or eliminate our plans to manufacture our own
      watch movement parts. We may not be able to obtain additional financial
      resources when necessary or on terms favorable to us, if at all, and any
      available additional financing may not be adequate. Moreover, new equity
      securities issued in financings, including any shares of Series A Convertible
      Preferred Stock or any new series of preferred stock authorized by our Board
      of
      Directors, may have greater rights, preferences or privileges than our existing
      common stock. To the extent stock is issued or options and warrants are
      exercised, holders of our common stock will experience further
      dilution.





Based
      on
      our current plans, we believe that cash on hand, cash flow from operations
      and
      funds available under our bank facilities will be sufficient to fund our capital
      needs for the next 12 months. However, our ability to maintain sufficient
      liquidity depends partially on our ability to achieve anticipated levels of
      revenue, while continuing to control costs. If we did not have sufficient
      available cash, we would have to seek additional debt or equity financing
      through other external sources, which may not be available on acceptable terms,
      or at all. Failure to maintain financing arrangements on acceptable terms would
      have a material adverse effect on our business, results of operations and
      financial condition.




**ITEM
        3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET
        RISK**
 
 *Credit
        Risk.* **** We
        are
        exposed to credit risk from our cash at bank, fixed deposits and contract
        receivables. The credit risk on cash at bank and fixed deposits is limited
        because the counterparts are recognized financial institutions. Contract
        receivables are subject to credit evaluations. As we are getting more new
        customers and offering credit terms, financial efficiency, we believe that
        cash
        flow and controlling bad debt and late payment become more and more important.
        We carry out thorough research through public filing records available on
        our
        new customers, coupled with the employment of business intelligence information
        provider, before extending any credit to new customers. Different levels
        of
        credit periods and credit limits are granted to different customers according
        to
        their size, financial position, business position and payment history, among
        other factors, in order to offer the right credit terms to our customers
        to
        enhance competitiveness yet manage the risk. We have not recorded bad debt
        since
        inception.


31




*Foreign
      Currency Risk.* **** The
      functional currency of our company is the Hong Kong Dollar (HKD). In the future,
      we expect Renminbi (RMB) also to be a functional currency. Substantially all
      of
      our operations are conducted in the PRC. Our sales and purchases are conducted
      within the PRC in HKD and in the future will include RMB. Conversion of RMB
      into
      foreign currencies is regulated by the People’s Bank of China through a unified
      floating exchange rate system. Although the PRC government has stated its
      intention to support the value of the RMB, there can be no assurance that such
      exchange rate will not again become volatile or that the RMB will not devalue
      significantly against the U.S. Dollar. Exchange rate fluctuations may adversely
      affect the value, in U.S. Dollar terms, of our net assets and income derived
      from its operations in the PRC. In addition, the RMB is not freely convertible
      into foreign currency and all foreign exchange transactions must take place
      through authorized institutions.




*Country
      Risk.* **** The
      substantial portion of our business, assets and operations are located and
      conducted in Hong Kong and China. While these economies have experienced
      significant growth in the past twenty years, 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
      Hong Kong and China, but may also have a negative effect on us. For example,
      our
      operating results and financial condition may be adversely affected by
      government control over capital investments or changes in tax regulations
      applicable to us. If there are any changes in any policies by the Chinese
      government and our business is negatively affected as a result, then our
      financial results, including our ability to generate revenues and profits,
      will
      also be negatively affected.




**ITEM
      4.  CONTROLS AND PROCEDURES**





*(a)
      Evaluation of disclosure controls and procedures*




As
      of
      June 30, 2007, our management, with the participation of our Chief Executive
      Officer, or “CEO,” and Chief Financial Officer, or “CFO,” performed an
      evaluation of the effectiveness and the operation of our disclosure controls
      and
      procedures as defined in Rules 13a-15(e) or 15d-15(e) under the Securities
      Exchange Act of 1934, as amended, or the “Exchange Act.” Based on that
      evaluation, the CEO and CFO concluded that our disclosure controls and
      procedures were effective as of June 30, 2007.




*(b)
      Changes in internal control over financial reporting*




There
      have been no changes in our internal control over financial reporting identified
      in connection with the evaluation required by Rule 13a-15(d) or Rule 15d-15(d)
      under the Exchange Act that occurred during the quarter ended June 30, 2007
      that
      have materially affected, or are reasonably likely to materially affect, our
      internal control over financial reporting.




32




**PART
      II-OTHER INFORMATION**





**ITEM
      1.**  **LEGAL
      PROCEEDINGS**





We
      are
      not currently a party to any material legal proceedings.





**ITEM
      1A. RISK FACTORS**





There
      have been no material changes from the risk factors disclosed in the “Risk
      Factors” section of our annual report on Form 10-K for the year ended December
      31, 2006.





**ITEM
      2.**  **UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**





None.





**ITEM
      3.**  **DEFAULTS
      UPON SENIOR SECURITIES**





None.





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





None.





**ITEM
      5.**  **OTHER
      INFORMATION**




None.





**ITEM
      6.**  **EXHIBITS**




(a)
      Exhibits





31.1
            Certification
                of Principal Executive Officer and Principal Financial and Accounting
                Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of
                200232.1
            Certification
                of Principal Executive Officer and Principal Financial and Accounting
                Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*





*
      This
      exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities
      Exchange Act of 1934 or otherwise subject to the liabilities of that section,
      nor shall it be deemed incorporated by reference in any filing under the
      Securities Act of 1933 or the Securities Exchange Act of 1934, whether made
      before or after the date hereof and irrespective of any general incorporation
      language in any filings.





33





**SIGNATURES**





In
      accordance with the requirements of the Exchange Act, the registrant has duly
      caused this report to be signed on its behalf by the undersigned, thereunto
      duly
      authorized.





**ASIA
                TIME CORPORATION**
              (Registrant)August
                20, 2007
            By:
            /s/ Kwong
                Kai ShunKwong
                Kai ShunChief
                Executive Officer, Chief Financial Officer and Chairman of the
                Board




34