0001062993-12-002970.txt : 20120814 0001062993-12-002970.hdr.sgml : 20120814 20120814162651 ACCESSION NUMBER: 0001062993-12-002970 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20120630 FILED AS OF DATE: 20120814 DATE AS OF CHANGE: 20120814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: China TransInfo Technology Corp. CENTRAL INDEX KEY: 0001081206 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 870616524 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-34134 FILM NUMBER: 121033349 BUSINESS ADDRESS: STREET 1: 9TH FLOOR, VISION BUILDING STREET 2: NO. 39 XUEYUANLU, HAIDIAN DISTRICT CITY: BEIJING, STATE: F4 ZIP: 100086 BUSINESS PHONE: (86) 10-51691999 MAIL ADDRESS: STREET 1: 9TH FLOOR, VISION BUILDING STREET 2: NO. 39 XUEYUANLU, HAIDIAN DISTRICT CITY: BEIJING, STATE: F4 ZIP: 100086 FORMER COMPANY: FORMER CONFORMED NAME: INTRA ASIA ENTERTAINMENT CORP DATE OF NAME CHANGE: 20040106 FORMER COMPANY: FORMER CONFORMED NAME: GLOTECH INDUSTRIES INC DATE OF NAME CHANGE: 20030409 FORMER COMPANY: FORMER CONFORMED NAME: R & R RANCHING INC DATE OF NAME CHANGE: 19990305 10-Q 1 form10q.htm FORM 10-Q China Transinfo Technology Corp.: Form 10-Q - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2012

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

For the transition period from ____________to _____________

Commission File Number: 001-34134

CHINA TRANSINFO TECHNOLOGY CORP.
(Exact Name of Registrant as Specified in Its Charter)

Nevada 87-0616524
(State or other jurisdiction of (I.R.S. Empl. Ident. No.)
incorporation or organization)  

9th Floor, Vision Building,
No. 39 Xueyuanlu, Haidian District,
Beijing, China 100191
(Address of principal executive offices, Zip Code)

(86) 10-51691999
(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 Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ X ]                    No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [ X ]                        No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [ ] Accelerated filer [  ] Non-accelerated filer [  ]
(Do not check if a smaller reporting company)
Smaller reporting company [ X ]

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

Yes [   ]                   No [ X ]

The number of shares outstanding of each of the issuer’s classes of common equity, as of August 10, 2012 is as follows:

Class of Securities Shares Outstanding
Common Stock, $0.001 par value 25,270,069


TABLE OF CONTENTS

  PART I – Financial Information Page
     
Item 1. Financial Statements 2
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 16
Item 3. Quantitative and Qualitative Disclosures About Market Risk 22
Item 4. Controls and Procedures 22
     
  PART II – Other Information  
     
Item 1. Legal Proceedings 24
Item 1A. Risk Factors 24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24
Item 3. Defaults Upon Senior Securities 24
Item 4. Mine Safety Disclosures 24
Item 5. Other Information 24
Item 6. Exhibits 25

1



PART I
FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

CHINA TRANSINFO TECHNOLOGY CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 

June 30, December 31,

 

2012 2011

 

   

ASSETS

   

Current Assets:

   

Cash and cash equivalents

$  26,933,703 $  45,032,637

Restricted cash

4,935,448 3,560,246

Accounts receivable, net of allowance for doubtful accounts of $171,938 and $169,060, respectively

  45,673,081     36,902,155  

Inventories

4,934,799 5,993,121

Costs and estimated earnings in excess of billings on uncompleted contracts

58,945,007 42,917,900

Prepaid expenses and other current assets

  12,871,862     8,828,290  

Other receivables

22,574,993 15,636,967

Deferred tax assets

  26,652     26,467  

Total current assets

176,895,545 158,897,783

 

           

Long-term investments

11,076,931 10,638,712

Property and equipment, net

  10,990,199     10,848,345  

Long-term prepayment for land use right

3,720,312 3,694,493

Intangible assets, net

  17,934,563     16,383,300  

Goodwill

10,782,355 10,707,525

Other assets

  397,497     337,258  

Total assets

$  231,797,402 $  211,507,416

 

           

LIABILITIES AND SHAREHOLDERS' EQUITY

   

Current Liabilities:

           

Accounts payable

$  43,692,235 $  29,010,462

Short-term borrowings from banks

  7,433,539     7,791,300  

Billings in excess of costs and estimated earnings on uncompleted contracts

11,790,011 12,760,278

Accrued liabilities and other current liabilities

  10,109,118     12,043,530  

Total current liabilities

73,024,903 61,605,570

 

           

Other long-term liabilities

27,104 -

 

           

Total liabilities

73,052,007 61,605,570

 

           

Commitments and contingencies

   

 

           

Stockholders' equity :

   

Common stock, par value $0.001 per share, 150,000,000 shares authorized, 25,270,069 and 25,270,069 issued and outstanding as of June 30, 2012 and December 31, 2011, respectively

 

25,270

   

25,270

 

Additional paid-in capital

53,463,342 51,484,878

Retained earnings

66,157,126 61,384,633

Accumulated other comprehensive income

10,538,273 9,618,689

Total China TransInfo Technology Corp Stockholders' equity

130,184,011 122,513,470

Non-controlling interests

28,561,384 27,388,376

 

   

Total stockholders' equity

158,745,395 149,901,846

 

   

Total liabilities and stockholders' equity

$  231,797,402 $  211,507,416

See accompanying notes to condensed consolidated financial statements

2



CHINA TRANSINFO TECHNOLOGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
                         
    Six Months Ended June 30,     Three Months Ended June 30,  
    2012     2011     2012     2011  
                         
Net sales $  60,336,018   $  73,373,897   $  31,407,301   $  36,874,738  
Cost of sales   (40,938,036 )   (52,404,305 )   (21,591,924 )   (26,298,267 )
Gross profit   19,397,982     20,969,592     9,815,377     10,576,471  
Total operating expenses   (14,382,315 )   (13,718,623 )   (7,445,269 )   (7,397,564 )
Income from operations   5,015,667     7,250,969     2,370,108     3,178,907  
Non-operating income (expense):                        
           Interest income   232,450     86,343     197,562     46,617  
           Interest expense   (221,160 )   (487,329 )   (111,696 )   (236,756 )
           Subsidy income   1,426,963     260,962     780,962     65,336  

           Other income, net

  378,137     113,881     225,129     38,405  

                  Total non-operating income

  1,816,390     (26,143 )   1,091,957     (86,398 )

Income before income taxes, non-controlling interests, and gain on equity investments in affiliates net income

  6,832,057     7,224,826     3,462,065     3,092,509  

Income taxes

  (1,140,449 )   (862,935 )   (562,181 )   (361,810 )

Net income before non-controlling interests and gain on equity investments in affiliates net income

  5,691,608     6,361,891     2,899,884     2,730,699  

Gain on equity investments in affiliates due to proportional shares of the affiliates net income

  734,443     1,355,985     355,190     1,023,349  

Net income before non-controlling interests

  6,426,051     7,717,876     3,255,074     3,754,048  

Non-controlling interests in net income of subsidiary

  (1,653,558 )   (1,961,204 )   (901,877 )   (964,652 )

Net income

$  4,772,493   $  5,756,672   $  2,353,197   $  2,789,396  

Weighted average number of shares of outstanding:

                       
             Basic   25,270,069     25,270,069     25,270,069     25,270,069  
             Diluted   25,295,931     25,273,317     25,320,592     25,273,195  
Earnings per share -                        
             Basic $  0.19   $  0.23   $  0.09   $  0.11  
             Diluted $  0.19   $  0.23   $  0.09   $  0.11  
Comprehensive income                        
           Net income including non-controlling interests $  6,426,051   $  7,717,876   $  3,255,074   $  3,754,048  
           Translation adjustments   919,584     2,117,495     84,051     1,483,308  
Comprehensive income $  7,345,635   $  9,835,371   $  3,339,125   $  5,237,356  

           Comprehensive income attributable to non-controlling interests

$  1,653,558   $  1,961,204   $  901,877   $  964,652  
           Comprehensive income attributable to CTFO $  5,692,077   $  7,874,167   $  2,437,248   $  4,272,704  
                         
See accompanying notes to condensed consolidated financial statements

3



CHINA TRANSINFO TECHNOLOGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
    Six Months Ended June 30,  
    2012     2011  
Cash flows from operating activities:            
Net income $  4,772,493   $  5,756,672  

Adjustments to reconcile net income to net cash used in operating activities:

       

    Non-controlling interests

  1,653,558     1,961,204  

    Depreciation and amortization expenses

  1,488,050     1,350,497  

    Stock-based compensation

  545,468     634,040  

    Gain on equity investments in affiliates due to proportional shares of the affiliates net income

  (734,443 )   (1,355,985 )

    Gain on disposal of portion equity of subsidiary to non-controlling interests

  -     (40,479 )

    Dividends income

  (18,689 )   (14,782 )

    Loss on disposal of property and equipment

  13,764     20,283  

    Allowance for doubtful accounts

  1,698     -  

    Decrease (Increase) in assets:

           

          Restricted cash

  (1,351,684 )   1,210,652  

          Accounts receivable

  (8,523,325 )   (8,272,988 )

           Inventories

  1,101,317     (1,738,309 )

          Prepaid expenses and other current assets

  (3,986,142 )   731,880  

          Other receivables

  (6,523,218 )   (1,720,024 )

          Costs and estimated earnings in excess of billings on uncompleted contracts

  (15,743,049 )   (3,942,025 )

          Other assets

  (57,944 )   (56,498 )

    Increase (Decrease) in liabilities:

           

          Accounts payable

  14,493,648     (2,270,555 )
          Billings in excess of costs and estimated earnings on uncompleted contracts   (1,060,512 )   (4,461,510 )
          Accrued liabilities and other current liabilities   (734,239 )   (794,710 )
          Other long-term liabilities   27,131     15,311  
Net cash used in operating activities $  (14,636,118 ) $  (12,987,326 )
             
See accompanying notes to condensed consolidated financial statements

4


CHINA TRANSINFO TECHNOLOGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

    Six Months Ended June 30,  
    2012     2011  
Cash flows from investing activities:            
       Proceeds from disposal of property and equipment $  6,070   $  19,114  
       Purchases of property and equipment   (1,280,019 )   (1,597,311 )
       Purchases of intangible assets   (1,740,114 )   (651,593 )
       Payments for acquisition of companies   (209,907 )   (202,565 )
       Payments for land use right   -     (3,593,798 )
       Dividends from equity or cost investees   -     14,782  
Net cash used in investing activities   (3,223,970 )   (6,011,371 )
             
Cash flows from financing activities:            
       Proceeds from short-term borrowings   6,727,073     6,889,950  
       Payments of short-term borrowings   (7,139,700 )   (9,263,155 )
       Non-controlling interests' capital contribution   79,330     6,698,563  
       Payment of dividends to non-controlling interests from subsidiaries   (237,990 )   -  
Net cash (used in)/provided by financing activities   (571,287 )   4,325,358  
             
Effect of foreign currency exchange translation   332,441     706,563  
             
Net decrease in cash and cash equivalents   (18,098,934 )   (13,966,776 )
             
Cash and cash equivalents - beginning   45,032,637     43,916,597  
Cash and cash equivalents - ending $  26,933,703   $  29,949,821  
             
Supplemental disclosures:            
       Interest paid $  228,095   $  390,693  
       Income taxes paid $  1,056,027   $  1,103,885  

See accompanying notes to condensed consolidated financial statements

5


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

1. ORGANIZATION AND BUSINESS OPERATIONS

China TransInfo Technology Corp. is a leading provider of end-to-end intelligent transportation systems (“ITS”) and related comprehensive technology solutions servicing the transportation industry in China. The goal of the Company is to become the largest provider of intelligent transportation system products and related comprehensive technology solutions in China, as well as a major operator and provider of value-added ITS and location based services (“LBS”) to commercial clients and consumers in China. Substantially all of its operations is conducted through its Variable Interest Entities (“VIE”) that are PRC domestic companies owned principally or entirely by its PRC affiliates. Through its VIE, the Company is involved in developing multiple applications in highway ITS, urban ITS, commercial vehicles ITS plus LBS, and to a lesser degree, in digital city, and land and resource filling systems based on Geographic Information Systems (“GIS”), technologies which are used to service both the public and private sector.

China TransInfo Technology Corp., its subsidiaries and VIE hereinafter are collectively referred as the “Company.”

The Company’s primary focus is on providing end-to-end ITS solutions and related services to the transportation industry. The major products and services of the Company include:

Intelligent Transportation System

  • Transportation Planning Information System

  • Electronic Toll Collection(ETC)

  • Passenger Flow Statistic, Detecting and Analysis System (TransPLE)

  • Traffic Information Integration and Exchange Platform

  • Traffic Emergency Command Center

  • Transportation Hub Comprehensive Management Information System

  • Intelligent Traffic Management Platform

  • Intelligent Parking System

  • Traffic Flow Surveying Solutions

  • GIS-T (Transportation) Middleware

  • Highway Electronics & Machinery (E&M) System Solution

  • UNISITS Highway Lighting and Energy Saving Product (UNIS-LCS)

  • UNISITS Weigh-in-Motion System

Commercial Vehicle ITS plus LBS

  • Commercial Vehicles Monitoring and Public Service Platform

  • Commercial Vehicles Comprehensive Information Service Operation Platform

  • Commercial Vehicles Terminal Products

  • Taxi LED Advertisement Dynamic Display System

  • Taxi LED GPS Monitoring and Coordinating System

6


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

Other Vehicle and Consumer ITS Applications

  • Palmcity Telematics Service Platform

  • Palmcity Real-Time Traffic Information Terminal Software

  • Plamcity Smart Phone Public Transport Information Service System

  • Palmcity Website (http://www.palmcity.cn)

  • Auto Energy-saving Analysis Service System

  • D-TIPS Dynamic Transportation Information Processing and Prediction Service System

The Company also offers comprehensive solutions for transportation oriented GIS (“GIS-T”), covering transportation planning, design, construction, maintenance and operation.

On June 8, 2012, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with TransCloud Company Limited, a Cayman Islands exempted company with limited liability and indirectly wholly owned by Mr. Shudong Xia ("Parent"), TransCloud Acquisition, Inc., a Nevada corporation and a wholly owned, direct subsidiary of Parent ("Merger Sub"). Under the Merger Agreement, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent.

According to the Merger Agreement, at the effective time of the Merger, each outstanding share of the Company’s common stock will be converted automatically into the right to receive $5.80 in cash, without interest, excluding certain shares as provided in the Merger Agreement. The Merger remains subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, including obtaining approval of the existing stockholders of the Company.

The foregoing description of the Merger Agreement is qualified in its entirety by reference to the full text of the Merger Agreement, copy of which has been filed as an Exhibit to our current report on Form 8-K dated June 8, 2012, and which is incorporated herein by reference.

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying interim unaudited condensed consolidated financial statements (“Interim Financial Statements”) of the Company, its subsidiaries and VIEs have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2011 included in the Company’s Form 10-K.

Principles of Consolidation

The Company’s unaudited condensed consolidated financial statements include the accounts of the holding company, its subsidiaries, VIEs and VIEs’ majority owned subsidiaries, which are approximately 3% to 70% owned by non-controlling interests. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments considered necessary to present fairly the Company’s financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows for the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year.

The Company’s unaudited condensed consolidated financial statements are prepared in accordance with GAAP. These accounting principles require the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company believe that the estimates, judgments and assumptions are reasonable, based on information available at the time they are made. Actual results could differ materially from those estimates.

7


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

Recently Issued Accounting Guidance

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of ASU 2011-11 is not expected to have a significant impact on the Company’s consolidated financial statements.

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.

3. RESTRICTED CASH

The Company’s restricted cash balance on June 30, 2012 and December 31, 2011 was $4,935,448 and $3,560,246, respectively. Restricted cash normally consists of cash deposited into third party banks with certain period of time restrictions for various business purposes, which may include contract performance bonds and registered capital bonds required by governmental authorities. The restrictions expire when the related obligations are fulfilled.

 

 

 

8


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
 (Unaudited)

4. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

 The costs and estimated earnings on uncompleted contracts were as follows:
 

    June 30,     December 31,  
    2012     2011  
             
Costs incurred on uncompleted contracts $  225,554,886   $  202,676,181  
Estimated earnings on uncompleted contracts   82,680,551     78,913,748  
Total   308,235,437     281,589,929  
Less – billings to date   (261,080,441 )   (251,432,307 )
Costs and estimated earnings on uncompleted contracts, net of billings in excess            
     of costs and estimated earnings on uncompleted contracts $  47,154,996   $  30,157,622  

The costs and estimated earnings on uncompleted contracts are included in the accompanying balance sheets under the following captions:

    June 30,     December 31,  
    2012     2011  
             

Costs incurred on estimated earnings in excess of billings on uncompleted contracts

$ 58,945,007 $ 42,917,900

Billings in excess of costs and estimated earnings on uncompleted contracts

  (11,790,011 )   (12,760,278 )

Total

$  47,154,996   $  30,157,622  

5. NON-CONTROLLING INTERESTS

On July 12, 2011, a non-controlling interest, Zhongguancun Development Group (“Zhongguancun”), agreed to contribute RMB 50 million (approximately $7.69 million) in cash to Beijing Transwiseway Information Technology Company (“Beijing Transwiseway”), a VIE, in exchange for a 10% equity interest in Beijing Transwiseway. The first installment of RMB 10 million (approximately $1.54 million) was paid by Zhongguancun on August 1, 2011. As a result, China TransInfo Technology Group Co., Ltd. (the “Group Company”) retained a 53.80% equity interest in Beijing Transwiseway. The second installment of RMB 20 million (approximately $3.17 million) was completed on January 12, 2012 and the Group Company retains a 51.56% majority ownership of Beijing Transwiseway.

With the effect of the subsidiary equity transaction, the Company recognized $1,735,006 increase in non-controlling interest in Beijing Transwiseway and the remaining $1,432,995 increase in additional paid-in capital for the six months ended June 30, 2012.

On April 27, 2012, Beijing UNISITS Technology Co. Ltd. (“UNISITS”) approved a RMB 42,678,402 (approximately $6,800,000) dividend distribution to the shareholders. As a result, the Company recognized $2,294,431 decrease in non-controlling interest in UNISITS.

On June 5, 2012, Beijing Transwiseway formed a majority owned subsidiary, Hubei Transwiseway Information Technology Company (“Hubei Transwiseway”), and the non-controlling shareholder contributed RMB 500,000 (approximately $79,500). As a result, the Company recognized $79,500 increase in non-controlling interest in Beijing Transwiseway.

9


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

6. LONG-TERM INVESTMENTS

The Company had the following long-term investments accounted under the equity method and cost method:

Equity and cost investments in affiliates consisted of the following:

Type   Equity Investee Equity Investment Ownership June 30, 2012 December 31, 2011
Equity     GanSu Ziguang Intelligent Transportation and Control     33.33%   $  10,538,172   $  9,989,657  
Equity     ShanXi Ziguang Trans Technology Co., Ltd.     49.00%     84,163     122,214  
Equity     Beijing Chinacommunications Unisplendour Technology Co. , Ltd.     30.00%     85,798     160,603  
Sub-total                 10,708,133     10,272,474  
Cost     Wuhan Optic Times Technology Co., Ltd.     1.04%     226,148     224,578  
Cost     ShanDong Hi-speed Information Engineering Co., Ltd.     5.00%    

118,875

   

118,050

 
Cost     BeijingZiguang Youma Technology Co., Ltd.     15.00%     23,775     23,610  
Sub-total                 368,798     366,238  
Total               $  11,076,931   $  10,638,712  

Summarized income statement information of equity investment in affiliates is as follows:

GanSu Ziguang Intelligent Transportation and Control

    Three months     Six months  
    Ended     Ended  
    June 30, 2012     June 30, 2012  
Net sales $  9,077,213   $  18,510,885  
Gross Profit   2,277,469     4,332,935  
Income from operations   2,073,200     3,709,426  
Net income $  1,434,558   $  2,549,398  
             
ShanXi Ziguang Trans Technology Co., Ltd.
     Three months     Six months  
    Ended     Ended  
    June 30, 2012     June 30, 2012  
Net sales $  4,615   $  15,831  
Gross Profit   4,371     1,878  
Income from operations   4,439     1,580  
Net income $  1,231   $  103  

Beijing Chinacommunications Unisplendour Technology Co. , Ltd.

    Three months     Six months  
    Ended     Ended  
    June 30, 2012     June 30, 2012  
Net sales $  33,346   $  426,446  
Gross Profit   (220,373 )   (94,048 )
Income from operations   (234,923 )   (235,054 )
Net income $  (235,002 ) $  (234,463 )

10



CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
             
7. INTANGIBLE ASSETS            
             
Intangible assets consisted of the following:        
             
    June 30, 2012     December 31, 2011  
Intangible assets $  18,933,673   $  17,084,194  
Less: accumulated amortization   (999,110 )   (700,894 )
Intangible assets, net $  17,934,563   $  16,383,300  
             
Intangible assets as of June 30, 2012 and December 31, 2011 were as follows:        
             
Net intangible assets   June 30, 2012     December 31, 2011  
Internal-use software $  8,125,542   $  6,603,210  
Purchased software   2,436,967     2,436,847  
Software from acquisition   299,023     319,299  
Software from investment   7,073,031     7,023,944  
Total $  17,934,563   $  16,383,300  

The amortization expense was $201,019 and $144,007 for the three months ended June 30, 2012 and 2011, respectively. For the six months ended June 30, 2012 and June 30, 2011 was $293,972 and $281,897, respectively.

8. SHORT-TERM BORROWINGS FROM BANKS

On June 21, 2012, UNISITS entered into a short-term loan agreement with Qinghuayuan Branch of Bank of Beijing (“Qinghuayuan Branch”), pursuant to which Qinghuayuan Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 1% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan expires within 6 months from the first withdrawal date of June 25, 2012 to December 24, 2012. As of June 30, 2012, a principal amount of approximately $0.79 million was outstanding.

On May 30, 2012, UNISITS entered into a short-term loan agreement with Dayuncun Branch of Merchants Bank (“Dayuncun Branch”), pursuant to which Dayuncun Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 5% above the benchmark interest rate, a standard rate announced by the People's Bank of China, with the interest to be paid on a quarterly basis. The loan expires on December 23, 2012. As of June 30, 2012, a principal amount of approximately $1.59 million was outstanding.

On April 1, 2012, Beijing PKU Chinafront High Technology Co., Ltd.(“PKU”) entered into a short-term loan agreement with Bank of Beijing, Haidianyuan Branch (“Haidianyuan Branch”), pursuant to which Haidianyuan Branch agreed to loan PKU an aggregate of RMB 15 million (approximately $2.40 million) as working capital. The loan has an annual interest rate equal to 20% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the first withdrawal date, with the interest to be paid on a monthly basis. The loan expires within 12 months after the date of the first withdrawal but may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of approximately $2.22 million was outstanding.

On December 22, 2011, Beijing Transwiseway, entered into a short-term loan agreement with Haidianyuan Branch, pursuant to which Haidianyuan Branch agreed to loan Beijing Transwiseway a sum of RMB 30 million (approximately $4.72 million). The loan has an annual interest rate equal to 10% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan expires within 12 months after the date of the first withdrawal but may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of approximately $2.83 million was outstanding.

The interest expenses were $111,696 and $236,756 for the three months ended June 30, 2012 and 2011, respectively, and the average interest rate was 7.24% and 6.00%, respectively. For the six months ended June 30, 2012 and 2011, interest expenses totaled $221,160 and $487,329, respectively, and the average interest rate was 7.15% and 5.84%, respectively.

11


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

9. STOCK-BASED COMPENSATION

Stock Warrants

The Company issued warrants to Anteaus Capital, Inc., in aggregate, to purchase 277,778 shares of the Company’s common stock in connection with merger related services on May 14, 2007, with an exercise price of $1.80 per share. These warrants will expire on May 13, 2014. As of June 30, 2012, warrants to purchase 5,555 shares were outstanding with the aggregate intrinsic value of $20,831 and the weighted-average remaining contractual term of 22 months.

Stock Options

There were no stock options granted during the six-month period ended June 30, 2012.

The Company recorded compensation expense of $271,719 and $323,502 for the three months ended June 30, 2012 and 2011, respectively. For the six months ended June 30, 2012 and 2011, compensation expenses totaled $545,468 and $634,040, respectively, in connection with the stock options disclosed below.

A summary of stock options transactions for the six months ended June 30, 2012 is as follows:

                Weighted-Average        
          Weighted-     Remaining     Aggregate  
          Average Exercise     Contractual Term     Intrinsic  
Stock Options   Shares     Price     (Months)     Value  
Outstanding at January 1, 2012   1,870,801   $  6.2     40     -  
Granted   -     -     -     -  
Exercised or converted   -     -     -     -  
Forfeited or expired   (57,000 )   6.32     -     -  
Outstanding at June 30, 2012   1,813,801   $  6.20     34   $  671,731  
                         
Non-vested at June 30, 2012   1,061,319   $  6.04     36   $  455,484  
Exercisable at June 30, 2012   752,482   $  6.43     31   $  216,247  

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based upon the Company’s closing stock price of $5.55 as of June 30, 2012, which would have been received by the option holders had all option holders exercised their option awards as of that date. No options were exercised during the six months ended June 30, 2012.

During the six months ended June 30, 2012, stock options to purchase 78,113 shares were vested. Total unrecognized compensation costs related to unvested stock options were approximately $1,800,000 as of June 30, 2012. Unvested stock options are expected to be recognized over a weighted average period of 2.01 years.

10. FAIR VALUE MEASURMENT

FASB ASC 820, Fair Value Measurement, defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and requires certain disclosures about fair value measurement. FASB ASC topic 820 also establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories:

Level 1 – Quoted unadjusted prices for identical instruments in active markets.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in market that are not active, and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets.

12


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company.

Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.

The carrying value of financial instruments of the Company, included, cash and cash equivalents, restricted cash, accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, other receivable, other current assets, short-term borrowings from banks, accounts payable, billings in excess of costs and estimated earnings on uncompleted contracts and other current liabilities, approximate their fair values due to their short-term nature and are classified within Level 1 of the fair value hierarchy. The Company did not have any financial instruments classified at Level 2 or Level 3 of the fair value hierarchy as at June 30, 2012.

11. INCOME TAXES

For the three months and six months ended June 30, 2012 and 2011, income tax expenses were as follows:

    Three Months Ended June 30,  
  2012   2011  
    Domestic     Foreign     Domestic     Foreign  
    Federal     State     China     Federal     State     China  
Current $  -   $  -   $  562,181   $  -   $  -   $ 361,810  
Deferred   -     -     -     -     -     -  
  $  -   $  -   $  562,181   $  -   $  -   $ 361,810  
                                     
                                     
    Six Months Ended June 30,  
  2012   2011  
    Domestic     Foreign     Domestic     Foreign  
    Federal     State     China     Federal     State     China  
Current $  -   $  -   1,140,449   $  -   $  -   $  862,935  
Deferred   -     -     -     -     -     -  
  $  -   $  -   1,140,449   $  -   $  -   $  862,935  

The Company, through its VIE and VIE’s subsidiaries and affiliates, is governed by the Income Tax Laws of the PRC. The PRC government has provided various incentives to domestic companies in the software industry in China in order to encourage development and growth of the industry. For the six months ended June 30, 2012, the Company enjoyed the same tax holidays as of last year.

The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting and tax bases of its assets and liabilities. Deferred assets are reduced by a valuation allowance when deemed appropriate. Operations in the United States of America have incurred net accumulated operating losses of $15,000,000 as of June 30, 2012 and December 31, 2011 for income tax purposes. However, a valuation allowance has been established for the full amount of the deferred tax asset due to uncertainty of its realization.

The effective tax rate was estimated by the Company to be 16.24% and 11.70% for the three months ended June 30, 2012 and 2011, respectively. During the six months ended June 30, 2012 and 2011, the effective income tax rate was estimated by the Company to be 16.69% and 11.94%, respectively.

13


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

12. EARNINGS PER SHARE

For the three months and six months ended June 30, 2012 and 2011, basic and diluted net income per share are calculated as follows:

    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  
Net income $  2,353,197   $  2,789,396   $  4,772,493   $  5,756,672  
                         
Weighted-average shares of common stock outstanding                
       Basic   25,270,069     25,270,069     25,270,069     25,270,069  
       Dilutive effect of warrants and stock options   50,523     3,126     25,862     3,248  
Diluted   25,320,592     25,273,195     25,295,931     25,273,317  
                         
Basic earnings per common share $  0.09   $  0.11   $  0.19   $  0.23  
                         
Diluted earnings per common share $  0.09   $  0.11   $  0.19   $  0.23  

13. CONCENTRATION OF RISK

Cash

The Company places its temporary cash investments in reputable financial institutions in the PRC and the United States. All funds in US are in a non-interest-bearing transaction account which are insured in full by the United States Federal Deposit Insurance Corporation (“FDIC”) from December 31, 2010 through December 31, 2012. Although it is generally understood that the PRC central government stands behind all of the banks in China in the event of bank failure, there is no deposit insurance system in China that is similar to the protection provided by the Federal Deposit Insurance Corporation (FDIC) of the United States. This temporary unlimited coverage on US bank accounts is in addition to, and separate from, the coverage of up to $250,000 available to depositors under the FDIC's general deposit insurance rules. As of June 30, 2012 and December 31, 2011, the Company’s U.S. bank accounts are fully covered by the FDIC insurance.

Major Customers

The Company had one major customer that individually represented 10% or more of the Company’s total net sales during the three months ended June 30, 2012 and 2011, respectively. The Company had nil and one major customer that individually represented 10% or more of the Company’s total net sales during the six months ended June 30, 2012 and 2011, respectively. No customer represented 10% or more of the Company’s accounts receivable balance as of June 30, 2012 and 2011.

Major Suppliers

The Company did not have any suppliers represented 10% of more of the Company’s total net purchases during both the three months ended and the six months ended June 30, 2012 and 2011. No concentration risk is noted on the suppliers of the Company.

14


CHINA TRANSINFO TECHNOLOGY CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

14. COMMITMENTS AND CONTINGENCIES

Capital commitment

On April 15, 2011, the Group Company entered into a Land Development Compensation Framework Agreement (the “Framework Agreement”) with Beijing Strong Science Park Development Co., Ltd. ("Beijing Strong"), pursuant to which Beijing Strong agreed to complete the development of the land block with a site area of 48,900 square meters, located at Zhongguancun Innovation Park (the “C6-04 Land”). In exchange, the Group Company agreed to pay an aggregate of RMB 117,360,000 (approximately $18,000,000) to Beijing Strong, among which RMB 23,472,000 (approximately $3,700,000) was required be paid on or before April 25, 2011. The Group Company intends to construct office buildings on the C6-04 Land for its own and its subsidiaries’ use to reduce its rental expenses over the long term. The contract is cancellable, and, as of June 30, 2012, the Group Company has paid RMB 23,472,000 (approximately $3,700,000) for deposit.

Operating Lease

The rental expense was $361,231 and $388,690 for the three months ended June 30, 2012 and 2011 respectively. For the six months ended June 30, 2012 and 2011 were $759,123 and $777,221, respectively, under the lease agreements to lease office spaces for the Group Company, its subsidiary and VIEs at various locations in the PRC.

The aggregate future minimum payments under these lease agreements are as follows:

Year ending December 31,   Lease Commitments  
2012 $  822,842  
2013   204,876  
2014   11,406  
Total $  1,039,124  

Pending Litigation

The Company and the members of its board of directors are named as defendants in purported class action lawsuits (the “Stockholder Actions”) brought in the Eighth Judicial District Court, Clark County, Nevada by several stockholders: Oswald Velz v. China TransInfo Technology Corp. et al., Case No. A-12-657022-C (filed February 24, 2012) and Tim Valles v. Shudong Xia et al. Case No. A-12-657443-C (filed March 1 , 2012) and Carl M. Domitrovich v. Shudong Xia et al. Case No. A-12-657740-C (filed March 6, 2012). The Stockholder Actions generally allege that the Company and all of its directors breached their fiduciary duties in connection with the receipt by the Company of a preliminary, non-binding proposal from Shudong Xia, the Company’s Chairman and Chief Executive Officer, to acquire all of the outstanding shares of our common stock not currently owned by him in a going private transaction at a proposed price of $5.65 per share in cash (the “Proposed Transaction”). The Stockholder Actions seek, among other things, to declare that the Proposed Transaction is unfair, unjust and inequitable, to enjoin the Company from taking any steps necessary to accomplish or implement the Proposed Transaction, and damages in the event the Proposed Transaction is consummated.

On July 13, 2012, these three class action complaints were consolidated into one amended class action complaint, In Re China TransInfo Technology Corp. Shareholders’ Litigation, Consolidated Case No. A-12-657022-B, filed in the Eighth Judicial District Court and against the members of the board of directors of the Company and certain other parties to the Proposed Transaction. Nevertheless, at this stage of the proceedings, management cannot opine that a favorable outcome for the Company is probable or that an unfavorable outcome to the Company is remote. There is no reasonable estimate of any impact of the outcome of the litigation or related legal fees on the financial statements can be made as of the date of this statement.

15


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

Special Note Regarding Forward Looking Statements

This Quarterly Report on Form 10-Q, including the following “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements that are based on the beliefs of our management, and involve risks and uncertainties, as well as assumptions, that, if they ever materialize or prove incorrect, could cause actual results to differ materially from those expressed or implied by such forward-looking statements. The words “believe,” “expect,” “anticipate,” “project,” “targets,” “optimistic,” “intend,” “aim,” “will” or similar expressions are intended to identify forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements regarding new and existing products, technologies and opportunities; statements regarding market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; and any statements of belief or intention. As such, they are subject to risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward looking statements. Such risks and uncertainties include any of the factors and risks mentioned in the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent SEC filings, and any statements of assumptions underlying any of the foregoing. All forward-looking statements included in this report are based on information available to us on the date of this report. We assume no obligation and do not intend to update these forward-looking statements, except as required by law.

Certain Terms

Except where the context otherwise requires and for the purposes of this report only:

  • “BVI” refers to the British Virgin Islands;

  • “China,” “Chinese” and “PRC” refer to the People’s Republic of China and do not include Taiwan and special administrative regions of Hong Kong and Macao;

  • “China TransInfo,” “the Company,” “we,” “us,” and “our” refer to China TransInfo Technology Corp., its subsidiaries, and, in the context of describing our operations and business, and consolidated financial information, include our VIE;

  • “Exchange Act” refers to the Securities Exchange Act of 1934, as amended;

  • “RMB” refers to Renminbi, the legal currency of China;

  • “SEC” refers to the United States Securities and Exchange Commission;

  • “Securities Act” refers to the Securities Act of 1933, as amended;

  • “U.S. dollar,” “$” and “US$” refer to the legal currency of the United States; and

  • “VIE” means our consolidated variable interest entities, including China TransInfo and its subsidiaries as depicted in our organization chart included in our Annual Report on Form 10-K for the year ended December 31, 2011.

The following discussion and analysis of our financial condition and results of operations includes information with respect to our plans and strategies for our business and should be read in conjunction with our interim unaudited condensed consolidated financial statements and related notes included herein and our consolidated financial statements and related notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Form 10-K for the year ended December 31, 2011.

Overview of Our Business

We are a leading provider of end-to-end intelligent transportation systems (“ITS”) and related comprehensive technology solutions servicing the transportation industry in China. Our goal is to become the largest provider of intelligent transportation system products and related comprehensive technology solutions in China, as well as a major operator and provider of value-added ITS and location based services (“LBS”) to commercial clients and consumers in China. Substantially all of our operations are conducted through our VIEs that are PRC domestic companies owned principally or entirely by our PRC affiliates. Through our VIEs, we are involved in developing multiple applications in highway ITS, urban ITS, commercial vehicles ITS plus LBS, and to a lesser degree, in digital city, and land and resource filling systems based on Geographic Information Systems (“GIS”) technologies which are used to service both the public and private sector.

Our primary focus is on providing end-to-end ITS solutions and related services to the transportation industry. We also offer comprehensive solutions for transportation oriented GIS, encompassing transportation planning, design, construction, maintenance and operation.

16


Second Quarter Financial Performance Highlights

We continued to experience consistent demand for our products and services during the second quarter of 2012, which resulted in sustained growth in our project backlog. In the second quarter of 2012, the Company won new contracts worth $53.97 million, compared to $35.53 million in the same period prior year. The transportation information industry in China is experiencing a continued development along with a sustained increase in the Chinese government and public demand for advanced transportation information products and services to support more effective and efficient transportation networks within China. This trend is supported by steady governmental spending in the transportation sector. We believe this trend will continue to benefit our business operations.

The following are some financial highlights for the second quarter of 2012:

  • Net sales – Our net sales were approximately $31.41 million for the second quarter of 2012, a decrease of 14.83% for the same quarter of the previous year.

  • Gross Margin – Gross margin was 31.25% for the second quarter of 2012, as compared to 28.68% for the same period in 2011.

  • Operating Profit – Operating profit was approximately $2.37 million for the second quarter of 2012, a decrease of 25.44% from $3.18 million for the same quarter of the previous year.

  • Net Income – Net income was approximately $2.35 million for the second quarter of 2012, a decrease of 15.64% from $2.79 million for the same quarter of the previous year.

Critical Accounting Estimates

As discussed in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, we consider our estimates on revenue recognition, vendor allowances and amortization of intangibles to be the most critical in understanding the judgments that are involved in preparing our consolidated financial statements. There have been no significant changes to these estimates in the three months ended June 30, 2012.

Recently Issued Accounting Guidance

See Note 2 to condensed consolidated financial statements included in Item 1, Financial Information, of this Quarterly Report on Form 10-Q.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2012 Compared to Three Months Ended June 30, 2011

The following table sets forth selected items from our unaudited condensed consolidated statements of income by dollar and as a percentage of our net sales for the periods indicated:

    Three Months Ended     Three Months Ended  
    June 30, 2012     June 30, 2011  
          % of           % of  
    Amount     Net Sales     Amount     Net Sales  
Net sales $  31,407,301     100.00%   $ 36,874,738     100.00%  
Cost of sales   (21,591,924 )   (68.75% )   (26,298,267 )   (71.32% )
Gross profit   9,815,377     31.25%     10,576,471     28.68%  
Total operating expenses   (7,445,269 )   (23.71% )   (7,397,564 )   (20.06% )
Income from operations   2,370,108     7.54%     3,178,907     8.62%  
Non-operating income (expenses)   1,091,957     3.48%     (86,398 )   (0.23% )
Income before income taxes, non-controlling interests, and                        
 gain on equity investment in affiliates net income   3,462,065     11.02%     3,092,509     8.39%  

Income taxes

  (562,181 )   (1.79% )   (361,810 )   (0.98% )

 

                       

Net income before non-controlling interests and gain on equity investments in affiliates net income

2,899,884 9.23% 2,730,699 7.41%

Gain on equity investments in affiliates due to proportional

                       

 shares of the affiliates net income

  355,190     1.13%     1,023,349     2.78%  

Net income before non-controlling interests

  3,255,074     10.36%     3,754,048     10.19%  

Non-controlling interests in net income of subsidiary

  (901,877 )   (2.87% )   (964,652 )   (2.62% )

 

                       
Net income $  2,353,197     7.49%   $ 2,789,396     7.57%  

17


Net Sales – Net sales decreased by $5.47 million, or 14.83%, to $31.41 million for the three months ended June 30, 2012, from $36.87 million during the same period of 2011. Approximately 82.76% of this decrease is attributable to the decrease of our transportation business in the second quarter of 2012. As compared to the same period of 2011, net sales of our transportation business decreased by approximately 13.18% . Such a decrease predominantly resulted from a temporary fluctuation of the execution process of existing contracts in our ITS business. Because our ITS business is conducted on a contract-by-contract basis, progress towards contract completion could vary from quarter to quarter, which would affect our revenue recognition. However, we expect the demand for our products and services to be generally steady and consistent over the years.

The following table illustrates the revenues from the major Chinese government sectors and regulated industries in which we sell our products and services for the periods indicated. The table also provides the percentage of total revenues represented by each listed sector.

    Three Months Ended     Three Months Ended  
    June 30, 2012     June 30, 2011  
          % of Net           % of Net  
    Net Sales     Sales     Net Sales     Sales  
Transportation $  29,815,718     94.93%   $  34,340,629     93.12%  
Digital City   1,144,867     3.65%     1,293,403     3.51%  
Land and resources   4,863     0.02%     44,010     0.12%  
Other   441,853     1.40%     1,196,696     3.25%  
Net sales $  31,407,301     100.00%   $  36,874,738     100.00%  

Gross Profit – Our gross profit decreased approximately $0.76 million, or 7.20%, to approximately $9.82 million for the three months ended June 30, 2012, from approximately $10.58 million during the same period of 2011. Our gross profit decrease was mainly attributable to the decrease in net sales of our ITS business. However, our gross profit decrease was proportionally less than our revenue decrease from the same period of 2011 to 2012 and our gross profit as a percentage of net sales increased 2.57% from 28.68% during the same period of 2011 to 31.25% for the three months ended June 30, 2012. The increase in gross margin was mainly due to the transportation projects we carried out were more cost effective as a result of improvements in hardware purchasing practice and labor management in these projects.

Total Operating Expenses – We sell most of our services and products to the domestic Chinese market through contracts commissioned by the Chinese government. Various government entities and agencies either invite us to bid for a specific contract or award a contract to us on a non-bid basis. We are often invited to bid on contracts through our professional relationships and are awarded recurring businesses. Historically, we did not incur high costs in our sales and marketing activities. We promoted our products through developments of professional contacts with various agencies and municipalities and through participation in industry trade exhibitions.

Our marketing expenses therefore were relatively low in comparison to our competitors who do not have a record of performance and brand recognition or well-established government contacts. Since 2011, we have enhanced our marketing efforts by organizing various industry trade exhibitions and conferences in order to further promote our corporate image and brand recognition within the transportation information industry in China.

Total operating expenses increased by $0.05 million, or 0.64%, to $7.45 million for the three months ended June 30, 2012, from $7.40 million during the same period of 2011. The increase is due to the following:

  • Our selling expenses including sales representative commissions, promotion fees and marketing expenses, increased approximately $0.35 million, or 36.49%, to $1.30 million for the three months ended June 30, 2012, from $0.96 million during the same period of 2011. The increase in selling expenses was mainly attributable to our enhanced efforts in bidding for new contracts. Combined with our lower net sales recognized for the three months ended June 30, 2012, selling expenses as a percentage of net sales for the three months ended June 30, 2012 increased to 4.15% from 2.59% during the same period of 2011.

  • Our general and administrative expenses were approximately $6.14 million (19.55% of total sales) and approximately $6.44 million (17.47% of total sales) for the three months ended June 30, 2012 and 2011, respectively. The decrease in administrative expenses was mainly attributable to the fact that we incurred less sales related bonus payment for the three months ended June 30, 2012, compared to the same period of prior year.

Income Taxes – For the three months ended June 30, 2012, we recognized income tax expense of $0.56 million and effective tax rate of 16.24% while in the same period of 2011, we recognized income tax expense of $0.36 million and effective tax rate of 11.70% . The increase in the income tax expense was mainly due to some VIEs with relatively higher tax rates contributed more to the income before taxes than other VIEs with lower tax rates, which also resulted in higher effective tax rate as compared to the same period of last year.

18


Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011

The following table sets forth selected items from our unaudited condensed consolidated statements of income by dollar and as a percentage of our net sales for the periods indicated:

    Six Months Ended     Six Months Ended  
    June 30, 2012     June 30, 2011  
          % of           % of  
    Amount     Net Sales     Amount     Net Sales  
Net sales $  60,336,018     100.00%   $  73,373,897     100.00%  
Cost of sales   (40,938,036 )   (67.85% )   (52,404,305 )   (71.42% )
Gross profit   19,397,982     32.15%     20,969,592     28.58%  
Total operating expenses   (14,382,315 )   (23.84% )   (13,718,623 )   (18.70% )
Income from operations   5,015,667     8.31%     7,250,969     9.88%  

Non-operating income (expenses)

  1,816,390     3.01%     (26,143 )   (0.04% )

Income before income taxes, non-controlling interests, and gain on equity investments in affiliates net income

  6,832,057     11.32%     7,224,826     9.84%  

Income taxes

  (1,140,449 )   (1.89% )   (862,935 )   (1.18% )

 

                       

Net income before non-controlling interests and gain on equity investments in affiliates net income

  5,691,608     9.43%     6,361,891     8.66%  

Gain on equity investments in affiliates due to proportional shares of the affiliates net income

  734,443     1.22%     1,355,985     1.85%  

Net income before non-controlling interests

  6,426,051     10.65%     7,717,876     10.51%  

Non-controlling interests in net income of subsidiary

  (1,653,558 )   (2.74% )   (1,961,204 )   (2.67% )

 

                       

Net income

$  4,772,493     7.91%   $  5,756,672     7.84%  

Net Sales – Net sales decreased by $13.04 million, or 17.77%, to $60.34 million for the six months ended June 30, 2012, from $73.37 million during the same period of 2011. Approximately 90.01% of this decrease is attributable to the decrease of our transportation business for the six months ended June 30, 2012. As compared to the same period of 2011, net sales of our transportation business decreased by approximately 16.89% . Such a decrease predominantly resulted from a temporary fluctuation of the execution process of existing contracts in our ITS business. Because our ITS business is conducted by contract basis, progress towards contract completion could vary from quarter to quarter, which would affect our revenue recognition. However, we expect the demand for our products and services to be generally steady and consistent over the years.

The following table illustrates the revenues from the major Chinese government sectors and regulated industries in which we sell our products and services for the periods indicated. The table also provides the percentage of total revenues represented by each listed sector.

    Six Months Ended     Six Months Ended  
    June 30, 2012     June 30, 2011  
          % of Net           % of Net  
    Net Sales     Sales     Net Sales     Sales  
Transportation $  57,744,453     95.70%   $  69,479,956     94.69%  
Digital City   1,223,609     2.03%     1,299,766     1.77%  
Land and resources   4,863     0.01%     47,055     0.06%  
Other   1,363,093     2.26%     2,547,120     3.48%  
Net sales $  60,336,018     100.00%   $  73,373,897     100.00%  

Gross Profit – Our gross profit decreased approximately $1.57 million, or 7.49%, to approximately $19.40 million for the six months ended June 30, 2012, from approximately $20.97 million during the same period of 2011. Our gross profit decrease was mainly attributable to the decrease of sales during the six months ended June 30, 2012. However, our gross profit decrease was proportionally less than our revenue decrease from the same period of 2011 to 2012 and our gross profit as a percentage of net sales increased 3.57% from 28.58% to 32.15% . This increase in gross margin was mainly due to the transportation projects that we carried out were more cost effective due to the improvement in hardware purchase practice and labor management achieved in these projects.

Total Operating Expenses – Total operating expenses increased by $0.66 million, or 4.84%, to $14.38 million for the six months ended June 30, 2012, from $13.72 million during the same period of 2011. The increase is due to the following:

  • Our selling expenses increased approximately $0.59 million, or 33.28%, to $2.37 million for the six months ended June 30, 2012, from $1.78 million during the same period of 2011. The increase of selling expenses was mainly attributable to our enhanced efforts in bidding for new contracts. Combined with our lower net sales recognized for the six months ended June 30, 2012, selling expenses as a percentage of net sales for the six months ended June 30, 2012 increased to 3.93% from 2.42% during the same period of 2011.

19


  • Our general and administrative expenses were approximately $12.01 million (19.91% of total sales) and approximately $11.94 million (16.27% of total sales) for the six months ended June 30, 2012 and 2011, respectively. Our general and administrative expenses for the six months ended June 31, 2012 were relatively stable compared to the same period of the prior year. However, the increase of general and administrative expenses as a percentage of net sales was mainly attributable to the lower net sales recognized for the six months ended June 30, 2012 compared to the same period of prior year.

Income Taxes – For the six months ended June 30, 2012, we recognized income tax expense of $1.14 million and effective tax rate of 16.69% while in the same period of 2011, we recognized income tax expense of $0.86 million and effective tax rate of 11.94% . The increase in the income tax expense was mainly due to some VIEs with relatively higher tax rates contributed more to the income before taxes than other VIEs with lower tax rates, which also resulted in higher effective tax rate compared to the same period of last year.

Liquidity and Capital Resources

Our principal liquidity requirements are for working capital, capital expenditures and cash dividends to non-controlling shareholders of subsidiaries. We fund our liquidity requirements primarily through cash on hand, cash flow from operations and borrowings from our revolving credit facility. We believe our cash on hand, future funds generated from operations and borrowings from our revolving credit facility will be sufficient to fund our cash requirements for at least the next twelve months. There is no assurance, however, that we will be able to generate sufficient cash flow or that we will be able to maintain our ability to borrow under our revolving credit facility.

As of June 30, 2012, we had cash and cash equivalents (excluding restricted cash) of approximately $26.93 million and restricted cash of approximately $4.94 million. The following table provides detailed information about our net cash flow for all financial statements periods presented in this report.

Cash Flow

  Six Months Ended June 30,
  2012 2011
Net cash used in operating activities $(14,636,118) $(12,987,326)
Net cash used in investing activities (3,223,970) (6,011,371)
Net cash (used in) / provided by financing activities (571,287) 4,325,358
Effect of foreign currency exchange translation 332,441 706,563
Net decrease in cash and cash equivalents (18,098,934) $(13,966,776)

Operating Activities

Net cash used in operating activities was approximately $14.64 million for the six-month period ended June 30, 2012, while for the same period of 2011, we had approximately $12.99 million net cash used in operating activities. The increase in cash used in operating activities was mainly attributable to the reduction in net income of $0.98 million, the increase in restricted cash of $2.56 million due to increased new contracts that require the establishment of contracts performance bonds, the change in cash flow from accounts receivable due to relatively slower collections of $0.25 million, the increase in prepaid expenses and other current assets of $4.72 million, the increase in other receivables of $4.80 million related to increased activities in bidding for new contracts, the decrease in net billings of $8.4 million, that is, the difference between costs and estimated earnings in excess of billings on uncompleted contracts (when our work was performed ahead of customer payments in some of our contracts per the contract payment terms) and billings in excess of costs and estimated earnings on uncompleted contracts (when we receive payments from clients ahead of cost and earnings realization), the decrease in accrued liabilities and other current liabilities of $0.06 million, offset by the decrease of gain on equity investments in affiliates of $0.62 million due to less net income from these affiliates, the decrease of inventories of $2.84 million and the increase of accounts payable of $16.76 million.

20


Investing Activities

Our primary uses of cash for investing activities are payments for the acquisition of property, plant and equipment, as well as intangible assets.

Net cash used in investing activities for the six-month period ended June 30, 2012 was approximately $3.22 million, which is a decrease of approximately $2.79 million from net cash used in investing activities of approximately $6.01 million for the same period of 2011. The decrease of the cash used in investing activities was mainly due to the fact that for the six months ended June 30, 2011, we made a one-time payment of $3.59 million as down payment to acquire a land use right while in the same period of 2012, we did not have such investing activity. In addition, compared with the same period of 2011, we had an increase in intangible assets related to the software development of $1.09 million in the first half of 2012.

Financing Activities

Net cash used in financing activities for the six-month period ended June 30, 2012 was approximately $0.57 million, while for the same period of 2011 we had approximately $4.33 million net cash provided by financing activities. Such change was mainly attributable to the fact that for the period ended June 30, 2012, the repayment of short term loans was $2.12 million less than the same period of prior year, and offset by the decrease of non-controlling interests’ capital contribution of $6.62 million.

Financing Agreements

On May 25, May 30 and June 15, 2011, our VIE, Beijing PKU Chinafront High Technology Co., Ltd. (“PKU”) entered into three short-term loan agreements with Bank of Beijing, Zhongguancun Branch (“Zhongguancun Branch”), pursuant to which Zhongguancun Branch agreed to loan PKU an aggregate of RMB 25 million (approximately $3.94 million). The loan has an annual interest rate equal to 10% above the benchmark interest rate as of the first withdrawal date. The interest is to be paid in a quarterly basis. The loan matures within 12 months from the date of the first withdrawal, the loan may be renewed upon receipt of written consent from Zhongguancun Branch. Under the terms of the loan agreements, PKU is subject to customary affirmative and negative covenants. The repayment of the loan may be accelerated. Zhongguancun Branch has the right to demand immediate repayment of the principal and accrued interests in an event of default which includes, among other things, failure to make principal or interest payments, failure to comply with other covenants and certain events of liquidation or bankruptcy. A principal amount of RMB 5 million was paid off in 2011, RMB 15 million was paid off on May 29, 2012, and the remaining was paid off on June 15, 2012.

On December 22, 2011, our VIE, Beijing Transwiseway Information Technology Co., Ltd. (“Beijing Transwiseway”) entered into a short-term loan agreement with Zhongguancun Haidianyuan Branch of Bank of Beijing ("Haidianyuan Branch"), pursuant to which Haidianyuan Branch agreed to loan Beijing Transwiseway a sum of RMB 30 million (approximately $4.72 million). By February 26, 2012, we had withdrew RMB 17,885,400 (approximately $2.83 million). The loan has an annual interest rate equal to 10% above the benchmark interest rate as of the date of the first withdrawal of the principal. The interest is to be paid on a quarterly basis. The loan matures within 12 months from the date of the first withdrawal. The loan can be renewed upon the written consent by Haidianyuan Branch. Under the terms of the loan agreement, Beijing Transwiseway is subject to customary affirmative and negative covenants. The repayment of the loan may be accelerated. Haidianyuan Branch may also demand immediate repayment of the principal and accrued interests in an event of default which includes, among other things, failure to make principal or interest payments timely, material breach of representations and warranties by Beijing Transwiseway, and liquidation or bankruptcy. As of June 30, 2012, a principal amount of approximately $2.83 million was outstanding.

On April 1, 2012, PKU entered into a short-term loan agreement with Haidianyuan Branch, pursuant to which Haidianyuan Branch agreed to loan PKU an aggregate of RMB15 million (approximately $2.40 million). The loan has an annual interest rate equal to 20% above the benchmark interest rate as of the first withdrawal date. The interest is to be paid on a monthly basis. The loan matures within 12 months from the date of the first withdrawal. The loan may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of RMB 14,013,899 (approximately $2.22 million) was outstanding.

On May 30, 2012, UNISITS entered into a short-term loan agreement with Dayuncun Branch of Merchants Bank (“Dayuncun Branch”), pursuant to which Dayuncun Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 5% above the benchmark interest rate. The interest is to be paid on a quarterly basis. The Loan matures on December 23, 2012. As of June 30, 2012, a principal amount of approximately $1.59 million was outstanding.

On June 21, 2012, UNISITS entered into a short-term loan agreement with Qinghuayuan Branch of Bank of Beijing (“Qinghuayuan Branch”), pursuant to which Qinghuayuan Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 1% above the benchmark interest rate as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan matures in 6 months from the first withdrawal date of June 25, 2012. As of June 30, 2012, the first withdrawal of RMB 5 million was completed and a principal amount of approximately $0.79 million was outstanding.

21


Future Capital Requirements – We believe that our current cash and cash equivalents and anticipated cash flow from operations will be sufficient to meet our anticipated cash needs, including our cash needs for working capital and capital expenditures for at least the next 12 months. We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. In addition, because substantially all of our revenues are generated from our indirect PRC subsidiary, China TransInfo Technology Limited or China TransInfo Limited, after it receives payments from our VIE under various services and other arrangements, the ability of China TransInfo Limited to make dividends and other payments to us is subject to the PRC dividend restrictions. Current PRC law permits payments of dividend by China TransInfo Limited only out of its accumulated after-tax profits, if any, determined in accordance with PRC accounting standards and regulations. Oriental Intra-Asia is also required under PRC laws and regulations to allocate at least 10% of its annual after-tax profits determined in accordance with PRC GAAP to a statutory general reserve fund until the amounts in said fund reaches 50% of China TransInfo Limited’s registered capital. Allocations to the statutory reserve fund can only be used for specific purposes and are not transferable to us in the form of loans, advances or cash dividends. As a result, if our existing cash and amount available under existing bank loans are insufficient to meet our requirements, we may seek to sell additional equity securities, debt securities or borrow additional funds from lending institutions. We can make no assurances that financing will be available in the amounts we need or on terms acceptable to us, if at all. The sale of additional equity securities, including convertible debt securities, would dilute the interests of our current shareholders. The incurrence of debt would divert cash for working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict our operations and our ability to pay dividends to our shareholders. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer.

Off-Balance Sheet Arrangements and Contractual Obligations

As previously disclosed, on June 8, 2012, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with TransCloud Company Limited, a Cayman Islands exempted company with limited liability and indirectly wholly owned by Mr. Shudong Xia ("Parent"), TransCloud Acquisition, Inc., a Nevada corporation and a wholly owned, direct subsidiary of Parent ("Merger Sub"). Under the Merger Agreement, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent.

According to the Merger Agreement, at the effective time of the Merger, each outstanding share of the Company’s common stock will be converted automatically into the right to receive $5.80 in cash, without interest, excluding certain shares as provided in the Merger Agreement. The Merger remains subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, including obtaining approval of the existing stockholders of the Company.

The foregoing description of the Merger Agreement is qualified in its entirety by reference to the full text of the Merger Agreement, copy of which has been filed as an Exhibit to our current report on Form 8-K dated June 8, 2012, and which is incorporated herein by reference.

Seasonality

Our results of operations are affected by seasonality and we typically see lower sales as well as lower cash collection during the first half than the second half of a year. Such seasonality is mainly caused by governmental seasonal budgeting activities and behaviors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

Pursuant to Item 305(e) of Regulation S-K, the Company is not required to provide the information required by this Item as it is a “smaller reporting company.”

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures.

Our management, with the participation of our chief executive officer and chief financial officer, Mr. Shudong Xia and Mr. Rong Zhang, respectively, evaluated the effectiveness of our disclosure controls and procedures. The term “disclosure controls and procedures” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports, such as this report, that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on that evaluation, Mr. Shudong Xia and Mr. Rong Zhang concluded that as of June 30, 2012, our disclosure controls and procedures were effective at the reasonable assurance level.

22


Changes in Internal Control Over Financial Reporting.

During the fiscal quarter ended June 30, 2012, there were no changes in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 

23


PART II
OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

From time to time, we may have disputes that arise in the ordinary course of our business. Currently, there are no material legal proceedings to which we are a party, or to which any of our property is subject, that we expect to have a material adverse effect on our financial condition, except as follows:

The Company and the members of our board of directors are named as defendants in purported class action lawsuits (the “Stockholder Actions”) brought in the Eighth Judicial District Court, Clark County, Nevada (the “Eighth Judicial Districted Court”) by several stockholders: Oswald Velz v. China TransInfo Technology Corp. et al., Case No. A-12-657022-C (filed February 24, 2012), Tim Valles v. Shudong Xia et al. Case No. A-12-657443-C (filed March 1, 2012) and Carl M. Domitrovich v. Shudong Xia et al. Case No. A-12-657740-C (filed March 6, 2012). The Stockholder Actions generally allege that the Company and all of our directors breached their fiduciary duties in connection with the receipt by the Company of a preliminary, non-binding proposal from Shudong Xia, the Company’s Chairman and Chief Executive Officer, to acquire all of the outstanding shares of our common stock not currently owned by him in a going private transaction at a proposed price of $5.65 per share in cash (the “Proposed Transaction”). The Stockholder Actions seek, among other things, to declare that the Proposed Transaction is unfair, unjust and inequitable, to enjoin the Company from taking any steps necessary to accomplish or implement the Proposed Transaction, and damages in the event the Proposed Transaction is consummated.

On July 13, 2012, the above three class action complaints were consolidated into one amended class action complaint, In Re China TransInfo Technology Corp. Shareholders’ Litigation, Consolidated Case No. A-12-657022-B, filed in the Eighth Judicial District Court and against our directors and some other parties to the Proposed Transaction.

ITEM 1A. RISK FACTORS

Our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 contains a detailed discussion of risk factors that could materially adversely affect our business, our operating results, or our financial condition. The following risk factor should be read in conjunction with that discussion. Except for the addition of this risk factor, there are no material changes from the risk factors previously disclosed in Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2011.

Our auditor, like other independent registered public accounting firms operating in China, is not inspected by the U.S. Public Company Accounting Oversight Board (the“PCAOB”), and as such, our investors currently do not have the benefits of PCAOB oversight.

Auditors of companies that are public in the U.S. must be registered with the PCAOB. US audit firms that are registered with the PCAOB are required by U.S. law to undergo regular inspection by the PCAOB to assess their compliance with professional auditing standards in connection with their audits of public company. Because our auditor is located in China, a jurisdiction where the PCAOB is currently unable to conduct inspections without the approval of the Chinese authorities, the audit work and practices of our auditor, like other registered audit firms operating in China, is currently not inspected by the PCAOB.

The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of our auditor’s audit procedures or quality control procedures as compared to auditors outside of China that are subject to PCAOB inspections. As a result, investors may be deprived of the benefits of PCAOB inspections. Investors may also lose confidence in our reported financial information and procedures and the quality of our financial statements.

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

We have not sold any unregistered equity securities during the fiscal quarter ended June 30, 2012 that were not previously disclosed in a current report on Form 8-K that was filed during that period.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

None

24


ITEM 6. EXHIBITS.

EXHIBITS.

31.1

Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certification of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101

The following financial information from The China TransInfo Technology Corp.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at June 30, 2012 and December 31, 2011, (ii) Condensed Consolidated Statements of Income for the three and six months ended June 30, 2012 and 2011, (iii) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011, and (iv) the Notes to Condensed Consolidated Financial Statements (Unaudited).

25


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

DATED: August 14, 2012

CHINA TRANSINFO TECHNOLOGY CORP.

By: /s/ Shudong Xia                                               
Shudong Xia
Chief Executive Officer
(Principal Executive Officer)

By: /s/ Rong Zhang                                                
Rong Zhang
Chief Financial Officer
(Principal Financial Officer)


EXHIBIT INDEX

Exhibit Number Description
31.1

Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Certification of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101

The following financial information from The China TransInfo Technology Corp.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at June 30, 2012 and December 31, 2011, (ii) Condensed Consolidated Statements of Income for the three and six months ended June 30, 2012 and 2011, (iii) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011, and (iv) the Notes to Condensed Consolidated Financial Statements (Unaudited).

   

EX-31.1 2 exhibit31-1.htm EXHIBIT 31.1 China Transinfo Technology Corp.: Exhibit 31.1 - Filed by newsfilecorp.com

Exhibit 31.1

CERTIFICATIONS

I, Shudong Xia, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of China TransInfo Technology Corp.;

   
2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

   
3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

   
4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

   
a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

   
b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

   
c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

   
d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

   
5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

   
a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

   
b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2012

/s/ Shudong Xia                                            
Shudong Xia
Chief Executive Officer


EX-31.2 3 exhibit31-2.htm EXHIBIT 31.2 China Transinfo Technology Corp.: Exhibit 31.2 - Filed by newsfilecorp.com

Exhibit 31.2

CERTIFICATIONS

I, Rong Zhang, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of China TransInfo Technology Corp.;

   
2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

   
3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

   
4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

   
a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

   
b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

   
c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

   
d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

   
5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

   
a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

   
b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2012

/s/ Rong Zhang                                     
Rong Zhang
Chief Financial Officer


EX-32.1 4 exhibit32-1.htm EXHIBIT 32.1 China Transinfo Technology Corp.: Exhibit 32.1 - Filed by newsfilecorp.com

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Shudong Xia, the Chief Executive Officer of CHINA TRANSINFO TECHNOLOGY CORP. (the “Company”), DOES HEREBY CERTIFY that:

1. The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, each of the undersigned has executed this statement this 14th day of August 2012.

/s/ Shudong Xia                                        
Shudong Xia
Chief Executive Officer
(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to China TransInfo Technology Corp. and will be retained by China TransInfo Technology Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


EX-32.2 5 exhibit32-2.htm EXHIBIT 32.2 China Transinfo Technology Corp.: Exhibit 32.2 - Filed by newsfilecorp.com

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Rong Zhang, Chief Financial Officer of CHINA TRANSINFO TECHNOLOGY CORP. (the “Company”), DOES HEREBY CERTIFY that:

1. The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, each of the undersigned has executed this statement this 14th day of August 2012.

/s/ Rong Zhang                                                                       
Rong Zhang
Chief Financial Officer
(Principal Financial Officer and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to China TransInfo Technology Corp. and will be retained by China TransInfo Technology Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


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background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:13.72%;border:none;border-bottom:solid windowtext 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 59.05pt"><font style="font-size:10.0pt;">82,680,551</font></p></td> <td nowrap="nowrap" style="width:.44%;border:none;border-bottom:solid windowtext 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:3.4%;border:none;border-bottom:solid windowtext 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="3%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:2.6%;border:none;border-bottom:solid windowtext 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:13.24%;border:none;border-bottom:solid windowtext 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 58.1pt"><font style="font-size:10.0pt;&#10; color:black">78,913,748</font></p></td> <td nowrap="nowrap" style="width:.26%;border:none;border-bottom:solid windowtext 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td></tr> <tr> <td style="width:63.42%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm" width="63%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">Total</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:.48%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:2.44%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:13.72%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 59.05pt"><font style="font-size:10.0pt;">308,235,437</font></p></td> <td nowrap="nowrap" style="width:.44%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font></p></td> <td style="width:3.4%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm" width="3%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:2.6%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:13.24%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; 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background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:13.72%;border:none;border-bottom:solid black 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 59.05pt"><font style="font-size:10.0pt">(</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">261,080,441</font><font style="font-size:10.0pt">)</font></p></td> <td nowrap="nowrap" style="width:.44%;border:none;border-bottom:solid black 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:3.4%;border:none;border-bottom:solid black 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="3%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:2.6%;border:none;border-bottom:solid black 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:13.24%;border:none;border-bottom:solid black 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 58.1pt"><font style="font-size:10.0pt;&#10; color:black">(251,</font><font style="font-size:10.0pt;color:black;">432,307</font><font style="font-size:&#10; 10.0pt;color:black">)</font></p></td> <td nowrap="nowrap" style="width:.26%;border:none;border-bottom:solid black 1.5pt;&#10; background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td></tr> <tr style="mso-height-rule:exactly"> <td style="width:63.42%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="63%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:.48%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:2.44%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:13.72%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 59.05pt"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-bidi-font-family:SimSun">&#160;</font></p></td> <td nowrap="nowrap" style="width:.44%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:3.4%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="3%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td style="width:2.6%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td style="width:13.24%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 58.1pt"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td nowrap="nowrap" style="width:.26%;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:5.65pt;mso-height-rule:exactly" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="bottom" style="width:63.42%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="63%"> <p class="MsoNormal" style="margin-top:0cm;margin-right:22.65pt;margin-bottom:&#10; 0cm;margin-left:11.75pt;margin-bottom:.0001pt;text-align:justify;text-justify:&#10; inter-ideograph;text-indent:-11.75pt"><font style="font-size:10.0pt">Costs and estimated earnings on uncompleted contracts, net of billings in excess of costs and estimated earnings on uncompleted contracts</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:.48%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><font style="font-size:10.0pt">&#160;</font></b><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:2.44%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><font style="font-size:10.0pt">$</font></b><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:13.72%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 59.05pt"><b><font style="font-size:10.0pt;">47,154,996</font></b></p></td> <td nowrap="nowrap" valign="bottom" style="width:.44%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><font style="font-size:10.0pt">&#160;</font></b></p></td> <td valign="bottom" style="width:3.4%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="3%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><font style="font-size:10.0pt">&#160;</font></b><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:2.6%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><font style="font-size:10.0pt">$</font></b><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:13.24%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph;&#10; tab-stops:decimal 58.1pt"><b><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">30,157,622</font></b><b><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-bidi-font-family:SimSun;"/></b></p></td> <td nowrap="nowrap" valign="bottom" style="width:.26%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><font style="font-size:10.0pt">&#160;</font></b><b style="mso-bidi-font-weight:&#10; normal"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&#10; &quot;Times New Roman&quot;;mso-bidi-font-family:SimSun"/></b></p></td></tr></table></div> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;</font></p> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">The costs and estimated earnings on uncompleted contracts are included in the accompanying balance sheets under the following captions:</font><font style="font-size:10.0pt;mso-fareast-language:&#10;ZH-CN"/></p> <div align="center"> <table cellspacing="0" class="MsoNormalTable" cellpadding="0" border="0" style="margin-left:-43.25pt;mso-table-layout-alt:fixed;mso-padding-alt:0cm 0cm 0cm 0cm" width="98%"> <tr style="mso-yfti-firstrow:yes"> <td valign="bottom" style="width:63.9%;border:none;border-bottom:&#10; solid black 1.5pt;padding:0cm 0cm 0cm 0cm" width="63%"> <p class="MsoNormal"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-bidi-font-family:SimSun">&#160;</font></p></td> <td valign="bottom" style="width:.22%;border:none;border-bottom:&#10; solid black 1.5pt;padding:0cm 0cm 0cm 0cm" width="0%"> <p align="right" class="MsoNormal" style="text-align:right"><b><font style="font-size:10.0pt">&#160;</font></b></p></td> <td valign="bottom" colspan="2" style="width:16.72%;border:none;&#10; border-bottom:solid black 1.5pt;padding:0cm 0cm 0cm 0cm" width="16%"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;">June 30, </font></b><b style="mso-bidi-font-weight:&#10; normal"><font style="font-size:10.0pt;mso-fareast-font-family:&#10; PMingLiU;mso-fareast-language:ZH-HK"/></b></p> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;">2012</font></b></p></td> <td nowrap="nowrap" valign="bottom" style="width:.22%;border:none;border-bottom:&#10; solid black 1.5pt;padding:0cm 0cm 0cm 0cm" width="0%"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt">&#160;</font></b></p></td> <td valign="bottom" style="width:2.86%;border:none;border-bottom:&#10; solid black 1.5pt;padding:0cm 0cm 0cm 0cm" width="2%"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-bidi-font-family:SimSun">&#160;</font></b></p></td> <td valign="top" colspan="2" style="width:15.88%;border:none;&#10; border-bottom:solid black 1.5pt;padding:0cm 0cm 0cm 0cm" width="15%"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt">December 31,</font></b><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"> &#160;&#160;&#160;&#160;&#160;&#160;</font></b><b style="mso-bidi-font-weight:&#10; normal"><font style="font-size:10.0pt">20</font></b><b><font style="font-size:10.0pt;">11</font></b></p></td> <td nowrap="nowrap" valign="bottom" style="width:.22%;border:none;border-bottom:&#10; solid black 1.5pt;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal"><font style="font-size:10.0pt">&#160;</font></p></td></tr> <tr> <td valign="bottom" style="width:63.9%;padding:0cm 0cm 0cm 0cm" width="63%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:10.0pt">&#160; </font><font style="font-family:&#10; &quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&#10; SimSun"/></p></td> <td valign="bottom" style="width:.22%;padding:0cm 0cm 0cm 0cm" width="0%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&#10; &quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&#10; SimSun"/></p></td> <td valign="bottom" colspan="2" style="width:16.72%;padding:0cm 0cm 0cm 0cm" width="16%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&#10; 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SimSun"/></p></td> <td nowrap="nowrap" valign="bottom" style="width:.22%;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td></tr> <tr> <td valign="bottom" style="width:63.9%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm" width="63%"> <p class="MsoNormal" style="margin-top:0cm;margin-right:32.95pt;margin-bottom:&#10; 0cm;margin-left:22.15pt;margin-bottom:.0001pt;text-indent:-22.15pt"><font style="font-size:10.0pt">Costs incurred on estimated earnings in excess of billings on uncompleted contracts</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:.22%;background:#CCFFCC;padding:&#10; 0cm 0cm 0cm 0cm" width="0%"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&#10; 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padding:0cm 0cm 0cm 0cm" width="2%"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&#10; &quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&#10; SimSun"/></p></td> <td valign="bottom" style="width:2.8%;background:#CCFFCC;padding:&#10; 0cm 0cm 0cm 0cm" width="2%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:10.0pt">$</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-bidi-font-family:SimSun"/></p></td> <td valign="bottom" style="width:13.08%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="tab-stops:decimal 58.0pt"><font style="font-size:10.0pt;color:black">42,917,900</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td nowrap="nowrap" valign="bottom" style="width:.22%;background:#CCFFCC;&#10; 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solid windowtext 1.5pt;background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&#10; &quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&#10; SimSun"/></p></td> <td valign="bottom" style="width:2.8%;border:none;border-bottom:&#10; solid windowtext 1.5pt;background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td valign="bottom" style="width:13.08%;border:none;border-bottom:&#10; solid windowtext 1.5pt;background:white;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="tab-stops:decimal 58.0pt"><font style="font-size:10.0pt">(</font><font style="font-size:10.0pt;&#10; color:black;mso-fareast-language:ZH-CN">12,760,278</font><font style="font-size:10.0pt">)</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-bidi-font-family:SimSun"/></p></td> <td nowrap="nowrap" valign="bottom" style="width:.22%;border:none;border-bottom:&#10; solid windowtext 1.5pt;background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p class="MsoNormal"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td></tr> <tr style="mso-height-rule:exactly"> <td valign="bottom" style="width:63.9%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="63%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td valign="bottom" style="width:.22%;background:#CCFFCC;padding:&#10; 0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="0%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&#10; &quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&#10; SimSun"/></p></td> <td valign="bottom" style="width:2.84%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="2%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td valign="bottom" style="width:13.88%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="13%"> <p class="MsoNormal" style="tab-stops:decimal 56.65pt"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td nowrap="nowrap" valign="bottom" style="width:.22%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="0%"> <p class="MsoNormal"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:2.86%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="2%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&#10; &quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&#10; SimSun"/></p></td> <td valign="bottom" style="width:2.8%;background:#CCFFCC;padding:&#10; 0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="2%"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;">&#160;</font></p></td> <td valign="bottom" style="width:13.08%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="13%"> <p class="MsoNormal" style="tab-stops:decimal 58.0pt"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&#10; &quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&#10; SimSun"/></p></td> <td nowrap="nowrap" valign="bottom" style="width:.22%;background:#CCFFCC;&#10; padding:0cm 0cm 0cm 0cm;height:5.65pt;mso-height-rule:exactly" width="0%"> <p class="MsoNormal"><font style="font-size:10.0pt">&#160;</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="bottom" style="width:63.9%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="63%"> <p class="MsoNormal"><font style="font-size:10.0pt">Total</font><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:.22%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="0%"> <p align="right" class="MsoNormal" style="text-align:right"><b><font style="font-size:10.0pt">&#160;</font></b><font style="font-family:&#10; 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double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p align="right" class="MsoNormal" style="text-align:right"><b><font style="font-size:10.0pt">&#160;</font></b><font style="font-family:&#10; &quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-bidi-font-family:&#10; SimSun"/></p></td> <td valign="bottom" style="width:2.8%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="2%"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt">$</font></b><font style="font-family:&quot;SimSun&quot;,&quot;serif&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;"/></p></td> <td valign="bottom" style="width:13.08%;border:none;border-bottom:&#10; double black 2.25pt;background:white;padding:0cm 0cm 0cm 0cm" width="13%"> <p class="MsoNormal" style="tab-stops:decimal 58.0pt"><b style="mso-bidi-font-weight:&#10; normal"><font style="font-size:10.0pt;color:black;mso-fareast-language:&#10; 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height:9.9pt" width="347"> <p class="MsoNormal"><b><font style="font-size:9.0pt;color:black">Sub-total</font></b></p></td> <td valign="top" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="75"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:9.0pt;&#10; color:black">&#160;</font></b></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><b><font style="font-size:9.0pt;color:black">&#160;</font></b></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><b><font style="font-size:9.0pt;color:black">&#160;</font></b></p></td> <td valign="top" style="width:61.45pt;border:none;border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="82"> <p align="right" class="MsoNormal" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">10,708,133</font></b><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN"/></b></p></td> <td valign="top" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="19"> <p align="right" class="MsoNormal" style="text-align:right"><b style="mso-bidi-font-weight:&#10; normal"><u><font style="font-size:9.0pt;color:black"><font style="text-decoration:none">&#160;</font></font></u></b></p></td> <td style="width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="86"> <p align="right" class="MsoNormal" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right"><b><font style="font-size:9.0pt;color:black">10,</font></b><b><font style="font-size:9.0pt;&#10; color:black;mso-fareast-language:ZH-CN">272,474</font></b></p></td></tr> <tr > <td valign="top" style="width:40.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="54"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">Cost</font></p></td> <td valign="top" style="width:12.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="17"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" style="width:207.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="276"> <p class="MsoNormal"><font style="font-size:9.0pt">Wuhan</font><font style="font-size:9.0pt;mso-fareast-font-family:&quot;Times New Roman&quot;"> Optic Times Technology Co., Ltd</font><font style="font-size:9.0pt">.<font style="color:black"/></font></p></td> <td valign="top" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="75"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">1.04%</font></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td style="width:61.45pt;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt" width="82"> <p align="right" class="MsoNormal" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right"><font style="font-size:9.0pt;color:black;">226,148</font><font style="font-size:&#10; 9.0pt;color:black"/></p></td> <td valign="top" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="19"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td style="width:64.2pt;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt" width="86"> <p align="right" class="MsoNormal" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right"><font style="font-size:9.0pt;color:black">224,578</font></p></td></tr> <tr > <td valign="top" style="width:40.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="54"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">Cost</font></p></td> <td valign="top" style="width:12.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="17"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" style="width:207.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="276"> <p class="MsoNormal" style="margin-left:10.15pt;text-indent:-10.15pt;"><font style="font-size:9.0pt;">ShanDong Hi-speed Information Engineering Co., Ltd</font><font style="font-size:9.0pt">.<font style="color:black"/></font></p></td> <td valign="top" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="75"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">5.00%</font></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="bottom" style="width:61.45pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="82"> <p align="right" class="MsoNormal" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right"><font style="font-size:9.0pt;color:black">118,</font><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">875</font><font style="font-size:9.0pt;color:black"/></p></td> <td valign="bottom" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="19"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="bottom" style="width:64.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="86"> <p align="right" class="MsoNormal" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right"><font style="font-size:9.0pt;color:black">118,050</font></p></td></tr> <tr > <td valign="top" style="width:40.85pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="54"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">Cost</font></p></td> <td valign="top" style="width:12.7pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="17"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" style="width:207.0pt;background:#E6EFFF;padding:&#10; 0cm 5.4pt 0cm 5.4pt;height:9.9pt" width="276"> <p class="MsoNormal"><font style="font-size:9.0pt;mso-fareast-font-family:&#10; &quot;Times New Roman&quot;">Bei</font><font style="font-size:9.0pt;">j</font><font style="font-size:9.0pt;">ingZiguangYouma Technology Co., Ltd</font><font style="font-size:9.0pt">.<font style="color:black"/></font></p></td> <td valign="top" style="width:56.6pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="75"> <p align="center" class="MsoNormal" style="text-align:center"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">15.00%</font></p></td> <td valign="top" style="width:11.8pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><u><font style="font-size:9.0pt;color:black"><font style="text-decoration:none">&#160;</font></font></u></p></td> <td valign="top" style="width:11.8pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><u><font style="font-size:9.0pt;mso-fareast-font-family:&#10; PMingLiU;color:black;mso-fareast-language:ZH-HK"><font style="text-decoration:&#10; none">&#160;</font></font></u></p></td> <td style="width:61.45pt;border:none;border-bottom:solid windowtext 1.0pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="82"> <p align="right" class="MsoNormal" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right"><font style="font-size:9.0pt;color:black;">23,775<u/></font></p></td> <td valign="top" style="width:13.9pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="19"> <p align="right" class="MsoNormal" style="text-align:right"><u><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN"><font style="text-decoration:none">&#160;</font></font></u></p></td> <td valign="top" style="width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="86"> <p align="right" class="MsoNormal" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right"><font style="font-size:9.0pt;color:black;">23,610</font></p></td></tr> <tr > <td valign="top" colspan="3" style="width:260.55pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="347"> <p class="MsoNormal"><b><font style="font-size:9.0pt">Sub-total</font></b></p></td> <td valign="top" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="75"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:9.0pt;&#10; color:black">&#160;</font></b></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><b><u style="text-underline:double"><font style="font-size:9.0pt;&#10; color:black"><font style="text-decoration:none">&#160;</font></font></u></b></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="16"> <p class="MsoNormal"><b><u style="text-underline:double"><font style="font-size:9.0pt;&#10; color:black"><font style="text-decoration:none">&#160;</font></font></u></b></p></td> <td valign="top" style="width:61.45pt;border:none;border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="82"> <p align="right" class="MsoNormal" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">3</font></b><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-HK">68,</font></b><b><font style="font-size:9.0pt;&#10; color:black;mso-fareast-language:ZH-CN">798</font></b></p></td> <td valign="top" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="19"> <p align="right" class="MsoNormal" style="text-align:right"><b style="mso-bidi-font-weight:&#10; normal"><u style="text-underline:double"><font style="font-size:&#10; 9.0pt;color:black;mso-fareast-language:ZH-CN"><font style="text-decoration:&#10; none">&#160;</font></font></u></b></p></td> <td style="width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" width="86"> <p align="right" class="MsoNormal" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">366,238</font></b></p></td></tr> <tr style="mso-yfti-lastrow:yes;mso-height-rule:&#10; exactly"> <td valign="top" style="width:40.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="54"> <p class="MsoNormal"><b><font style="font-size:9.0pt;color:black">Total</font></b></p></td> <td valign="top" style="width:12.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="17"> <p align="center" class="MsoNormal" style="text-align:center"><u><font style="font-size:9.0pt;mso-fareast-font-family:PMingLiU;&#10; color:black;mso-fareast-language:ZH-HK"><font style="text-decoration:&#10; none">&#160;</font></font></u></p></td> <td valign="top" style="width:207.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="276"> <p class="MsoNormal"><b><font style="font-size:9.0pt;mso-fareast-font-family:PMingLiU;mso-fareast-language:&#10; ZH-HK">&#160;</font></b></p></td> <td valign="top" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="75"> <p class="MsoNormal" style="margin-top:6.0pt;margin-right:0cm;margin-bottom:&#10; 6.0pt;margin-left:0cm;text-align:justify;text-justify:inter-ideograph;"><b style="mso-bidi-font-weight:&#10; normal"><u style="text-underline:double"><font style="font-size:&#10; 9.0pt;mso-fareast-font-family:PMingLiU;color:black;mso-fareast-language:ZH-HK"><font style="text-decoration:none">&#160;</font></font></u></b></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="16"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><u style="text-underline:double"><font style="font-size:9.0pt;color:black"><font style="text-decoration:&#10; none">&#160;</font></font></u></b></p></td> <td valign="top" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="16"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><font style="font-size:9.0pt;&#10; color:black">$</font></b></p></td> <td valign="top" style="width:61.45pt;border:none;border-bottom:double windowtext 1.5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="82"> <p align="right" class="MsoNormal" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">11,076,931</font></b></p></td> <td valign="top" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="19"> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-HK">$</font></b></p></td> <td valign="top" style="width:64.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly" width="86"> <p align="right" class="MsoNormal" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">10,638,712</font></b></p></td></tr></table> <p class="MsoNormal" style="line-height:14.0pt;mso-line-height-rule:exactly"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;</font></b></p> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">Summarized income statement information of equity investment in affiliates is as follows:</font></p> <table cellspacing="0" class="MsoNormalTable" cellpadding="0" border="0" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt:&#10; 0cm 0cm 0cm 0cm" width="444"> <tr style="mso-yfti-firstrow:yes"> <td valign="top" colspan="5" style="width:333.15pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="444"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:9.0pt;">GanSu</font></b><b><font style="font-size:9.0pt;mso-fareast-language:ZH-HK"> </font></b><b><font style="font-size:9.0pt;">Ziguang Intelligent Transportation and Control</font></b><b><u><font style="font-size:10.0pt;color:black"/></u></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center;tab-stops:decimal 54.55pt"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Three months</font></b></p></td> <td valign="top" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Six months</font></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font></b></p></td> <td valign="top" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center;tab-stops:decimal 54.55pt"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font></b></p></td> <td valign="top" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center;tab-stops:decimal 54.55pt"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net sales</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" style="width:63.35pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;background:#CCE8CF;mso-background-themecolor:background1;&#10; padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">9,077,213</font></p></td> <td valign="top" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="17"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" style="width:63.8pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;background:#CCE8CF;mso-background-themecolor:background1;&#10; padding:0cm 0cm 0cm 0cm;height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">18,510,885</font></p></td></tr> <tr > <td valign="top" style="width:177.2pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Gross Profit</font></p></td> <td valign="top" style="width:16.35pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">2,277,469</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font><font style="background:#CCE8CF;"/></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">4,332,935</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Income from operations</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">2,073,200</font></p></td> <td valign="top" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="17"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font><font style="background:#CCE8CF;"/></p></td> <td valign="top" style="width:63.8pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">3,709,426</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net income</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">1,434,558</font></p></td> <td valign="top" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="17"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></p></td> <td valign="top" style="width:63.8pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">2,549,398</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr></table> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10;background1;mso-fareast-language:ZH-CN">&#160;</font></p> <table cellspacing="0" class="MsoNormalTable" cellpadding="0" border="0" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt:&#10; 0cm 0cm 0cm 0cm" width="444"> <tr style="mso-yfti-firstrow:yes"> <td valign="top" colspan="5" style="width:333.15pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="444"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:9.0pt;background:#CCE8CF;mso-shading-themecolor:&#10; background1">ShanXi Ziguang Trans Technology Co., Ltd.</font></b><b><u><font style="font-size:&#10; 10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:background1"/></u></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Three months</font></b></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Six months</font><font style="background:#CCE8CF;"/></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font></b></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font></b></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font><font style="background:#CCE8CF;"/></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net sales</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" style="width:63.35pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;background:#CCE8CF;mso-background-themecolor:background1;&#10; padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">4,615</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></p></td> <td valign="top" style="width:63.8pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">15,831</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Gross Profit</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">4,371</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p align="right" class="MsoNormal" style="text-align:right"><font style="background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">&#160;</font></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">1,878</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Income from operations</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">4,439</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p align="right" class="MsoNormal" style="text-align:right"><font style="background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">&#160;</font></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">1,580</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net income</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">1,231</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">103</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr></table> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10;background1;mso-fareast-language:ZH-CN">&#160;</font></p> <table cellspacing="0" class="MsoNormalTable" cellpadding="0" border="0" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt:&#10; 0cm 0cm 0cm 0cm" width="444"> <tr style="mso-yfti-firstrow:yes"> <td valign="top" colspan="5" style="width:333.15pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="444"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:9.0pt;background:#CCE8CF;mso-shading-themecolor:&#10; background1">Beijing Chinacommunications Unisplendour Technology Co. , Ltd.</font></b><b><u><font style="font-size:&#10; 10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:background1"/></u></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Three months</font></b></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Six months</font><font style="background:#CCE8CF;"/></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font></b></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font></b></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" style="width:63.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="center" class="MsoNormal" style="text-align:center"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font><font style="background:#CCE8CF;"/></b></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net sales</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" style="width:63.35pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;background:#CCE8CF;mso-background-themecolor:background1;&#10; padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">33,346</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">$</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td> <td valign="top" style="width:63.8pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">426,446</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr > <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Gross Profit</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">(220,373)</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; 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background1;mso-fareast-language:ZH-CN">(234,923)</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">(235,054)</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="top" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="236"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black">Net income</font></p></td> <td valign="top" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="22"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black">$</font></p></td> <td valign="top" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt" width="84"> <p class="MsoNormal" style="tab-stops:decimal 54.55pt"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">(235,002)</font></p></td> <td valign="top" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="17"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black">$</font></p></td> <td valign="top" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="85"> <p align="right" class="MsoNormal" style="text-align:right"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">(234,463)</font></p></td></tr></table> <p class="1" style="margin-left:14.2pt;text-align:justify;text-justify:inter-ideograph;&#10;text-indent:0cm;mso-char-indent-count:0">&#160;</p> <p class="1" style="margin-left:17.5pt;text-indent:-18.0pt;mso-char-indent-count:&#10;0;mso-list:l0 level1 lfo1"><b><font style="font-size:10.0pt;mso-fareast-font-family:&quot;Times New Roman&quot;">7.<font style="font:7.0pt &quot;Times New Roman&quot;">&#160;&#160;&#160;&#160;&#160;&#160; </font></font></b><b><font style="font-size:10.0pt">INTANGIBLE ASSETS</font></b></p> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">&#160;</font></p> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;color:black">Intangible assets consisted of the following:</font></p> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">&#160;</font></p> <table cellspacing="0" class="MsoNormalTable" cellpadding="0" border="0" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt:&#10; 0cm 0cm 0cm 0cm" width="595"> <tr style="mso-yfti-firstrow:yes"> <td valign="top" style="width:165.95pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" width="221"> <p class="MsoNormal"><b><font style="font-size:10.0pt;color:black">&#160;</font></b></p></td> <td valign="top" style="width:39.75pt;padding:0cm 0cm 0cm 0cm;&#10; 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17.85pt" nowrap="nowrap"/> <td width="79" style="width:59.4pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 17.85pt" nowrap="nowrap"/> <td width="104" style="width:77.75pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td></tr> <tr style="mso-yfti-lastrow:yes;mso-row-margin-left:&#10; 95.45pt"> <td width="127" style="border:none;padding:0cm 0cm 0cm 0cm"> <p class="MsoNormal">&#160;</p></td> <td width="61" style="width:45.95pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="67" style="width:50.2pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.55pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 13.5pt" nowrap="nowrap"/> <td width="110" style="width:82.35pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160; 562,181</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 13.5pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 13.5pt" nowrap="nowrap"/> <td width="79" style="width:59.4pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 13.5pt" nowrap="nowrap"/> <td width="104" style="width:77.75pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160; 361,810</font></p></td></tr> <tr > <td width="124" style="border:none"/> <td width="65" style="border:none"/> <td width="67" style="border:none"/> <td width="15" style="border:none"/> <td width="73" style="border:none"/> <td width="15" style="border:none"/> <td width="110" style="border:none"/> <td width="15" style="border:none"/> <td width="73" style="border:none"/> <td width="15" style="border:none"/> <td width="79" style="border:none"/> <td width="15" style="border:none"/> <td width="130" style="border:none"/></tr></table> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">&#160;</font></p> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">&#160;</font></p> <table cellpadding="0" width="688" style="width:516.25pt;margin-left:-23.0pt;border-collapse:collapse;mso-yfti-tbllook:&#10; 1184;mso-padding-alt:0cm 5.4pt 0cm 5.4pt" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:14.25pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:&#23435;&#20307;;mso-fareast-theme-font:&#10; minor-fareast;mso-fareast-language:ZH-CN">&#160; </font></p></td> <td width="623" style="width:467.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:14.25pt" colspan="11" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Six Months Ended June 30,</font></b></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="303" style="width:227.35pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">2012</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="305" style="width:228.65pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">2011</font></b></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="173" style="width:129.4pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:15.75pt" colspan="3" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Domestic</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Foreign</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="186" style="width:139.4pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:15.75pt" colspan="3" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Domestic</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Foreign</font></b></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="86" style="width:64.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Federal</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="72" style="width:54.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">State</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">China</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="92" style="width:69.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Federal</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="79" style="width:59.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">State</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">China</font></b></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Current</font></b></p></td> <td width="86" style="width:64.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="72" style="width:54.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160; 1,140,449</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="92" style="width:69.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="79" style="width:59.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160; 862,935</font></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Deferred</font></b></p></td> <td width="86" style="width:64.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="72" style="width:54.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="92" style="width:69.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="79" style="width:59.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="86" style="width:64.15pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="72" style="width:54.15pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160; 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Deferred assets are</font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN"> </font><font style="font-size:10.0pt;color:black">reduced by a valuation allowance when deemed appropriate.</font><font style="font-size:&#10;10.0pt;mso-fareast-font-family:PMingLiU;color:black;mso-fareast-language:ZH-HK"/><font style="font-size:10.0pt;color:black">Operations in the United States of America have incurred net accumulated operating losses of $15,000,000 as of </font><font style="font-size:10.0pt;color:black;mso-fareast-language:&#10;ZH-CN">June 30</font><font style="font-size:10.0pt;color:black">, 201</font><font style="font-size:10.0pt;color:black;mso-fareast-language:&#10;ZH-CN">2</font><font style="font-size:10.0pt;color:black"> </font><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;">and December 31, 201</font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">1</font><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;"> </font><font style="font-size:10.0pt;&#10;color:black">for income tax purposes.</font><font style="font-size:&#10;10.0pt;color:black;mso-fareast-language:ZH-CN"> </font><font style="font-size:10.0pt;color:black">However, a valuation allowance has been established for the full amount of the deferred tax asset due to uncertainty of its realization</font><font style="font-size:10.0pt;color:black;">.</font><font style="font-size:10.0pt;&#10;color:black"> </font><font style="font-size:10.0pt;mso-fareast-font-family:&#10;PMingLiU;color:black;mso-fareast-language:ZH-HK"/></p> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;">&#160;</font></p> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">The effective tax rate was estimated by the Company to be 16.2% and 11.7% for the three months ended June 30, 2012 and 2011, respectively. </font><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;">During the </font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">six</font><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;"> months ended </font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">June 30</font><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;">, 2012 and 2011, the effective income tax rate was estimated by the Company to be </font><font style="font-size:10.0pt;&#10;color:black;mso-fareast-language:ZH-CN">16.69</font><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;">% and</font><font style="font-size:10.0pt;&#10;color:black;mso-fareast-language:ZH-CN"> 11.94</font><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;">%, respectively.</font></p> <p class="1" style="margin-left:17.5pt;text-indent:-18.0pt;mso-char-indent-count:&#10;0;mso-list:l0 level1 lfo1"><b><font style="font-size:10.0pt;mso-fareast-font-family:&quot;Times New Roman&quot;">12.<font style="font:7.0pt &quot;Times New Roman&quot;">&#160;&#160;&#160; </font></font></b><b><font style="font-size:10.0pt">EARNINGS PER SHARE</font></b></p> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;">&#160;</font></p> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;color:black">For the three months</font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN"> and six months</font><font style="font-size:10.0pt;color:black"> ended </font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">June</font><font style="font-size:10.0pt;color:black"> 3</font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">0</font><font style="font-size:10.0pt;color:black">, 2012 and 2011, basic and diluted net income per share are calculated as follows:</font></p> <table cellpadding="0" width="660" style="width:495.0pt;border-collapse:collapse;mso-yfti-tbllook:1184;" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td valign="bottom" width="213" style="width:159.55pt;&#10; border:none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">Three Months Ended June 30,</font></b></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td valign="bottom" width="219" style="width:164.05pt;&#10; border:none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">Six Months Ended June 30,</font></b></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="97" style="width:72.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" colspan="2"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2012</font></b></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="100" style="width:74.65pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" colspan="2"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2011</font></b></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="97" style="width:72.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" colspan="2"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2012</font></b></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="106" style="width:79.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" colspan="2"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2011</font></b></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Net income</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2,353,197</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2,789,396</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">4,772,493</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">5,756,672</font></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Weighted-average shares of common stock outstanding</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p style="text-indent:20.0pt;mso-char-indent-count:2.0" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">Basic</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,270,069</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,270,069</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,270,069</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,270,069</font></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p style="text-indent:20.0pt;mso-char-indent-count:2.0" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">Dilutive effect of warrants and stock options</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">50,523</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="78" style="width:58.85pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">3,126</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,862</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="84" style="width:63.35pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">3,248</font></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Diluted</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid white 1.0pt;mso-border-bottom-alt:solid white .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,320,592</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid white 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="78" style="width:58.85pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,273,195</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,295,931</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid white 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="84" style="width:63.35pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,273,317</font></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Basic earnings per common share</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid white 1.0pt;mso-border-bottom-alt:solid white .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.09 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid white 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="78" style="width:58.85pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.11 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.19 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid white 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="84" style="width:63.35pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.23 </font></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Diluted earnings per common share</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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style="font-size:9.0pt;mso-fareast-font-family:&quot;Times New Roman&quot;">Ziguang Intelligent Transportation and Control</font><font style="font-size:9.0pt;color:black"/></p></td> <td valign="top" width="75" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">33.33%</font></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">$</font></p></td> <td width="82" style="width:61.45pt;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black;">10,538,172</font><font style="font-size:9.0pt;color:black"/></p></td> <td valign="top" width="19" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:9.0pt;mso-fareast-font-family:PMingLiU;color:black;">$</font></p></td> <td width="86" style="width:64.2pt;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black">9,989,657</font><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN"/></p></td></tr> <tr > <td valign="top" width="54" style="width:40.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">Equity</font></p></td> <td valign="top" width="17" style="width:12.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="276" style="width:207.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;mso-fareast-font-family:&#10; &quot;Times New Roman&quot;">ShanXi</font><font style="font-size:9.0pt;mso-fareast-language:ZH-HK"> </font><font style="font-size:9.0pt;mso-fareast-font-family:&quot;Times New Roman&quot;">Ziguang Trans Technology Co., Ltd.</font><font style="font-size:9.0pt;&#10; color:black"/></p></td> <td valign="top" width="75" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">49.00%</font></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td width="82" style="width:61.45pt;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black;">84,163</font><font style="font-size:&#10; 9.0pt;color:black"/></p></td> <td valign="top" width="19" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td width="86" style="width:64.2pt;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black">122,214</font></p></td></tr> <tr > <td valign="top" width="54" style="width:40.85pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">Equity</font></p></td> <td valign="top" width="17" style="width:12.7pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="276" style="width:207.0pt;background:#E6EFFF;padding:&#10; 0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;mso-fareast-font-family:&#10; &quot;Times New Roman&quot;">Beijing Chinacommunications</font><font style="font-size:9.0pt;mso-fareast-font-family:PMingLiU;mso-fareast-language:&#10; ZH-HK"> </font><font style="font-size:9.0pt;mso-fareast-font-family:&#10; &quot;Times New Roman&quot;">U</font><font style="font-size:9.0pt;">nisp</font><font style="font-size:&#10; 9.0pt;mso-fareast-font-family:&quot;Times New Roman&quot;">lendour T</font><font style="font-size:9.0pt;mso-fareast-language:ZH-CN">echnology</font><font style="font-size:9.0pt;mso-fareast-font-family:&quot;Times New Roman&quot;"> Co. ,</font><font style="font-size:9.0pt"> Ltd.<font style="color:black"/></font></p></td> <td valign="top" width="75" style="width:56.6pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">30.00%</font></p></td> <td valign="top" width="16" style="width:11.8pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="16" style="width:11.8pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="bottom" width="82" style="width:61.45pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black;">85,798</font><font style="font-size:&#10; 9.0pt;color:black"/></p></td> <td valign="bottom" width="19" style="width:13.9pt;background:#E6EFFF;padding:&#10; 0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="bottom" width="86" style="width:64.2pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black">160,603</font></p></td></tr> <tr > <td valign="top" width="347" style="width:260.55pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" colspan="3"> <p class="MsoNormal"><b><font style="font-size:9.0pt;color:black">Sub-total</font></b></p></td> <td valign="top" width="75" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:9.0pt;&#10; color:black">&#160;</font></b></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><b><font style="font-size:9.0pt;color:black">&#160;</font></b></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><b><font style="font-size:9.0pt;color:black">&#160;</font></b></p></td> <td valign="top" width="82" style="width:61.45pt;border:none;border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">10,708,133</font></b><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN"/></b></p></td> <td valign="top" width="19" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="text-align:right" class="MsoNormal"><b style="mso-bidi-font-weight:&#10; normal"><u><font style="font-size:9.0pt;color:black"><font style="text-decoration:none">&#160;</font></font></u></b></p></td> <td width="86" style="width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><b><font style="font-size:9.0pt;color:black">10,</font></b><b><font style="font-size:9.0pt;&#10; color:black;mso-fareast-language:ZH-CN">272,474</font></b></p></td></tr> <tr > <td valign="top" width="54" style="width:40.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">Cost</font></p></td> <td valign="top" width="17" style="width:12.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="276" style="width:207.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt">Wuhan</font><font style="font-size:9.0pt;mso-fareast-font-family:&quot;Times New Roman&quot;"> Optic Times Technology Co., Ltd</font><font style="font-size:9.0pt">.<font style="color:black"/></font></p></td> <td valign="top" width="75" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">1.04%</font></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td width="82" style="width:61.45pt;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black;">226,148</font><font style="font-size:&#10; 9.0pt;color:black"/></p></td> <td valign="top" width="19" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td width="86" style="width:64.2pt;padding:0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black">224,578</font></p></td></tr> <tr > <td valign="top" width="54" style="width:40.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">Cost</font></p></td> <td valign="top" width="17" style="width:12.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="276" style="width:207.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p style="margin-left:10.15pt;text-indent:-10.15pt;" class="MsoNormal"><font style="font-size:9.0pt;">ShanDong Hi-speed Information Engineering Co., Ltd</font><font style="font-size:9.0pt">.<font style="color:black"/></font></p></td> <td valign="top" width="75" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">5.00%</font></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="bottom" width="82" style="width:61.45pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black">118,</font><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">875</font><font style="font-size:9.0pt;color:black"/></p></td> <td valign="bottom" width="19" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="bottom" width="86" style="width:64.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black">118,050</font></p></td></tr> <tr > <td valign="top" width="54" style="width:40.85pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">Cost</font></p></td> <td valign="top" width="17" style="width:12.7pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;color:black">&#160;</font></p></td> <td valign="top" width="276" style="width:207.0pt;background:#E6EFFF;padding:&#10; 0cm 5.4pt 0cm 5.4pt;height:9.9pt"> <p class="MsoNormal"><font style="font-size:9.0pt;mso-fareast-font-family:&#10; &quot;Times New Roman&quot;">Bei</font><font style="font-size:9.0pt;">j</font><font style="font-size:9.0pt;">ingZiguangYouma Technology Co., Ltd</font><font style="font-size:9.0pt">.<font style="color:black"/></font></p></td> <td valign="top" width="75" style="width:56.6pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">15.00%</font></p></td> <td valign="top" width="16" style="width:11.8pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><u><font style="font-size:9.0pt;color:black"><font style="text-decoration:none">&#160;</font></font></u></p></td> <td valign="top" width="16" style="width:11.8pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><u><font style="font-size:9.0pt;mso-fareast-font-family:&#10; PMingLiU;color:black;mso-fareast-language:ZH-HK"><font style="text-decoration:&#10; none">&#160;</font></font></u></p></td> <td width="82" style="width:61.45pt;border:none;border-bottom:solid windowtext 1.0pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black;">23,775<u/></font></p></td> <td valign="top" width="19" style="width:13.9pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="text-align:right" class="MsoNormal"><u><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN"><font style="text-decoration:none">&#160;</font></font></u></p></td> <td valign="top" width="86" style="width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;background:#E6EFFF;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><font style="font-size:9.0pt;color:black;">23,610</font></p></td></tr> <tr > <td valign="top" width="347" style="width:260.55pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt" colspan="3"> <p class="MsoNormal"><b><font style="font-size:9.0pt">Sub-total</font></b></p></td> <td valign="top" width="75" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:9.0pt;&#10; color:black">&#160;</font></b></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><b><u style="text-underline:double"><font style="font-size:9.0pt;&#10; color:black"><font style="text-decoration:none">&#160;</font></font></u></b></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p class="MsoNormal"><b><u style="text-underline:double"><font style="font-size:9.0pt;&#10; color:black"><font style="text-decoration:none">&#160;</font></font></u></b></p></td> <td valign="top" width="82" style="width:61.45pt;border:none;border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">3</font></b><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-HK">68,</font></b><b><font style="font-size:9.0pt;&#10; color:black;mso-fareast-language:ZH-CN">798</font></b></p></td> <td valign="top" width="19" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="text-align:right" class="MsoNormal"><b style="mso-bidi-font-weight:&#10; normal"><u style="text-underline:double"><font style="font-size:&#10; 9.0pt;color:black;mso-fareast-language:ZH-CN"><font style="text-decoration:&#10; none">&#160;</font></font></u></b></p></td> <td width="86" style="width:64.2pt;border:none;border-bottom:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:9.9pt"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">366,238</font></b></p></td></tr> <tr style="mso-yfti-lastrow:yes;mso-height-rule:&#10; exactly"> <td valign="top" width="54" style="width:40.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p class="MsoNormal"><b><font style="font-size:9.0pt;color:black">Total</font></b></p></td> <td valign="top" width="17" style="width:12.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p align="center" style="text-align:center" class="MsoNormal"><u><font style="font-size:9.0pt;mso-fareast-font-family:PMingLiU;&#10; color:black;mso-fareast-language:ZH-HK"><font style="text-decoration:&#10; none">&#160;</font></font></u></p></td> <td valign="top" width="276" style="width:207.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p class="MsoNormal"><b><font style="font-size:9.0pt;mso-fareast-font-family:PMingLiU;mso-fareast-language:&#10; ZH-HK">&#160;</font></b></p></td> <td valign="top" width="75" style="width:56.6pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p style="margin-top:6.0pt;margin-right:0cm;margin-bottom:&#10; 6.0pt;margin-left:0cm;text-align:justify;text-justify:inter-ideograph;" class="MsoNormal"><b style="mso-bidi-font-weight:&#10; normal"><u style="text-underline:double"><font style="font-size:&#10; 9.0pt;mso-fareast-font-family:PMingLiU;color:black;mso-fareast-language:ZH-HK"><font style="text-decoration:none">&#160;</font></font></u></b></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><b><u style="text-underline:double"><font style="font-size:9.0pt;color:black"><font style="text-decoration:&#10; none">&#160;</font></font></u></b></p></td> <td valign="top" width="16" style="width:11.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><b><font style="font-size:9.0pt;&#10; color:black">$</font></b></p></td> <td valign="top" width="82" style="width:61.45pt;border:none;border-bottom:double windowtext 1.5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p align="right" style="margin-right:1.45pt;mso-para-margin-right:&#10; .12gd;text-align:right" class="MsoNormal"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">11,076,931</font></b></p></td> <td valign="top" width="19" style="width:13.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-HK">$</font></b></p></td> <td valign="top" width="86" style="width:64.2pt;border:none;border-bottom:double windowtext 1.5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.45pt;mso-height-rule:exactly"> <p align="right" style="margin-right:1.55pt;mso-para-margin-right:&#10; .13gd;text-align:right" class="MsoNormal"><b><font style="font-size:9.0pt;color:black;mso-fareast-language:ZH-CN">10,638,712</font></b></p></td></tr></table> <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">Summarized income statement information of equity investment in affiliates is as follows:</font></p> <table cellpadding="0" width="444" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt:&#10; 0cm 0cm 0cm 0cm" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td valign="top" width="444" style="width:333.15pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" colspan="5"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:9.0pt;">GanSu</font></b><b><font style="font-size:9.0pt;mso-fareast-language:ZH-HK"> </font></b><b><font style="font-size:9.0pt;">Ziguang Intelligent Transportation and Control</font></b><b><u><font style="font-size:10.0pt;color:black"/></u></b></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center;tab-stops:decimal 54.55pt" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Three months</font></b></p></td> <td valign="top" width="17" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="85" style="width:63.8pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Six months</font></b></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font></b></p></td> <td valign="top" width="17" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="85" style="width:63.8pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font></b></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center;tab-stops:decimal 54.55pt" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font></b></p></td> <td valign="top" width="17" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="85" style="width:63.8pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center;tab-stops:decimal 54.55pt" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font></b></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net sales</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" width="84" style="width:63.35pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;background:#CCE8CF;mso-background-themecolor:background1;&#10; padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">9,077,213</font></p></td> <td valign="top" width="17" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" width="85" style="width:63.8pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;background:#CCE8CF;mso-background-themecolor:background1;&#10; padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">18,510,885</font></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Gross Profit</font></p></td> <td valign="top" width="22" style="width:16.35pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">2,277,469</font></p></td> <td valign="top" width="17" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font><font style="background:#CCE8CF;"/></p></td> <td valign="top" width="85" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">4,332,935</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Income from operations</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">2,073,200</font></p></td> <td valign="top" width="17" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font><font style="background:#CCE8CF;"/></p></td> <td valign="top" width="85" style="width:63.8pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">3,709,426</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net income</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">1,434,558</font></p></td> <td valign="top" width="17" style="width:12.45pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></p></td> <td valign="top" width="85" style="width:63.8pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">2,549,398</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr></table> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10;background1;mso-fareast-language:ZH-CN">&#160;</font></p> <table cellpadding="0" width="444" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt:&#10; 0cm 0cm 0cm 0cm" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td valign="top" width="444" style="width:333.15pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" colspan="5"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:9.0pt;background:#CCE8CF;mso-shading-themecolor:&#10; background1">ShanXi Ziguang Trans Technology Co., Ltd.</font></b><b><u><font style="font-size:&#10; 10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:background1"/></u></b></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Three months</font></b></p></td> <td valign="top" width="17" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="85" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Six months</font><font style="background:#CCE8CF;"/></b></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font></b></p></td> <td valign="top" width="17" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="85" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></b></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font></b></p></td> <td valign="top" width="17" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="85" style="width:63.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font><font style="background:#CCE8CF;"/></b></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net sales</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" width="84" style="width:63.35pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;background:#CCE8CF;mso-background-themecolor:background1;&#10; padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">4,615</font></p></td> <td valign="top" width="17" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></p></td> <td valign="top" width="85" style="width:63.8pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">15,831</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Gross Profit</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">4,371</font></p></td> <td valign="top" width="17" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">&#160;</font></p></td> <td valign="top" width="85" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">1,878</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr > <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Income from operations</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">4,439</font></p></td> <td valign="top" width="17" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">&#160;</font></p></td> <td valign="top" width="85" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">1,580</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="top" width="236" style="width:177.2pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net income</font></p></td> <td valign="top" width="22" style="width:16.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" width="84" style="width:63.35pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">1,231</font></p></td> <td valign="top" width="17" style="width:12.45pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></p></td> <td valign="top" width="85" style="width:63.8pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">103</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr></table> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10;background1;mso-fareast-language:ZH-CN">&#160;</font></p> <table cellpadding="0" width="415" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt:&#10; 0cm 0cm 0cm 0cm" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td valign="top" width="415" style="width:311.15pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt" colspan="5"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:9.0pt;background:#CCE8CF;mso-shading-themecolor:&#10; background1">Beijing Chinacommunications Unisplendour Technology Co. , Ltd.</font></b><b><u><font style="font-size:&#10; 10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:background1"/></u></b></p></td></tr> <tr > <td valign="top" width="221" style="width:165.5pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="20" style="width:15.25pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="79" style="width:59.15pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Three months</font></b></p></td> <td valign="top" width="16" style="width:11.65pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="79" style="width:59.6pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Six months</font><font style="background:#CCE8CF;"/></b></p></td></tr> <tr > <td valign="top" width="221" style="width:165.5pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="20" style="width:15.25pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="79" style="width:59.15pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font></b></p></td> <td valign="top" width="16" style="width:11.65pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="79" style="width:59.6pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">Ended</font><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1"/></b></p></td></tr> <tr > <td valign="top" width="221" style="width:165.5pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></p></td> <td valign="top" width="20" style="width:15.25pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="79" style="width:59.15pt;border:none;border-bottom:solid windowtext 1.0pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font></b></p></td> <td valign="top" width="16" style="width:11.65pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><b><font style="background:#CCE8CF;mso-shading-themecolor:background1">&#160;</font></b></p></td> <td valign="top" width="79" style="width:59.6pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;&#10; color:black;background:#CCE8CF;mso-shading-themecolor:background1;mso-fareast-language:&#10; ZH-CN">June 30, 2012</font><font style="background:#CCE8CF;"/></b></p></td></tr> <tr > <td valign="top" width="221" style="width:165.5pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Net sales</font></p></td> <td valign="top" width="20" style="width:15.25pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">$</font></p></td> <td valign="top" width="79" style="width:59.15pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;background:#CCE8CF;mso-background-themecolor:background1;&#10; padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">33,346</font></p></td> <td valign="top" width="16" style="width:11.65pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">$</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td> <td valign="top" width="79" style="width:59.6pt;border:none;mso-border-top-alt:&#10; solid windowtext .5pt;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">426,446</font><font style="background:#CCE8CF;mso-shading-themecolor:background1"/></p></td></tr> <tr > <td valign="top" width="221" style="width:165.5pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black;&#10; background:#CCE8CF;mso-shading-themecolor:background1">Gross Profit</font></p></td> <td valign="top" width="20" style="width:15.25pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="79" style="width:59.15pt;background:#CCE8CF;mso-background-themecolor:&#10; background1;padding:0cm 0cm 0cm 0cm;height:12.4pt"> <p style="tab-stops:decimal 54.55pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;background:#CCE8CF;mso-shading-themecolor:&#10; background1;mso-fareast-language:ZH-CN">(220,373)</font></p></td> <td valign="top" width="16" style="width:11.65pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><font style="background:#CCE8CF;mso-shading-themecolor:&#10; background1">&#160;</font></p></td> <td valign="top" width="79" style="width:59.6pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font 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style="width:94.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><u><font style="font-size:&#10; 10.0pt;color:black;mso-fareast-language:ZH-CN">December 31, </font></u></b><b><u><font style="font-size:&#10; 10.0pt;color:black">201</font></u></b><b><u><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">1</font></u></b></p></td> <td valign="top" width="7" style="width:5.25pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><b><font style="font-size:10.0pt;color:black">&#160;</font></b></p></td></tr> <tr > <td valign="top" width="221" style="width:165.95pt;background:#E6EFFF;padding:&#10; 0cm 0cm 0cm 0cm;height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black">Intangible assets</font></p></td> <td valign="top" width="53" style="width:39.75pt;background:#E6EFFF;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;color:black;">$</font></p></td> <td valign="top" width="104" style="width:77.8pt;background:#E6EFFF;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center;tab-stops:decimal 92.0pt" class="MsoNormal"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">18,933,673</font></p></td> <td valign="top" width="57" style="width:42.55pt;background:#E6EFFF;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p class="MsoNormal"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td valign="top" width="28" style="width:21.25pt;background:#E6EFFF;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;color:black">$</font></p></td> <td valign="top" width="125" style="width:94.0pt;background:#E6EFFF;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="right" 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style="width:21.25pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><u><font style="font-size:&#10; 10.0pt;color:black;mso-fareast-language:ZH-CN"><font style="text-decoration:&#10; none">&#160;</font></font></u></b></p></td> <td valign="top" width="30" style="width:22.25pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><u><font style="font-size:&#10; 10.0pt;color:black;mso-fareast-language:ZH-CN"><font style="text-decoration:&#10; none">&#160;</font></font></u></b></p></td> <td valign="top" width="123" style="width:92.15pt;padding:0cm 0cm 0cm 0cm;&#10; height:12.4pt"> <p align="center" style="text-align:center" class="MsoNormal"><b><u><font style="font-size:&#10; 10.0pt;color:black;mso-fareast-language:ZH-CN">December 31, </font></u></b><b><u><font style="font-size:&#10; 10.0pt;color:black">201</font></u></b><b><u><font 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<td width="12" style="width:9.0pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="66" style="width:49.5pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p align="right" style="margin-right:6.5pt;mso-para-margin-right:.54gd;mso-add-space:auto;text-align:&#10; right" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;&#10; color:black;mso-fareast-language:ZH-HK">-</font></p></td></tr> <tr style="mso-height-rule:exactly"> <td width="18" style="width:13.5pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="180" style="width:135.35pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; 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style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="90" style="width:67.5pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:7.45pt;mso-para-margin-right:.62gd;mso-add-space:auto;text-align:&#10; right;mso-pagination:widow-orphan lines-together" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">-</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="114" style="width:85.5pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="center" style="text-align:center;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">-</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="66" style="width:49.5pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:6.5pt;mso-para-margin-right:.54gd;mso-add-space:auto;text-align:&#10; right" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;&#10; color:black;mso-fareast-language:ZH-HK">-</font></p></td></tr> <tr style="mso-height-rule:exactly"> <td width="18" style="width:13.5pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="180" style="width:135.35pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">Forfeited or expired</font></p></td> <td width="12" style="width:9.0pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="73" style="width:54.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:7.1pt;mso-para-margin-right:.59gd;mso-add-space:auto;text-align:&#10; right;mso-pagination:widow-orphan lines-together" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">(</font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">57,000</font><font style="font-size:10.0pt;color:black">)</font></p></td> <td width="12" style="width:9.0pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="12" style="width:9.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="90" style="width:67.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:7.45pt;mso-para-margin-right:.62gd;mso-add-space:auto;text-align:&#10; right;mso-pagination:widow-orphan lines-together" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">6.32</font></p></td> <td width="12" style="width:9.0pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="114" style="width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="center" style="text-align:center;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">-</font></p></td> <td width="12" style="width:9.0pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="12" style="width:9.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="66" style="width:49.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:6.5pt;mso-para-margin-right:.54gd;mso-add-space:auto;text-align:&#10; right;mso-pagination:widow-orphan lines-together" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">-</font></p></td></tr> <tr style="mso-height-rule:exactly"> <td width="18" style="width:13.5pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="180" style="width:135.35pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">Outstanding at </font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">June 30</font><font style="font-size:10.0pt;color:black">, 201</font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">2</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="73" style="width:54.8pt;border:none;border-bottom:double black 2.25pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:7.1pt;mso-para-margin-right:.59gd;mso-add-space:auto;text-align:&#10; right;mso-pagination:widow-orphan lines-together" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">1,813,801</font><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU;&#10; color:black;mso-fareast-language:ZH-HK"/></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="12" style="width:9.0pt;border:none;border-bottom:double black 2.25pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">$</font></p></td> <td width="90" style="width:67.5pt;border:none;border-bottom:double black 2.25pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:7.45pt;mso-para-margin-right:.62gd;mso-add-space:auto;text-align:&#10; right;mso-pagination:widow-orphan lines-together" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">6.20</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="114" style="width:85.5pt;border:none;border-bottom:double black 2.25pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="center" style="text-align:center;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">34</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="12" style="width:9.0pt;border:none;border-bottom:double black 2.25pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" 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<tr style="mso-height-rule:exactly"> <td width="18" style="width:13.5pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="180" style="width:135.35pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">Non-vested at </font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">June 30</font><font style="font-size:10.0pt;color:black">, 201</font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">2</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="73" style="width:54.8pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:7.1pt;mso-para-margin-right:.59gd;mso-add-space:auto;text-align:&#10; right;mso-pagination:widow-orphan lines-together" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">1,061,319</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="12" style="width:9.0pt;background:#CCFFCC;padding:0cm 0cm 0cm 0cm;&#10; height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font 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style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">455,484</font></p></td></tr> <tr style="mso-yfti-lastrow:yes;mso-height-rule:&#10; exactly"> <td width="18" style="width:13.5pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="180" style="width:135.35pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">Exercisable at </font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">June 30,</font><font style="font-size:10.0pt;color:black"> 201</font><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">2</font></p></td> <td width="12" style="width:9.0pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="73" style="width:54.8pt;border:none;border-bottom:double black 2.25pt;&#10; padding:0cm 0cm 0cm 0cm;height:14.2pt;mso-height-rule:exactly"> <p align="right" style="margin-right:7.1pt;mso-para-margin-right:.59gd;mso-add-space:auto;text-align:&#10; right;mso-pagination:widow-orphan lines-together" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">752,482</font></p></td> <td width="12" style="width:9.0pt;padding:0cm 0cm 0cm 0cm;height:14.2pt;"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font style="font-size:10.0pt;color:black">&#160;</font></p></td> <td width="12" style="width:9.0pt;border:none;border-bottom:double black 2.25pt;&#10; padding:0cm 0cm 0cm 0cm;height:14.2pt;mso-height-rule:exactly"> <p style="text-align:justify;text-justify:inter-ideograph;" class="MsoNormalCxSpMiddle"><font 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style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">216,247</font></p></td></tr></table> <p style="text-align:justify;text-justify:inter-ideograph" class="MsoNormal"><font style="font-size:10.0pt;color:black;mso-fareast-language:ZH-CN">&#160;</font></p> <table cellpadding="0" width="796" style="width:597.35pt;margin-left:-90.7pt;border-collapse:collapse;mso-yfti-tbllook:&#10; 1184;mso-padding-alt:0cm 5.4pt 0cm 5.4pt" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td width="731" style="width:548.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:14.25pt" colspan="13" nowrap="nowrap"> <p style="text-indent:278.2pt;mso-char-indent-count:27.71" class="MsoNormal"><b><font style="font-size:10.0pt">Three Months Ended June 30,</font></b></p></td></tr> <tr style="mso-row-margin-left:95.45pt"> <td width="127" style="border:none;padding:0cm 0cm 0cm 0cm"> <p class="MsoNormal">&#160;</p></td> <td width="61" style="width:45.95pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="254" style="width:190.55pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">2012</font></b></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 12.75pt" nowrap="nowrap"/> <td width="260" style="width:195.2pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">2011</font></b></p></td></tr> <tr style="mso-row-margin-left:95.45pt"> <td width="127" style="border:none;padding:0cm 0cm 0cm 0cm"> <p class="MsoNormal">&#160;</p></td> <td width="61" style="width:45.95pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="142" style="width:106.6pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:15.75pt" colspan="3" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Domestic</font></b></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 15.75pt" nowrap="nowrap"/> <td width="110" style="width:82.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Foreign</font></b></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 15.75pt" nowrap="nowrap"/> <td width="154" style="width:115.85pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:15.75pt" colspan="3" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Domestic</font></b></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 15.75pt" nowrap="nowrap"/> <td width="104" style="width:77.75pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Foreign</font></b></p></td></tr> <tr style="mso-row-margin-left:95.45pt"> <td width="127" style="border:none;padding:0cm 0cm 0cm 0cm"> <p class="MsoNormal">&#160;</p></td> <td width="61" style="width:45.95pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="67" 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class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">China</font></b></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 12.75pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Federal</font></b></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 12.75pt" nowrap="nowrap"/> <td width="79" style="width:59.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">State</font></b></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 12.75pt" nowrap="nowrap"/> <td width="104" style="width:77.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">China</font></b></p></td></tr> <tr style="mso-row-margin-left:95.45pt"> <td width="127" style="border:none;padding:0cm 0cm 0cm 0cm"> <p class="MsoNormal">&#160;</p></td> <td width="61" style="width:45.95pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Current</font></b></p></td> <td width="67" style="width:50.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.55pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 12.75pt" nowrap="nowrap"/> <td width="110" style="width:82.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160; 562,181</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 12.75pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 12.75pt" nowrap="nowrap"/> <td width="79" style="width:59.4pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 12.75pt" nowrap="nowrap"/> <td width="104" style="width:77.75pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160; 361,810</font></p></td></tr> <tr style="mso-row-margin-left:95.45pt"> <td width="127" style="border:none;padding:0cm 0cm 0cm 0cm"> <p class="MsoNormal">&#160;</p></td> <td width="61" style="width:45.95pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Deferred</font></b></p></td> <td width="67" style="width:50.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="2" style="width:1.55pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 17.85pt" nowrap="nowrap"/> <td width="110" style="width:82.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 17.85pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 17.85pt" nowrap="nowrap"/> <td width="79" style="width:59.4pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 17.85pt" nowrap="nowrap"/> <td width="104" style="width:77.75pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:17.85pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td></tr> <tr style="mso-yfti-lastrow:yes;mso-row-margin-left:&#10; 95.45pt"> <td width="127" style="border:none;padding:0cm 0cm 0cm 0cm"> <p class="MsoNormal">&#160;</p></td> <td width="61" style="width:45.95pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="67" style="width:50.2pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.55pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 13.5pt" nowrap="nowrap"/> <td width="110" style="width:82.35pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160; 562,181</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 13.5pt" nowrap="nowrap"/> <td width="73" style="width:54.85pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 13.5pt" nowrap="nowrap"/> <td width="79" style="width:59.4pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="2" style="width:1.6pt;padding:0cm 5.4pt 0cm 5.4pt;height:&#10; 13.5pt" nowrap="nowrap"/> <td width="104" style="width:77.75pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160; 361,810</font></p></td></tr></table> <table cellpadding="0" width="688" style="width:516.25pt;margin-left:-23.0pt;border-collapse:collapse;mso-yfti-tbllook:&#10; 1184;mso-padding-alt:0cm 5.4pt 0cm 5.4pt" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:14.25pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:&#23435;&#20307;;mso-fareast-theme-font:&#10; minor-fareast;mso-fareast-language:ZH-CN">&#160; </font></p></td> <td width="623" style="width:467.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:14.25pt" colspan="11" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Six Months Ended June 30,</font></b></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="303" style="width:227.35pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">2012</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="305" style="width:228.65pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">2011</font></b></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="173" style="width:129.4pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:15.75pt" colspan="3" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Domestic</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Foreign</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="186" style="width:139.4pt;border:none;border-bottom:&#10; solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:15.75pt" colspan="3" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Domestic</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:15.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Foreign</font></b></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="86" style="width:64.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Federal</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="72" style="width:54.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">State</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">China</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="92" style="width:69.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Federal</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="79" style="width:59.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">State</font></b></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">China</font></b></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Current</font></b></p></td> <td width="86" style="width:64.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="72" style="width:54.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160; 1,140,449</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="92" style="width:69.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="79" style="width:59.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160; 862,935</font></p></td></tr> <tr > <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">Deferred</font></b></p></td> <td width="86" style="width:64.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="72" style="width:54.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="92" style="width:69.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="79" style="width:59.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:10.65pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">-</font></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td width="66" style="width:49.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="86" style="width:64.15pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="72" style="width:54.15pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="116" style="width:86.85pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160; 1,140,449</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="92" style="width:69.15pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="79" style="width:59.15pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</font></p></td> <td width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt" nowrap="nowrap"/> <td width="104" style="width:78.15pt;border-top:solid windowtext 1.0pt;&#10; border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;mso-border-bottom-alt:double windowtext 2.25pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-font-family:PMingLiU">$&#160;&#160;&#160; 862,935</font></p></td></tr></table> <table cellpadding="0" width="660" style="width:495.0pt;border-collapse:collapse;mso-yfti-tbllook:1184;" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td valign="bottom" width="213" style="width:159.55pt;&#10; border:none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">Three Months Ended June 30,</font></b></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" nowrap="nowrap"/> <td valign="bottom" width="219" style="width:164.05pt;&#10; border:none;border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt;&#10; padding:0cm 5.4pt 0cm 5.4pt;height:12.75pt" colspan="5" nowrap="nowrap"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">Six Months Ended June 30,</font></b></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="97" style="width:72.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" colspan="2"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2012</font></b></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="100" style="width:74.65pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" colspan="2"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2011</font></b></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="97" style="width:72.7pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" colspan="2"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2012</font></b></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="106" style="width:79.15pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt" colspan="2"> <p align="center" style="text-align:center" class="MsoNormal"><b><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2011</font></b></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Net income</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2,353,197</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">2,789,396</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">4,772,493</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">5,756,672</font></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Weighted-average shares of common stock outstanding</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:12.75pt"/></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p style="text-indent:20.0pt;mso-char-indent-count:2.0" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">Basic</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,270,069</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,270,069</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,270,069</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,270,069</font></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p style="text-indent:20.0pt;mso-char-indent-count:2.0" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">Dilutive effect of warrants and stock options</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">50,523</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="78" style="width:58.85pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">3,126</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,862</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="84" style="width:63.35pt;border:none;border-bottom:&#10; solid black 1.0pt;mso-border-bottom-alt:solid black .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:25.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">3,248</font></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Diluted</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid white 1.0pt;mso-border-bottom-alt:solid white .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,320,592</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid white 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="78" style="width:58.85pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,273,195</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,295,931</font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid white 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&quot;Times New Roman&quot;;mso-fareast-language:ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:ZH-CN"/></p></td> <td valign="bottom" width="84" style="width:63.35pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">25,273,317</font></p></td></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="15" style="width:11.1pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="78" style="width:58.85pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="76" style="width:56.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="84" style="width:63.35pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/></tr> <tr > <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Basic earnings per common share</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid white 1.0pt;mso-border-bottom-alt:solid white .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.09 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid white 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="78" style="width:58.85pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.11 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.19 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid white 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="84" style="width:63.35pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.23 </font></p></td></tr> <tr style="mso-yfti-lastrow:yes"> <td valign="bottom" width="181" style="width:135.9pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN">Diluted earnings per common share</font></p></td> <td valign="bottom" width="15" style="width:11.1pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;mso-border-bottom-alt:solid #CCFFCC .5pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.09 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="78" style="width:58.85pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.11 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="16" style="width:12.2pt;padding:0cm 5.4pt 0cm 5.4pt;&#10; height:13.5pt"/> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="76" style="width:56.9pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.19 </font></p></td> <td valign="bottom" width="16" style="width:12.2pt;border:none;border-bottom:&#10; solid #CCFFCC 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p class="MsoNormal"><font style="font-size:10.0pt;font-family:&#23435;&#20307;;mso-ascii-font-family:&#10; &quot;Times New Roman&quot;;mso-hansi-font-family:&quot;Times New Roman&quot;;mso-fareast-language:&#10; ZH-CN">&#12288;</font><font style="font-size:10.0pt;mso-fareast-language:&#10; ZH-CN"/></p></td> <td valign="bottom" width="21" style="width:15.8pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="center" style="text-align:center" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">$</font></p></td> <td valign="bottom" width="84" style="width:63.35pt;border:none;border-bottom:&#10; double black 2.25pt;padding:0cm 5.4pt 0cm 5.4pt;height:13.5pt"> <p align="right" style="text-align:right" class="MsoNormal"><font style="font-size:10.0pt;mso-fareast-language:ZH-CN">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.23 </font></p></td></tr></table> <table class="MsoNormalTable" cellspacing="0" border="0" style="margin-left:5.4pt;border-collapse:collapse;mso-table-layout-alt:fixed;" cellpadding="0"> <tr style="mso-yfti-firstrow:yes"> <td width="254" 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The goal of the Company is to become the largest provider of intelligent transportation system products and related comprehensive technology solutions in China, as well as a major operator and provider of value-added ITS and location based services ("LBS") to commercial clients and consumers in China. Substantially all of its operations is conducted through its Variable Interest Entities ("VIE") that are PRC domestic companies owned principally or entirely by its PRC affiliates. Through its VIE, the Company is involved in developing multiple applications in highway ITS, urban ITS, commercial vehicles ITS plus LBS, and to a lesser degree, in digital city, and land and resource filling systems based on Geographic Information Systems ("GIS"), technologies which are used to service both the public and private sector. China TransInfo Technology Corp., its subsidiaries and VIE hereinafter are collectively referred as the "Company." 225554886 82680551 308235437 261080441 47154996 202676181 78913748 281589929 251432307 30157622 47154996 30157622 GanSu Ziguang Intelligent Transportation and Control 10538172 ShanXi Ziguang Trans Technology Co., Ltd Beijing Chinacommunications Unisplendour Technology Co. , Ltd. Wuhan Optic Times Technology Co., Ltd. ShanDong Hi-speed Information Engineering Co., Ltd. 84163 85798 10708133 226148 118875 BeijingZiguangYouma Technology Co., Ltd. 23775 368798 11076931 9989657 122214 160603 10272474 224578 118050 23610 366238 10638712 9077213 2277469 2073200 1434558 18510885 4332935 3709426 2549398 4615 4371 4439 1231 15831 1878 1580 103 33346 -220373 -234923 -235002 426446 -94048 -235054 -234463 18933673 17084194 8125542 2436967 299023 7073031 6603210 2436847 319299 7023944 1870801 6.2 40 6.32 -57000 1813801 6.20 34 671731 1061319 752482 6.04 6.43 36 31 455484 216247 562181 562181 361810 361810 1140449 1140449 862935 862935 25270069 50523 25320592 0.09 0.09 25270069 3126 25273195 0.11 0.11 25862 3248 31407301 21591924 9815377 7445269 2370108 36874738 26298267 10576471 7397564 3178907 197562 111696 780962 225129 1091957 3462065 -562181 2899884 355190 3255074 -901877 2353197 3255074 84051 3339125 901877 2437248 3754048 1483308 5237356 964652 4272704 46617 236756 65336 38405 -86398 3092509 -361810 2730699 1023349 3754048 -964652 2789396 822842 204876 11406 1039124 -700894 -999110 25270069 0.3333 0.4900 0.3000 0.0104 0.0500 0.1500 <p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><font style="font-size:10.0pt">The costs and estimated earnings on uncompleted contracts are included in the accompanying balance sheets under the following captions:</font><font style="font-size:10.0pt;mso-fareast-language:&#10;ZH-CN"/></p> <div align="center"> <table cellpadding="0" width="98%" style="margin-left:-43.25pt;mso-table-layout-alt:fixed;mso-padding-alt:0cm 0cm 0cm 0cm" border="0" class="MsoNormalTable" cellspacing="0"> <tr style="mso-yfti-firstrow:yes"> <td valign="bottom" width="63%" style="width:63.9%;border:none;border-bottom:&#10; 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Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2011 included in the Company's Form 10-K. The Company's unaudited condensed consolidated financial statements include the accounts of the holding company, its subsidiaries, VIEs and VIEs' majority owned subsidiaries, which are approximately 3% to 70% owned by non-controlling interests. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments considered necessary to present fairly the Company's financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows for the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. The Company's unaudited condensed consolidated financial statements are prepared in accordance with GAAP. These accounting principles require the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company believe that the estimates, judgments and assumptions are reasonable, based on information available at the time they are made. Actual results could differ materially from those estimates. In December 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-11, Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of ASU 2011-11 is not expected to have a significant impact on the Company's consolidated financial statements. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. The Company's restricted cash balance on June 30, 2012 and December 31, 2011 was $4,935,448 and $3,560,246, respectively. Restricted cash normally consists of cash deposited into third party banks with certain period of time restrictions for various business purposes, which may include contract performance bonds and registered capital bonds required by governmental authorities. The restrictions expire when the related obligations are fulfilled. On July 12, 2011, a non-controlling interest, Zhongguancun Development Group ("Zhongguancun"), agreed to contribute RMB 50 million (approximately $7.69 million) in cash to Beijing Transwiseway Information Technology Company ("Beijing Transwiseway"), a VIE, in exchange for a 10% equity interest in Beijing Transwiseway. The first installment of RMB 10 million (approximately $1.54 million) was paid by Zhongguancun on August 1, 2011. As a result, China TransInfo Technology Group Co., Ltd. (the "Group Company") retained a 53.80% equity interest in Beijing Transwiseway. The second installment of RMB 20 million (approximately $3.17 million) was completed on January 12, 2012 and the Group Company retains a 51.56% majority ownership of Beijing Transwiseway. With the effect of the subsidiary equity transaction, the Company recognized $1,735,006 increase in non-controlling interest in Beijing Transwiseway and the remaining $1,432,995 increase in additional paid-in capital for the six months ended June 30, 2012. On April 27, 2012, Beijing UNISITS Technology Co. Ltd. ("UNISITS") approved a RMB 42,678,402 (approximately $6,800,000) dividend distribution to the shareholders. As a result, the Company recognized $2,294,431 decrease in non-controlling interest in UNISITS. On June 5, 2012, Beijing Transwiseway formed a majority owned subsidiary, Hubei Transwiseway Information Technology Company ("Hubei Transwiseway"), and the non-controlling shareholder contributed RMB 500,000 (approximately $79,500). As a result, the Company recognized $79,500 increase in non-controlling interest in Beijing Transwiseway. On June 21, 2012, UNISITS entered into a short-term loan agreement with Qinghuayuan Branch of Bank of Beijing ("Qinghuayuan Branch"), pursuant to which Qinghuayuan Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 1% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan expires within 6 months from the first withdrawal date of June 25, 2012 to December 24, 2012. As of June 30, 2012, a principal amount of approximately $0.79 million was outstanding. On May 30, 2012, UNISITS entered into a short-term loan agreement with Dayuncun Branch of Merchants Bank ("Dayuncun Branch"), pursuant to which Dayuncun Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 5% above the benchmark interest rate, a standard rate announced by the People's Bank of China, with the interest to be paid on a quarterly basis. The loan expires on December 23, 2012. As of June 30, 2012, a principal amount of approximately $1.59 million was outstanding. On April 1, 2012, Beijing PKU Chinafront High Technology Co., Ltd.("PKU") entered into a short-term loan agreement with Bank of Beijing, Haidianyuan Branch ("Haidianyuan Branch"), pursuant to which Haidianyuan Branch agreed to loan PKU an aggregate of RMB15 million (approximately $2.40 million) as working capital. The loan has an annual interest rate equal to 20% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the first withdrawal date, with the interest to be paid on a monthly basis. The loan expires within 12 months after the date of the first withdrawal but may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of approximately $2.22 million was outstanding. On December 22, 2011, Beijing Transwiseway, entered into a short-term loan agreement with Haidianyuan Branch, pursuant to which Haidianyuan Branch agreed to loan Beijing Transwiseway a sum of RMB 30 million (approximately $4.72 million). The loan has an annual interest rate equal to 10% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan expires within 12 months after the date of the first withdrawal but may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of approximately $2.83 million was outstanding. The interest expenses were $ 111,696 and $ 236,756 for the three months ended June 30, 2012 and 2011, respectively, and the average interest rate was 7.24% and 6.00%, respectively. For the six months ended June 30, 2012 and 2011, interest expenses totaled $221,160 and $487,329, respectively, and the average interest rate was 7.15% and 5.84%, respectively. The Company issued warrants to Anteaus Capital, Inc., in aggregate, to purchase 277,778 shares of the Company's common stock in connection with merger related services on May 14, 2007, with an exercise price of $1.80 per share. These warrants will expire on May 13, 2014. As of June 30, 2012, warrants to purchase 5,555 shares were outstanding with the aggregate intrinsic value of $20,831 and the weighted-average remaining contractual term of 22 months. FASB ASC 820, Fair Value Measurement, defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and requires certain disclosures about fair value measurement. FASB ASC topic 820 also establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: Level 1 - Quoted unadjusted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in market that are not active, and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. Level 3 - Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The carrying value of financial instruments of the Company, included, cash and cash equivalents, restricted cash, accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, other receivable, other current assets, short-term borrowings from banks, accounts payable, billings in excess of costs and estimated earnings on uncompleted contracts and other current liabilities, approximate their fair values due to their short-term nature and are classified within Level 1 of the fair value hierarchy. The Company did not have any financial instruments classified at Level 2 or Level 3 of the fair value hierarchy as at June 30, 2012. The Company places its temporary cash investments in reputable financial institutions in the PRC and the United States. All funds in US are in a non-interest-bearing transaction account which are insured in full by the United States Federal Deposit Insurance Corporation ("FDIC") from December 31, 2010 through December 31, 2012. Although it is generally understood that the PRC central government stands behind all of the banks in China in the event of bank failure, there is no deposit insurance system in China that is similar to the protection provided by the Federal Deposit Insurance Corporation (FDIC) of the United States. This temporary unlimited coverage on US bank accounts is in addition to, and separate from, the coverage of up to $250,000 available to depositors under the FDIC's general deposit insurance rules. As of June 30, 2012 and December 31, 2011, the Company's U.S. bank accounts are fully covered by the FDIC insurance. The Company had one major customer that individually represented 10% or more of the Company's total net sales during the three months ended June 30, 2012 and 2011, respectively. The Company had nil and one major customer that individually represented 10% or more of the Company's total net sales during the six months ended June 30, 2012 and 2011, respectively. No customer represented 10% or more of the Company's accounts receivable balance as of June 30, 2012 and 2011. The Company did not have any suppliers represented 10% of more of the Company's total net purchases during both the three months ended and the six months ended June 30, 2012 and 2011. No concentration risk is noted on the suppliers of the Company. 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Fair Value Measurment (Detail)
3 Months Ended
Jun. 30, 2012
Fair Value Measurement [Line items]  
Fair value measurements FASB ASC 820, Fair Value Measurement, defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and requires certain disclosures about fair value measurement. FASB ASC topic 820 also establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: Level 1 - Quoted unadjusted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in market that are not active, and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. Level 3 - Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The carrying value of financial instruments of the Company, included, cash and cash equivalents, restricted cash, accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, other receivable, other current assets, short-term borrowings from banks, accounts payable, billings in excess of costs and estimated earnings on uncompleted contracts and other current liabilities, approximate their fair values due to their short-term nature and are classified within Level 1 of the fair value hierarchy. The Company did not have any financial instruments classified at Level 2 or Level 3 of the fair value hierarchy as at June 30, 2012.
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Summarized Income Statement Information Of Significant Equity Investment In Affiliates (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2012
GanSu Income Statement Information [Abstract]    
Net sales $ 9,077,213 $ 18,510,885
Gross profit 2,277,469 4,332,935
Income from operatings 2,073,200 3,709,426
Net income 1,434,558 2,549,398
ShanXi Income Statement Information [Abstract]    
Net sales 4,615 15,831
Gross profit 4,371 1,878
Income from operatings 4,439 1,580
Net income 1,231 103
Beijing Income Statement Information [Abstract]    
Net sales 33,346 426,446
Gross profit (220,373) (94,048)
Income from operatings (234,923) (235,054)
Net income $ (235,002) $ (234,463)
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Commitment And Contingencies (Tables)
3 Months Ended
Jun. 30, 2012
Commitment And Contingencies [Line Items]  
Operating Leases

Year ending December 31,

 

Lease Commitments

2012

 $

822,842

2013

 

204,876

2014

 

11,406

Total

$

1,039,124

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Concentration of Risk (Detail)
3 Months Ended
Jun. 30, 2012
Concentration Of Risk [Line Items]  
Cash of concentration of risk The Company places its temporary cash investments in reputable financial institutions in the PRC and the United States. All funds in US are in a non-interest-bearing transaction account which are insured in full by the United States Federal Deposit Insurance Corporation ("FDIC") from December 31, 2010 through December 31, 2012. Although it is generally understood that the PRC central government stands behind all of the banks in China in the event of bank failure, there is no deposit insurance system in China that is similar to the protection provided by the Federal Deposit Insurance Corporation (FDIC) of the United States. This temporary unlimited coverage on US bank accounts is in addition to, and separate from, the coverage of up to $250,000 available to depositors under the FDIC's general deposit insurance rules. As of June 30, 2012 and December 31, 2011, the Company's U.S. bank accounts are fully covered by the FDIC insurance.
Major customers The Company had one major customer that individually represented 10% or more of the Company's total net sales during the three months ended June 30, 2012 and 2011, respectively. The Company had nil and one major customer that individually represented 10% or more of the Company's total net sales during the six months ended June 30, 2012 and 2011, respectively. No customer represented 10% or more of the Company's accounts receivable balance as of June 30, 2012 and 2011.
Major suppliers The Company did not have any suppliers represented 10% of more of the Company's total net purchases during both the three months ended and the six months ended June 30, 2012 and 2011. No concentration risk is noted on the suppliers of the Company.

XML 18 R37.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock Based Compensation,Stock Warrants (Detail)
3 Months Ended
Jun. 30, 2012
Stock Warrants [Line Items]  
Stock Warrants The Company issued warrants to Anteaus Capital, Inc., in aggregate, to purchase 277,778 shares of the Company's common stock in connection with merger related services on May 14, 2007, with an exercise price of $1.80 per share. These warrants will expire on May 13, 2014. As of June 30, 2012, warrants to purchase 5,555 shares were outstanding with the aggregate intrinsic value of $20,831 and the weighted-average remaining contractual term of 22 months.
XML 19 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
Non-Controlling Interests
3 Months Ended
Jun. 30, 2012
Non-controlling Interest [Abstract]  
Non-Controlling Interests [Text Block]

5.       NON-CONTROLLING INTERESTS

 

On July 12, 2011, a non-controlling interest, ZhongguancunDevelopment Group (“Zhongguancun”), agreed to contribute RMB 50 million (approximately $7.69 million) in cash to Beijing Transwiseway Information Technology Company (“Beijing Transwiseway”), a VIE, in exchange for a 10% equity interest in Beijing Transwiseway. The first installment of RMB 10 million (approximately $1.54 million) was paid by Zhongguancun on August 1, 2011.  As a result, China TransInfo Technology Group Co., Ltd. (the “Group Company”) retained a 53.80% equity interest in Beijing Transwiseway. The second installment of RMB 20 million (approximately $3.17 million) was completed on January 12, 2012 and the Group Company retains a 51.56% majority ownership of Beijing Transwiseway.

 

With the effect of the subsidiary equity transaction, the Company recognized $1,735,006 increase in non-controlling interest in Beijing Transwiseway and the remaining $1,432,995 increase in additional paid-in capital for the six months ended June 30, 2012.

 

On April 27, 2012, Beijing UNISITS Technology Co. Ltd. (“UNISITS”) approved a RMB 42,678,402 (approximately $6,800,000) dividend distribution to the shareholders. As a result, the Company recognized $2,294,431 decrease in non-controlling interest in UNISITS.

 

On June 5, 2012, Beijing Transwiseway formed a majority owned subsidiary, Hubei Transwiseway Information Technology Company (“Hubei Transwiseway”), and the non-controlling shareholder contributed RMB 500,000 (approximately $79,500). As a result, the Company recognized $79,500 increase in non-controlling interest in Beijing Transwiseway.

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Commitments and Contingencies (Detail) (USD $)
Jun. 30, 2012
Commitments And Contingencies, Operating Lease [Line Items]  
2012 $ 822,842
2013 204,876
2014 11,406
Total $ 1,039,124
XML 22 R29.htm IDEA: XBRL DOCUMENT v2.4.0.6
Costs and Estimated Estimated Earnings On Uncompleted Contracts (Detail) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Costs and Estimated Earnings on Uncompleted Contracts [Line Items]    
Costs incurred on uncompleted contracts $ 225,554,886 $ 202,676,181
Estimated earnings on uncompleted contracts 82,680,551 78,913,748
Total 308,235,437 281,589,929
Less-billings to date 261,080,441 251,432,307
Costs and estimated earnings on uncompleted contracts, net of billings in excess of costs and estimated earnings on uncompleted contracts $ 47,154,996 $ 30,157,622
XML 23 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
Restricted Cash (Detail)
3 Months Ended
Jun. 30, 2012
Restricted Cash [Line Items]  
Restricted cash The Company's restricted cash balance on June 30, 2012 and December 31, 2011 was $4,935,448 and $3,560,246, respectively. Restricted cash normally consists of cash deposited into third party banks with certain period of time restrictions for various business purposes, which may include contract performance bonds and registered capital bonds required by governmental authorities. The restrictions expire when the related obligations are fulfilled.
XML 24 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
Costs and Estimated Earnings on Uncompleted Contracts Included in Balance Sheets (Detail) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Costs And Estimated Earnings On Uncompleted Contracts Included In Balance Sheet [Line Items]    
Costs and estimated earnings in excess of billings on uncompleted contracts $ 58,945,007 $ 42,917,900
Billings in excess of costs and estimated earnings on uncompleted contracts 11,790,011 12,760,278
Total $ 47,154,996 $ 30,157,622
XML 25 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
Non-controlling Interests Detail (Detail)
3 Months Ended
Jun. 30, 2012
Non-controlling Interests [Line Items]  
Non-controlling interests On July 12, 2011, a non-controlling interest, Zhongguancun Development Group ("Zhongguancun"), agreed to contribute RMB 50 million (approximately $7.69 million) in cash to Beijing Transwiseway Information Technology Company ("Beijing Transwiseway"), a VIE, in exchange for a 10% equity interest in Beijing Transwiseway. The first installment of RMB 10 million (approximately $1.54 million) was paid by Zhongguancun on August 1, 2011. As a result, China TransInfo Technology Group Co., Ltd. (the "Group Company") retained a 53.80% equity interest in Beijing Transwiseway. The second installment of RMB 20 million (approximately $3.17 million) was completed on January 12, 2012 and the Group Company retains a 51.56% majority ownership of Beijing Transwiseway. With the effect of the subsidiary equity transaction, the Company recognized $1,735,006 increase in non-controlling interest in Beijing Transwiseway and the remaining $1,432,995 increase in additional paid-in capital for the six months ended June 30, 2012. On April 27, 2012, Beijing UNISITS Technology Co. Ltd. ("UNISITS") approved a RMB 42,678,402 (approximately $6,800,000) dividend distribution to the shareholders. As a result, the Company recognized $2,294,431 decrease in non-controlling interest in UNISITS. On June 5, 2012, Beijing Transwiseway formed a majority owned subsidiary, Hubei Transwiseway Information Technology Company ("Hubei Transwiseway"), and the non-controlling shareholder contributed RMB 500,000 (approximately $79,500). As a result, the Company recognized $79,500 increase in non-controlling interest in Beijing Transwiseway.
XML 26 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Costs And Estimated Earnings On Uncompleted Contracts
3 Months Ended
Jun. 30, 2012
Costs And Estimated Earnings On Uncompleted Contracts [Abstract]  
Costs And Estimated Earnings On Uncompleted Contracts [Text Block]

4.     COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

 

The costs and estimated earnings on uncompleted contracts were as follows:

 

 

June 30,

2012

 

 

December 31,

2011

 

 

 

 

 

 

 

 

Costs incurred on uncompleted contracts

 

$

225,554,886

 

 

$

202,676,181

 

Estimated earnings on uncompleted contracts

 

 

82,680,551

 

 

 

78,913,748

 

Total

 

 

308,235,437

 

 

 

281,589,929

 

Less – billings to date

 

 

(261,080,441)

 

 

 

(251,432,307)

 

 

 

 

 

 

 

 

 

 

Costs and estimated earnings on uncompleted contracts, net of billings in excess of costs and estimated earnings on uncompleted contracts

 

$

47,154,996

 

 

$

30,157,622

 

 

The costs and estimated earnings on uncompleted contracts are included in the accompanying balance sheets under the following captions:

 

 

June 30,

2012

 

 

December 31,       2011

 

 

 

 

 

 

 

 

Costs incurred on estimated earnings in excess of billings on uncompleted contracts

 

$

58,945,007

 

 

$

42,917,900

 

Billings in excess of costs and estimated earnings on uncompleted contracts

 

 

(11,790,011)

 

 

 

(12,760,278)

 

 

 

 

 

 

 

 

 

 

Total

 

$

47,154,996

 

 

$

30,157,622

 

XML 27 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
Long-term Investments,Equity And Cost Investments In Affiliates (Detail) (USD $)
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Equity And Cost Investments In Affiliates [Line Items]    
Equity and cost investments in affiliates $ 11,076,931 $ 10,638,712
Equity [Member]
   
Equity And Cost Investments In Affiliates [Line Items]    
Equity investee GanSu Ziguang Intelligent Transportation and Control  
Equity investment ownership 33.33%  
Equity and cost investments in affiliates 10,538,172 9,989,657
Equity [Member]
   
Equity And Cost Investments In Affiliates [Line Items]    
Equity investee ShanXi Ziguang Trans Technology Co., Ltd  
Equity investment ownership 49.00%  
Equity and cost investments in affiliates 84,163 122,214
Equity [Member]
   
Equity And Cost Investments In Affiliates [Line Items]    
Equity investee Beijing Chinacommunications Unisplendour Technology Co. , Ltd.  
Equity investment ownership 30.00%  
Equity and cost investments in affiliates 85,798 160,603
Sub-total [Member]
   
Equity And Cost Investments In Affiliates [Line Items]    
Equity and cost investments in affiliates 10,708,133 10,272,474
Cost [Member]
   
Equity And Cost Investments In Affiliates [Line Items]    
Equity investee Wuhan Optic Times Technology Co., Ltd.  
Equity investment ownership 1.04%  
Equity and cost investments in affiliates 226,148 224,578
Cost [Member]
   
Equity And Cost Investments In Affiliates [Line Items]    
Equity investee ShanDong Hi-speed Information Engineering Co., Ltd.  
Equity investment ownership 5.00%  
Equity and cost investments in affiliates 118,875 118,050
Cost [Member]
   
Equity And Cost Investments In Affiliates [Line Items]    
Equity investee BeijingZiguangYouma Technology Co., Ltd.  
Equity investment ownership 15.00%  
Equity and cost investments in affiliates 23,775 23,610
Sub-total [Member]
   
Equity And Cost Investments In Affiliates [Line Items]    
Equity investee     
Equity and cost investments in affiliates $ 368,798 $ 366,238
XML 28 R40.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes,Expenses (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Income Tax Expenses [Line Items]        
Foreign China $ 562,181 $ 361,810 $ 1,140,449 $ 862,935
Current expense [Member]
       
Income Tax Expenses [Line Items]        
Foreign China $ 562,181 $ 361,810 $ 1,140,449 $ 862,935
XML 29 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidated Balance Sheets (USD $)
Jun. 30, 2012
Dec. 31, 2011
Assets, Current [Abstract]    
Cash and cash equivalents $ 26,933,703 $ 45,032,637
Restricted cash 4,935,448 3,560,246
Accounts receivable, net of allowance for doubtful accounts of $171,938 and $169,060, respectively 45,673,081 36,902,155
Inventories 4,934,799 5,993,121
Costs and estimated earnings in excess of billings on uncompleted contracts 58,945,007 42,917,900
Prepaid expense and other current assets 12,871,862 8,828,290
Other receivables 22,574,993 15,636,967
Deferred tax assets 26,652 26,467
Total current assets 176,895,545 158,897,783
Assets, Noncurrent [Abstract]    
Long-term investments 11,076,931 10,638,712
Property and equipment, net 10,990,199 10,848,345
Long-term prepayment for land use right 3,720,312 3,694,493
Intangible assets, net 17,934,563 16,383,300
Goodwill 10,782,355 10,707,525
Other assets 397,497 337,258
Total assets 231,797,402 211,507,416
Liabilities, Current [Abstract]    
Accounts payable 43,692,235 29,010,462
Short-term borrowings from banks 7,433,539 7,791,300
Billings in excess of costs and estimated earnings on uncompleted contracts 11,790,011 12,760,278
Accrued liabilities and other current liabilities 10,109,118 12,043,530
Total current liabilities 73,024,903 61,605,570
Liabilities, Noncurrent [Abstract]    
Other long-term liability 27,104  
Total liabilities 73,052,007 61,605,570
Stockholders'equity [Abstract]    
Common stock, par value $0.001 per share, 150,000,000 shares authorized, 25,270,069 and 25,270,069 issued and outstanding as of June 30 2012 and December 31, 2011, respectively 25,270 25,270
Additional paid-in capital 53,463,342 51,484,878
Retained earnings 66,157,126 61,384,633
Accumulated other comprehensive income 10,538,273 9,618,689
Total China TransInfo Technology Corp Stockholders'equity 130,184,011 122,513,470
Non-controlling interests 28,561,384 27,388,376
Total stockholders' equity 158,745,395 149,901,846
Total liabilities and stockholders' equity $ 231,797,402 $ 211,507,416
XML 30 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
Basis Of Presentation And Significant Accounting Policies
3 Months Ended
Jun. 30, 2012
Basis of Presentation and Significant Accounting Policies [Abstract]  
Basis of Presentation and Significant Accounting Policies [Text Block]

2.       BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying interim unaudited condensed consolidated financial statements (“Interim Financial Statements”) of the Company, its subsidiaries and VIEs have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2011 included in the Company’s Form 10-K.

 

Principles of Consolidation

 

The Company’s unaudited condensed consolidated financial statements include the accounts of the holding company, its subsidiaries, VIEs and VIEs’ majority owned subsidiaries, which are approximately 3% to 70% owned by non-controlling interests. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments considered necessary to present fairly the Company’s financial position, the results of operations and cash flows for the periods presented.  The operating results and cash flows for the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year.

 

The Company’s unaudited condensed consolidated financial statements are prepared in accordance with GAAP. These accounting principles require the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company believe that the estimates, judgments and assumptions are reasonable, based on information available at the time they are made. Actual results could differ materially from those estimates.

 

Recently Issued Accounting Guidance

 

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities (ASU 2011-11).  The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position.  An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  The adoption of ASU 2011-11 is not expected to have a significant impact on the Company’s consolidated financial statements.

 

The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.

 

XML 31 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
Net Intangible Assets(Detail) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Net Intangible Assets [Line Items]    
Internal-use software $ 8,125,542 $ 6,603,210
Purchased software 2,436,967 2,436,847
Software from acquisition 299,023 319,299
Software from investment 7,073,031 7,023,944
Total $ 17,934,563 $ 16,383,300
XML 32 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2012
A summary of stock options transactions

A summary of stock options transactions for the six months ended June 30, 2012 is as follows:

 

 

 

 

 

 

 

 

 

Weighted-Average

 

 

 

 

 

 

 

 

 

Weighted-

 

Remaining

 

 

Aggregate

 

 

 

 

 

 

Average

 

Contractual Term

 

 

Intrinsic

 

Stock Options

 

Shares

 

 

Exercise Price

 

(Months)

 

 

Value

 

Outstanding at January 1, 2012

 

1,870,801

 

$

6.2

 

40

 

 

-

 

Granted

 

-

 

 

-

 

-

 

 

-

 

Exercised or converted

 

-

 

 

-

 

-

 

 

-

 

Forfeited or expired

 

(57,000)

 

 

6.32

 

-

 

 

-

 

Outstanding at June 30, 2012

 

1,813,801

 

$

6.20

 

34

 

$

671,731

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-vested at June 30, 2012

 

1,061,319

 

$

6.04

 

36

 

$

455,484

 

Exercisable at June 30, 2012

 

752,482

 

$

6.43

 

31

 

$

216,247

 

XML 33 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
Short-term Borrowings From Banks (Detail)
3 Months Ended
Jun. 30, 2012
Short-term Borrowings From Banks [Line Items]  
Short-term borrowings from banks On June 21, 2012, UNISITS entered into a short-term loan agreement with Qinghuayuan Branch of Bank of Beijing ("Qinghuayuan Branch"), pursuant to which Qinghuayuan Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 1% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan expires within 6 months from the first withdrawal date of June 25, 2012 to December 24, 2012. As of June 30, 2012, a principal amount of approximately $0.79 million was outstanding. On May 30, 2012, UNISITS entered into a short-term loan agreement with Dayuncun Branch of Merchants Bank ("Dayuncun Branch"), pursuant to which Dayuncun Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 5% above the benchmark interest rate, a standard rate announced by the People's Bank of China, with the interest to be paid on a quarterly basis. The loan expires on December 23, 2012. As of June 30, 2012, a principal amount of approximately $1.59 million was outstanding. On April 1, 2012, Beijing PKU Chinafront High Technology Co., Ltd.("PKU") entered into a short-term loan agreement with Bank of Beijing, Haidianyuan Branch ("Haidianyuan Branch"), pursuant to which Haidianyuan Branch agreed to loan PKU an aggregate of RMB15 million (approximately $2.40 million) as working capital. The loan has an annual interest rate equal to 20% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the first withdrawal date, with the interest to be paid on a monthly basis. The loan expires within 12 months after the date of the first withdrawal but may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of approximately $2.22 million was outstanding. On December 22, 2011, Beijing Transwiseway, entered into a short-term loan agreement with Haidianyuan Branch, pursuant to which Haidianyuan Branch agreed to loan Beijing Transwiseway a sum of RMB 30 million (approximately $4.72 million). The loan has an annual interest rate equal to 10% above the benchmark interest rate, a standard rate announced by the People's Bank of China, as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan expires within 12 months after the date of the first withdrawal but may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of approximately $2.83 million was outstanding. The interest expenses were $ 111,696 and $ 236,756 for the three months ended June 30, 2012 and 2011, respectively, and the average interest rate was 7.24% and 6.00%, respectively. For the six months ended June 30, 2012 and 2011, interest expenses totaled $221,160 and $487,329, respectively, and the average interest rate was 7.15% and 5.84%, respectively.
XML 34 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2012
Earnings per share

Three Months Ended June 30,

Six Months Ended June 30,

2012

2011

2012

2011

Net income

$

2,353,197

$

2,789,396

$

4,772,493

$

5,756,672

Weighted-average shares of common stock outstanding

Basic

 

25,270,069

25,270,069

25,270,069

25,270,069

Dilutive effect of warrants and stock options

 

 

50,523

 

 

3,126

 

25,862

 

 

3,248

Diluted

 

 

25,320,592

 

 

25,273,195

 

25,295,931

 

 

25,273,317

Basic earnings per common share

 

$

               0.09

 

$

                0.11

$

              0.19

 

$

                  0.23

Diluted earnings per common share

 

$

               0.09

 

$

                0.11

$

              0.19

 

$

                  0.23

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XML 36 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Restricted Cash
3 Months Ended
Jun. 30, 2012
Restricted Cash [Abstract]  
Restricted Cash [Text Block]

3.     RESTRICTED CASH

 

The Company’s restricted cash balance on June 30, 2012 and December 31, 2011 was $4,935,448 and $3,560,246, respectively.  Restricted cash normally consists of cash deposited into third party banks with certain period of time restrictions for various business purposes, which may include contract performance bondsand registered capital bonds required by governmental authorities. The restrictions expire when the related obligations are fulfilled.

XML 37 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidated Statements of Income (unaudited) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Net sales $ 31,407,301 $ 36,874,738 $ 60,336,018 $ 73,373,897
Cost of sales 21,591,924 26,298,267 40,938,036 52,404,305
Gross profit 9,815,377 10,576,471 19,397,982 20,969,592
Total operating expenses 7,445,269 7,397,564 14,382,315 13,718,623
Income from operations 2,370,108 3,178,907 5,015,667 7,250,969
Non-operating income (expense) [Abstract]        
Interest income 197,562 46,617 232,450 86,343
Interest expense 111,696 236,756 221,160 487,329
Subsidy income 780,962 65,336 1,426,963 260,962
Other income, net 225,129 38,405 378,137 113,881
Total non-operating income 1,091,957 (86,398) 1,816,390 (26,143)
Income before income taxes, non-controlling interests, and gain on equity investments in affiliates net income 3,462,065 3,092,509 6,832,057 7,224,826
Income taxes (562,181) (361,810) (1,140,449) (862,935)
Net income before non-controlling interests and gain on equity investments in affiliates net income 2,899,884 2,730,699 5,691,608 6,361,891
Gain on equity investments in affiliates due to proportional shares of the affiliates net income 355,190 1,023,349 734,443 1,355,985
Net income before non-controlling interests 3,255,074 3,754,048 6,426,051 7,717,876
Non-controlling interests in net income of subsidiary (901,877) (964,652) (1,653,558) (1,961,204)
Net income 2,353,197 2,789,396 4,772,493 5,756,672
Weighted average number of shares of outstanding [abstract]        
Basic 25,270,069 25,270,069 25,270,069 25,270,069
Diluted 25,320,592 25,273,195 25,295,931 25,273,317
Earnings Per Share [Abstract]        
Basic $ 0.09 $ 0.11 $ 0.19 $ 0.23
Diluted $ 0.09 $ 0.11 $ 0.19 $ 0.23
Comprehensive income [Abstract]        
Net income including non-controlling interests 3,255,074 3,754,048 6,426,051 7,717,876
Translation adjustments 84,051 1,483,308 919,584 2,117,495
Comprehensive income 3,339,125 5,237,356 7,345,635 9,835,371
Comprehensive income attributable to non-controlling interests 901,877 964,652 1,653,558 1,961,204
Comprehensive income attributable to CTFO $ 2,437,248 $ 4,272,704 $ 5,692,077 $ 7,874,167
XML 38 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Concentration Of Risk
3 Months Ended
Jun. 30, 2012
Concentration Of Risk [Abstract]  
Concentration Of Risk [Text Block]

13.    CONCENTRATION OF RISK

 

Cash

 

The Company places its temporary cash investments in reputable financial institutions in the PRC and the United States. All funds in US arein a non-interest-bearing transaction account which are insured in full by the United States Federal Deposit Insurance Corporation(“FDIC”) from December 31, 2010 through December 31, 2012. Although it is generally understood that the PRC central government stands behind all of the banks in China in the event of bank failure, there is no deposit insurance system in China that is similar to the protection provided by the Federal Deposit Insurance Corporation (FDIC) of the United States. This temporary unlimited coverage on US bank accounts is in addition to, and separate from, the coverage of up to $250,000 available to depositors under the FDIC's general deposit insurance rules. As of June 30, 2012 and December 31, 2011, the Company’s U.S. bank accounts are fully covered by the FDIC insurance.

 

Major Customers

 

The Company had one major customer that individually represented 10% or more of the Company’s total net sales during the three months ended June 30, 2012 and 2011, respectively. The Company had nil and one major customer that individually represented 10% or more of the Company’s total net sales during the six months ended June 30, 2012 and 2011, respectively. No customer represented 10% or more of the Company’s accounts receivable balance as of June 30, 2012 and 2011.

 

Major Suppliers

 

The Company did not have any suppliers represented 10% of more of the Company’s total net purchases during both the three months ended and the six months ended June 30, 2012 and 2011. No concentration risk is noted on the suppliers of the Company.

 

XML 39 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Aug. 10, 2012
Document Information [Line Items]    
Document type 10-Q  
Document Period End Date Jun. 30, 2012  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Creation Date Aug. 10, 2012  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q2  
Entity Information [Line Items]    
Entity Registrant Name China TransInfo Technology Corp.  
Entity Central Index Key 0001081206  
Entity Well-known Seasoned Issuer No  
Entity Current Reporting Status Yes  
Entity Filer Category Smaller Reporting Company  
Entity Voluntary Filers No  
Entity common stock, shares outstanding   25,270,069
XML 40 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Commitments and Contingencies
3 Months Ended
Jun. 30, 2012
Commitments and Contingencies [Abstract]  
Commitments and Contingencies [Text Block]

14.    COMMITMENTS AND CONTINGENCIES

 

Capital commitment

 

On April 15, 2011, the Group Company entered into a Land Development Compensation Framework Agreement (the “Framework Agreement”) with Beijing Strong Science Park Development Co., Ltd. ("Beijing Strong"), pursuant to which Beijing Strong agreed to complete the development of the land block with a site area of 48,900 square meters, located at Zhongguancun Innovation Park (the “C6-04 Land”). In exchange, the Group Company agreed to pay an aggregate of RMB 117,360,000 (approximately $18,000,000) to Beijing Strong, among which RMB 23,472,000 (approximately $3,700,000) was required be paid on or before April 25, 2011. The Group Company intends to construct office buildings on the C6-04 Land for its own and its subsidiaries’ use to reduce its rental expenses over the long term. The contract is cancellable, and, as of June 30, 2012, the Group Company has paid RMB 23,472,000 (approximately $3,700,000) for deposit.

 

Operating Lease

 

The rental expense was $361,231 and $388,690 for the three months ended June 30, 2012 and 2011 respectively. For the six months ended June 30, 2012 and 2011 were $ 759,123 and $777,221, respectively, under the lease agreements to lease office spaces for the Group Company, its subsidiary and VIEs at various locations in the PRC.

 

The aggregate future minimum payments under these lease agreements are as follows:

                                                                                                                                                       

Year ending December 31,

 

Lease Commitments

 

2012

 $

822,842

 

2013

 

204,876

 

2014

 

11,406

 

Total

$

1,039,124

 

 

Pending Litigation

 

The Company and the members of its board of directors are named as defendants in purported class action lawsuits (the “Stockholder Actions”) brought in the Eighth Judicial District Court, Clark County, Nevada by several stockholders: Oswald Velz v. China TransInfo Technology Corp. et al., Case No. A-12-657022-C (filed February 24, 2012) and Tim Valles v. Shudong Xia et al. Case No. A-12-657443-C (filed March 1 , 2012) and Carl M. Domitrovich v. Shudong Xia et al. Case No. A-12-657740-C (filed March 6, 2012). The Stockholder Actions generally allege that the Company and all of its directors breached their fiduciary duties in connection with the receipt by the Company of a preliminary, non-binding proposal from Shudong Xia, the Company’s Chairman and Chief Executive Officer, to acquire all of the outstanding shares of our common stock not currently owned by him in a going private transaction at a proposed price of $5.65 per share in cash (the “Proposed Transaction”). The Stockholder Actions seek, among other things, to declare that the Proposed Transaction is unfair, unjust and inequitable, to enjoin the Company from taking any steps necessary to accomplish or implement the Proposed Transaction, and damages in the event the Proposed Transaction is consummated.

 

On July 13, 2012, these three class action complaints were consolidated into one amended class action complaint, In Re China TransInfo Technology Corp. Shareholders’ Litigation, Consolidated Case No. A-12-657022-B, filed in the Eighth Judicial District Court and against the members of the board of directors of the Company and certain other parties to the Proposed Transaction. Nevertheless, at this stage of the proceedings, management cannot opine that a favorable outcome for the Company is probable or that an unfavorable outcome to the Company is remote. There is no reasonable estimate of any impact of the outcome of the litigation or related legal fees on the financial statements can be made as of the date of this statement.

XML 41 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating activities [abstract]    
Net income $ 4,772,493 $ 5,756,672
Adjustments to reconcile net income to net cash provided by operating activities [abstract]    
Non-controlling interests 1,653,558 1,961,204
Depreciation and amortization expense 1,488,050 1,350,497
Stock-based compensation 545,468 634,040
Gain on equity investments in affiliates due to proportional shares of the affiliates net income 734,443 1,355,985
Gain on disposal of portion equity of subsidiary to non-controling interest   (40,479)
Dividends income (18,689) (14,782)
Loss on disposal of property and equipment 13,764 20,283
Allowance for doubtful accounts 1,698  
Decrease(Increase) in assets [abstract]    
Restricted cash (1,351,684) 1,210,652
Accounts receivable (8,523,325) (8,272,988)
Inventories 1,101,317 (1,738,309)
Prepaid expenses and other current assets (3,986,142) 731,880
Other receivables (6,523,218) (1,720,024)
Cost and estimated earnings in excess of billings on uncompleted contracts (15,743,049) (3,942,025)
Other assets (57,944) (56,498)
Increase(Decrease) in liabilities [abstract]    
Accounts payable 14,493,648 (2,270,555)
Billings in excess of costs and estimated on uncompleted contracts (1,060,512) (4,461,510)
Accrued liabilities and other current liabilities (734,239) (794,710)
Other long-term liability 27,131 15,311
Net cash used in operating activities (14,636,118) (12,987,326)
Cash flows from investing activities [abstract]    
Proceeds from disposal of property and equipment 6,070 19,114
Purchases of property and equipment 1,280,019 1,597,311
Purchases of intangible assets 1,740,114 651,593
Payments for acquisition of companies 209,907 202,565
Payments for land use right   3,593,798
Dividends from equity or cost investees   14,782
Net cash used in investing activities (3,223,970) (6,011,371)
Cash flows from financing activities [abstract]    
Proceeds from short-term borrowings 6,727,073 6,889,950
Payments of short-term borrowings (7,139,700) (9,263,155)
Non-controlling interests' capital contribution 79,330 6,698,563
Payment of dividends to non-controlling interests from subsidiaries (237,990)  
Net cash provided by financing activities (571,287) 4,325,358
Effect of foreign currency translation 332,441 706,563
Net decrease in cash and cash equivalents (18,098,934) (13,966,776)
Cash and cash equivalents-beginning 45,032,637 43,916,597
Cash and cash equivalents-ending 26,933,703 29,949,821
Supplemental disclosures of cash flow information [abstract]    
Interest paid 228,095 390,693
Income taxes paid $ 1,056,027 $ 1,103,885
XML 42 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Short-term Borrowings From Banks
3 Months Ended
Jun. 30, 2012
Short-term Borrowings From Banks [Abstract]  
Short-term Borrowings From Banks [Text Block]

8.       SHORT-TERM BORROWINGS FROM BANKS

 

On June 21, 2012, UNISITS entered into a short-term loan agreement with Qinghuayuan Branch of Bank of Beijing (“Qinghuayuan Branch”), pursuant to which Qinghuayuan Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 1% above the benchmark interest rate, a standard rate announced by the People’s Bank of China, as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan expires within 6 months from the first withdrawal date of June 25, 2012 to December 24, 2012. As of June 30, 2012, a principal amount of approximately $0.79 million was outstanding.

 

On May 30, 2012, UNISITS entered into a short-term loan agreement with Dayuncun Branch of Merchants Bank (“Dayuncun Branch”), pursuant to which Dayuncun Branch agreed to loan UNISITS a sum of RMB 10 million (approximately $1.60 million). The loan has an annual interest rate equal to 5% above the benchmark interest rate, a standard rate announced by the People’s Bank of China, with the interest to be paid on a quarterly basis. The loan expires on December 23, 2012. As of June 30, 2012, a principal amount of approximately $1.59 million was outstanding.

 

On April 1, 2012, Beijing PKU Chinafront High Technology Co., Ltd.(“PKU”) entered into a short-term loan agreement with Bank of Beijing, Haidianyuan Branch (“Haidianyuan Branch”), pursuant to which Haidianyuan Branch agreed to loan PKU an aggregate of RMB15 million (approximately $2.40 million) as working capital. The loan has an annual interest rate equal to 20% above the benchmark interest rate, a standard rate announced by the People’s Bank of China, as of the first withdrawal date, with the interest to be paid on a monthly basis. The loan expires within 12 months after the date of the first withdrawal but may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of approximately $2.22 million was outstanding.

 

On December 22, 2011, Beijing Transwiseway, entered into a short-term loan agreement with Haidianyuan Branch, pursuant to which Haidianyuan Branch agreed to loan Beijing Transwiseway a sum of RMB 30 million (approximately $4.72 million). The loan has an annual interest rate equal to 10% above the benchmark interest rate, a standard rate announced by the People’s Bank of China, as of the date of the first withdrawal of the principal, with the interest to be paid on a quarterly basis. The loan expires within 12 months after the date of the first withdrawal but may be renewed upon the written consent by Haidianyuan Branch. As of June 30, 2012, a principal amount of approximately $2.83 million was outstanding.

 

 

The interest expenses were $ 111,696 and $ 236,756 for the three months ended June 30, 2012 and 2011, respectively, and the average interest rate was 7.24% and 6.00%, respectively. For the six monthsended June 30, 2012 and 2011, interest expenses totaled $221,160 and $487,329, respectively, and the average interest rate was 7.15% and 5.84%, respectively.

 

XML 43 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Intangible Assets
3 Months Ended
Jun. 30, 2012
Intangible Assets [Abstract]  
Intangible Assets [Text Block]

7.       INTANGIBLE ASSETS

 

Intangible assets consisted of the following:

 

 

 

June 30, 2012

 

 

December 31, 2011

 

Intangible assets

$

18,933,673

 

$

17,084,194

 

Less: accumulated amortization

 

(999,110)

 

 

(700,894

)

Intangible assets, net

$

17,934,563

 

$

 16,383,300

 

 

Intangible assets as of June 30, 2012 and December 31, 2011 were as follows:

 

Net intangible assets

 

June 30, 2012

 

 

December 31, 2011

 

Internal-use software

$

             8,125,542

 

$

6,603,210

 

Purchased software

 

             2,436,967

 

 

2,436,847

 

Software from acquisition

 

                299,023

 

 

319,299

 

Software from investment

 

             7,073,031

 

 

7,023,944

 

Total

$

17,934,563

 

$

16,383,300

 

 

XML 44 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2012
Income tax expenses

Three Months Ended June 30,

 

2012

2011

 

Domestic

Foreign

Domestic

Foreign

 

Federal

State

China

Federal

State

China

 

Current

$       -

$        -

$     562,181

$        -

$         -

$   361,810

 

Deferred

-

-

-

-

-

-

 

$       -

$        -

$     562,181

$        -

$         -

$   361,810

 

Six Months Ended June 30,

2012

2011

Domestic

Foreign

Domestic

Foreign

Federal

State

China

Federal

State

China

Current

$         -

$       -

$   1,140,449

$          -

$        -

$    862,935

Deferred

-

-

-

-

-

-

$         -

$       -

$   1,140,449

$          -

$        -

$    862,935

XML 45 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
Costs And Estimated Earnings On Uncompleted Contracts (Tables)
3 Months Ended
Jun. 30, 2012
Uncompleted contracts

The costs and estimated earnings on uncompleted contracts were as follows:

 

 

June 30,

2012

 

 

December 31,

2011

 

 

 

 

 

 

 

 

Costs incurred on uncompleted contracts

 

$

225,554,886

 

 

$

202,676,181

 

Estimated earnings on uncompleted contracts

 

 

82,680,551

 

 

 

78,913,748

 

Total

 

 

308,235,437

 

 

 

281,589,929

 

Less – billings to date

 

 

(261,080,441)

 

 

 

(251,432,307)

 

 

 

 

 

 

 

 

 

 

Costs and estimated earnings on uncompleted contracts, net of billings in excess of costs and estimated earnings on uncompleted contracts

 

$

47,154,996

 

 

$

30,157,622

 

Included in balance sheets

The costs and estimated earnings on uncompleted contracts are included in the accompanying balance sheets under the following captions:

 

 

June 30,

2012

 

 

December 31,       2011

 

 

 

 

 

 

 

 

Costs incurred on estimated earnings in excess of billings on uncompleted contracts

 

$

58,945,007

 

 

$

42,917,900

 

Billings in excess of costs and estimated earnings on uncompleted contracts

 

 

(11,790,011)

 

 

 

(12,760,278)

 

 

 

 

 

 

 

 

 

 

Total

 

$

47,154,996

 

 

$

30,157,622

 

XML 46 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes
3 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes [Text Block]

11.    INCOME TAXES

 

For the three months and six months ended June 30, 2012 and 2011, income tax expenses were as follows:

 

Three Months Ended June 30,

 

2012

2011

 

Domestic

Foreign

Domestic

Foreign

 

Federal

State

China

Federal

State

China

 

Current

$       -

$        -

$     562,181

$        -

$         -

$   361,810

 

Deferred

-

-

-

-

-

-

 

$       -

$        -

$     562,181

$        -

$         -

$   361,810

 

 

 

Six Months Ended June 30,

2012

2011

Domestic

Foreign

Domestic

Foreign

Federal

State

China

Federal

State

China

Current

$         -

$       -

$   1,140,449

$          -

$        -

$    862,935

Deferred

-

-

-

-

-

-

$         -

$       -

$   1,140,449

$          -

$        -

$    862,935

 

 

 

The Company, through its VIE and VIE’s subsidiaries and affiliates, is governed by the Income Tax Laws of the PRC. The PRC government has provided various incentives to domestic companies in the software industry in China in order to encourage development and growth of the industry. For the six months ended June 30, 2012, the Company enjoyed the same tax holidays as of last year.

 

The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting and tax bases of its assets and liabilities. Deferred assets are reduced by a valuation allowance when deemed appropriate.Operations in the United States of America have incurred net accumulated operating losses of $15,000,000 as of June 30, 2012 and December 31, 2011 for income tax purposes. However, a valuation allowance has been established for the full amount of the deferred tax asset due to uncertainty of its realization.

 

The effective tax rate was estimated by the Company to be 16.2% and 11.7% for the three months ended June 30, 2012 and 2011, respectively. During the six months ended June 30, 2012 and 2011, the effective income tax rate was estimated by the Company to be 16.69% and 11.94%, respectively.

XML 47 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-Based Compensation
3 Months Ended
Jun. 30, 2012
Stock-Based Compensation [abstract]  
Stock-Based Compensation [Text Block]

9.       STOCK-BASED COMPENSATION

 

Stock Warrants

 

The Company issued warrants to Anteaus Capital, Inc., in aggregate, to purchase 277,778 shares of the Company’s common stock in connection with merger related services on May 14, 2007, with an exercise price of $1.80 per share. These warrants will expire on May 13, 2014. As of June 30, 2012, warrants to purchase 5,555 shares were outstanding with the aggregate intrinsic value of $20,831 and the weighted-average remaining contractual term of 22 months.

 

Stock Options

 

There were no stock options granted during the six-month period ended June 30, 2012.

 

The Company recorded compensation expense of $271,719 and $323,502 for the three months ended June 30, 2012 and 2011, respectively. For the six months ended June 30, 2012 and 2011, compensation expenses totaled $545,468 and $634,040,  respectively, in connection with the stock options disclosed below.

 

A summary of stock options transactions for the six months ended June 30, 2012 is as follows:

 

 

 

 

 

 

 

 

 

Weighted-Average

 

 

 

 

 

 

 

 

 

Weighted-

 

Remaining

 

 

Aggregate

 

 

 

 

 

 

Average

 

Contractual Term

 

 

Intrinsic

 

Stock Options

 

Shares

 

 

Exercise Price

 

(Months)

 

 

Value

 

Outstanding at January 1, 2012

 

1,870,801

 

$

6.2

 

40

 

 

-

 

Granted

 

-

 

 

-

 

-

 

 

-

 

Exercised or converted

 

-

 

 

-

 

-

 

 

-

 

Forfeited or expired

 

(57,000)

 

 

6.32

 

-

 

 

-

 

Outstanding at June 30, 2012

 

1,813,801

 

$

6.20

 

34

 

$

671,731

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-vested at June 30, 2012

 

1,061,319

 

$

6.04

 

36

 

$

455,484

 

Exercisable at June 30, 2012

 

752,482

 

$

6.43

 

31

 

$

216,247

 

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based upon the Company’s closing stock price of $5.55 as of June 30, 2012, which would have been received by the option holders had all option holders exercised their option awards as of that date. No options were exercised during the sixmonths ended June 30, 2012.

 

During the six months ended June 30, 2012, stock options to purchase 78,113 shares were vested. Total unrecognized compensation costs related to unvested stock options were approximately $1,800,000 as of June 30, 2012. Unvested stock options are expected to be recognized over a weighted average period of 2.01 years.

XML 48 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Value Measurment
3 Months Ended
Jun. 30, 2012
Fair Value Measurement [Abstract]  
Fair Value Measurement [Text Block]

10.    FAIR VALUE MEASURMENT

 

FASB ASC 820, Fair Value Measurement, defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and requires certain disclosures about fair value measurement. FASB ASC topic 820 also establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories:

 

Level 1 – Quoted unadjusted prices for identical instruments in active markets.

 

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in market that are not active, and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets.

Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company.

 

Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.

 

The carrying value of financial instruments of the Company, included, cash and cash equivalents, restricted cash, accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, other receivable, other current assets, short-term borrowings from banks, accounts payable, billings in excess of costs and estimated earnings on uncompleted contracts and other current liabilities, approximate their fair values due to their short-term nature and are classified within Level 1 of the fair value hierarchy. The Company did not have any financial instruments classified at Level 2 or Level 3 of the fair value hierarchy as at June 30, 2012.

XML 49 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Earnings Per Share
3 Months Ended
Jun. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

12.    EARNINGS PER SHARE

 

For the three months and six months ended June 30, 2012 and 2011, basic and diluted net income per share are calculated as follows:

Three Months Ended June 30,

Six Months Ended June 30,

2012

2011

2012

2011

Net income

$

2,353,197

$

2,789,396

$

4,772,493

$

5,756,672

Weighted-average shares of common stock outstanding

Basic

 

25,270,069

25,270,069

25,270,069

25,270,069

Dilutive effect of warrants and stock options

 

 

50,523

 

 

3,126

 

25,862

 

 

3,248

Diluted

 

 

25,320,592

 

 

25,273,195

 

25,295,931

 

 

25,273,317

Basic earnings per common share

 

$

               0.09

 

$

                0.11

$

              0.19

 

$

                  0.23

Diluted earnings per common share

 

$

               0.09

 

$

                0.11

$

              0.19

 

$

                  0.23

XML 50 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
Intangible Assets (Detail) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Intangile Assets [Line Items]    
Intangile assets $ 18,933,673 $ 17,084,194
Less:accumulated amortization (999,110) (700,894)
Intangible assets, net $ 17,934,563 $ 16,383,300
XML 51 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2012
Intangible assets

Intangible assets consisted of the following:

 

 

 

June 30, 2012

 

 

December 31, 2011

 

Intangible assets

$

18,933,673

 

$

17,084,194

 

Less: accumulated amortization

 

(999,110)

 

 

(700,894

)

Intangible assets, net

$

17,934,563

 

$

 16,383,300

 

Intangible assets, details

Intangible assets as of June 30, 2012 and December 31, 2011 were as follows:

 

Net intangible assets

 

June 30, 2012

 

 

December 31, 2011

 

Internal-use software

$

             8,125,542

 

$

6,603,210

 

Purchased software

 

             2,436,967

 

 

2,436,847

 

Software from acquisition

 

                299,023

 

 

319,299

 

Software from investment

 

             7,073,031

 

 

7,023,944

 

Total

$

17,934,563

 

$

16,383,300

 

XML 52 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
Organization and Business Operations (Detail)
3 Months Ended
Jun. 30, 2012
Organization and Business Operations [Line Items]  
Introduction of company China TransInfo Technology Corp. is a leading provider of end-to-end intelligent transportation systems ("ITS") and related comprehensive technology solutions servicing the transportation industry in China. The goal of the Company is to become the largest provider of intelligent transportation system products and related comprehensive technology solutions in China, as well as a major operator and provider of value-added ITS and location based services ("LBS") to commercial clients and consumers in China. Substantially all of its operations is conducted through its Variable Interest Entities ("VIE") that are PRC domestic companies owned principally or entirely by its PRC affiliates. Through its VIE, the Company is involved in developing multiple applications in highway ITS, urban ITS, commercial vehicles ITS plus LBS, and to a lesser degree, in digital city, and land and resource filling systems based on Geographic Information Systems ("GIS"), technologies which are used to service both the public and private sector. China TransInfo Technology Corp., its subsidiaries and VIE hereinafter are collectively referred as the "Company."
Intelligent transportation system Transportation Planning Information System Electronic Toll Collection(ETC) Passenger Flow Statistic, Detecting and Analysis System (TransPLE) Traffic Information Integration and Exchange Platform Traffic Emergency Command Center Transportation Hub Comprehensive Management Information System Intelligent Traffic Management Platform Intelligent Parking System Traffic Flow Surveying Solutions GIS-T (Transportation) Middleware Highway Electronics & Machinery (E&M) System Solution UNISITS Highway Lighting and Energy Saving Product (UNIS-LCS) UNISITS Weigh-in-Motion System
Commercial vehicle ITS plus LBS Commercial Vehicles Monitoring and Public Service Platform Commercial Vehicles Comprehensive Information Service Operation Platform Commercial Vehicles Terminal Products Taxi LED Advertisement Dynamic Display System Taxi LED GPS Monitoring and Coordinating System
Other vehicle and consumer ITS applications Palmcity Telematics Service Platform Palmcity Real-Time Traffic Information Terminal Software Plamcity Smart Phone Public Transport Information Service System Palmcity Website (http://www.palmcity.cn) Auto Energy-saving Analysis Service System D-TIPS Dynamic Transportation Information Processing and Prediction Service System
XML 53 R41.htm IDEA: XBRL DOCUMENT v2.4.0.6
Earnings Per Share (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Earnings Per Share [Line Items]        
Net income $ 2,353,197 $ 2,789,396 $ 4,772,493 $ 5,756,672
Weighted-average shares of common stock outstanding [Abstract]        
Basic 25,270,069 25,270,069 25,270,069 25,270,069
Dilutive effect of warrants and stock options $ 50,523 $ 3,126 $ 25,862 $ 3,248
Diluted 25,320,592 25,273,195 25,295,931 25,273,317
Basic earning per common share $ 0.09 $ 0.11 $ 0.19 $ 0.23
Diluted earnings per common share $ 0.09 $ 0.11 $ 0.19 $ 0.23
XML 54 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Organization And Business Operations
3 Months Ended
Jun. 30, 2012
Organization and Business Operations [Abstract]  
Organization and Business Operations [Text Block]

1.       ORGANIZATION AND BUSINESS OPERATIONS

 

China TransInfo Technology Corp. is a leading provider of end-to-end intelligent transportation systems (“ITS”) and related comprehensive technology solutions servicing the transportation industry in China. The goal of the Company is to become the largest provider of intelligent transportation system products and related comprehensive technology solutions in China, as well as a major operator and provider of value-added ITS and location based services (“LBS”) to commercial clients and consumers in China. Substantially all of itsoperations is conducted through its Variable Interest Entities (“VIE”) that are PRC domestic companies owned principally or entirely by its PRC affiliates. Through its VIE, the Company is involved in developing multiple applications in highway ITS, urban ITS, commercial vehicles ITS plus LBS, and to a lesser degree, in digital city, and land and resource filling systems based on Geographic Information Systems (“GIS”), technologies which are used to service both the public and private sector.

 

China TransInfo Technology Corp., its subsidiaries and VIE hereinafter are collectively referred as the “Company.”

 

The Company’s primary focus is on providing end-to-end ITS solutions and related services to the transportation industry. The major products and services of the Company include:

 

Intelligent Transportation System

 

  • Transportation Planning Information System
  •  Electronic Toll Collection(ETC)
  •  Passenger Flow Statistic, Detecting and Analysis System (TransPLE)
  •  Traffic Information Integration and Exchange Platform 
  •  Traffic Emergency Command Center
  •  Transportation Hub Comprehensive Management Information System
  •  Intelligent Traffic Management Platform
  •  Intelligent Parking System
  •  Traffic Flow Surveying Solutions
  •  GIS-T (Transportation) Middleware
  •  Highway Electronics & Machinery (E&M) System Solution
  •  UNISITS Highway Lighting and Energy Saving Product (UNIS-LCS)
  •  UNISITS Weigh-in-Motion System

Commercial Vehicle ITS plus LBS

  • Commercial Vehicles Monitoring and Public Service Platform
  • Commercial Vehicles Comprehensive Information Service Operation Platform
  • Commercial Vehicles Terminal Products
  • Taxi LED Advertisement Dynamic Display System
  • Taxi LED GPS Monitoring and Coordinating System

Other Vehicle and Consumer ITS Applications

  • Palmcity Telematics Service Platform
  • Palmcity Real-Time Traffic Information Terminal Software
  • Plamcity Smart Phone Public Transport Information Service System
  • Palmcity Website (http://www.palmcity.cn)
  • Auto Energy-saving Analysis Service System
  • D-TIPS Dynamic Transportation Information Processing and Prediction Service System

The Company also offers comprehensive solutions for transportation oriented GIS (“GIS-T”), covering transportation planning, design, construction, maintenance and operation.

 

On June 8, 2012, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with TransCloud Company Limited, a Cayman Islands exempted company with limited liability and indirectly wholly owned by Mr. Shudong Xia ("Parent"), TransCloud Acquisition, Inc., a Nevada corporation and a wholly owned, direct subsidiary of Parent ("Merger Sub"). Under the Merger Agreement, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent.

 

According to the Merger Agreement, at the effective time of the Merger, each outstanding share of the Company’s common stock will be converted automatically into the right to receive $5.80 in cash, without interest, excluding certain shares as provided in the Merger Agreement. The Merger remains subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, including obtaining approval of the existing stockholders of the Company.

 

The foregoing description of the Merger Agreement is qualified in its entirety by reference to the full text of the Merger Agreement, copy of which has been filed as an Exhibit to our current report on Form 8-K dated June 8, 2012, and which is incorporated herein by reference.

XML 55 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Long-Term Investments
3 Months Ended
Jun. 30, 2012
Long-term Investments [Abstract]  
Long-Term Investments [Text Block]

6.       LONG-TERM INVESTMENTS

 

The Company had the following long-term investments accounted under the equity method and cost method:

 

Equity and cost investments in affiliates consisted of the following:

 

 

 

 

 

 

 

 

 

Type 

 

Equity Investee 

Equity Investment Ownership 

 

 

June 30, 2012

 

December 31, 2011

Equity

 

GanSu Ziguang Intelligent Transportation and Control

33.33%

 

$

10,538,172

$

9,989,657

Equity

 

ShanXi Ziguang Trans Technology Co., Ltd.

49.00%

 

 

84,163

 

122,214

Equity

 

Beijing Chinacommunications Unisplendour Technology Co. , Ltd.

30.00%

 

 

85,798

 

160,603

Sub-total

 

 

 

10,708,133

 

10,272,474

Cost

 

Wuhan Optic Times Technology Co., Ltd.

1.04%

 

 

226,148

 

224,578

Cost

 

ShanDong Hi-speed Information Engineering Co., Ltd.

5.00%

 

 

118,875

 

118,050

Cost

 

BeijingZiguangYouma Technology Co., Ltd.

15.00%

 

 

23,775

 

23,610

Sub-total

 

 

 

368,798

 

366,238

Total

 

 

 

 

$

11,076,931

$

10,638,712

 

Summarized income statement information of equity investment in affiliates is as follows:

GanSu Ziguang Intelligent Transportation and Control

 

 

Three months

 

Six months

 

 

Ended

 

Ended

 

 

June 30, 2012

 

June 30, 2012

Net sales

$

9,077,213

$

18,510,885

Gross Profit

 

2,277,469

 

4,332,935

Income from operations

 

2,073,200

 

3,709,426

Net income

$

1,434,558

$

2,549,398

 

ShanXi Ziguang Trans Technology Co., Ltd.

 

$

Three months

 

Six months

 

 

Ended

 

Ended

 

 

June 30, 2012

 

June 30, 2012

Net sales

$

4,615

$

15,831

Gross Profit

 

4,371

 

1,878

Income from operations

 

4,439

 

1,580

Net income

$

1,231

$

103

 

Beijing Chinacommunications Unisplendour Technology Co. , Ltd.

 

 

Three months

 

Six months

 

 

Ended

 

Ended

 

 

June 30, 2012

 

June 30, 2012

Net sales

$

33,346

$

426,446

Gross Profit

 

(220,373)

 

(94,048)

Income from operations

 

(234,923)

 

(235,054)

Net income

$

(235,002)

$

(234,463)

 

XML 56 R27.htm IDEA: XBRL DOCUMENT v2.4.0.6
Basis of Presentation and Significant Accounting Policies (Detail)
3 Months Ended
Jun. 30, 2012
Significant Accounting Policies [Line Items]  
Summary of significant accounting policies The accompanying interim unaudited condensed consolidated financial statements ("Interim Financial Statements") of the Company, its subsidiaries and VIEs have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2011 included in the Company's Form 10-K.
Principles of consolidation The Company's unaudited condensed consolidated financial statements include the accounts of the holding company, its subsidiaries, VIEs and VIEs' majority owned subsidiaries, which are approximately 3% to 70% owned by non-controlling interests. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments considered necessary to present fairly the Company's financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows for the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. The Company's unaudited condensed consolidated financial statements are prepared in accordance with GAAP. These accounting principles require the Company to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company believe that the estimates, judgments and assumptions are reasonable, based on information available at the time they are made. Actual results could differ materially from those estimates.
Recently issued accounting guidance In December 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-11, Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of ASU 2011-11 is not expected to have a significant impact on the Company's consolidated financial statements. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information.
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Stock Based Compensation,Stock Options Transactions (Detail) (USD $)
6 Months Ended
Jun. 30, 2012
Options Outstanding - Number of Shares  
Balance at January 1, 2012 1,870,801
Forfeited or expired - number of share (57,000)
Balance at Jun 30, 2012 1,813,801
Options Non-vested - Number of Shares 1,061,319
Options Exerciable - Number of Shares 752,482
Options Outstanding - Weighted-Average Exercise Price  
Balance at January 1, 2012 $ 6.2
Forfeited or expired - weighted-average exercise price $ 6.32
Balance at Jun 30, 2012 $ 6.20
Non-vested - weighted-average exercise price $ 6.04
Exercisable - weighted-average exercise price $ 6.43
Options Outstanding - Weighted-Average Remaining Contractual Term (in years)  
Balance at January 1, 2012 $ 40
Balance at Jun 30, 2012 $ 34
Non-vested - weighted-average remaining contractual term $ 36
Exercisable - weighted-average remaining contractual term $ 31
Options Outstanding - Average Intrinsic Value  
Balance at Jun 30, 2012 $ 671,731
Non-vested - average intrinsic value 455,484
Exercisable - average intrinsic value $ 216,247
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Long-term Investments (Tables)
6 Months Ended
Jun. 30, 2012
In affiliates

Equity and cost investments in affiliates consisted of the following:

 

 

 

 

 

 

 

 

 

Type 

 

Equity Investee 

Equity Investment Ownership 

 

 

June 30, 2012

 

December 31, 2011

Equity

 

GanSu Ziguang Intelligent Transportation and Control

33.33%

 

$

10,538,172

$

9,989,657

Equity

 

ShanXi Ziguang Trans Technology Co., Ltd.

49.00%

 

 

84,163

 

122,214

Equity

 

Beijing Chinacommunications Unisplendour Technology Co. , Ltd.

30.00%

 

 

85,798

 

160,603

Sub-total

 

 

 

10,708,133

 

10,272,474

Cost

 

Wuhan Optic Times Technology Co., Ltd.

1.04%

 

 

226,148

 

224,578

Cost

 

ShanDong Hi-speed Information Engineering Co., Ltd.

5.00%

 

 

118,875

 

118,050

Cost

 

BeijingZiguangYouma Technology Co., Ltd.

15.00%

 

 

23,775

 

23,610

Sub-total

 

 

 

368,798

 

366,238

Total

 

 

 

 

$

11,076,931

$

10,638,712

Summarized income statement information of significant equity investment in affiliates

Summarized income statement information of equity investment in affiliates is as follows:

GanSu Ziguang Intelligent Transportation and Control

 

 

Three months

 

Six months

 

 

Ended

 

Ended

 

 

June 30, 2012

 

June 30, 2012

Net sales

$

9,077,213

$

18,510,885

Gross Profit

 

2,277,469

 

4,332,935

Income from operations

 

2,073,200

 

3,709,426

Net income

$

1,434,558

$

2,549,398

 

ShanXi Ziguang Trans Technology Co., Ltd.

 

$

Three months

 

Six months

 

 

Ended

 

Ended

 

 

June 30, 2012

 

June 30, 2012

Net sales

$

4,615

$

15,831

Gross Profit

 

4,371

 

1,878

Income from operations

 

4,439

 

1,580

Net income

$

1,231

$

103

 

Beijing Chinacommunications Unisplendour Technology Co. , Ltd.

 

 

Three months

 

Six months

 

 

Ended

 

Ended

 

 

June 30, 2012

 

June 30, 2012

Net sales

$

33,346

$

426,446

Gross Profit

 

(220,373)

 

(94,048)

Income from operations

 

(234,923)

 

(235,054)

Net income

$

(235,002)

$

(234,463)