UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the quarter ended March 31, 2007

-OR-

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number 0-12423

ALONG MOBILE TECHNOLOGIES, INC.

(Exact Name of small business issuer as specified in Its charter)

NEVADA	94-2906927
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

No. 88, 9^th Floor, Western Part of the 2^nd South Ring Road, Xi’an City, Shaanxi Province, PRC (Address of principal executive offices) 710065 (Zip code)

Issuer’s telephone number, including area code: 011-86-29-88360097

(Former name, former address or former fiscal year, if changed since last report)

Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes√      No ྑ

Indicate by check mark whether the registrant is a shell company (as defined in Rue 12b-2of the Exchange Act). Yes ྑ   No √

The number of shares outstanding of each of the Registrant’s classes of common stock, as of May 4, 2007 was 70,600,000 shares, all of one class of $0.001 par value Common Stock.

Transitional Small Business Disclosure Format (Check one): Yes ྑ   No √

Page 1 of 23

ALONG MOBILE TECHNOLOGIES, INC.

FORM 10-QSB

Quarter Ended March 31, 2007

TABLE OF CONTENTS

	PART I— FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheet as of March 31, 2007 and December 31, 2006	3
	Unaudited Condensed Statements of Operations and Comprehensive Income for the Three Months Ended March 31, 2007 (Consolidated) and 2006	4
	Unaudited Condensed Statements of Cash Flows for the Three Months Ended March 31, 2007 (Consolidated) and 2006	5
	Notes to Unaudited Condensed Consolidated Financial Statements as of March 31, 2007	6
Item 2.	Managements Discussion and Analysis of Financial Condition or Plan of Operation	15
Item 3.	Controls and Procedures	22
	PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Submission of Matters to a Vote of Security Holders	22
Item 5.	Other Information	22
Item 6.	Exhibits and Reports on Form 8-K	23
SIGNATURES		23

Page 2 of 23

PART 1: FINANCIAL INFORMATION

ALONG MOBILE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2007 AND DECEMBER 31, 2006

(Stated in US Dollars)

	March 31,		December 31,
	2007		2006
	(Unaudited)		(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	6,830,560	$	6,561,239
Accounts receivable (net of allowance for doubtful accounts of $386 in 2007, $382 in 2006)		58,070		64,076
Inventories (Note 7)		64,407		32,421
Deposits paid (Note 8)		3,552,558		2,750,240
Prepayment		795,127		-
Other receivables		119,452		35,319
Total Current Assets		11,420,174		9,443,295
Property and equipment, net (Note 9)		4,080,057		4,186,065
Intangible assets, net (Note 10)		2,091,413		2,119,030
TOTAL ASSETS	$	17,591,644	$	15,748,390
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	10,832	$	10,726
Receipt in advance		3		31,903
Deposits received		452,144		447,713
Other payables and accrued liabilities (Note 11)		772,281		752,729
Value added tax payable		952,272		788,602
Other taxes payable		203,831		163,546
Income tax payable		113,735		-
TOTAL LIABILITIES		2,505,098		2,195,219
COMMITMENTS AND CONTINGENCIES (NOTE 12)
STOCKHOLDERS’ EQUITY
Common stock: par value of $0.001 per share		70,600		70,600
Authorized 200,000,000 shares in 2007 and 2006; issued and outstanding 70,600,000 shares in 2007 and 2006
Additional paid-in capital		8,045,085		8,045,085
Retained earnings		5,159,806		3,949,214
Statutory and other reserves		1,226,814		1,045,174
Accumulated other comprehensive income		584,241		443,098
TOTAL STOCKHOLDERS’ EQUITY		15,086,546		13,553,171
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	17,591,644	$	15,748,390

See the accompanying notes to condensed consolidated financial statements

Page 3 of 23

ALONG MOBILE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(Stated in US Dollars)

	Three months ended March 31, (Unaudited)
	2007			2006
Revenues	$	2,744,680		$	1,296,159
Cost of revenues		(670,141	)		(209,763	)
Gross profit		2,074,539			1,086,396
Operating expenses
Selling and distribution		250,831			183,819
General and administrative		312,254			181,803
Professional fees		5,000			7,000
Depreciation		24,709			23,850
Total expenses		592,794			396,472
Income before the following items and taxes		1,481,745			689,924
Interest income		1,258			20,919
Other income		22,519			-
Income before income taxes		1,505,522			710,843
Income taxes (Note 5)		(113,289	)		-
Net income	$	1,392,233		$	710,843
Earnings per share - basic and diluted (Note 5)	$	0.020		$	0.012
Weighted average number of common stock outstanding		70,600,000			61,288,197

See the accompanying notes to condensed consolidated financial statements

Page 4 of 23

ALONG MOBILE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

(Stated in US Dollars)

	Three months ended March 31, (Unaudited)
	2007			2006
Cash flows from operating activities
Net income	$	1,392,233		$	710,843
Adjustments to reconcile net income to net cash provided by operating activities:
In-kind contribution		-			8,438
Amortization on intangible assets		48,396			31,250
Depreciation on property and equipment		146,854			23,850
Changes in operating assets and liabilities
Accounts receivable		6,614			85,285
Inventories		(31,541	)		(6,491	)
Deposits paid		(772,066	)		-
Prepayment		(792,010	)		-
Other receivables		(83,455	)		9,858
Accounts payable		-			104
Receipt in advance		(32,089	)		-
Other payables and accrued liabilities		13,599			(5,582	)
Value added tax payable		155,255			84,098
Other taxes payable		38,515			6,098
Income tax payable		113,289			-
Net cash flows provided by operating activities		203,594			947,751
Cash flows from investing activities
Decrease in note receivable		-			1,237,624
Net cash flows provided by investing activities		-			1,237,624
Effect of foreign currency translation on cash and cash equivalents		65,727			67,922
Net increase in cash and cash equivalents		269,321			2,253,297
Cash and cash equivalents, beginning of period		6,561,239			6,476,651
Cash and cash equivalents, end of period	$	6,830,560		$	8,729,948
Supplemental cash flow information
Interest paid	$	-		$	-
Income taxes paid	$	-		$	-

See the accompanying notes to condensed consolidated financial statements

Page 5 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

1. Corporation information

(a) Along Mobile Technologies, Inc. (“AGMB” or the “Company”) was originally organized in the State of Utah in 1976 as Merit Diversified International, Inc. and subsequently reincorporated in the State of Nevada on August 9, 1994. Since its inception, AGMB has made several attempts to acquire and operate various businesses and has gone through several reorganizations and name changes.

The Company currently has two wholly-owned subsidiaries, namely Main Glory Holdings Limited (“Main Glory”) and Shaanxi Jialong Hi-Tech Incorporated Company (“Jialong”).

Main Glory was incorporated in Hong Kong on July 13, 2005 as an investment holding company. Jialong was established as a joint stock company in the People’s Republic of China (the “PRC”) on December 28, 2000 with its principal place of business in Xian, Shaanxi Province, the PRC. Jialong is a mobile high-technology corporation in the PRC. It is principally engaged in producing and selling wireless entertainment applications including ring-tones, games, images and e-books services for mobile devices through its unique downloading terminals. Jialong is also engaged in the research, development and sale of hardware including routers, firewalls, downloading terminals, PMP, MP3 and MP4.

AGMB, Main Glory and Jialong are hereafter collectively referred to as the “Group”.

(b) On November 23, 2005, the stockholders of Jialong entered into a definitive agreement with Main Glory in which they exchanged 100% of their ownership of Jialong for 100% of ownership in Main Glory. As both companies are under common management, the exchange of shares has been accounted for as a reorganization of entities and the financial statements of Main Glory have been prepared as if the reorganization had occurred retroactively.

On December 1, 2005, the Company changed its name from International Synergy Holding Company, Ltd. to Along Mobile Technologies, Inc. and acquired all the issued and outstanding shares of Main Glory by issuing 56,911,443 shares of its common stock to the stockholders of Main Glory and 6,900,000 shares of its common stock to a third party consultant under an exchange agreement.

The merger of AGMB and Main Glory was treated for accounting purposes as a capital transaction and recapitalization by Main Glory and re-organization by AGMB. The consolidated financial statements are issued under the name of the legal parent, the Company, but a continuation of the consolidated financial statements of Main Glory. The comparative figures are those of Main Glory.

Page 6 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

2. Description of business

The Company is a mobile value-added services (“MVAS”) provider in the PRC. The Company designs, produces, publishes, manufactures, provides and distributes proprietary wireless entertainment applications such as ring-tones, games images, videos and e-books (“Wireless Applications”) to its customers. The Company also designs and distributes portable digital hardware products such as MP3, MP4 and PMP’s (“Hardware Products”) which, together with mobile communication devices manufactured and/or distributed by unaffiliated third party manufacturers and distributors of such products, may be used in conjunction with the Company’s proprietary Wireless Applications. The Wireless Applications are intended to be downloaded by customers on a fee-basis by means of the Company’s proprietary public download terminals (“Terminals”) which are installed by the Company in strategic locations such as shopping centers, universities, entertainment centers, cinemas, hotels, airports, restaurants and parks and additionally, through the Company’s customers access to and, use of, the Internet. The customers for the Company’s Wireless Applications include anyone in Greater China who has a mobile telephone or other personal digital assistant communications devices. The customers for the Company’s Hardware Products are targeted throughout Greater China and these customers can purchase the Company’s Hardware Products through non-affiliated resellers and retailers located throughout China with whom the Company has established working agreements.

3. Summary of significant accounting policies

Basis of presentation and consolidation

The accompanying condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America.

In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three month periods have been made. Results for the interim period presented are not necessarily indicative of the results that might be expected for the entire fiscal year. These condensed financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Form 10KSB as filed with the Securities and Exchange Commission on March 1, 2007.

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

Use of estimates

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

Page 7 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

3. Summary of significant accounting policies (Cont’d)

Accounts receivable

The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on managements’ assessment of the credit history with the customers and current relationships with them.

Inventories

Inventories are stated at the lower of cost or market. Cost is determined on a weighted average basis and includes all expenditures incurred in bringing the goods to the point of sale and putting them in a saleable condition. In assessing the ultimate realization of inventories, the management makes judgments as to future demand requirements compared to current or committed inventory levels.

Property and equipment

Property and equipment are stated at cost less accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use.

Depreciation is provided to write off the cost of the assets to the estimated residual value on a straight-line basis over their estimated useful lives. The principal annual rates are as follows:

Buildings	4%
Downloading terminals	20%
Furniture and equipment	20%

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

Intangible assets

Intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over 10 years or the terms of the licensing period from the date of acquisition.

Stock-based compensation

The Company has adopted SFAS 123, “Accounting for Stock-Based Compensation”. Under SFAS 123, equity instruments to acquire goods or services from nonemployees must be accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.

Page 8 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

3. Summary of significant accounting policies (Cont’d)

Basic and diluted earnings per share

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

Revenue recognition

The Company recognizes revenue from the sale of hardware and wireless entertainment applications.

Revenue is recognized from the sale of hardware at the time title to the products transfers, the amount is fixed and determinable, evidence of an agreement exists, and the customer bears the risk of loss. Revenue is recorded net of estimated provisions for returns, rebates and sales allowances.

Revenue from wireless entertainment applications download fees is based on a single fee per downloaded application or bundle of applications. Download fees are assessed on a per download basis for each game or bundle of games downloaded to a consumer’s mobile phone. Ring-tones and other features operate on the same basis. Revenue is recognized by delivery and acceptance of an application download to the end user. The Company reports to the owners of the downloading terminals the product and dollar amount of revenue earned and remits the agreed upon price for each download to the terminal owners. The Company records its revenue, net of downloading terminals’ owners fees.

Recently issued accounting standards

In July 2006, the FASB issued FIN 48, Accounting for Uncertainty in Income Taxes-an Interpretation of FASB Statement No. 109, which clarifies the accounting for uncertainty in tax positions. This Interpretation requires that the Company recognizes in its consolidated financial statements the impact of a tax position if that position is more likely than not of being sustained on audit, based on the technical merits of the position. The provisions of FIN 48 are effective for the Company on January 1, 2007, with the cumulative effect of the change in accounting principle, if any, recorded as an adjustment to opening retained earnings. The adoption of FIN 48 does not have a material effect on our consolidated financial statements.

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

Page 9 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

3. Summary of significant accounting policies (Cont’d)

Recently issued accounting standards (cont’d)

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities - Including an Amendment of FASB Statement No. 115” (“SFAS159”). SFAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value. Entities that elect the fair value option will report unrealized gains and losses in earnings at each subsequent reporting date. The fair value option may be elected on an instrument-by-instrument basis, with few exceptions. SFAS 159 also establishes presentation and disclosure requirements to facilitate comparisons between companies that choose different measurement attributes for similar assets and liabilities. The requirements of SFAS 159 are effective for the fiscal year beginning January 1, 2008. The management is in the process of evaluating this guidance and therefore has not yet determined the impact that SFAS 159 will have on the Company’s financial statements upon adoption.

4. Income taxes

Income taxes are calculated at 7.5% on the estimated assessable profits of the subsidiary operating in the PRC.

5. Earnings per share - basic and diluted

The basic and diluted earnings per share is calculated using the net income and the weighted average number of common stock outstanding during the reporting periods. The Company has no dilutive instruments and accordingly, the basic and diluted earnings per share are the same.

6. Comprehensive income

	Three months ended March 31, (Unaudited)
	2007		2006
Net income	$	1,392,233	$	710,843
Foreign currency translation adjustments		141,143		161,496
Total comprehensive income	$	1,533,376	$	872,339

7. Inventories

	March 31,		December 31,
	2007		2006
	(Unaudited)		(Audited)
Hardware products	$	14,768	$	32,421
Consumables		49,639		-
	$	64,407	$	32,421

Page 10 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

8. Deposits paid

Deposits paid represent the deposits made to third parties for the leasing of digital information kiosks (“Kiosks”), which provide the terminals for customers to download the entertainment applications.

9. Property and equipment, net

	March 31,			December 31,
	2007			2006
	(Unaudited)			(Audited)
Buildings	$	2,196,127		$	2,174,608
Furniture and equipment		58,133			57,563
Downloading terminals		2,455,677			2,431,615
		4,709,937			4,663,786
Accumulated depreciation		(629,880	)		(477,721	)
Property and equipment, net		4,080,057		$	4,186,065

10. Intangible assets

	March 31,			December 31,
	2007			2006
	(Unaudited)			(Audited)
Patent rights	$	1,291,839		$	1,279,181
Prepaid license fee		1,303,208			1,290,438
		2,595,047			2,569,619
Accumulated amortization		(503,634	)		(450,589	)
Intangible assets, net		2,091,413		$	2,119,030

11. Other payables and accrued liabilities

	March 31,		December 31,
	2007		2006
	(Unaudited)		(Audited)
Other payables	$	5,814	$	5,756
Accrued statutory staff welfare and salaries		421,553		464,658
Accrued liabilities		194,263		163,215
Accrued pension liabilities		150,651		119,100
Total other payables and accrued liabilities	$	772,281	$	752,729

Page 11 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

12.Commitments and contingencies

Operating lease commitment

The Company leases kiosks and office premises under various non-cancelable operating lease agreements that expire at various dates through years 2007 to 2011. All leases are on fixed rental basis and none of them include contingent rentals. Minimum future commitments payable under these agreements as of March 31, 2007 was $5,866,815.

Capital commitment

The Company entered into 4 agreements with certain vendors for the acquisition of 2,000 sets of downloading terminals. As of March 31, 2007, there was an outstanding contractual commitment of $3,059,076 relating to the aforementioned acquisition of downloading terminals.

13.Defined contribution plan

The Company has a defined contribution plan for all its qualified employees in the PRC. The Company and its employees are each required to make contributions to the plan at the rates specified in the plan. The only obligation of the Company with respect to retirement scheme is to make the required contributions under the plan. No forfeited contribution is available to reduce the contribution payable in future years. The defined contribution plan contributions were charged to the statement of operations. The Company contributed $30,253 and $Nil for the three month periods ended March 31, 2007 and 2006 respectively.

Page 12 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

14.Segment information

The Company operates in two reportable segment, Wireless Entertainment Applications and Hardware. The accounting policies of the segments are the same as described in the summary of significant accounting policies. The Company evaluates segment performance based on income from operations. As a result, the components of operating income for one segment may not be comparable to another segment. The following is a summary of the Company’s segment information:

	Wireless Entertainment Applications				Hardware				Total
	Three months ended March 31, (Unaudited)				Three months ended March 31, (Unaudited)				Three months ended March 31, (Unaudited)
	2007		2006		2007		2006		2007		2006
Revenues	$	2,717,612	$	1,214,606	$	27,068	$	81,553	$	2,744,680	$	1,296,159
Segment profit		1,505,006		704,587		5,516		8,256		1,510,522		712,843
		March 31,		December 31,		March 31,		December 31,		March 31,		December 31,
		2007		2006		2007		2006		2007		2006
		(Unaudited)		(Audited)		(Unaudited)		(Audited)		(Unaudited)		(Audited)
Segment assets	$	17,469,167	$	11,635,769	$	122,477	$	4,112,621	$	17,591,644	$	15,748,390

Page 13 of 23

ALONG MOBILE TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 (Unaudited)

(Stated in US Dollars)

14.Segment information (Cont’d)

A reconciliation is provided for unallocated amounts relating to corporate operations which is not included in the segment information.

	Three months ended March 31, (Unaudited)
	2007			2006
Total consolidated revenue	$	2,744,680		$	1,296,159
Total income for reportable segments	$	1,510,522		$	712,843
Unallocated amounts relating to operations:
Professional fees		(5,000	)		(2,000	)
Income before income taxes	$	1,505,522		$	710,843

No reconciliation for assets is provided as there are no intersegment transactions and unallocated amounts relating to corporate operations and any other adjustments to determine the segment assets.

All of the Company’s long-lived assets and customers are located in the PRC. Accordingly, no geographic information is presented.

Page 14 of 23

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION

The following review concerns the three months ended March 31, 2007 and March 31, 2006, which should be read in conjunction with the financial statements and notes thereto presented in the Form 10-KSB.

Forward Looking Statements

The information in this discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding our capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", “estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology. Actual events or results may differ materially. We disclaim any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Overview 

ALONG MOBILE TECHOLOGIES, INC. (“AMT”, “we” or the “Company”) is a mobile value-added services (“MVAS”) provider in the People’s Republic of China (the “PRC” or “China”). The Company designs, produces, publishes, manufactures, provides and distributes proprietary wireless entertainment applications such as ring-tones, games, images, videos and e-books (“Wireless Applications”) to its customers. The Company also designed, produced and distributed portable digital hardware products such as MP3, MP4 and PMP’ s (“Hardware Products”) which, together with mobile communication devices manufactured and/or distributed by unaffiliated third party manufacturers and distributors of such products, may be used in conjunction with the Company’s proprietary Wireless Applications, however the management of the company has decided to concentrate their efforts on Wireless Applications and cease certain Hardware Products business since 2005, and ceased all the hardware products business as of Dec. 31 2005. Our Wireless Applications are intended to be downloaded by our customers on a fee-basis by means of our proprietary public downloading terminals (“Terminals”) which are installed by us in strategic locations such as shopping centers, universities, entertainment centers, cinemas, hotels, airports, restaurants and parks and additionally, through our customers access to and, use of, the Internet. The customers for our Wireless Applications include anyone in Greater China who has a mobile telephone or other personal digital assistant communications device. In 2006, the management of the Company decided to transfer the position from mobile value-added services provider to a leading provider of mobile interactive entertainment platform services in China.

The Company was initially incorporated in the State of Nevada in 1994 as Merit Diversified International Incorporated. From 1994 through 2005, the Company’s name was changed several times beginning in 1994 to Allied Artists Entertainment Group, Inc., in 2001 to International Synergy Holding Company, Ltd., and we adopted our current name, Along Mobile Technologies, Inc. in December, 2005. Our world headquarter is located at No. 88, 9^th Floor Western, Part of the 2^nd South Ring Road, Xi’an City, Shaanxi Province, PRC. 710065. In November, 2005, the Company, then named International Synergy Holding Company, Ltd., (“ISYH”) acquired, as a wholly owned subsidiary, Main Glory Holdings, Ltd., a Hong Kong company (“Main Glory”). The acquisition of Main Glory as a wholly owned subsidiary of ISYH was accomplished through the use of a Stock Exchange Agreement wherein ISYH received one hundred percent (100%) of all of the issued and outstanding common shares of Main Glory in return for the issuance to the Main Glory shareholders and consultants to such shareholders of Sixty Three Million Eight Hundred Eleven Thousand Four Hundred and Forty Three, (63,811,443) shares of ISYH common stock. Prior to ISYH’s acquisition of Main Glory as a wholly owned subsidiary in November 2005, Main Glory consummated a Stock Exchange Agreement with Shaanxi Jialong Hi-Tech Incorporated Company, a company formed in the PRC in 2002, (“Jialong”) whereby, Jialong became a wholly owned subsidiary of Main Glory.

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The Company’s goal is to enhance the value to its user base and thereby continue the expansion of its customer base throughout Greater China.  Through its efforts, the Company has established a significant scale and customer reach and has built a significant leadership position in the MVA market, more specific in achieving mobile interactive entertainment and serving its customers through its exclusive distribution platform in China. AMT continues to develop new products and build strategic partnerships to enhance its offerings and increase its customer base. These initiatives are designed to leverage AMT’s brand strength and expand its presence in the MVA industry in China.

The Company is currently working to file the appropriate documents to be listed on the American Stock Exchange (“AMEX”). No assurance can be given that such listing will be approved.

Strategy

Our aim is to be the leader in the Greater China market for MVA products and services. The core of our business is our on-going effort to provide AMT’s customers with continuously evolving and changing Wireless Applications and Hardware Products and the upgrading of technological platforms such as our Mobile Information & Entertainment Service Platform, (“MIESP”) all of which allow our customers easy, immediate and affordable access to our products. To advance this core business, we are growing our business in ways that we believe complement our strategic focus.

We have made a fundamental determination to remain in control of the dissemination of our products and direct oversight of our billing for the use of our products. We have determined that the possible negatives associated with being dependent upon third party communication providers such as China Mobile and China Unicom for the delivery of our products and services, the billing of our fees and collection of those fees can and, should be, avoided for the present time. We have determined that by vending our products into our own established and controlled distribution network we can make our products and services available to any one who uses a mobile telephone or other PDA device through direct connection over their mobile telephone or PDA; through the use of our proprietary web site and finally through the use of our proprietary public Terminals. In this manner we continue to have direct control over the promotion, sale and dissemination of our Wireless Application products and services as well as the ability to directly control the billing of our customers and collection from our customers without the use of a middleman or the fees that usually accompany the use of middleman providers such as China Mobile and China Unicom.

We own and control our own studios and development center where we are constantly engaged in the research and development of the refinement and expansion of our product lines and services as well as the concepts embodied and required for the building and growing of our controlled distribution network. We are working to implement a growth strategy around expanding product and service lines and our controlled network infrastructure that includes the following key elements:

l a heightened focus on the needs of our customer, delivering customer-specific solutions, high quality products and world-class customer service;

l sales growth through market share gains, new products introductions and expansion into adjacent and related markets;

l development of new sales channels and market opportunities through the use of partnerships and alliances with other application, service and equipment vendors, distributors, resellers and systems integrators;

l lowering our cost structure through improved operational efficiencies and economies of scale to compete effectively in a more cost-conscious marketplace; and

l applications, products and services portfolio additions and enhancements through both strategic acquisitions and our own research and development process.

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Customer Focus. We are committed to maximizing our efforts to better understand those Wireless Applications, and Services required and desired by our customers and then delivering those same Wireless Applications, and Services to our customers in a simple, direct and economical fashion. We strive to offer customer-specific solutions, price competitive products that offer great functionality and quality, and world-class customer service that offers on-time product delivery and highly responsive support. We believe those companies that best service their customers with compelling value propositions that include the aforementioned elements hold a competitive advantage in efforts to grow their businesses.

Growing Sales. In the current environment of constrained capital spending by MVA’s, we believe that we must grow our market share to significantly grow our business. We are undertaking several initiatives in our efforts to gain market share. Specifically, we look to sell more of our current portfolio of Wireless Applications to our existing customers, introduce new products and services to our existing customers, and introduce the entire AMT product and services portfolio to new customers. The cornerstone of these initiatives is our commitment to focus on the needs and demands of our customers. We also are committed to the development and introduction of new products that have applications in our current markets and as adjacent markets.

Lowering Cost Structure. We remain committed to lower our overall cost structure and be a low-cost industry leader. Over the next three years we want to work toward lowering our operating margin (exclusive of impairment, restructuring and acquisition-related charges, amortization of purchased intangibles and stock-based compensation expenses). To meet this goal we must contain costs.

Product Portfolio Additions. We continue to invest in research and development initiatives and to search for appropriate acquisition opportunities to strengthen our core product portfolio. Our efforts are focused on opportunities within our existing markets, as well as opportunities in adjacent or related markets that will strengthen our product offerings. In addition, we are focused on acquisitions that may enhance our geographic operations. We also will continue to evaluate and monitor our existing business and product lines for growth and profitability potential. If we believe it necessary, we will deemphasize or divest product lines that we no longer believe can advance our strategic vision.

Our ability to implement our strategy effectively is subject to numerous uncertainties, the most significant of which are described below in “Risk Factors” in this Form 10-Q. We cannot assure you that our efforts will be successful.

Results of Operations

The following table compares our statement of operations data for the three months ended March 31, 2007 and 2006. The trends suggested by this table may not be indicative of future operating results, which will depend on various factors and which can vary from quarter to quarter.

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	Three Months Ended March 31,
	2007		2006		% of increase/
	(Consolidated)		(Consolidated)		(decrease)
Revenues	$	2,744,680	$	1,296,159		111.75	%
Cost of revenues		670,141		209,763		219.48	%
Gross margin		2,074,539		1,086,396		90.96	%
Selling and distribution expenses		250,831		183,819		36.46	%
General and administrative expenses		312,254		181,803		71.75	%
Professional fees		5,000		7,000		ø28.57%÷
Depreciation and amortization		24,709		23,850		3.60	%
Other income		23,777		20,919		13.66	%
Income tax expense		113,289		-		100	%
Net income		1,392,233		710,843		95.86	%

Revenue, Cost of Revenue and Gross Profit Margin

Revenue increased by $1,448,521 from $1,296,159for the three months ended March 31, 2006 to $2,744,680 for the three months ended March 31, 2007.

The increase was mainly attributable to the increase in sales of our Wireless Applications products. By the first quarter of 2007, approximately 2,000 downloading terminals were installed and operated in total. We shall continue to install additional terminals in suitable locations in the eastern-oriented part of the PRC. Another factor to the increase is our success in enhancing our brand awareness through marketing activities. Sales of Hardware products continue to decrease as the management decided to concentrate our efforts on Wireless Applications.

 

Revenue	For three months ended March 31,
Product	2007 (Consolidated)		2006		Increase/ (decrease)
Wireless Entertainment Applications	$	2,717,612	$	1,214,606	$	1,503,006
Hardware		27,068		81,553		(54,485	)
TOTAL	$	2,744,680	$	1,296,159	$	1,448,521

Cost of revenue increased from $209,763 for the three months ended March 31, 2006 to $670,141 for the three months ended March 31, 2007.

The increase in cost of revenue was mainly due to the increase in sale of wireless entertainment applications as we expanded our downloading terminals network rapidly in the past year.

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Cost of revenue	For three months ended March 31,
Product	2007 (Consolidated)		2006		Increase/ (Decrease)
Wireless Entertainment Applications	$	652,238	$	157,907	$	494,331
Hardware		17,903		51,856		(33,953	)
TOTAL	$	670,141	$	209,763	$	460,378

Our gross profit for the three months ended March 31, 2007 was $2,074,539 with a substantial increase of $988,143 as compared with $1,086,396 for the three months ended March 31, 2006.

Our overall gross profit margin decreased from 83.82% for the three months ended March 31, 2006 to 75.58% for the three months ended March 31, 2007.

Our gross profit margin for Wireless Applications decreased from 87% for the three months ended March 31, 2006 to 76% for the three months ended March 31, 2007. The decrease in gross profit margins is primarily due to the rental expenses for information stations as well as the depreciation of our downloading terminals network.

The gross profit margin for Hardware Products decreased slightly from 36.41% for the three months ended March 31, 2006 to 33.86% for the three months ended March 31, 2007.

General and Administrative Expenses

General and Administrative expenses were $312,254 for the three months ended March 31, 2007 with an increase of $130,451 from $181,803 for the three months ended March 31, 2007. The increase in general and administrative expenses was mainly due to the increase in operation expenses related to new business development as we incurred much more R&D expenses in this quarter. In January 2007, we had attended the 2007 International CES in Las Vegas, costs related to the exhibition, and traveling increased accordingly in the first quarter of 2007. Additionally, we incurred a lot of lawyer fees in this quarter to make necessary documentations like documentations of forming up corporate governance to meet the listing requirements of the AMEX. We anticipated that promotional related expenses would be steadily increased in accordance with our business plan and expansion. Nevertheless, the management still adopts a conservative approach and control to lower the increase of costs in relation to new business expansion.

Selling and Distribution Expenses

Selling and distribution expenses increased by $67,012 from $183,819 for the three months ended March 31, 2006 to $250,831 for the three months ended March 31, 2007. The increase in our selling and distribution expenses was mainly due to the traveling and participation in the exhibition as mentioned above, as well as the increased advertising expenses during the first quarter of 2007. We also incurred a lot of postage in this quarter to post some documentations to our lawyers, auditors and clients.

Liquidity and Capital Resources

Cash

Our cash balance amounted to $6,830,560 as of March 31, 2007, which was increased by $269,321 as compared to $6,561,239 as of March 31, 2006. The increase in cash balance was mainly due to cash generated by operations from business expansion.

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For the three months ended March 31, 2007, our cash provided by operating activities amounted to $203,594 as compared to $947,751 for the three months ended March 31, 2006. The decrease was mainly due to the rental deposit and prepayments for renting kiosks to house our downloading terminals.

Working Capital

As of March 31, 2007, we had cash and cash equivalents of $6,830,560, other current assets of $4,589,614 and current liabilities of $2,505,098. We believe we have sufficient cash to continue our current business. However, additional funds from sources other than operating activities have to be obtained if we wish to grow our business.We estimate that the upgrading of our existing technological platforms such as our MIESP so as to allow our customers easy, immediate and affordable access to our products together with subsequent development and marketing expenses will cost us approximately $10,000,000. We plan to finance this capital expenditure through the issuance of debt or equity securities.

Critical Accounting Policies

Management's discussion and analysis of its financial condition and results of operations are based upon the Company's consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. The Company's financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. See note 2 to the Company's consolidated financial statements, "Summary of Significant Accounting Policies". Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The Company believes that the following reflect the more critical accounting policies that currently affect the Company's financial condition and results of operations:

Accounts receivable

The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on managements’ assessment of the credit history with the customer and current relationships with them.

Long-lived Assets

The Company accounts for long-lived assets under the Statements of Financial Accounting Standards Nos. 142 and 144 “Accounting for Goodwill and Other Intangible Assets” and “Accounting for Impairment or Disposal of Long-Lived Assets” (“SFAS No. 142 and 144”). In accordance with SFAS No. 142 and 144, long-lived assets, goodwill and certain identifiable intangible assets held and used by the Company are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The Company believes that no impairment of property and equipment exist at March 31, 2007.

Revenue recognition

The Company recognizes revenue from the sale of hardware and wireless entertainment applications.

Revenue is recognized from the sale of hardware upon delivery or shipment of the products, at the time title passes to the customer provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an arrangement exists; the sales price is fixed and determinable; and collectability is deemed probable. Revenue is recorded net of estimated provisions for returns, rebates and sales allowances.

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Revenue from wireless entertainment applications download fees is based on a single fee per downloaded application or bundle of applications. Download fees are assessed on a per download basis for each game or bundle of games downloaded to a consumer’s mobile phone. Ring-tones and other features operate on the same basis. Revenue is recognized by delivery and acceptance of an application download to the end users. Where downloading terminals are owned by third parties, the Company reports to the owners of the downloading terminals the product and dollar amount of revenue earned and remits the agreed upon price for each download to the terminal owners. The Company records its revenue net of downloading terminals’ owners fees.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred.

Depreciation is provided on a straight-line basis, less estimated residual value over the asset’s estimated useful lives.

Income taxes

The Company accounts for income taxes under the Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes” (“Statement 109”). Under Statement 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under Statement 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date.

Off-Balance Sheet arrangements

The Company has not engaged in any off-balance sheet transactions since its inception.

Employees

As of March 31, 2007, we had approximately 159 full-time and 26 part-time employees employed in Greater China. From time to time we employ independent contractors to support our production, engineering, marketing, and sales departments.

Web Site Access to Our Periodic SEC Reports

Our corporate Internet address is http://www.Alonggame.com. We make available free of charge on or through our web site our annual reports on Form 10-KSB, quarterly reports on Form 10-QSB, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (“SEC”). We may from time to time provide important disclosures to investors by posting them in the investor relations section of our web site, as allowed by SEC rules. Information contained on AMT’s web site is not part of this report or any other report filed with the SEC. You may read and copy any public reports we filed with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site http://www.sec.gov that contains reports and information statements, and other information that we filed electronically.

Foreign Currency Exchange Rate Risk

The majority of our revenues derived and expenses and liabilities incurred are in Chinese Renminbi (“RMB”) with a relatively small amount in Hong Kong dollars (“HK$”) and the United States dollars (“US$” or “$”). Thus, our revenues and operating results may be impacted by exchange rate fluctuations in the currencies of China and Hong Kong. We have not tried to reduce our exposure to exchange rate fluctuations by using hedging transactions. However, we may choose to do so in the future. The availability and effectiveness of any hedging transactions may be limited and we may not be able to successfully hedge our exchange rate risks. Accordingly, we may experience economic losses and negative impacts on earnings and equity as a result of foreign exchange rate fluctuations.

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ITEM 3. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures. Our Chief Executive Officer and Chief Financial Officer performed an evaluation of our disclosure controls and procedures, which have been designed to permit us to effectively identify and timely disclose important information. They concluded that the controls and procedures were effective as of March 31, 2007 to provide reasonable assurance that the information required to be disclosed by the Company in reports it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. While our disclosure controls and procedures provide reasonable assurance that the appropriate information will be available on a timely basis, this assurance is subject to limitations inherent in any control system, no matter how well it may be designed or administered.

Changes in Internal Controls. There was no change in our internal control over financial reporting during the quarter ended March 31, 2007, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not involved in any material pending legal proceedings at this time, and management is not aware of any contemplated proceeding by any governmental authority.

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

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

INDEX TO EXHIBITS

OF

ALONG MOBILE TECHNOLOGIES, INC.

31.1	Rule 13a-14 (a)/15d-14 (a) Certification of Chief Executive Officer
31.2	Rule 13a-14 (a)/15d-14 (a) Certification of Chief Financial Officer
32	Section 1350 Certifications

SIGNATURES

Pursuant to the requirements of Section 13 of 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ALONG MOBILE TECHNOLOGIES, INC. (Registrant)
Date: May 14, 2007	By:	/s/ Jianwei Li
		Jianwei Li, President

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