10-K

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

FORM 10-K

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

For the fiscal year ended: December 31, 2014

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: 000-30183

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
 (Exact name of registrant as specified in its charter)

New York	13-3874771
(State or other jurisdiction of	(I.R.S. Employer Identification Number)
incorporation or organization)

8/F East Area
Century Golden Resources Business Center
69 Banjing Road
Haidian District
Beijing, People’s Republic of China, 100089
(Address of principal executive office and zip code)

86-10-884-52568
(Registrant’s telephone number, including area code)

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

Securities registered pursuant to Section 12(g) of the Act: Common Stock, Par Value $0.01

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [   ] No [ x ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [   ] No [ x ]

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ x ]

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.

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 registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes [   ] No [ x ]

As of June 30, 2014 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of the shares of the registrant’s common stock held by non-affiliates (based upon the closing price of such shares as reported on the Over-the-Counter Bulletin Board) was approximately $0.35 million. Shares of the registrant’s common stock held by each executive officer and director and by each person who owns 10% or more of the outstanding common stock have been excluded from the calculation in that such persons may be deemed to be affiliates of the registrant. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

There were a total of 77,655,862 shares of the registrant’s common stock outstanding as of March 27, 2015.

DOCUMENTS INCORPORATED BY REFERENCE:

None.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

FORM 10-K

For the Fiscal Year Ended December 31, 2014

	Page
PART I
ITEM 1. BUSINESS	2
ITEM 1A. RISK FACTORS	5
ITEM 1B. UNRESOLVED STAFF COMMENTS	13
ITEM 2. PROPERTIES	13
ITEM 3. LEGAL PROCEEDINGS	13
ITEM 4. MINE SAFETY DISCLOSURES	13
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	14
ITEM 6. SELECTED FINANCIAL DATA	14
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	14
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	19
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	19
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	19
ITEM 9A. CONTROLS AND PROCEDURES	19
ITEM 9B. OTHER INFORMATION	20
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	21
ITEM 11. EXECUTIVE COMPENSATION	23
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS	24
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	25
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES	25
PART IV
ITEM 15. EXHIBITS, FINANCIAL STATEMENTS SCHEDULES	27

SPECIAL NOTES REGARDING FORWARD-LOOKING STATEMENTS

This annual report on Form 10-K, including the following “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains “forward-looking statements” relating to the business of China Longyi Group International Holdings Limited and its subsidiary companies. The forward-looking statements include, among others, statements concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. These statements are based on assumptions and are subject to known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Risks and uncertainties include risks related to 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; any statements of belief or intention; and any of the factors mentioned in the “Risk Factors” section of this annual report on Form 10-K. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

USE OF CERTAIN DEFINED TERMS

Except as otherwise indicated by the context, references in this report to:

• “Beijing SOD” are references to Beijing Longyi Biology Technology Co. Ltd., our indirect, 90% owned subsidiary, a PRC company;

• “China” and “PRC” are references to the People’s Republic of China;

• “China Longyi,” “we,” “us,” “our,” or the “Company” are references to the combined business of China Longyi Group International Holdings Limited (formerly known as Minghua Group International Holdings Limited) and/or its consolidated subsidiaries, as the case may be;

• “Chongqing SOD” are references to Chongqing JiuZhou Dismutase Biology Technology Co., Ltd., our indirect, majority-owned subsidiary, a PRC company;

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

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

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

• “Top Time” are references to Top Time International Limited, our indirect wholly-owned subsidiary, a Hong Kong company; and

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

1

PART I

ITEM 1. BUSINESS

Overview of Our Business

We are a holding company that only operates through our indirect Chinese subsidiaries Beijing SOD and Chongqing SOD. Through our Chinese subsidiaries, we develop, manufacture and market our SOD products in China. SOD is a naturally occurring enzyme which may act as a potent antioxidant defense in cells that are exposed to oxygen. Certain research has shown that under certain biological conditions, SOD revitalizes cells and reduces the rate of cell destruction. It neutralizes the most common free radical—superoxide radical—by converting it into hydrogen peroxide and water. Because superoxide is harmful to human cells, and certain forms of SOD exist naturally in most humans, many studies show that SOD is valuable in protecting human cells from the harmful effects of superoxide. SOD is thought to be more powerful than antioxidant vitamins as it activates the body's productions of its own antioxidants. As a result, SOD is referred to as the “enzyme of life.” Commercially, SOD has a wide range of applications and is widely applied in foods, drinks, skin care productions, pharmaceuticals, to combat ailments ranging from sunburn to rheumatoid arthritis.

History and Corporate Structure

We are a New York corporation that was incorporated on February 29, 1996, as United Network Technologies, Inc. and we changed our name to Panagra International Corporation on October 2, 1998. From our inception until 2001, we were relatively inactive with limited operations. On August 2, 2001 we changed our name to Minghua Group International Holdings Limited and at that time we also increased the authorized common shares of our common stock from 40,000,000 shares to 200,000,000 shares. On October 16, 2007, we effectuated a 1-for-20 reverse stock split of all our issued and outstanding shares of common stock, or the Reverse Split, and changed our name to China Longyi Group International Holdings Limited.

The following chart reflects our organizational structure as of the date of this report.

Our Industry

The health supplements industry in China is currently made up of many small- and medium-sized companies that manufacture and distribute products generally intended to, or marketed for the purpose of maintaining, and sometimes improving, the body’s health and general well being. China is one of the fastest growing health supplements markets in the world. With rapid economic growth and continued improvement of its peoples’ livelihoods, the demand for health supplements from China’s 1.3 billion people has expanded tremendously over the last 20 years. Today the Chinese health supplements industry is estimated to be worth approximately $6 billion in annual sales, according to the China Health Care Association, which is an association attached to China's Ministry of Health. Given China’s current annual per capita consumption of health supplements is approximately $10—which is far below that of many western countries.

2

Ever since American scientists Joe McCord and Irwin Fridovich discovered SOD in cattle erythrocytes in 1969 and hypothesized that it can protect life molecules from oxygenation and retrogradation, experts in the fields of biology and medicine and many entrepreneurs and industrialists have been engaged in research, study, development, application and transformation of SOD into products that we believe will provide human beings with certain health and longevity benefits.

Research into the functions and applications of SOD in China began in the late 1970’s. Since then, various centers of research in China, including universities, the military and private companies, have researched food, medicinal, and cosmetic applications for SOD. In the 1990’s, SOD foods began to be sold in China, including SOD soy milk, SOD dairy milk, and SOD beer. Due to technical problems with these first-generation SOD food products and limited public knowledge of the health benefits of SOD, many were discontinued. Technical difficulties relating to the commercialization of SOD products in China have included: (1) lack of methods for efficient harvesting of SOD from animal and human blood and plants; (2) problems with the maintenance and stabilization of harvested SOD, the longest shelf life so far being only two years in China; and (3) technical problems in the effectiveness of SOD in products, particularly food and other products to be consumed orally. More recently, however, various SOD food products have reappeared in China, including SOD milk, SOD wine, and SOD vegetables and fruits. We believe that these and other types of SOD products will become extremely popular due in part to innovations in the SOD industry; recognition of SOD technologies as proprietary intellectual property; government policies encouraging healthier food; the higher awareness of consumers in China of the health benefits of consuming products containing SOD; and the growth of the spending power of Chinese citizens.

In addition, China Science and Technology Institute has recognized that SOD product technologies are proprietary intellectual property. SOD companies, including us, have instituted strict measures to protect their SOD product technologies from being misappropriated. As such, the SOD product technologies may be protected by Chinese intellectual property law even if they are not patented. As a result, companies are encouraged to develop and commercialize SOD technologies.

The growing wealth of the Chinese public and its related greater interest in better health and nutrition are also trends in SOD industry’s favor. SOD production and distribution companies have been working hard to develop innovations to best exploit the commercial potential of SOD, including our subsidiary, Chongqing SOD. Since 1993, various types of SOD products have been sold in China, such as Beijing Dabao SOD skin care series, Wuhan Jiutouniao SOD liquid nutrition drink series, Guizhou Laolaifu SOD liquid nutrition drink series, Zhejiang SOD beer, SOD toothpaste, SOD soy milk. We believe that the SOD industry in China should expand as Chinese consumers grow more able and willing to purchase SOD products.

Our Products

Historically we manufactured one product, which was Jiuzhou SOD plant wine which we marketed under the name “Jiuzhou Holy Wine.” Our Jiuzhou SOD plant wine was a product developed from the zymolysis of natural wide berries with an alcohol level of 21%. We recently started producing and selling SOD Fruit Enzymes. We also plan to produce SOD oral liquid and SOD capsules if the future. In addition, we plan to produce and sell SOD medicines and skin care products after we receive manufacturing permits from the State Food and Drug Administration, or SFDA.

Sales & Marketing Strategy

Our sales and marketing department currently consists of 16 employees. We are developing a diversified sales network which allows us to effectively market products and services to our customers. In addition to sales efforts conducted directly by our internal sales team and other employees, we also use sales agents. Currently we have 15 sales agents selling our products.

In terms of geographic area, our sales network covers 21 cities in China. Our Jiuzhou SOD wine has been listed on the governmental procurement list of Chongqing City, which will grant us a priority to sell our SOD products to various governmental agencies in Chongqing City. We also expect that our SOD products will be listed on the governmental procurement list of Beijing City. We plan to expand our sales network to cover more Chinese cities, including Shenzhen, Guangzhou, Nanjing, Shanghai, Shijiazhuang, Lhasa and Nanchang.

We also plan to employ an online order system, which will cover four major metropolitan areas, such as Beijing, Chengdu, Kunming and Chongqing, within the next 12 months. Through our website http://www.jiuzhoushengjiu.com/index.asp, we will be able to offer a complete line of our products to our customers 24 hours a day, seven days a week. This additional sales channel will enable us to market and sell our products in regions where we do not have retail operations or have limited operations.

3

Competition

The health supplementary business both within China and globally is highly fragmented and intensely competitive. Many of our competitors, both domestic and international, have significant research and development capabilities and financial, scientific, manufacturing, marketing and sales resources. Although our marketing and sales efforts of SOD products are very limited, we believe that we will compete with our competitors based upon the price and quality of our products, ability to produce a diverse range of products and customer services.

In China, we compete principally with Chengdu New Asia Bioengineering Co., Ltd., Zhuhai Zixing Biological Engineering Co., Ltd. and Liaoyuan Jinchang Bioengineering Co., Ltd.

We believe that our Jiuzhou SOD wine, made from more than 10 kinds of wild plants, is more efficient to remove superoxide free radicals than SOD liquid products made by our competitors. In addition, we believe that our SOD plant compound enzyme can be stored under the normal atmospheric temperature for more than 10 years, much longer than the life span of many other SOD products made from animal blood or a single plant.

Intellectual Property

Although none of our products are currently covered by patents, we already prepared all necessary documents and related materials and will register patent for SOD mother solution application skill. Furthermore, we have registered a trademark for our SOD product which we will sell under the name “Jiuzhou Holy Wine.”

In addition, we protect our know how technologies through confidentiality agreements we entered into with our employees in our production department.

Research and Development

We currently operate our research and development department through Beijing SOD. As of December 31, 2014, we have 15 research and development staff (3 of whom hold Master/PhD degrees). Our research and development department is responsible for developing advanced technologies, developing new SOD products and training. We also plan to establish a “life technology” research academy for where our staff may research and develop SOD’s application as an antioxidant and energy booster.

We did not incur expenditures for research and development for the years ended December 31, 2014 and 2013.

Regulation

Based on different potential uses, SOD products in China are classified into three types under the Chinese law and accordingly are subject to different Chinese laws and regulations.

If the SOD products are sold for manufacturing food, they are considered as food additives. Under current Chinese law, a company may not produce SOD products for food additives use without two licenses, the Food Hygiene License issued by the provincial Administration of Health, or AOH, and the Food Production License issued by the provincial Administration of Quality Supervision, Inspection and Quarantine, or AQSIQ. If the SOD products are sold as raw materials for drugs, the Company should first obtain the Pharmaceutical Producer License from the provincial AOH and the approval from the provincial Food and Drug Administration, or FDA.

We have already obtained both the Food Hygiene License issued by the Chongqing AOH and the Food Production License issued by the local AQSIQ. Since we also plan to produce and sell SOD medicines and skin care products, we plan to apply for the Pharmaceutical Producer License from the provincial AOH and the approval from the provincial FDA.

In addition, we are also subject to PRC’s foreign currency regulations. The PRC government has control over RMB reserves through, among other things, direct regulation of the conversion or RMB into other foreign currencies. Although foreign currencies which are required for “current account” transactions can be bought freely at authorized Chinese banks, the proper procedural requirements prescribed by Chinese law must be met. At the same time, Chinese companies are also required to sell their foreign exchange earnings to authorized Chinese banks and the purchase of foreign currencies for capital account transactions still requires prior approval of the Chinese government.

4

Employees

As of December 31, 2014, we had a total of 47 full-time employees. The following table illustrates the allocation of these employees among the various job functions conducted at our Company.

Department	Number of Employees
Sales	8
Administration	10
Finance	8
SOD Production Center	6
Research and Development	15
Total	47

We believe that our relationship with our employees is good. The remuneration payable to employees includes basic salaries and allowances. We have not experienced any significant problems or disruption to our operations due to labor disputes, nor have we experienced any difficulties in recruitment and retention of experienced staff.

As required by applicable Chinese laws, we have entered into employment contracts with all of our officers, managers and employees.

Our employees in China participate in a state pension scheme organized by Chinese municipal and provincial governments. We are required to contribute to the scheme at a rate of 28% of the average monthly salary. In addition, we are required by Chinese laws to cover employees in China with various types of social insurance. We have purchased social insurances for all of our employees.

ITEM 1A. RISK FACTORS

You should carefully consider the risks described below, which constitute all of the material risks facing us. If any of the following risks actually occur, our business could be harmed. You should also refer to the other information about us contained in this report, including our financial statements and related notes.

RISKS RELATED TO OUR BUSINESS

We currently have limited business operations and revenues from operations.

We currently have limited business operations and revenues from operations. We currently have no significant assets or financial resources, and will, in all likelihood, continue to sustain operating expenses without corresponding revenues until the full resumption of our manufacturing and selling SOD products or the consummation of a business combination.

Our independent registered auditors have expressed substantial doubt about our ability to continue as a going concern.

Our audited consolidated financial statements included in this report include an explanatory paragraph that indicates that they were prepared assuming that we would continue as a going concern. As discussed in Note 1 to the consolidated financial statements included with this report, we had a working capital deficiency, accumulated deficit from recurring net losses incurred for the current and prior years as of December 31, 2014. These conditions raise substantial doubt about our ability to continue as a going concern.

We are an early stage development company and we have a limited operating history of our current business. We have earned only insignificant revenues and it is uncertain whether we will earn any revenues in the future or whether we will ultimately be profitable.

5

We are in the development stage and our future operations are subject to all of the risks inherent in the establishment of a new business enterprise. The likelihood of our success must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with the development of SOD products, the utilization of unproven technology and the competitive environment in which we operate. There can be no assurance that we will be able to develop, manufacture or market any products in the future, that future revenues will be significant, that any sales will be profitable or that we will have sufficient funds available to complete our marketing and development programs or to market any products which we may develop. In addition, as a result of our limited operating history even though we do currently have a marketable product, we expect to incur substantial operating losses until we can generate sufficient revenues from the sales of our SOD products to cover our operating costs. We currently have limited sources of potential operating revenue and there can be no assurance that we will be able to develop revenue sources or that our operations will ever become profitable.

Our industry is highly fragmented and competitive, and increased competition could reduce our operating income.

The health supplement business both within China and globally is highly fragmented and intensely competitive. We compete with a number of domestic and international manufacturers and distributors that are producing and marketing products in China that are similar to our products. We may not be able to effectively compete against them because our existing or potential competitors may have superior financial, technical, distribution, marketing, sales and other resources, as well as more significant name recognition and established positions in the market we serve. Increased competition could force us to lower our prices or offer services at a higher cost to us, which could reduce our operating income.

Our products could be subject to product liability claims by consumers, which would adversely affect our profit margins, results from operations and stockholder value.

We are exposed to risks inherent in the packaging and distribution of health supplement products, such as with respect to adequacy of warnings, mislabeling and contamination. As a result, there is a risk that someone using our products may experience significant negative side effects which may permanently harm them and we could be subject to claims for damages based on theories of product liability and other legal theories. The costs and resources to defend such claims could be substantial and, if such claims are successful, we could be responsible for paying some or all of the damages. Also, our reputation could be adversely affected, regardless of whether such claims are successful. We currently intend to obtain product liability insurance at the appropriate time; however, there can be no assurance that we will be able to obtain or maintain insurance on acceptable terms for our products or that such insurance would be sufficient to cover any potential product liability claim or recall. Any of these results would adversely affect our profit margins, results from operations and stockholder value.

We may not be able to adequately protect our proprietary intellectual property and technology, which may harm our competitive position and result in increased expenses incurred to enforce our rights.

We rely on a combination of copyright, trademark and trade secret laws, non-disclosure agreements and other confidentiality procedures and contractual provisions to establish, protect and maintain our proprietary intellectual property and technology and other confidential information. Some of these technologies, especially the technology to extract SOD and SOD related enzyme from wild plants, are important to our business and are not protected by patents. Despite our efforts, the steps we have taken to protect our proprietary intellectual property and technology and other confidential information may not be adequate to preclude misappropriation of our proprietary information or infringement of our intellectual property rights. Protecting against the unauthorized use of our products, trademarks and other proprietary rights is also expensive, difficult and, in some cases, impossible. Litigation may be necessary in the future to enforce or defend our intellectual property rights, to protect our trade secrets or to determine the validity and scope of the proprietary rights of others. Such litigation could result in substantial costs and diversion of management resources, either of which could harm our business, operating results and financial condition.

Compliance with environmental regulations can be expensive, and our failure to comply with these regulations may result in adverse publicity and may have a material adverse effect on our business.

As a manufacturer, we are subject to various Chinese environmental laws and regulations on air emission, waste water discharge, solid wastes and noise. Although we believe that our operations are in substantial compliance with current environmental laws and regulations, we may not be able to comply with these regulations at all times as the Chinese environmental legal regime is evolving and becoming more stringent. Therefore, if the Chinese government imposes more stringent regulations in the future, we will have to incur additional and potentially substantial costs and expenses in order to comply with new regulations, which may negatively affect our results of operations. If we fail to comply with any of the present or future environmental regulations in any material aspects, we may suffer from negative publicity and may be required to pay substantial fines, suspend or even cease operations. Failure to comply with Chinese environmental laws and regulations may materially and adversely affect our business, financial condition and results of operations.

6

We depend heavily on key personnel, and turnover of key employees and senior management could harm our business.

Our future business and results of operations depend in significant part upon the continued contributions of our key technical and senior management personnel, including Jie Chen, our Chief Executive Officer and Xinmin Pan, our Chief Financial Officer. They also depend in significant part upon our ability to attract and retain additional qualified management, technical, marketing and sales and support personnel for our operations. If we lose a key employee or if a key employee fails to perform in his or her current position, or if we are not able to attract and retain skilled employees as needed, our business could suffer. Significant turnover in our senior management could significantly deplete our institutional knowledge held by our existing senior management team. We depend on the skills and abilities of these key employees in managing the manufacturing, technical, marketing and sales aspects of our business, any part of which could be harmed by further turnover.

We may be exposed to potential risks relating to our internal controls over financial reporting and our ability to have the operating effectiveness of our internal controls attested to by our independent auditors.

As directed by Section 404 of the Sarbanes-Oxley Act of 2002, or SOX 404, the SEC adopted rules requiring public companies to include a report of management on the Company’s internal controls over financial reporting in their annual reports on Form 10-K. We are subject to this requirement commencing with our fiscal year ended December 31, 2008 and a report of our management is included under Item 9A of this Annual Report on Form 10-K. In the event we identify significant deficiencies or material weaknesses in our internal controls that we cannot remediate in a timely manner, investors and others may lose confidence in the reliability of our financial statements.

Our holding company structure may limit the payment of dividends to our stockholders.

We have no direct business operations, other than our ownership of our subsidiaries. While we have no current intention of paying dividends, should we decide in the future to do so, as a holding company, our ability to pay dividends and meet other obligations depends upon the receipt of dividends or other payments from our operating subsidiaries and other holdings and investments. In addition, our operating subsidiaries, from time to time, may be subject to restrictions on their ability to make distributions to us, including as a result of restrictive covenants in loan agreements, restrictions on the conversion of local currency into U.S. dollars or other hard currency and other regulatory restrictions as discussed below. If future dividends are paid in RMB, fluctuations in the exchange rate for the conversion of RMB into U.S. dollars may reduce the amount received by U.S. stockholders upon conversion of the dividend payment into U.S. dollars.

Chinese regulations currently permit the payment of dividends only out of accumulated profits as determined in accordance with Chinese accounting standards and regulations. Our subsidiaries in China are also required to set aside a portion of their after tax profits according to Chinese accounting standards and regulations to fund certain reserve funds. Currently, our subsidiaries in China are the only sources of revenues or investment holdings for the payment of dividends. If they do not accumulate sufficient profits under Chinese accounting standards and regulations to first fund certain reserve funds as required by Chinese accounting standards, we will be unable to pay any dividends.

RISKS RELATED TO DOING BUSINESS IN CHINA

Changes in the economic and political policies of the PRC government could have a material and adverse effect on our business and operations.

We conduct substantially all our business operations in China. Accordingly, our results of operations, financial condition and prospects are significantly dependent on economic and political developments in China. China’s economy differs from the economies of developed countries in many aspects, including the level of development, growth rate and degree of government control over foreign exchange and allocation of resources. While China’s economy has experienced significant growth in the past 30 years, the growth has been uneven across different regions and periods and among various economic sectors in China. We cannot assure you that China’s economy will continue to grow, or that if there is growth, such growth will be steady and uniform, or that if there is a slowdown, such slowdown will not have a negative effect on its business and results of operations.

The PRC government exercises significant control over China’s economic growth through the allocation of resources, control over payment of foreign currency-denominated obligations, implementation of monetary policy, and preferential treatment of particular industries or companies. Certain measures adopted by the PRC government may restrict loans to certain industries, such as changes in the statutory deposit reserve ratio and lending guidelines for commercial banks by the People’s Bank of China, or PBOC. These current and future government actions could materially affect our liquidity, access to capital, and ability to operate our business.

7

The global financial markets experienced significant disruptions in 2008 and the United States, Europe and other economies went into recession. Since 2012, growth of the Chinese economy has slowed down. The PRC government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall PRC economy but may also have a negative effect on us. Our financial condition and results of operation could be materially and adversely affected by government control over capital investments or changes in tax regulations that are applicable to us. In addition, any stimulus measures designed to boost the Chinese economy, may contribute to higher inflation, which could adversely affect our results of operations and financial condition.

Our business is largely subject to the uncertain legal environment in China and your legal protection could be limited.

The Chinese legal system is a civil law system based on written statutes. Unlike common law systems, it is a system in which precedents set in earlier legal cases are not generally used. The overall effect of legislation enacted over the past 20 years has been to enhance the protections afforded to foreign invested enterprises in China. However, these laws, regulations and legal requirements are relatively recent and are evolving rapidly, and their interpretation and enforcement involve uncertainties. These uncertainties could limit the legal protections available to foreign investors, such as the right of foreign invested enterprises to hold licenses and permits such as requisite business licenses. In addition, all of our executive officers are residents of China and not of the U.S., and substantially all the assets of these persons are located outside the U.S. As a result, it could be difficult for investors to effect service of process in the U.S., or to enforce a judgment obtained in the U.S. against us or any of these persons.

The Chinese government exerts substantial influence over the manner in which we must conduct our business activities.

China only recently has permitted provincial and local economic autonomy and private economic activities. The Chinese government has exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, import and export tariffs, environmental regulations, land use rights, property and other matters. We believe that our operations in China are in material compliance with all applicable legal and regulatory requirements. However, the central or local governments of these jurisdictions may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance with such regulations or interpretations.

Accordingly, government actions in the future, including any decision not to continue to support recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest ourselves of any interest we then hold in Chinese properties or joint ventures.

Future inflation in China may inhibit our ability to conduct business in China.

In recent years, the Chinese economy has experienced periods of rapid expansion and highly fluctuating rates of inflation. During the past ten years, the rate of inflation in China has been as high as 5.9% and as low as -0.8%. These factors have led to the adoption by the Chinese government, from time to time, of various corrective measures designed to restrict the availability of credit or regulate growth and contain inflation. High inflation may in the future cause the Chinese government to impose controls on credit and/or prices, or to take other action, which could inhibit economic activity in China, and thereby harm the market for our products and our company.

If consumer spending power in China declines, our ability to market SOD products may weaken.

The success of our SOD products relies in part on the perception of consumers of the relative necessity of SOD, which is largely dependent on Chinese consumers’ financial ability to afford SOD-enriched products. If Chinese consumers’ spending power declines, whether because of the reversal of China’s economic growth or other causes, then our SOD products may become less profitable if companies that use its product to enrich their products stop ordering it.

If health problems relating to SOD products made in China emerge, then SOD sales may fall or be banned entirely.

8

In light of recent news pieces about the health problems and risks of products made in China, the global market and foreign and Chinese health authorities may be especially sensitive about health problems caused by or relating to SOD products made in China. If health problems relating to SOD products made in China become evident, then the market demand for Chinese SOD producers may be particularly susceptible to a fall. Likewise, such problems become evident, foreign or Chinese health authorities may ban or impose other controls or regulations on such SOD products that could harm or eliminate SOD product sales. As a producer of a SOD product in China, we would be subject to these risks.

Restrictions on currency exchange may limit our ability to receive and use our revenues effectively.

The majority of our revenue will be settled in RMB and U.S. Dollars, and any future restrictions on currency exchanges may limit our ability to use revenue generated in RMB to fund any future business activities outside China or to make dividend or other payments in U.S. dollars. Although the Chinese government introduced regulations in 1996 to allow greater convertibility of the RMB for current account transactions, significant restrictions still remain, including primarily the restriction that foreign-invested enterprises may only buy, sell or remit foreign currencies after providing valid commercial documents at those banks in China authorized to conduct foreign exchange business. In addition, conversion of RMB for capital account items, including direct investment and loans, is subject to governmental approval in China, and companies are required to open and maintain separate foreign exchange accounts for capital account items. We cannot be certain that the Chinese regulatory authorities will not impose more stringent restrictions on the convertibility of the RMB.

We may be unable to complete a business combination transaction efficiently or on favorable terms due to complicated merger and acquisition regulations which became effective on September 8, 2006.

On August 8, 2006, six PRC regulatory agencies, including the CSRC, promulgated the Regulation on Mergers and Acquisitions of Domestic Companies by Foreign Investors, which became effective on September 8, 2006. This new regulation, among other things, governs the approval process by which a PRC company may participate in an acquisition of assets or equity interests. Depending on the structure of the transaction, the new regulation will require the PRC parties to make a series of applications and supplemental applications to the government agencies. In some instances, the application process may require the presentation of economic data concerning a transaction, including appraisals of the target business and evaluations of the acquirer, which are designed to allow the government to assess the transaction. Government approvals will have expiration dates by which a transaction must be completed and reported to the government agencies. Compliance with the new regulations is likely to be more time consuming and expensive than in the past and the government can now exert more control over the combination of two businesses. Accordingly, due to the new regulation, our ability to engage in business combination transactions has become significantly more complicated, time consuming and expensive, and we may not be able to negotiate a transaction that is acceptable to our stockholders or sufficiently protect their interests in a transaction.

The new regulation allows PRC government agencies to assess the economic terms of a business combination transaction. Parties to a business combination transaction may have to submit to the Ministry of Commerce and other relevant government agencies an appraisal report, an evaluation report and the acquisition agreement, all of which form part of the application for approval, depending on the structure of the transaction. The regulations also prohibit a transaction at an acquisition price obviously lower than the appraised value of the PRC business or assets and in certain transaction structures, require that consideration must be paid within defined periods, generally not in excess of a year. The regulation also limits our ability to negotiate various terms of the acquisition, including aspects of the initial consideration, contingent consideration, holdback provisions, indemnification provisions and provisions relating to the assumption and allocation of assets and liabilities. Transaction structures involving trusts, nominees and similar entities are prohibited. Therefore, such regulation may impede our ability to negotiate and complete a business combination transaction on financial terms that satisfy our investors and protect our stockholders’ economic interests.

Failure to comply with PRC regulations relating to the investment in offshore special purpose companies by PRC residents may subject our PRC resident stockholders to personal liability, limit our ability to acquire PRC companies or to inject capital into our PRC subsidiaries, limit our PRC subsidiaries’ ability to distribute profits to us or otherwise materially adversely affect us.

On July 14, 2014, SAFE issued the Circular on Relevant Issues Relating to Domestic Residents’ Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or Circular 37, which replaced the Circular 75, promulgated by SAFE on October 21, 2005. Circular 37 requires PRC residents to register with local branches of SAFE in connection with their direct establishment or indirect control of an offshore entity, for the purpose of overseas investment and financing, with such PRC residents’ legally owned assets or equity interests in domestic enterprises or offshore assets or interests, referred to in Circular 37 as a “special purpose vehicle.”

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We have notified substantial beneficial owners of our company who we know are PRC residents to comply with the registration obligation. However, we may not be aware of the identities of all our beneficial owners who are PRC residents. In addition, we do not have control over our beneficial owners and cannot assure you that all of our PRC resident beneficial owners will comply with Circular 37. The failure of our beneficial owners who are PRC residents to register or amend their SAFE registrations in a timely manner pursuant to Circular 37 or the failure of future beneficial owners of our company who are PRC residents to comply with the registration procedures set forth in Circular 37 may subject such beneficial owners or our PRC subsidiaries to fines and legal sanctions. Failure to register or amend the registration may also limit our ability to contribute additional capital to our PRC subsidiaries or receive dividends or other distributions from our PRC subsidiaries or other proceeds from disposal of our PRC subsidiaries, or we may be penalized by SAFE. These risks may have a material adverse effect on our business, financial condition and results of operations.

The value of our securities will be affected by the foreign exchange rate between U.S. dollars and RMB.

The value of our common stock will be affected by the foreign exchange rate between U.S. dollars and RMB, and between those currencies and other currencies in which our sales may be denominated. Currently, RMB is stronger than U.S. Dollars. For example, to the extent that we need to convert U.S. dollars into RMB for our operational needs and should RMB appreciate against the U.S. dollar at that time, our financial position, the business of the Company, and the price of our common stock may be harmed. Conversely, if we decide to convert our RMB into U.S. dollars for the purpose of declaring dividends on our common stock or for other business purposes and the U.S. dollar appreciates against RMB, the U.S. dollar equivalent of our earnings from our subsidiaries in China would be reduced.

The Security Review Rules may make it more difficult for us to make future acquisitions or dispositions of our business operations or assets in China.

The Security Review Rules, effective as of September 1, 2011, provides that when deciding whether a specific merger or acquisition of a domestic enterprise by foreign investors is subject to the national security review by MOFCOM, the principle of substance-over-form should be applied and foreign investors are prohibited from circumventing the national security review requirement by structuring transactions through proxies, trusts, indirect investments, leases, loans, control through contractual arrangements or offshore transactions. If the business of any target company that we plan to acquire falls within the scope subject to national security review, we may not be able to successfully acquire such company by equity or asset acquisition, capital increase or even through any contractual arrangement.

Under the Enterprise Income Tax Law, we may be classified as a “resident enterprise” of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders.

On March 16, 2007, the National People’s Congress of China passed a new Enterprise Income Tax Law, or the EIT Law, and on November 28, 2007, the State Council of China passed its implementing rules, which took effect on January 1, 2008. Under the EIT Law, an enterprise established outside of China with “de facto management bodies” within China is considered a “resident enterprise,” meaning that it can be treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. The implementing rules of the EIT Law define de facto management as “substantial and overall management and control over the production and operations, personnel, accounting, and properties” of the enterprise.

On April 22, 2009, the State Administration of Taxation issued the Notice Concerning Relevant Issues Regarding Cognizance of Chinese Investment Controlled Enterprises Incorporated Offshore as Resident Enterprises pursuant to Criteria of de facto Management Bodies, or the Notice, further interpreting the application of the EIT Law and its implementation non-Chinese enterprise or group controlled offshore entities. Pursuant to the Notice, an enterprise incorporated in an offshore jurisdiction and controlled by a Chinese enterprise or group will be classified as a “non-domestically incorporated resident enterprise” if (i) its senior management in charge of daily operations reside or perform their duties mainly in China; (ii) its financial or personnel decisions are made or approved by bodies or persons in China; (iii) its substantial assets and properties, accounting books, corporate chops, board and shareholder minutes are kept in China; and (iv) at least half of its directors with voting rights or senior management often resident in China. A resident enterprise would be subject to an enterprise income tax rate of 25% on its worldwide income and must pay a withholding tax at a rate of 10% when paying dividends to its non-PRC shareholders. However, it remains unclear as to whether the Notice is applicable to an offshore enterprise incorporated by a Chinese natural person. Nor are detailed measures on imposition of tax from non-domestically incorporated resident enterprises are available. Therefore, it is unclear how tax authorities will determine tax residency based on the facts of each case.

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We may be deemed to be a resident enterprise by Chinese tax authorities. If the PRC tax authorities determine that we are a “resident enterprise” for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. First, we may be subject to the enterprise income tax at a rate of 25% on our worldwide taxable income as well as PRC enterprise income tax reporting obligations. In our case, this would mean that income such as interest on financing proceeds and non-China source income would be subject to PRC enterprise income tax at a rate of 25%. Second, although under the EIT Law and its implementing rules dividends paid to us from our PRC subsidiaries would qualify as “tax-exempt income,” we cannot guarantee that such dividends will not be subject to a 10% withholding tax, as the PRC foreign exchange control authorities, which enforce the withholding tax, have not yet issued guidance with respect to the processing of outbound remittances to entities that are treated as resident enterprises for PRC enterprise income tax purposes. Finally, it is possible that future guidance issued with respect to the new “resident enterprise” classification could result in a situation in which a 10% withholding tax is imposed on dividends we pay to our non-PRC shareholders and with respect to gains derived by our non-PRC stockholders from transferring our shares.

If we were treated as a “resident enterprise” by PRC tax authorities, we would be subject to taxation in both the U.S. and China, and our PRC tax may not be creditable against our U.S. tax.

We face uncertainty from China’s Circular on Strengthening the Administration of Enterprise Income Tax on NonResident Enterprises’ Share Transfer that was released in December 2009 with retroactive effect from January 1, 2008.

The Chinese State Administration of Taxation, or SAT, released a circular on December 15, 2009 that addresses the transfer of shares by nonresident companies, generally referred to as Circular 698. Circular 698, which is effective retroactively to January 1, 2008, may have a significant impact on many companies that use offshore holding companies to invest in China.

Circular 698, which provides parties with a short period of time to comply with its requirements, indirectly taxes foreign companies on gains derived from the indirect sale of a Chinese company. Where a foreign investor indirectly transfers equity interests in a Chinese resident enterprise by selling the shares in an offshore holding company, and the latter is located in a country or jurisdiction where the effective tax burden is less than 12.5% or where the offshore income of his, her, or its residents is not taxable, the foreign investor is required to provide the tax authority in charge of that Chinese resident enterprise with the relevant information within 30 days of the transfers. Moreover, where a foreign investor indirectly transfers equity interests in a Chinese resident enterprise through an abuse of form of organization and there are no reasonable commercial purposes such that the corporate income tax liability is avoided, the PRC tax authority will have the power to re-assess the nature of the equity transfer in accordance with PRC’s “substance-over-form” principle and deny the existence of the offshore holding company that is used for tax planning purposes. There is uncertainty as to the application of Circular 698. For example, while the term “indirectly transfer” is not defined, it is understood that the relevant PRC tax authorities have jurisdiction regarding requests for information over a wide range of foreign entities having no direct contact with China. Moreover, the relevant authority has not yet promulgated any formal provisions or formally declared or stated how to calculate the effective tax in the country or jurisdiction and to what extent and the process of the disclosure to the tax authority in charge of that Chinese resident enterprise. In addition, there are not any formal declarations with regard to how to decide “abuse of form of organization” and “reasonable commercial purpose,” which can be utilized by us to balance if our Company complies with the Circular 698. As a result, we may become at risk of being taxed under Circular 698 and we may be required to expend valuable resources to comply with Circular 698 or to establish that we should not be taxed under Circular 698, which could have a material adverse effect on our financial condition and results of operations.

We may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption laws, and any determination that we violated these laws could have a material adverse effect on our business.

We are subject to the Foreign Corrupt Practice Act, or FCPA, and other laws that prohibit improper payments or offers of payments to foreign governments and their officials and political parties by U.S. persons and issuers as defined by the statute, for the purpose of obtaining or retaining business. We have operations, agreements with third parties, and make most of our sales in China. The PRC also strictly prohibits bribery of government officials. Our activities in China create the risk of unauthorized payments or offers of payments by the employees, consultants, sales agents, or distributors of our Company, even though they may not always be subject to our control. It is our policy to implement safeguards to discourage these practices by our employees. However, our existing safeguards and any future improvements may prove to be less than effective, and the employees, consultants, sales agents, or distributors of our Company may engage in conduct for which we might be held responsible. Violations of the FCPA or Chinese anti-corruption laws may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could negatively affect our business, operating results and financial condition. In addition, the U.S. government may seek to hold our Company liable for successor liability FCPA violations committed by companies in which we invest or that we acquire.

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If we become directly subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and resolve the matter which could harm our business operations, stock price and reputation and could result in a loss of your investment in our stock, especially if such matter cannot be addressed and resolved favorably.

Recently, U.S. public companies that have substantially all of their operations in China, particularly companies like us which have completed so-called reverse merger transactions, have been the subject of intense scrutiny, criticism and negative publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative publicity has centered around financial and accounting irregularities and mistakes, a lack of effective internal controls over financial accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result of the scrutiny, criticism and negative publicity, the publicly traded stock of many U.S. listed Chinese companies has sharply decreased in value and, in some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions and are conducting internal and external investigations into the allegations. It is not clear what effect this sector-wide scrutiny, criticism and negative publicity will have on our Company, our business and our stock price. If we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we will have to expend significant resources to investigate such allegations and/or defend our company. This situation will be costly and time consuming and distract our management from growing our company.

The disclosures in our reports and other filings with the SEC and our other public pronouncements are not subject to the scrutiny of any regulatory bodies in the PRC. Accordingly, our public disclosure should be reviewed in light of the fact that no governmental agency that is located in China where substantially all of our operations and business are located have conducted any due diligence on our operations or reviewed or cleared any of our disclosure.

We are regulated by the SEC and our reports and other filings with the SEC are subject to SEC review in accordance with the rules and regulations promulgated by the SEC under the Securities Act and the Exchange Act. Unlike public reporting companies whose operations are located primarily in the United States, however, substantially all of our operations are located in China. Since substantially all of our operations and business takes place in China, it may be more difficult for the staff of the SEC to overcome the geographic and cultural obstacles that are present when reviewing our disclosure. These same obstacles are not present for similar companies whose operations or business take place entirely or primarily in the United States. Furthermore, our SEC reports and other disclosure and public pronouncements are not subject to the review or scrutiny of any PRC regulatory authority. For example, the disclosure in our SEC reports and other filings are not subject to the review of the China Securities Regulatory Commission, a PRC regulator that is tasked with oversight of the capital markets in China. Accordingly, you should review our SEC reports, filings and our other public pronouncements with the understanding that no local regulator has done any due diligence on our company and with the understanding that none of our SEC reports, other filings or any of our other public pronouncements has been reviewed or otherwise been scrutinized by any local regulator.

RISKS RELATED TO THE MARKET FOR OUR STOCK

Our common stock is quoted on the OTCQB which may have an unfavorable impact on our stock price and liquidity.

Our common stock is quoted on the OTCQB. The OTCQB is a significantly more limited market than the New York Stock Exchange or Nasdaq system. The quotation of our shares on the OTCQB may result in a less liquid market available for existing and potential stockholders to trade shares of our common stock, could depress the trading price of our common stock and could have a long-term adverse impact on our ability to raise capital in the future.

We may be subject to penny stock regulations and restrictions and you may have difficulty selling shares of our common stock.

The SEC has adopted regulations which generally define so-called “penny stocks” to be an equity security that has a market price less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exemptions. If our common stock becomes a “penny stock”, we may become subject to Rule 15g-9 under the Exchange Act, or the “Penny Stock Rule”. This rule imposes additional sales practice requirements on broker-dealers that sell such securities to persons other than established customers and “accredited investors” (generally, individuals with a net worth in excess of $1,000,000 or annual incomes exceeding $200,000, or $300,000 together with their spouses). For transactions covered by Rule 15g-9, a broker-dealer must make a special suitability determination for the purchaser and have received the purchaser’s written consent to the transaction prior to sale. As a result, this rule may affect the ability of broker-dealers to sell our securities and may affect the ability of purchasers to sell any of our securities in the secondary market.

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For any transaction involving a penny stock, unless exempt, the rules require delivery, prior to any transaction in a penny stock, of a disclosure schedule prepared by the SEC relating to the penny stock market. Disclosure is also required to be made about sales commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements are required to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stock.

There can be no assurance that our common stock will qualify for exemption from the Penny Stock Rule. In any event, even if our common stock were exempt from the Penny Stock Rule, we would remain subject to Section 15(b)(6) of the Exchange Act, which gives the SEC the authority to restrict any person from participating in a distribution of penny stock, if the SEC finds that such a restriction would be in the public interest.

Our controlling stockholder, Wei Wang, holds a significant percentage of our outstanding voting securities and accordingly may make decisions regarding our daily operations, significant corporate transactions and other matters that other stockholders may believe are not in their best interests.

Ms. Wei Wang, our Director, is the beneficial owner of approximately 80.81% of our outstanding voting securities. As a result, she possesses significant influence over the election of our Board of Directors and significant corporate transactions. Her ownership may also have the effect of delaying or preventing a future change in control, impeding a merger, consolidation, takeover or other business combination or discourage a potential acquirer from making a tender offer. Other stockholders may believe that these future decisions made by Ms. Wang are not in their best interests.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2. PROPERTIES

All land in China is owned by the State or collectives. Individuals and companies are permitted to acquire rights to use land or land use rights for specific purposes. In the case of land used for industrial purposes, the land use rights are granted for a period of 50 years. This period may be renewed at the expiration of the initial and any subsequent terms according to the relevant Chinese laws. Granted land use rights are transferable and may be used as security for borrowings and other obligations.

Our executive offices are located at 8/F East Area, Century Golden Resources Business Center, 69 Bangjing Road, Haidian District, Beijing, People’s Republic of China 100089. Our executive offices consist of approximately 130 square meters consisting entirely of administrative office space. This lease expired on December 31, 2005 and we continue to rent this property on a month-to-month basis.

Our main production facilities are located at Sanjie Village, Shuanfu Town, Jiangjin City, Chongqing. The total site area is approximately 20,000 square meters. We lease this facility under a lease agreement with ShuanFu Town Government. The term of the lease is 20 years. We plan to buy the facility when the lease expires.

We believe that all our properties have been adequately maintained, are generally in good condition, and are suitable and adequate for our business.

ITEM 3. LEGAL PROCEEDINGS

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse affect on our business, financial condition or operating results.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is quoted and traded from time to time on the OTCQB under the symbol “CGYG”. The CUSIP number is 16942Q109. The transfer agent of our common stock is Securities Transfer Corporation whose address is at 2591 Dallas Parkway, Suite 102 Frisco, TX 75034, (469) 633-0101.

The following table sets forth, for the periods indicated, the high and low bid prices for the common stock as reported on Yahoo.com. The quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

		Closing Prices (1)
		High		Low
Year Ended December 31, 2014
1st Quarter	$	0.20	$	0.03
2nd Quarter	$	0.04	$	0.04
3rd Quarter	$	0.04	$	0.04
4th Quarter	$	0.05	$	0.04
Year Ended December 31, 2013
1st Quarter	$	0.00	$	0.00
2nd Quarter	$	0.00	$	0.00
3rd Quarter	$	0.00	$	0.00
4th Quarter	$	0.25	$	0.00

________________________
(1)The above tables set forth the range of high and low closing bid prices per share of our common stock as reported by www.quotemedia.com for the periods indicated.

Holders

On March 27, 2015, there were approximately 311 stockholders of record of our common stock.

Dividends

We have not paid any cash dividends with respect to our common stock in the last two fiscal years. We presently intend to retain future earnings to finance our development and expansion and therefore do not anticipate the payment of any cash dividends in the foreseeable future. Payment of future dividends, if any, will depend upon our future earnings and capital requirements and other factors that our board of directors considers appropriate.

Securities Authorized for Issuance under Equity Compensation Plans

None.

ITEM 6. SELECTED FINANCIAL DATA

Not Applicable.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

This subsection of MD&A is an overview of the important factors that management focuses on in evaluating our businesses, financial condition and operating performance, our overall business strategy and our earnings for the periods covered.

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General

We are a holding company that only operates through our indirect Chinese subsidiaries. Through our Chinese subsidiaries, we develop and manufacture SOD in China, with a wide range of applications, especially in foods, medicines and cosmetic products. We plan to market, sell and service our products nationally through a combination of company-owned offices and independent sales agents. Currently we have two sales offices, one located in Chengdu, and the other located in Chongqing, and we plan to establish agents in additional offices across China. We have targeted our approach to meet local market conditions which we believe provides the best possible products for our customers throughout China. In recent years, more and more people are choosing to eat or drink healthier foods and beverages.

Industry Wide Factors that are Relevant to Our Business

We expect several key demographic, healthcare, and lifestyle trends to drive the growth of our business in the coming future:

• Increased Focus on Healthy Living: Our management believes that as China becomes more affluent, its citizens are becoming more health conscious. They are leading more active lifestyles and becoming increasingly focused on healthy living, nutrition, and supplementation. According to the Nutrition Business Journal, a higher percentage of today’s global population is involved to some degree in health and wellness than a few years ago. We believe that growth in the health supplements industry will continue to be driven by consumers who increasingly embrace health and wellness as a critical part of their lifestyles.

• Aging Population: According to the U.S. Census Bureau, China's population age 60 and above was more than 142 million in 2005. The bureau estimates that by 2025 this demographic will more than double in size to approximately 290 million. We believe that these consumers are significantly more likely to use health supplements than younger persons and have higher levels of disposable income to pursue healthy lifestyles.

• Rising Healthcare Costs and Use of Preventive Measures: Healthcare related costs have increased substantially in China. A survey released by China’s Ministry of Health found that the percentage of out-of-pocket health expenditures in China has increased from 35.7% in 1990 to 55.5% in 2003. To reduce medical costs and avoid the complexities of dealing with the healthcare system, and given increasing incidence of medical problems and concern over the use and effects of prescription drugs, many consumers take preventive measures, including alternative medicines and nutritional supplements.

• Food and Beverage Security: Since 2007, food and beverage security has become more important to PRC regulators. The PRC government regulates and enforces strict food and beverage testing procedures and we are required to obtain licenses for the sale of any new food and beverage products from the relevant authorities. We currently sell SOD products (SOD WINE) for manufacturing food, and we have already obtained both the Food Hygiene License issued by the Chongqing AOH and the Food Production License issued by the local AQSIQ. We also plan to produce and sell SOD medicines and skin care products, and we have applied for the Pharmaceutical Producer License from the provincial AOH and the approval from the provincial State Food and Drug Administration, or SFDA. It will take more than half year to get the license from AOH and the approval from SFDA for us to sell SOD medicines and skin care products.

Weaknesses and Uncertainties that Affect our Financial Condition

We face certain challenges and risks that may affect our financial condition. In recent years, low quality products and false advertisements have given the Chinese cosmetic and health products market a bad reputation. Consumers are often suspicious of the effects of cosmetics and health products. Some consumers think that these products cannot induce substantial beautification or health improvements, while others think these products may actually be harmful. In a market where efficient and inefficient markets are mixed up, and consumers have a distrust of the market, we will keep up our research and development of products, while strengthening our quality control at the same time. Based on our past high quality control, we believe that the reputation of our products will be strong.

For accounting purposes, the acquisition of Top Time was treated as a reorganization of entities under common control. When we refer in this report to business and financial information for periods prior to the consummation of the acquisition, we are referring to the business and financial information of China Longyi on a consolidated basis unless the context suggests otherwise.

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Results of Operations

We are a development stage company. We have only generated limited revenues from our operations since our inception. Before November 12, 2007, we had limited operations and our purpose was to acquire an operating business or the valuable assets of an unidentified company. As a result of the acquisition of Top Time, we changed our business to the development, manufacture and sale of SOD products.

Fiscal Year Ended December 31, 2014 Compared to December 31, 2013

The following table summarizes the results of our operations during the fiscal years ended December 31, 2014 and 2013 and provides information regarding the dollar and percentage increase or (decrease) from the 2013 fiscal year to the 2014 fiscal year.

										Percentage
								Increase		Increase
Line Item		December 31, 2014			December 31, 2013			(Decrease)		(Decrease)
Revenues	$	107,566		$	58,380		$	49,186		84.25%
Cost of Sales	$	192,027		$	48,086		$	143,941		299.34%
Operating Expenses	$	486,758		$	583,410		$	(96,652	)	(16.57%	)
Income Taxes	$	-		$	-		$	-		-
Net (Loss)	$	(396,375	)	$	(476, 161	)	$	(79,786	)	(16.76%	)

Revenue

Our revenues are derived primarily from sales of our SOD products. Our revenues in fiscal year 2014 amounted to $107,566, as compared with $58,380 of fiscal year 2013. The increase in revenues was due to SOD Fruit Enzymes products being sold in 2014 as compared with 2013. During the last quarter of 2014, we held a promotion event in order to introduce new SOD products, and sold some of new products at a preferential price to our selected customers.

Cost of Sales

Our cost of revenues is primarily comprised of the costs of our raw materials, labor and overhead. Our cost of sales in fiscal years 2014 and 2013 was $192,027 and $48,086, respectively, which accounts for approximately 178.52% and 82.37%, respectively, as a percentage of total revenues. The dollar amount of the cost of sales increased as a result of more SOD products being sold as compared with 2013. Cost of sales as a percentage of annual revenues increased by about 96.15% in 2014 as compared with 2013, which is mainly attributable to the promotion event. During the promotion period, we sold some of new products at a preferential price, which is lower than the cost to our selected customers.

Gross Profit (Loss)

Our gross profit decreased by $94,755, or 920.49%, to $(84,461) in fiscal year 2014 from $10,294 in 2013. Gross profit as a percentage of revenues was (78.52)% in fiscal year 2014, a decrease of 96.15% from 17.63% in 2013.

Operating Expenses

Our operating expenses for the fiscal year ended December 31, 2014 were $486,758, as compared to $583,410 for 2013. This decrease of $96,652 or 16.57% is primarily due to the fact that we paid less professional and financial consultation fees in the year of 2014 as compared with 2013.

Income taxes

We are currently subject to income taxes according to applicable tax laws in the PRC. The tax rates are 25% for both Beijing SOD and Chongqing SOD.

In addition to the changes to the current tax structure, under the EIT Law, an enterprise established outside of China with “de facto management bodies” within China is considered a resident enterprise and will normally be subject to an EIT of 25.0% on its global income. The Implementing Rules define the term “de facto management bodies” as “an establishment that exercises, in substance, overall management and control over the production, business, personnel, accounting, etc., of a Chinese enterprise”. If the PRC tax authorities subsequently determine that we should be classified as a resident enterprise, then the organization’s global income will be subject to PRC income tax of 25.0%.

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We incurred no income taxes in either 2014 or 2013.

Net Income (Loss).

As a result of the factors described above, our net loss decreased $79,786, or 16.76%, to $(396,375) for the year ended December 31, 2014, from $(476,161) for 2013.

Liquidity and Capital Resources

General

As of December 31, 2014, we had cash and cash equivalents of approximately $46,366. The following table provides detailed information about our net cash flow for all financial statement periods presented in this report.

Cash Flow

	For the Fiscal Year Ended December 31,
	2014	2013
Net cash provided by (used in) operating activities	$ (180,543)	$ (31,555)
Net cash provided by (used in) investing activities	$ (5,298)	$ (1,518)
Net cash provided by (used in) financing activities	$ 206,414	$ 55,176
Net cash flow	$ 25,651	$ 8,799

Operating Activities

Net cash used in operating activities was $180,543 for the fiscal year ended December 31, 2014, which is an increase of $148,988 from $31,555 net cash used in operating activities for 2013. The increase of the cash used in operating activities was mainly attributed to the fact that there was a change of accounts receivables. Cash provided from accounts receivables was $145,573 in 2013, however the cash provided from accounts receivable was $(6,632) in 2014.

Investing Activities

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

Net cash used in investing activities for the fiscal year ended December 31, 2014 was $5,298, which is an increase of $3,780 from net cash used in investing activities of $1,518 for 2013. The increase of the cash used in investing activities was mainly due to the fact that there was an increase of purchase of property and equipment.

Financing Activities

Net cash provided by financing activities for the fiscal year ended December 31, 2014 was $206,414, while in 2013 we had $55,176 net cash provided by financing activities. Such change was attributable to the fact that we received $206,414 as the loan from one of our directors in 2014.

We expect to generate approximately between $0.8 million to $1.5 million of revenues from the sale of our products during the next 12 months. If our cash on hand and cash flow from operations do not meet our expected capital expenditure and working capital requirements for the next 12 months, we expect that our directors will provide more cash as loans to the company. However, we may in the future require additional cash resources due to changed business conditions, implementation of our strategy to expand our production capacity or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

17

Critical Accounting Policies

Economic and Political Risks

The Company faces a number of risks and challenges as a result of having primary operations and marketing in the PRC. Changing political climates in the PRC could have a significant effect on the Company’s business.

Foreign Currencies

The company has determined that RMB to be its functional currency. The accompanying consolidated financial statements are presented in U.S. dollars. The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

	December 31,
	2014		2013
	RMB	HK$	RMB	HK$
Balance sheet items, except for equity accounts	6.1190	7.7567	6.0969	7.7546
Items in the statements of income and comprehensive income, and the statements of cash flows	6.1424	7.7544	6.1929	7.7532

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Significant Estimates

Several areas require significant management estimates relating to uncertainties for which it is reasonably possible that there will be a material change in the near term. The more significant areas requiring the use of management estimates related to determination of net realizable value of inventory, allowance for doubtful accounts, property and equipment, accrued liabilities and, the useful lives for depreciation.

Restrictions on Transfer of Assets Out of the PRC

Dividend payments by Beijing SOD are limited by certain statutory regulations in the PRC. No dividends may be paid by Beijing SOD without first receiving prior approval from the Foreign Currency Exchange Management Bureau. Dividend payments are restricted to 85% of profits, after tax.

Revenue Recognition

The Company recognizes revenue in accordance with Staff Accounting Bulletin No.104 “Revenue recognition” (“ASC Topic 605”). Revenues are recognized as earned when the following four criteria are met: (1) a customer issues purchase orders or otherwise agrees to purchase products; (2) products are delivered to the customer; (3) pricing is fixed or determined in accordance with the purchase order or agreement; and (4) collectability is reasonably assured.

Inflation

Inflation does not materially affect our business or the results of our operations.

Seasonality

We may experience seasonal variations in our future revenues and our operating costs, however, we do not believe that these variations will be material.

Off-Balance Sheet Arrangements

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We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The full text of our audited consolidated financial statements as of December 31, 2014 and 2013 begins on page F-1 of this Report.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, Ms. Jie Chen and Mr. Xinmin Pan, 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, Ms. Chen and Mr. Pan concluded that as of December 31, 2014, our disclosure controls and procedures were effective at the reasonable assurance level.

(b) Management’s annual report on internal control over financial reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Internal control over financial reporting refers to the process designed by, or under the supervision of, our chief executive officer and chief financial officer, and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP, and includes those policies and procedures that:

(1)	pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
(2)	provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that our receipts and expenditures are being made only in accordance with the authorization of our management and directors; and
(3)	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2014. In making this assessment, management used the framework set forth in the report entitled Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that evaluation, our management concluded that our internal control over financial reporting is effective, as of December 31, 2014.

19

(c) Changes in internal control over financial reporting

There were no changes in our internal controls over financial reporting during the fourth quarter of our fiscal year ended December 31, 2014, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Directors and Executive Officers

The following sets forth the name and position of each of our current executive officers and directors:

Name	Age	Position
Changde Li	58	Chairman of the Board
Jie Chen	59	Chief Executive Officer and Director
Xinmin Pan	69	Chief Financial Officer
Hui Chen	45	Director
Hongliang Li	53	Director
Wei Wang	44	Director

Changde Li was appointed Chairman of the Board of Directors on May 10, 2004. Mr. Li has also served as the President of our subsidiary, Beijing SOD, since November 8, 2007 and the chairman of the Board of Directors of our stockholder, Qiang Long, since 1993. During his tenure as chairman, he has led the Company to develop many holiday villages, hotels and business centers throughout China.

Jie Chen was appointed Chief Executive Officer of the Company on September 22, 2006. Prior to her appointment, Ms. Chen served as Vice President of Public Relations and has been a member of the Board of Directors of the Company since February 2004. Upon being appointed as Chief Executive Officer of the Company, Ms. Chen resigned from the office of Vice President of Public Relations. Ms. Chen is the Vice Secretary of the Zhang Xue-Liang Fund Association and has held such position and other positions with such Association over the past five years. The Zhang Xue-Liang Fund Association is in the business of arranging meetings, conferences and exhibitions. It also provides public relations and investor relations support to its clients. Prior to joining the Zhang Xue-Liang Fund Association, Ms. Chen held various key positions with television stations and public relations companies in China. Ms. Chen holds a Master’s degree in International Finance from Beijing University.

Xinmin Pan became the Company’s Chief Financial Officer on December 4, 2006. Prior to his appointment, Mr. Pan has worked as an accountant with the Company since October 2006. Before joining the Company Mr. Pan served as the General Accountant for ZhongFang Investment Holding Ltd. from March 2006 to October 2006, as the Chief Financial Officer of the Beijing JinLang Hotel from January 2002 to March 2006, as the Chief Financial Officer of the Beijing Happy Holiday Hotel from January 2001 to January 2002, and as Chief Accountant and Chair of the Financing Department of North China Jinghai Industry Corporation, from November 1990 to January 2001.

Hui Chen was appointed to the Board of Directors on and effective December 2, 2005. Since 1999, Mr. Chen has also served as the Assistant General Manager of our stockholder, Qiang Long, a real estate development and investment company. Mr. Chen graduated from Xi’an University of Architecture and Technology in 1991.

Honliang Li became our director on May 10, 2004. Prior to joining us, Mr. Li acted as vice general manager of Beijing JiuFa Industry Ltd., a company engaged in commerce and trade, from 1994 to 2003 and served as Assistant General Manager of one of our stockholders, China Cardinal Limited, from 2003 to 2004. China Cardinal Limited is engaged in the business of acting as an investment company.

Wei Wang became a director on November 12, 2007. Ms. Wang has also served since 2005, as the Chairperson of China Cardinal Limited, since January 2007. In addition, Ms. Wang has served as the Chairperson of Daykeen and Top Time since 2006 and as the President and Chairperson of Beijing SOD from January 2007 until November 8, 2007. Prior to joining our Company, Ms. Wang served as a director of Manchuria Tianrui Investment Co., Ltd from 1999 to 2005. Ms. Wang graduated from Saint Petersburg National Technology University of Russia in 1998.

21

There are no agreements or understandings for any of our executive officers or directors to resign at the request of another person and no officer or director is acting on behalf of nor will any of them act at the direction of any other person. Our current director holds no directorships in any other reporting companies.

Board Composition and Committees

The board of directors is currently composed of five members, Mr. Changde Li, Ms. Jie Chen, Mr. Hui Chen, Mr. Hongliang Li and Ms. Wei Wang. All board action requires the approval of a majority of the directors in attendance at a meeting at which a quorum is present.

We currently do not have standing audit, nominating or compensation committees. Our entire board of directors handles the functions that would otherwise be handled by each of the committees. We intend, however, to establish an audit committee, a nominating committee and a compensation committee of the board of directors as soon as practicable. We envision that the audit committee will be primarily responsible for reviewing the services performed by our independent auditors, evaluating our accounting policies and our system of internal controls. The nominating committee would be primarily responsible for nominating directors and setting policies and procedures for the nomination of directors. The nominating committee would also be responsible for overseeing the creation and implementation of our corporate governance policies and procedures. The compensation committee will be primarily responsible for reviewing and approving our salary and benefit policies (including stock options), including compensation of executive officers.

None of our directors is an audit committee financial expert. Upon the establishment of an audit committee, the board will determine whether any of the directors qualify as an audit committee financial expert.

Family Relationships

There are no family relationships among our directors or officers.

Section 16(A) Beneficial Ownership Reporting Compliance

Under U.S. securities laws, directors, certain executive officers and persons holding more than 10% of our common stock must report their initial ownership of the common stock, and any changes in that ownership, to the SEC. The SEC has designated specific due dates for these reports. Based solely on our review of copies of such reports filed with the SEC by and written representations of our directors and executive offers, we believe that our directors and executive offers filed the required reports on time in 2014 fiscal year.

Involvement in Certain Legal Proceedings

To the best of our knowledge, none of our directors or executive officers has, during the past ten years:

• been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

• had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

• been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

• been found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

• been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease- and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

22

• been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

Except as set forth in our discussion below in Item 13, “Certain Relationships and Related Transactions, and Director Independence – Transactions with Related Persons,” none of our directors and executive officers has been involved in any transactions with us or any of our directors, executive officers, affiliates or associates which are required to be disclosed pursuant to the rules and regulations of the SEC.

Code of Ethics

On March 8, 2004, our board of directors adopted a code of ethics that our principal financial officer, principal accounting officer or controller and any person who may perform similar functions are subject to. A copy of the code of ethics has been filed as Exhibit 14 to our Annual Report on Form 10-KSB for the fiscal year ending December 31, 2003 filed on April 15, 2004.

ITEM 11. EXECUTIVE COMPENSATION

Summary Compensation Table – 2014 and 2013

The following table sets forth information concerning all compensation awarded to, earned by or paid to Our Chief Executive Officer for services rendered in all capacities during 2014 and 2013. No other executive officers received total annual salary and bonus compensation in excess of $100,000 in either fiscal year.

Name and Principal Position	Year	Salary ($)	Bonus ($)	Total ($)
Jie Chen, CEO and Director	2014	5,860	-	5,860
	2013	5,813	-	5,813

Outstanding Equity Awards at Fiscal Year End

There was no unexercised option, stock that has not vested or equity incentive plan award for any named executive officer as of December 31, 2014.

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Additional Narrative Disclosure

We have an employment agreement with Mr. Xinmin Pan who became our Chief Financial Officer in December 2006 after serving as our accountant from October 2006 to December 2006. We are obligated to pay him an annual salary of RMB 72,000, or $13,500. However, in 2007, we changed the employment agreement with Mr. Pan to pay him an annual salary of RMB 36,000 or $4,732 due to our limited revenue in the fiscal year 2007. We paid to Mr. Pan RMB 36,000 or $5,813 as his annual salary of the fiscal year 2013 and RMB 36,000 or $5,860 as his annual salary of the fiscal year 2014.

We have a verbal understanding with our Chief Executive Officer and Director, Jie Chen, regarding her annual salary of $5,813 and $5,860 for the fiscal years 2013 and 2014, respectively.

Although we have a verbal understanding with our Chairman, Chang-de Li regarding the payment to him of an annual salary in amount of $107,692, Mr. Li did not receive any compensation in 2013 and 2014.

Compensation of Directors

There have been no fees earned or paid in cash for services to our directors. No stock or stock options or other equity incentives were awarded to our directors for their services as directors during the fiscal year ended December 31, 2014. In the future, we may adopt a policy of paying independent directors a fee for their attendance at board and committee meetings. However, we do reimburse each director for reasonable travel expenses related to such director's attendance at board of directors and committee meetings.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

Security Ownership of Certain Beneficial Owners

The following table sets forth information regarding beneficial ownership of our common stock as of March 27, 2015 (i) by each person who is known by us to beneficially own more than 5% of our common stock; (ii) by each of our officers and directors; and (iii) by all of our officers and directors as a group.

Unless otherwise specified, the address of each of the persons set forth below is in care of China Longyi Group International Holdings Limited, 8B 8/F East Area, Century Golden Resources Business Center, 69 Banjing Road, Haidian District, Beijing, and People’s Republic of China 100097.

			Amount &Nature of
	Name & Address		Beneficial	Percent of
Title of Class	of Beneficial Owner	Office, If Any	Ownership(1)	Class(2)
Directors and Officers
Common Stock	Chang-de Li No. 95 Kangxi Road Ba Da Xia Industrial Development Zone Yanqing County, Beijing People’s Republic of China	Chairman	6,034,695 (3)	7.77%
Common Stock	Jie Chen	CEO and Director	0	*
Common Stock	Xinmin Pan	CFO	0	*
Common Stock	Hui Chen	Director	0	*
Common Stock	Hongling Li	Director	0	*
Common Stock	Wei Wang	Director	62,750,000 (4)(5)	80.81%
Common Stock	All officers and directors as a group (5 persons named above)		68,784,695	88.58%

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5% Security holders
Common Stock	Daykeen Investment Limited 19th Floor, Beverly House, Nos. 93- 107 Lockhart Road, Wanchai, Hong Kong	62,250,000 (4)	80.16%
Common Stock	Jolly Concept Management Limited 19th Floor, Beverly House, Nos. 93- 107 Lockhart Road, Wanchai, Hong Kong	5,134,000 (3)	6.61%

* Less than 1%

(1)	Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities.
(2)	A total of 77,655,862 shares of our common stock are considered to be issued and outstanding pursuant to SEC Rule 13d-3(d) (1) as of March 27, 2015. For each beneficial owner above, any options exercisable within 60 days have been included in the denominator.
(3)	Includes 750,001 shares owned by Beijing Qiang Long Real Estate Development Co. Ltd., or Qiang Long, 150,694 shares owned by Chinese Dragon Heritage Investment Management Limited, 5,134,000 shares owned by Jolly Concept Management Limited. Chang-de Li owns 100% of the equity interests of each of Beijing Qiang Long Real Estate Development Co., Ltd., Chinese Dragon Heritage Investment Management Limited and Jolly Concept Management Limited and exercises voting and investment power over the shares owned by each such entity.
(4)	Wei Wang exercises voting and investment power over the shares owned by Daykeen Investment Limited.
(5)	Includes 500,000 shares owned by China Cardinal Limited, or China Cardinal and 62, 250,000 shares owned by Daykeen Investment Limited. Wei Wang has controlling interests and exercises voting and investment power over the shares owned by China Cardinal and Daykeen Investment Limited.

Changes in Control

There are no arrangements known to us, including any pledge by any person of our securities, the operation of which may at a subsequent date result in a change in control of the Company.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Certain Relationships and Related Transactions

The following includes a summary of transactions since the beginning of the 2014 fiscal year, or any currently proposed transaction, in which we were or are to be a participant and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest (other than compensation described under Item 11, “Executive Compensation”):

As of December 31, 2014, we had borrowed an aggregate of approximately $641,134 from our directors to be used as working capital. The loans do not have maturity dates and are non-interest bearing and unsecured.

Promoters and Certain Persons

We did not have any promoters at any time during the past five years.

Director Independence

Our Board is currently composed of five members, none of whom are “independent” directors, as that term is defined under the NASDAQ listing standards. All actions of the board of directors require the approval of a majority of the directors in attendance at a meeting at which a quorum is present. Our directors have a duty of to act in good faith with a view to our interests. In fulfilling their duty of care to us, our directors must ensure compliance with our Certificate of Incorporation, as amended and our Bylaws. Board action requires the approval of a majority of the directors in attendance at a meeting at which a quorum is present.

25

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Independent Auditors’ Fees

The following table represents fees billed for 2014 and 2013 for professional audit services rendered by our independent registered public accounting firms:

		2014		2013
Audit fees(1)	$	50,000	$	50,000
Audit-related fees(2)		17,000		17,000
Tax fees		0		0
All other fees		0		0
Total		67,000		67,000

(1)	“Audit Fees” consisted of the aggregate fees billed for professional services rendered for the audit of our annual financial statements and the reviews of the financial statements included in our Forms 10-Q and for any other services that were normally provided in connection with our statutory and regulatory filings or engagements.
(2)	“Audit Related Fees” consisted of the aggregate fees billed for professional services rendered for assurance and related services that were reasonably related to the performance of the audit or review of our financial statements and were not otherwise included in Audit Fees.

Effective January 9, 2013, Stan J. H. Lee, CPA resigned as our independent registered public accounting firm because it ceased to provide auditing services to public companies. Our Board of Director accepted the resignation. On the same date, the Board of Directors engaged Tao Su, CPA as our new independent registered public accounting firm. For more information, see our Current Report on Form 8-K filed on January 14, 2013.

Pre-Approval Policies and Procedures

Under the Sarbanes-Oxley Act of 2002, all audit and non-audit services performed by our auditors must be approved in advance by our Board to assure that such services do not impair the auditors’ independence from us. In accordance with its policies and procedures, our Board pre-approved the audit and non-audit service performed by Tao Su, CPA for our consolidated financial statements as of and for the year ended December 31, 2014.

26

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENTS SCHEDULES

(a) The following documents are filed as part of this report:

(1) Financial Statements are set forth beginning on page F-1 of the Report

º	Report of Independent Registered Public Accounting Firm	F-2
º	Consolidated Balance Sheets	F-3
º	Consolidated Statements of Operations and Comprehensive Income (Loss)	F-4
º	Consolidated Statements of Cash Flows	F-5
º	Consolidated Statements of Changes in Stockholders’ Equity (Deficit)	F-6
º	Notes to Consolidated Financial Statements	F-7

(2) Financial Statement Schedules: All Schedules are omitted because the information called for is not applicable, is not required, or because the financial information is set forth in the financial statements or notes thereto.

(3) Exhibits

Exhibits (including those incorporated by reference).

The following exhibits are filed as part of this report or incorporated by reference:

Exhibit Number	Description
3.1	Certificate of Incorporation of the Company [Incorporated by reference to Exhibit 3.1 of the Form 10-KSB filed on April 15, 2002 in Commission file number 0-30183]
3.2	Certificate of Amendment of Certificate of Incorporation of the Company [Incorporated by reference to Appendix A of the Definitive Proxy Statement of the Company filed on July 3, 2001 in Commission file number 0-30183]
3.3	Amended and Restated Bylaws of the Company [Incorporated by reference to Exhibit 3.3 of the Form 10-KSB filed on April 15, 2002 in Commission file number 0-30183 in Commission file number 0-30183]
3.4	Certificate of Amendment of Certificate of Incorporation of the Company filed with the Secretary of State of the State of New York on October 16, 2007 [Incorporated by reference to Exhibit 3.4 of the Form 8-K filed on December 5, 2007 in Commission file number 0-30183]
14	Code of Ethics [incorporated by reference to Exhibit 14 of the Annual Report on Form 10- KSB of the Company for the fiscal year ended December 31, 2003]
21	A description of the subsidiaries of the registrant. [Incorporated by reference to Exhibit 21of the Form 10-K filed on April 15, 2011 in Commission file number 0-30183]
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	Certifications 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.

27

Exhibit Number	Description
32.2	Certifications 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	Interactive data files pursuant to Rule 405 of Regulation S-T (furnished herewith).

28

SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) 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.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

By: /s/ Jie Chen

Jie Chen

Chief Executive Officer

Date: March 31, 2015

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

     Each person whose signature appears below hereby authorizes Jie Chen and Xinmin Pan, or any of them, as attorneys-in-fact to sign on his behalf, individually, and in each capacity stated below, and to file all amendments and/or supplements to this annual report on Form 10-K.

SIGNATURE	CAPACITY	DATE
/s/Chang-de Li	Chairman
		March 31, 2015
Chang-de Li
/s/Jie Chen	Chief Executive Officer and Director
	(Principal Executive Officer)	March 31, 2015
Jie Chen
/s/Xinmin Pan	Chief Financial Officer
	(Principal Financial and Accounting Officer)	March 31, 2015
Xinmin Pan
/s/Hui Chen	Director
		March 31, 2015
Hui Chen
/s/Hongliang Li	Director
		March 31, 2015
Hongliang Li
/s/Wei Wang	Director
		March 31, 2015
Wei Wang

EXHIBITS

Exhibit Number	Description
3.1	Certificate of Incorporation of the Company [Incorporated by reference to Exhibit 3.1 of the Form 10-KSB filed on April 15, 2002 in Commission file number 0-30183]
3.2	Certificate of Amendment of Certificate of Incorporation of the Company [Incorporated by reference to Appendix A of the Definitive Proxy Statement of the Company filed on July 3, 2001 in Commission file number 0-30183]
3.3	Amended and Restated Bylaws of the Company [Incorporated by reference to Exhibit 3.3 of the Form 10-KSB filed on April 15, 2002 in Commission file number 0-30183 in Commission file number 0-30183]
3.4	Certificate of Amendment of Certificate of Incorporation of the Company filed with the Secretary of State of the State of New York on October 16, 2007 [Incorporated by reference to Exhibit 3.4 of the Form 8-K filed on December 5, 2007 in Commission file number 0-30183]
14	Code of Ethics [incorporated by reference to Exhibit 14 of the Annual Report on Form 10- KSB of the Company for the fiscal year ended December 31, 2003]
21	A description of the subsidiaries of the registrant. [Incorporated by reference to Exhibit 21of the Form 10-K filed on April 15, 2011 in Commission file number 0-30183]
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	Certifications 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	Certifications 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	Interactive data files pursuant to Rule 405 of Regulation S-T (furnished herewith).

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2014 and 2013

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	F-2
CONSOLIDATED BALANCE SHEETS	F-3
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)	F-4
CONSOLIDATED STATEMENTS OF CASH FLOWS	F-5
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)	F-6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	F-7

Tao Su, CPA (Colorado, United States)

789 West Pender Street, Suite 1588, Vancouver BC V6C 1H2 Canada

Tel: (604)434-8026 Fax: (604)434-8972 Email:sutaocga@gmail.com

Report of Independent Registered Public Accounting Firm

To the Board of Directors of

China Longyi Group International Holdings Limited

(A Development Stage Company)

We have audited the accompanying consolidated balance sheets of China Longyi Group International Holdings Limited (the "Company") as of December 31, 2014 and 2013, and the related statements of operations, changes in stockholders' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2014 and 2013, and the results of its operations and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, as an early stage development company, the Company has earned insignificant revenues. The Company has working capital deficiency of $1,167,381 as at December 31, 2014 and as of that date, accumulated deficit from recurring losses of $30,654,175 incurred for the current and prior years. These conditions, along with other matters as set forth in Note 1 indicate the existence of a material uncertainty that my raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/S/Tao Su

Tao Su, CPA

Vancouver, BC

March 28, 2015

F-2

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
		December 31,			December 31,
ASSETS		2014			2013
Current assets
Cash and cash equivalents	$	46,366		$	20,715
Inventories		389,362			400,924
Account receivalbes		27,654			21,073
Other receivables		6,312			10,160
Deposits and prepayments		15,331			15,869
Total current assets		485,025			468,741
Investment		11,157			11,198
Property, plant and equipment (net)		358,531			377,455
	$	854,713		$	857,394
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	5,657		$	5,706
Accrued liabilities		181,747			167,514
Due to directors		641,134			435,110
Due to related parties		389,842			344,536
Other payables		434,026			310,061
Total current liabilities		1,652,406			1,262,927
Equity
Common stock: par value $.01; 200,000,000           shares authorized; 77,655,862 shares issued          and outstanding		776,558			776,558
Additional paid-in capital		28,877,540			28,877,540
Deficit accumulated during the development		(30,654,175	)		(30,286,940	)
stage
Accumulated other comprehensive income		162,255			158,216
Total China Longyi stockholders' equity		(837,822	)		(474,626	)
Noncontrolling interest		40,129			69,093
Total Equity		(797,693	)		(405,533	)
	$	854,713		$	857,394

See accompanying notes to consolidated financial statements.

F-3

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
		Twelve months ended						Period from June 4,1997
		December 31,
								(inception) to
		2014			2013			December 31, 2014
Revenues
Sales	$	107,566		$	58,380		$	1,134,770
Cost of sales		192,027			48,086		$	1,232,286
Gross margin		(84,461	)		10,294		$	(97,516	)
Operating expenses
General and administrative expenses		486,758			583,410		$	19,690,601
Goodwill impairment loss		-			-		$	5,408,584
Write-off inventory and bus licenses		-			-		$	3,322,712
Research and development costs		-			-		$	8,880,206
		486,758			583,410		$	37,302,103
Loss from operations		(571,219	)		(573,116	)	$	(37,399,619	)
Other income (expense)
Interest income		60			27		$	325,747
Other income (expense)		179,826			84,104		$	1,428,037
Transaction exchange gain		(5,042	)		12,824		$	1,084,841
Gain on asset disposal		-			-		$	1,172
Gain on debt settlement		-			-		$	156,018
Gain on disposal subsidiary		-			-		$	4,093,455
Interest expense		-			-		$	(712,302	)
		174,844			96,955		$	6,376,968
Loss before income tax expense and noncontrolling interest		(396,375	)		(476,161	)	$	(31,022,651	)
Income tax expense		-			-		$	-
Net loss		(396,375	)		(476,161	)	$	(31,022,651	)
Less: Net loss attributable to noncontrolling interest		29,140			48,230		$	368,476
Net loss attributable to China Longyi	$	(367,235	)	$	(427,931	)	$	(30,654,175	)
Basic and diluted loss per share	$	(0.00	)	$	(0.00	)
Weighted average number of shares outstanding-basic and diluted		77,655,862			77,655,862
Comprehensive loss
Net loss	$	(396,375	)	$	(476,161	)	$	(31,022,651	)
Foreign currency translation adjustment		4,215			(10,889	)
Comprehensive loss		(392,160	)		(487,050	)
Comprehensive loss attributable to noncontrolling interest		(28,964	)		(49,909	)
Comprehensive loss attributable to China Longyi	$	(363,196	)	$	(437,141	)

See accompanying notes to consolidated financial statements.

F-4

CHINALONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
		Twelve months ended December 31						Period from Jun 4, 1997
		2014			2013			(inception) to 12.31, 2014
Cash flows from operating activities:
Net loss	$	(396,375	)	$	(476,161	)	$	(31,022,651	)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization		22,792			38,182			1,292,028
Loss on sales of property and equipment		-			-			9,873
Loss on disposal of fixed assets		-			29,227			29,227
Impairment loss for fixed assets		-			20,646			1,073,596
Write-off goodwill and inventory		-			-			7,101,506
Stock issued for services and debt		-			-			1,869,100
(Gain) loss on disposition in subsidiary		-			-			(3,882,796	)
Research and development expenses recorded in organiza		-			-			8,612,730
Reorganization expenses recorded in organization		-			-			455,830
Changes in operating assets and liabilities:
Accounts receivalbes		(6,632	)		145,573			(24,230	)
Other receivables		3,809			2,488			5,327,307
Due from related parties		-			56,257			31,486
Interest receivable		-			-			17,667
Deposits and prepayment		479			36			694,702
Inventory		10,075			39,715			(812,242	)
Other payables		139,048			21,355			(131,170	)
Due to related parties		46,289			90,513			100,865
Accounts payable and accrued liabilities		(28	)		614			(3,320,211	)
Net cash used in operations		(180,543	)		(31,555	)		(12,577,383	)
Cash flows from investing activities:
Reorganization - net of cash acquired		-			-			(320,579	)
Purchase of subsidiaries		-			-			(1,690,474	)
Redemption of short term investment		-			-			665,092
Purchases of intangible assets		-			-			(833,357	)
Purchases of property and equipment		(5,298	)		(1,518	)		(558,832	)
Purchases of construction in progress		-			-			(169,081	)
Sales of property and equipment		-			-			701,100
Deposit on subsidiary		-			-			(10,922	)
Net cash provided by (used in) investing activities		(5,298	)		(1,518	)		(2,217,053	)
Cash flows from financing activities:
Addition of short term loans		-			-			1,612
Collecttion from shareholders		-			-			503,171
Payments to stockholders		-			-			(1,634,763	)
Proceeds from issuance of stock		-			-			13,149,845
Proceeds from convertible promissory note		-			-			3,128,225
Dividends paid		-			-			(1,000,000	)
Proceeds to notes payable		-			-			649,492
Payments on notes payable		-			-			(612,582	)
Proceeds (repayments) loans from directors		206,414			55,176			515,060
Net cash provided by financing activities		206,414			55,176			14,700,060
Effect of foreign exchange rate fluctuation		5,078			(13,304	)		140,742
Increase(decrease) in cash and cash equivalents		25,651			8,799			46,366
Cash and cash equivalents, beginning of period		20,715			11,916			-
Cash and cash equivalents, end of period	$	46,366		$	20,715		$	46,366
Supplemental disclosures of cash flow information:
Cash paid for interest	$	-		$	-		$	-
Cash paid for income taxes	$	-		$	-		$	-

See accompanying notes to consolidated financial statements.

F-5

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
																Development			Accumulated
										Common Stock				Additional		Stage			Other
		Common Stock				Common Stock				Subscribed				Paid In		Accumulated			Comprehensiv			Subscription		Due from		Noncontrolling
		$.12834 Par Value				$.01 Par Value				$.01 Par Value				Capital		Deficit			Income			Receivable		stockholder		Interest			Total
Balance December 31, 2012	$	-	$	-	$	77,655,862	$	776,558	$	-	$	-	$	28,877,540	$	(29,859,009	)	$	167,426		$	-	$	-	$	119,002		$	81,517
Net loss for the year		-		-		-		-		-		-		-		(427,931	)		-			-		-		(48,230	)		(476,161	)
Foreign currency translation adjustment				-		-		-		-		-		-		-			(9,210	)		-		-		(1,679	)		(10,889	)
Balance December 31, 2013	$	-	$	-	$	77,655,862	$	776,558	$	-	$	-	$	28,877,540	$	(30,286,940	)	$	158,216		$	-	$	-	$	69,093		$	(405,533	)
Net loss for the year		-		-		-		-		-		-		-		(367,235	)		-			-		-		(29,140	)		(396,375	)
Foreign currency translation adjustment				-		-		-		-		-		-		-			4,039			-		-		176			4,215
Balance December 31, 2014	$	-	$	-	$	77,655,862	$	776,558	$	-	$	-	$	28,877,540	$	(30,654,175	)	$	162,255		$	-	$	-	$	40,129		$	(797,693	)

See accompanying notes to consolidated financial statements.

F-6

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of American (“US GAAP”). The accounts of China LongYi Group International Holdings Limited and all of its subsidiaries are included in the consolidated financial statements. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated operating results for the twelve months ended December 31, 2014.

1.	BUSINESS DESCRIPTION AND ORGANIZATION
	NAME CHANGE AND REORGANIZATION
	We amended our certificate of incorporation on October 16, 2007 and changed our name from Minghua Group International Holdings Limited (“Minghua USA”) to China LongYi Group International Holdings Limited. At the same time, we implemented a 1 for 20 reverse stock split of issued and outstanding shares of our common stock which reduced the number of our issued and our outstanding shares from 198,509,866 to 9,925,493.
	Minghua USA, formerly Panagra International Corporation (“Panagra”), was incorporated under the laws of the State of New York on February 29, 1996 under the name, United Network Technologies, Inc. On August 2, 2001, an amendment to the certificate of incorporation was made changing the name from Panagra to Minghua USA. This amendment also increased the authorized common shares of Minghua USA from 40,000,000 shares to 200,000,000 shares.
	In June 2001, Panagra and its subsidiary, Minghua Acquisition Corp. acquired all the outstanding shares of Minghua Group International Holding (Hong Kong) Limited (“Minghua Hong Kong”). The acquisition was effected by paying to the shareholders of Minghua Hong Kong $1,000,000 and issuing 28,000,000 additional Minghua USA common shares that resulted in the Minghua Hong Kong shareholders owning approximately 70% of the outstanding shares of Minghua USA and having control of Minghua USA after this transaction. For financial reporting purposes, this transaction was recorded as a recapitalization of Minghua Hong Kong. Minghua Hong Kong was deemed to be the continuing, surviving entity for accounting purposes, but through reorganizations, was deemed to have adopted the capital structure of Minghua USA.
	At that time, the sole asset of Minghua Hong Kong was an 85% equity interest in the Shenzhen Minghua Environmental Protection Vehicle Co., Ltd. (“Minghua China”), a Peoples Republic of China (PRC) corporation. The remaining 15% equity minority interest in Minghua China was owned by a related party, Asia Key Group Limited, through its wholly- owned subsidiary Minghua Real Estate (Shenzhen) Ltd, formerly known as Minghua Investment Co., Ltd. (“Minghua Real Estate”). On January 29, 2004, Minghua USA acquired this 15% minority interest held by Minghua Real Estate, in a related party transaction by paying $990,638 in cash and issuing 28,210,000 common shares of Minghua USA. In September 2006, Minghua USA disposed of its entire interests in Minghua Hong Kong and Minghua China.
	On November 12, 2007, we entered into a share purchase agreement, or the Share Purchase Agreement, with Daykeen Group Limited (“Daykeen”), a BVI company, or Daykeen, pursuant to which we acquired 100% ownership of Top Time International Limited (“Top Time”), a Hong Kong company. Daykeen is the sole shareholder of Top Time. Top Time owns 90% equity interest of Beijing Longyi Biology Technology Co. Ltd (“Beijing SOD”), which is a holding company that owns 90.05% equity interest of Chongqing JiuZhou Dismutase Biology Technology Co. Ltd (“Chongqing SOD”), a corporation incorporated in China. Chongqing SOD is a manufacturer of superoxide dismutase, or SOD products. As a result of this acquisition transaction, Top Time became our wholly owned subsidiary and Daykeen became our controlling stockholder upon our issuance to Daykeen of the equity portion of the purchase price in accordance with the Share Purchase Agreement. Top Time was incorporated in Hong Kong in December 2006 and currently has two subsidiaries: Beijing SOD and Chongqing SOD. Beijing SOD is 90% owned by Top Time and was incorporated in China in March 2005. Chongqing SOD was incorporated in China in March 2007 and is 90.05% owned by Beijing SOD.

F-7

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

1.	BUSINESS DESCRIPTION AND ORGANIZATION (Continued)
	Through acquisition of Top Time, we changed our business to develop, manufacture and sell SOD products. As a result, on November 28, 2007, one of our subsidiaries, Top Team Holdings Limited (BVI), disposed of five subsidiaries including Euromax International Investments Limited, Beijing China Cardinal Real Estate Consulting Co., Ltd, Eagle Bus Development Limited (HK), Good View Bus Manufacturing Company Limited (HK), and Guangzhou City View Bus Installation Company Limited (PRC) to Mr. Chen, Zhiping for RMB5,000,000.
	In aggregate, the company recognized gain of $3,385,630 on the sale of the subsidiaries.
	CAPITAL RESOURCES AND BUSINESS RISKS
	The Company remains in the development stage and all future business operations are subject to all of the risks inherent in the establishment of a new business enterprise. The Company has no proven revenue stream from the sales of its products. Additional capital resources through current and future offerings of securities will be needed in order to accomplish the Company's present marketing, development and manufacturing plans. The manufacturing facility and other operations in China, as well as the business financial conditions and results of operations are, to a significant degree, subject to economic, political and social events in China.
	The Company had incurred losses since inception and had little working capital until June 29, 2007. However, the substantial doubt about its ability to continue as a going concern, which contemplated the realization of assets and the payment of liabilities in the ordinary course of business, was alleviated on June 29, 2007, when management obtained $28,113,294 in funding through the issuance of additional stock to one of the Company’s shareholders. On November 12, 2007, we completed an acquisition transaction with Top Time whereby we paid Daykeen, Top Time’s sole shareholder, a total consideration of $54.9 million, in exchange for 100% ownership of Top Time, consisting of $30 million in cash and $24.9 million in shares of our common stock issuable within 90 days of the closing. The equity portion of the purchase price amounts to a total of 62,250,000 shares of our common stock.
	On July 27, 2007, Company instructed prior Transfer Agent to issue the 50,000,000 shares of common stock to deliverable Qiang Long in the name of Jolly Concept Management Limited, in accordance with Qiang Long’s instructions. On December 14, 2007, Company instructed the present Transfer Agent to issue the replacement certificate showing the new name of the company and the correct number of shares, post reverse-split, and the remaining 4,349,307 shares of common stock issuable to Qiang Long, to Jolly Concept Management Limited and to Zhang, Lifang. The company also agreed to issue 1,131,026 shares of common stock post-reverse-split to Luck Pond Enterprises Limited or its designee, for its services as finder in connection with the Qiang Long investment. On December 14, 2007, company instructed the present Transfer Agent to issue the total amount of 62,250,000 shares of the Company’s common stock, post-reverse-split, issuable to Daykeen, to Daykeen Investment Limited.
	RESTRICTIONS ON TRANSFER OF ASSET OUT OF CHINA
	Dividend payments by the Company’s operating subsidiaries are limited by certain statutory regulations in China. No dividends may be paid by these subsidiaries without first receiving prior approval from the Foreign Currency Exchange Management Bureau. Dividend payments are restricted to 85% of profits, after tax. Repayments of loans or advances from subsidiaries to China Longyi, unless certain conditions are met, will be restricted by the Chinese government.
	CONTROL BY PRINCIPAL STOCKHOLDERS
	The directors, executive officers, affiliates and related parties own, beneficially and in the aggregate, the majority of the voting power of the outstanding shares of the common stock of the Company. Accordingly, if they voted their shares uniformly, directors, executive officers and affiliates would have the ability to control the approval of most corporate actions, including increasing the authorized capital stock of China Longyi and the dissolution, merger or sale of the Company's assets.

F-8

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

1.	BUSINESS DESCRIPTION AND ORGANIZATION (Continued)
	GOING CONCERN
	The Company is an early stage development company and has earned only insignificant revenues since its inception. As at December 31, 2014, the Company has a working capital deficiency of $1,167,381 and accumulated deficit from recurring net losses of $30,654,175 incurred for the current and prior years as of December 31, 2014. As at December 31, 2014, the Company has cash and cash equivalents of $46,366.
	The application of the going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. There is, primarily as a result of the conditions described above, substantial doubt as to the appropriateness of the use of the going concern assumption. The accompanying financial statements have been prepared on a going concern basis notwithstanding these conditions.
	The ability of the Company to continue as a going concern is dependent on its ability to generate sufficient positive cash flows from future operations and the continued funding from the Company’s major shareholders. If the going concern basis were not appropriate for these financial statements, then adjustments would be necessary to the carrying values of assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION
	The consolidated financial statements for all periods from date of acquistion include the financial statements of China Longyi Group International Holding Limited, Top Team Holdings Limited, Full Ample Group Limited (Daykeen Group, BVI), Top Time International Limited (HK), Beijing Longyi Biology Technology Co. Ltd, and Chongqing JiuZhou Dismutase Biology Technology Co. Ltd. The consolidated statements have been prepared in accordance with US GAAP. All significant intercompany transactions have been eliminated.
	The Company has determined the People’s Republic of China Chinese Yuan Renminbi (“RMB”) to be its functional currency. The accompanying consolidated financial statements are presented in United States (US) dollars. The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.
	RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.
	NONCONTROLLING INTEREST IN SUBSIDIARIES
	The Company owns 90% of the equity interest in the Beijing LongYi Biology Technology Co. Ltd, and the remaining 10% is owned by Miss Ran Wang. Therefore, the Company records non-controlling interest (expense) income to allocate 10% of the results of the Beijing Longyi Biology Technology limited to Miss Ran Wang, its non-controlling shareholder.
	The Company owns 81% of the equity interest in the Chongqing JiuZhou Dismutase Biology Technology Co. Ltd, and remaining 9% is owned by Miss Ran Wang, and another 10% is owned by Mr. Guoqing Tan. Therefore, the Company records non-controlling interest (expense) income to allocate 19% of the results of the Chongqing JiuZhou Dismutase Biology Technology Co. Ltd to Miss Ran Wang and Mr. Guoqing Tan, its non-controlling shareholder.

F-9

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
	USE OF ESTIMATES
	The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	SIGNIFICANT ESTIMATES
	Several areas require significant management estimates relating to uncertainties for which it is reasonably possible that there will be a material change in the near term. The more significant areas requiring the use of management estimates related to the valuation of acquired companies, inventories, allowance for doubtful accounts, equipment, patent rights, accrued liabilities and stock options, and the useful lives for amortization and depreciation.
	REVENUE RECOGNITION
	The Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104 “Revenue recognition” (“ASC Topic 605”). Revenues are recognized as earned when the following four criteria are met: (1) a customer issues a purchase order or otherwise agrees to purchase products; (2) products are delivered to the customer; (3) pricing is fixed or determined in accordance with the purchase order or agreement; and (4) collectability is reasonably assured.
	CASH AND CASH EQUIVALENTS
	The Company invests idle cash primarily in money market accounts, certificates of deposits and short-term commercial paper. Money market funds and all highly liquid debt instruments with an original maturity of three months or less are considered cash equivalents.
	PROPERTY AND EQUIPMENT
	Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset, or related groups of assets, may not be recoverable. Under the provisions of SFAS No. 144, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of”, the Company recognizes an “impairment charge” when the expected net undiscounted future cash flows from an asset's use and eventual disposition are less than the asset's carrying value and the asset's carrying value exceeds its fair value. Measurement of fair value for an asset or group of assets may be based on appraisal, market values of similar assets or estimated discounted future cash flows resulting from the use and ultimate disposition of the asset or assets.
	Expenditures for maintenance, repairs and betterments, which do not materially extend the normal useful life of an asset, are charged to operations as incurred. Upon sale or other disposition of assets, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or income (loss) is reflected in income.
	Depreciation and amortization are provided for financial reporting purposes primarily on the straight-line method over the estimated useful lives of the respective assets as follows:

	Estimated
	Useful Life
Transportation equipment	5 years
Office, computer software and equipment	5 years
Furniture and fixtures	5 years
Production equipment	10 years
Building and improvements	20 years

F-10

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
	INTANGIBLE ASSETS
	The Company adopted the provisions of SFAS No. 142 (“ASC Topic 350”), Goodwill and Other Intangible Assets, effective January 1, 2002. Under ASC Topic 350, goodwill and indefinite lived intangible assets are not amortized, but are reviewed annually for impairment, or more frequently, if indications of possible impairment exist. The Company has performed the requisite annual transitional impairment tests on intangible assets and made the impairment adjustments as necessary. The Company did not perform annual impairment tests for the year ended December 31, 2013 and 2014 since all goodwill and indefinite lived intangible assets had been written down to zero in the prior years.
	INCOME TAXES
	Income tax expense is based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences at the reporting date between the tax bases of assets and liabilities, and their carrying amounts that are recognized for financial reporting purposes.
	In accordance with Statement of Financial Accounting Standard (“SFAS”) No. 109 (“ASC Topic 740”), “Accounting for Income Taxes,” these deferred taxes are measured by applying currently enacted tax laws.
	The Company did not provide any current or deferred income tax provision or benefit for any period presented to date because it has experienced operating losses since inception.
	There are net operating income (loss) carry forwards allowed under the Hong Kong and China Governments’ tax system.
	RESEARCH AND DEVELOPMENT COSTS
	Company sponsored research and development costs, related to both present and future products, are charged to operations when incurred and are included in operating expenses. Expenditures for research and development for the years ended December 31, 2014 and 2013 were both $0 and a cumulative amount of $8,880,206 for the period from June 4, 1997 (inception) to December 31, 2014.
	RELATED PARTY TRANSACTIONS AND STOCKHOLDER’S LOAN
	The caption “Due to Related Company” are loans that are unsecured, non-interest bearing and have no fixed terms of repayment, therefore, deemed payable on demand. The Company rents office space from the related company.
	EARNINGS (LOSS) PER SHARE
	Earnings per share are calculated in accordance with SFAS No. 128 (“ASC Topic 260”), “Earnings Per Share”. Basic earnings per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares.
	The numerator and denominator used in the basic and diluted LPS of common stock computations are presented in the following table:

F-11

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

	Year ended December 31,
	2014	2013
NUMBERATOR FOR BASIC AND DILUTED LPS
Net loss attributable to common stockholders	$ (367,235)	$ (427,931)
DENOMINATOR FOR BASIC AND DILUTED LPS
Weighed average shares of common stock outstanding	77,655,862	77,655,862
LPS – Basic and diluted	$ (0.00)	$ (0.01)

There were no potentially dilutive securities outstanding at December 31, 2014 as the result would be anti-dilutive.

EQUITY BASED COMPENSATION

The Company accounts for employee stock options in accordance with SFAS 123(R) (“ASC Topic 718”), “Share-Based Payment.” Under ASC Topic 718 the Company is required to recognize share-based compensation expense at the fair value of employee options granted during the year. The Company had no such compensation expense for the years ended December 31, 2014 and 2013.

COMPREHENSIVE INCOME (LOSS)

The accompanying consolidated financial statements are presented in United States (US) dollars. The functional currency is the Renminbi (RMB). The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. Currency translation adjustments are presented as other comprehensive income.

RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

RECENT ACCOUNTING PRONOUNCEMENTS

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The adoption of ASU 2014-08 is not expected to have a material impact on the Company’s consolidated financial statements.

F-12

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
	In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this update supersedes the revenue recognition requirements in Topic 605 Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition — Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification., Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles — Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this update. This ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2016 for public companies and 2017 for non-public companies. Management is evaluating the effect, if any, on the Company’s financial statements.
	In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation: Topic 718. This amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not expect the adoption of this guidance will have a significant impact on the Company’s consolidated financial statements.
	In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material effect on the Company’s consolidated financial statements.
	In November 2014, FASB issued Accounting Standards Update No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). The amendments permit the use of the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate, or OIS) as a benchmark interest rate for hedge accounting purposes. Public business entities are required to implement the new requirements in fiscal years (and interim periods within those fiscal years) beginning after December 15, 2015. All other types of entities are required to implement the new requirements in fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. The Company does not expect the adoption of ASU 2014-16 to have material impact on the Company’s consolidated financial statement.
3.	BUSINESS ACQUISITIONS
	On March 13, 2003, Minghua USA’s indirect subsidiary, Minghua Environmental Protection Science and Technology Limited, a Hong Kong limited company (“Minghua Science”), entered into the Acquisition Agreement with Good View Bus Manufacturing (Holdings) Company Limited, a Hong Kong limited company (Good View), Eagle Bus Development Limited, a Hong Kong limited company (Eagle), and Mr. Sin Keung Kok (Mr. Kok), relating to the acquisition of an 89.8% equity interest in the Guangzhou City View Bus Installation Company, a People’s Republic of China limited company (the Guangzhou Bus Installation Company).The Guangzhou Bus Installation Company manufactured motor coaches for domestic sale in China and for export under the “Eagle” brand name.

F-13

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

3.	BUSINESS ACQUISITIONS (Continued)
	The acquisition of the equity interest was effective on January 2004 after obtaining certain governmental approvals. The parties to the Acquisition Agreement entered into, and simultaneously consummated the transactions contemplated by, a supplemental agreement (the Supplemental Agreement), which replaced the original Acquisition Agreement. Pursuant to the Supplemental Agreement, instead of acquiring the Guangzhou Bus Installation Company directly, Minghua Science acquired a controlling interest in the entities that control the Guangzhou Bus Installation Company. More specifically, Minghua Science acquired Good View (which owned 23.8% of the Guangzhou Bus Installation Company) and Eagle (which owned 66% of the Guangzhou Bus Installation Company), respectively. Therefore, Minghua USA became the indirect owner of an 89.8% equity interest in the Guangzhou Bus Installation Company. The remaining 10.2% was held by Guangzhou Public Automobile No. 2 Company.
	The purchase price of RMB14, 000,000 (US$1,690,474) was determined by the parties based upon the fair market value the assets and business potential of Guangzhou Bus Installation Company.
	The purchase price was allocated to assets and liabilities as follows on the designated effective date on January 1, 2004:

Accounts receivable	$	4,227
Inventories		1,714,957
Others receivable		523,857
Property, plant and equipment		1,295,170
Intangible – 28 bus licenses		1,018,125
Bank note payable		(66,425	)
Accounts payable		(2,055,941	)
Accrued liabilities		(816,482	)
Due to related parties		(281,131	)
Due to director		(84,519	)
Others payable		(29,910	)
Subtotal	$	1,221,928
Goodwill (cost in excess of FMV)		468,546
Total purchase price paid	$	1,690,474

Goodwill in the amount of $468,546 was written to zero at 2004 and was reported as goodwill impairment loss.

In January 2004, Minghua Hong Kong entered into a stock purchase agreement with Jinmou Li, the son of Minghua USA’s former Chairman, to acquire 100% of the equity in Asia Key Group Limited (“Asia Key”) a Hong Kong corporation, in which Jinmou Li was the sole shareholder. Asia Key’s only asset at the time was a 15% equity interest in Shenzhen Minghua Environmental Protection Vehicle Co., Ltd. (“Minghua China”). Upon the consummation of this acquisition, Minghua China become a 100% wholly-owned subsidiary of Minghua USA. The acquisition required $990,638 in cash and issuance of 28,210,000 shares of common stock at US$0.14 per share of Minghua USA for an aggregate price of $3,949,400. The book value of the net assets transferred at the time of acquisition had a negative balance. In this regard, the purchase of the 15% minority interest was recorded to goodwill. Minghua USA subsequently recorded the entire amount as impairment loss. In September 2006, Minghua USA disposed of its entire interests in Minghua Hong Kong and Minghua China.

On June 16, 2004, Minghua Hong Kong formed a wholly-owned subsidiary in the PRC, name Beijing China Cardinal Real Estate Consulting Co., Ltd. (“Beijing Cardinal Real Estate”). Minghua USA intends to use Beijing Cardinal Real Estate as a vehicle to make future real estate investments in the PRC. At December 31, 2006, Beijing Cardinal Real Estate had not begun significant operations.

F-14

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

3.	BUSINESS ACQUISITIONS (Continued)
	During August 2006, Minghua USA restructured ownership of certain assets between its indirectly owned subsidiaries in preparation for the disposition of Minghua Science along with its wholly-owned subsidiary, Minghua China and Minghua Hong Kong. The transfers of ownership within Minghua USA’s subsidiaries are listed as follows:
	(a)  Minghua USA transferred Beijing Cardinal Real Estate from Minghua Hong Kong to Euromax International Investments Limited; and
	(b)  Minghua USA transferred Good View and Eagle from Minghua Science to Top Team Holdings Limited (BVI).
	During September 2006, Minghua disposed of its entire interests in Minghua Hong Kong, Minghua Science to Messrs. Han Lian Zhong and Niu Rui Cheng in exchange for their assumption of Minghua Hong Kong and Minghua Science’s debt.
	In aggregate, Minghua USA recognized gains of $707,825 on the sale of the subsidiaries.

		Minghua Hong			Minghua			Minghua
		Kong			Seience			China
		US$			US$			US$			Total
Inventories	$	-		$	-		$	304		$	304
Prepaid expenses		-			-			66,412			66,412
Other fixed assets		-			-			450,424			450,424
Accumulated depreciation		-			-			(401,208	)		(401,208	)
Accounts payable		-			-			(3,274	)		(3,274	)
Accrued expenses		(70,902	)		(4,486	)		(429,353	)		(504,741	)
Due to directors		-			-			(92,779	)		(92,779	)
Others payable		-			-			(51,591	)		(51,591	)
Short-term loan		-			-			(171,372	)		(171,372	)
		(70,902	)		(4,486	)		(632,437	)		(707,825	)

On October 16, 2007, Minghua USA changed its name to China LongYi Group International Holdings Limited. At the same time, the Company implemented a 1 for 20 reverse stock split of issued and outstanding shares of our common stock which reduced the number of our issued and our outstanding shares from 198,509,866 to 9,925,493.

On November 12, 2007, the Company entered into a share purchase agreement, with Daykeen Group Limited, a BVI company, pursuant to which company acquired 100% ownership of Top Time International Limited, a Hong Kong company. Daykeen is the sole shareholder of Top Time. Top Time owns 90% equity interest of Beijing SOD, which is a holding company that owns 90% equity of Chongqing SOD, a corporation incorporated in China. Chongqing SOD is a manufacturer of superoxide dismutase, or SOD products.

The Company completed an acquisition transaction with Top Time whereby we paid Daykeen, Top Time’s sole shareholder, a total consideration of $54.9 million (RMB 407 million, based on an exchange ratio of $1=RMB 7.414) in exchange for 100% ownership of Top Time, consisting of $30 million in cash and $24.9 million in shares of our common stock issuable within 90 days of the closing. The equity portion of the purchase price amounts to a total of 62,250,000 shares of our common stock (based upon $0.02/share, the average of the closing price of the Company’s common stock on the OTCBB for the 365 calendar days prior to May 31, 2007, which was adjusted for our stock split which occurred on October 16, 2007 and resulted an effective purchase price of $0.40 per share). Top Time thereby became our wholly owned subsidiary and Daykeen became our controlling stockholder upon our issuance to Daykeen of the equity portion of the purchase price in accordance with the Share Purchase Agreement.

F-15

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

4.	STOCKHOLDERS' EQUITY
	Top Time was incorporated in Hong Kong in December 2006 and currently has two subsidiaries: Beijing SOD and Chongqing SOD. Beijing SOD is 90% owned by Top Time and was incorporated in China in March 2005. Chongqing SOD was incorporated in China in March 2007. Chongqing SOD is 90% owned by Beijing SOD. For accounting purposes, the acquisition of Top Time was treated as a reorganization of entities under common control.
	ISSUANCE OF COMMON STOCK
	In February 2002, the Company issued 372,807 shares of the Company's common stock at $.20 per share in a private placement. The total amount due of $74,561 was determined to be uncollectible during 2004 and was charged to additional paid in capital.
	In April 2002, 540,260 options were exercised by a former director at a cashless exercise amount of $416,000. The balance of the 2,000,000 options granted to this former director was forfeited in 2002.
	In November 2002, 1,100,000 shares were issued to the Board of Directors at $.13 per share, for a total consideration of $143,000, for services provided to the Company in 2002.
	In March 2003, the Company issued 1,513,969 shares of common stock for $.12 per share, for a total consideration of $181,676 to settle various debts with third party vendors and a loan payable to a former Director of the Company.
	On September 29, 2003, the Company entered into its first stock subscription agreement with the Beijing Qiang Long Real Estate Development Co., Ltd. (“Qiang Long”), relating to the purchase of 15,000,000 shares of the Company's common stock at a purchase price of $.40 per share, for an aggregate consideration amount of $6,000,000. In October 2003, 1,511,488 shares of stock were purchased according to the subscription agreement for $604,595. In addition to $604,595, $604,887 was received in advance for the stocks issued in January 2004. Total amount received was $1,209,482 during October 2003. In January 2004, 3,023,998 shares of stock were purchased under the same agreement for a price of $1,209,599. Amount received was $604,712 which was $1,209,482 less $604,887. In 2004, 10,464,514 shares of stock were purchased under the subscription agreement for an aggregate consideration of $4,185,806. Accordingly, the Company has received all the payments from the first stock subscription receivable.
	On January 29, 2004 a second stock subscription agreement was entered into with Qiang Long. The second agreement calls for the purchase of 140,000,000 shares of the Company's common stock at a purchase price of $.21 per share, for an aggregate consideration of $29,400,000. Qiang Long will become the controlling stockholder of the Company as a result of this second agreement. During 2004 the Company collected $653,795 as a partial payment toward the stock subscription receivable, however, no stocks were issued. In December 2006, pursuant to this agreement, Qiang Long Real Estate Development Co. Ltd., paid $632,911 in partial fulfillment of the agreement. Company issued 3,013,862 shares of common stock to Qiang Long.
	Prior to the issuance of the shares, the Company is required to hold a stockholders meeting to increase the number of common shares authorized, in order to have enough common shares to satisfy its stock obligations to Qiang Long. Qiang Long does not have the right to cancel its subscription and the consideration is not refundable.
	In January 2004 the Company issued 24,036,269 shares of its common stock to Kingsrich Development Limited in satisfaction of debt in accordance with a prior agreement.
	On January 29, 2004 the Company issued 28,210,000 shares of its common stock in the acquisition of the 15% minority interest in Minghua China. The shares were valued at $.14 per share. The transaction is further discussed in Note 1.
	In February 2004, the Company issued 4,000,000 shares of its common stock in exercise of stock options. The exercise price was paid in services to the Company. Compensation expense of $480,000 was charged to current expense as a result of the transaction.
	During May of 2004 the Company issued 16,483,514 shares of its common stock to China Cardinal Limited, of Hong Kong, in satisfaction of a subscription agreement. The stock was sold at a price of $.14 per share, for an aggregate amount of $2,307,692.

F-16

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

4.	STOCKHOLDERS' EQUITY (Continued)
	Luck Pond Enterprises Limited by Hong Kong (“Luck Pond”) had provided consulting services and acted as a finder in connection with the above-mentioned two subscription agreements with Qiang Long and an investment that was made in January 2004 by China Cardinal Limited of Hong Kong. In consideration of those services, Luck Pond will receive a ten percent commission on the total investment proceeds from both investors, payable in common stock of the Company and was determined by management to be equivalent to 28,390,531 common shares. This commission is contingent upon final funding of 100% of all the three above-mentioned subscription agreements. During 2004, at the completion of two of the agreements, the Company charged $830,100 to expense. The amount was included in accrued liabilities at December 31, 2004, and in January 2005, the Company issued 5,770,000 shares of its common stock in payment of the liability.
	On June 29, 2007, the Board of Directors of Company unanimously approved, subject to the Majority Shareholders approval, the 1-for-20 Reverse Split of company’s issued and outstanding Common Stock, which will be effectuated in conjunction with the adoption of the Certificate of Amendment. The Majority Shareholders also approved this action in the Written Consent.
	The Reverse Split reduce the number of issued and outstanding shares of Company’s Common Stock and effectively increase the number of authorized and unissued shares of our Common Stock available for future issuance. The Reverse Split will become effective on the Effective Date, which occurs when the Certificate of Amendment is filed with the Secretary of State for the State of New York following the expiration of the 20-day period mandated by Rule 14c of the Exchange Act.
	Effect of Reverse Split on Common Stock
	The table below sets forth, as of the Record Date and as of the Effective Date the following information both before and after the proposed Reverse Split (subject to slight adjustments resulting rounding of fractional shares):
		The number of issued and outstanding shares of Common Stock
		The number of authorized and reserved shares of Common Stock;
		The number of authorized but unissued and unreserved shares of Common Stock.

CAPITALIZATION STRUCTURE OF THE COMPANY AT VARIOUS TIMES

	Capital Structure	Capital Structure
	Pre-Reverse Split	Post-Reverse Split
	(As of Record Date)	(On Effective Date)
Issued and outstanding shares of Common Stock	198,509,866	9,925,493
Authorized and reserved shares of Common Stock	-	-
Authorized but unissued and unreserved shares of Common Stock	1,490,134	190,074,507

As shown in the table above, the Reverse Split of the outstanding shares of our Common Stock will reduce the number of issued and outstanding shares of our Common Stock and effectively increase the number of authorized and unissued shares of our Common Stock available for future issuance.

On January 29,2004, company entered into a certain contract with Qiang Long Real Estate Development Co., Ltd., under which, as amended and supplemented from time to time, Qiang Long is obligated to purchase 140,000,000 shares of the Company’s common stock, par value $0.01 at an aggregate purchase price of US$ 29,400,000, or $0.21 per Share, US$ 653,795 of which was paid to the Company as a performance bond at the signing of the Agreement, US$ 632,911 of which was paid to the Company in 2006 in exchange from 3,013,862 Shares, and the balance of US$ 28,113,294 (the “Final Installment”) of which was to be paid in full by June 30, 2007, for the remaining 136,986,138 Shares.

F-17

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

4.	STOCKHOLDERS' EQUITY (Continued)
	On June 29, 2007, the Company and Qiang Long entered into a letter agreement (the “letter Agreement”), pursuant to which the Company and Qiang Long acknowledged their consummation of the Qiang Long Contract. Pursuant to the Letter Agreement, the Company acknowledged its receipt of the Final Installment in cash from Qiang Long as fulfillment of Qiang Long’s investment obligation, and agreed to issue the remaining Shares to Qiang Long as follows:
	1.	The Company will issue 50,000,000 of the Shares to Qiang Long on or before July 23, 2007, the date that is fifteen business days after the Company receives the Final Installment from Qiang Long; and
	2.	Within fifteen (15) business days following the effective date of an amendment to the Company’s Certificate of Incorporation to effect a one-for-twenty reverse split of the Company’s outstanding Common Stock (the “Amendment”), the Company will issue the remaining 86,986,138 Shares to Qiang Long, which will be equal to 4,349,307 Shares post-reverse split.

On July 27, 2007, the Company instructed prior Transfer Agent to issue the 50,000,000 shares of common stock to deliverable Qiang Long in the name of Jolly Concept Management Limited, in accordance with Qiang Long’s instructions.

On December 14, 2007, according to Qiang Long’s request, company instructed present Transfer Agent to issue the replacement certificate showing the new name of the Company and the correct number of shares, post reverse-split, and the remaining 4,349,307 shares of common stock issuable to Qiang Long, to Jolly Concept Management Limited and to Zhang, Lifang. The Company also agreed to issue 1,131,026 shares of common stock post-reverse-split to Luck Pond Enterprises Limited or its designee, for its services as finder in connection with the Qiang Long investment.

On November 12, 2007, the Company completed an acquisition transaction with Top Time whereby we paid Daykeen a total consideration of $54.9 million, in exchange for 100% ownership of Top Time, consisting of $30 million in cash and $24.9 million in shares of our common stock issuable within 90 days of the closing. The equity portion of the purchase price amounts to a total of 62,250,000 shares of our common stock. The share number was calculated based upon $0.02/share, the average of the closing price of the Company’s common stock on the OTCBB for the 365 calendar days prior to May 31, 2007, which was adjusted for our stock split which occurred on October 16, 2007. As a result, the effective purchase price per share was $0.40.

On December 14, 2007, the Company instructed present Transfer Agent to issue the total amount of 62,250,000 shares of the Company’s common stock, post-reverse-split, issuable to Daykeen, to Daykeen Investment Limited.

The Company's capital structure as of December 31, 2014 and 2013 was as follows:

Common stock – par value $0.01	Authorized	Issued and outstanding
December 31, 2014	200,000,000	77,655,862
December 31, 2013	200,000,000	77,655,862

STOCK OPTION PLAN

On April 5, 2001, the Company's 2001 Stock Option Plan (the “2001 Plan”) was adopted by the board of directors and was approved by the Company's shareholders at the stockholders' annual meeting on August 2, 2001. Pursuant to the 2001 Plan, the Company may grant incentive and non-statutory (nonqualified) stock options to key employees and directors of the Company. A total of 20,000,000 shares of common stock have been reserved for issuance under the 2001 Plan. No employee may be granted options for more than 2,000,000 restricted shares under the 2001 Plan in any one fiscal year.

The maximum term of options granted under the 2001 Plan is ten years. Options granted are nontransferable and generally expire within three months after the termination of the grantee's services.

F-18

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

4.	STOCKHOLDERS' EQUITY (Continued)
	The exercise price of incentive stock options must not be less than the fair value of the common stock on the date of the grant. The 2001 Plan expired on April 5, 2011.
	In 2001, the Company granted 2,000,000 nonqualified stock options under the 2001 Plan to the Chairman with a 5-year expiration date, and an exercise price of $1.75 per share. However, all 2,000,000 options were forfeited on May 10, 2004 when the chairman resigned.
5.	INVESTMENT
	The Company has a one year deposit certificate with an investment company in the PRC. The certificate earns interest at 5.5% to 8% per annum. The principal amount for the years ended December 31, 2014 and 2013 was $11,157 and $11,198 respectively, and were recorded on the balance sheet as investment.
6.	INVENTORIES
	Inventories at December 31, 2014 and 2013 consisted of:

		2014		2013
Materials	$	17,877	$	3,861
Low value consumables		14,182		14,186
Work in progress		291,079		296,678
Finished goods		66,224		86,199
	$	389,362	$	400,924

7.	PROPERTY AND EQUIPMENT
	Property and equipment at cost consisted of:

		2014			2013
Transportation equipment	$	56,130		$	56,334
Furniture and office equipment		54,816			49,677
Production equipment, buildings and improvements		399,370			400,817
Subtotal		510,316			506,828
Less: impairment provision		(50,475	)		(50,658	)
accumulated depreciation		(298,377	)		(276,496	)
		161,464			179,674
Construction in progress		197,067			197,781
		358,531			377,455

Depreciation expense for the years ended December 31, 2014 and 2013 was $21,881 and $42,893, respectively. Impairment for the year ended December 31, 2014 and 2013 was $0 and $21,862,

F-19

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

8.	INCOME TAXES
	The Company accounts for income taxes in accordance with the provisions of SFAS No. 109 (ASC Topic 740”), “Accounting for Income Taxes”.
	Income tax expense is based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences between assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. In accordance with SFAS No. 109, “Accounting for Income Taxes”, these deferred income taxes are measured by applying currently enacted tax laws.
	The Company has a United States federal net operating loss carryforward of approximately $(5.24) million expiring in the years 2021 - 2025. The tax benefit of this net operating loss has been offset by a full valuation allowance. A portion of the net operating loss carryforward will be subject to a limitation due to the “Change of ownership provisions” under Section 382 of the Internal Revenue Code and similar state provisions.
	Net operating income (loss) carry forwards are allowed under the Hong Kong and Chinese governments’ tax systems. In China, the previous five years’ net operating loss are allowed to be carried forward to offset future taxable income. In Hong Kong, the net operating loss can be carried forward indefinitely to offset future taxable income.
9.	COMMITMENTS AND CONTINGENCIES
	From time to time, the Company has disputes that arise in the ordinary course of its business. Currently, according to management, there are no material legal proceedings to which the Company is a party to or to which any of their property is subject that will have a material adverse effect on the Company’s financial condition.
10.	FAIR VALUE OF FINANCIAL INSTRUMENTS
	Statement of Financial Accounting Standards No. 107 (“ASC Topic 825”), “Disclosures about Fair Value of Financial Instruments” requires entities to disclose the fair values of financial instruments except when it is not practicable to do so. Under SFAS No. 107ASC Topic 825, it is not practicable to make this disclosure when the costs of formulating the estimated values exceed the benefit when considering how meaningful the information would be to financial statement users.
	As a result of the difficulties presented in the valuation of the loans payable to related entities/parties because of their related party nature, estimating the fair value of these financial instruments is not considered practical. The fair values of all other assets and liabilities do not differ materially from their carrying amounts. None of the financial instruments held are derivative financial instruments and none were acquired or held for trading purposes in 2013 and 2014.
11.	RELATED PARTY TRANSACTIONS AND STOCKHOLDER’S LOAN
	The caption “Due to Related Company” are loans that are unsecured, non-interest bearing and have no fixed terms of repayment, therefore, deemed payable on demand. The Company rents office space from the related company.
	The related party transactions list:

F-20

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

11. RELATED PARTY TRANSACTIONS AND STOCKHOLDER’S LOAN (Continued)

Related Party Transactions	Due from related parties	Due to related parties	Due to directors
Related parties
2014.12.31
Chen Jie			115,574
Li Changde			254,876
Wang Wei			9,204
Li, Hongliang			261,481
Beijing De Reng Sheng Limited		224,371
SiChuan Longyi Limited		22,193
Liu, Guizhi		143,278
Total	-	389,842	641,134
2013.12.31
Chen Jie			107,431
Li Changde			56,044
Wang Wei			9,206
Li, Hongliang			262,428
Beijing De Reng Sheng Limited		224,664
SiChuan Longyi Limited		22,274
Liu, Guizhi		97,599
Total	-	344,536	435,110

F-21

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

(A DEVELOPMENT STAGE COMPANY)

Notes to consolidated financial statements

11. RELATED PARTY TRANSACTIONS AND STOCKHOLDER’S LOAN (Continued)

Related Party Transactions	Rental	Inventories Purchase from related party	Due to directors	Payment for related party
Related parties
2014.1-2014.12
China Cardinal Limited
China Dragon
Daykeen Investments Ltd
Trinity Creation
Chen Jie			8,143
Li Changde			198,831
Liu, Guizhi	49,028
Total	49,028		206,974
2013.1-2013.12
China Cardinal Limited				858
China Dragon				1,264
Daykeen Investments Ltd				1,264
Trinity Creation				967
Chen Jie
Li Changde
Liu, Guizhi	49,205
Total	49,205			4,353

12.	SUBSEQUENT EVENT
	The management assessed there were no events occurring after balance date as of December 31, 2014 and prior to the time of annual report completion which might affect the financial report.

F-22

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Jie Chen, certify that:

1.	I have reviewed this annual report on Form 10-K of China Longyi Group International Holdings Limited;
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: March 31, 2015

/s/Jie Chen

Jie Chen

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Xinmin Pan, certify that:

1.	I have reviewed this annual report on Form 10-K of China Longyi Group International Holdings Limited;
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: March 31, 2015

/s/Xinmin Pan

Xinmin Pan

Chief Financial Officer

(Principal Financial Officer and Accounting Officer)

EX-32.1

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

     In connection with the Annual Report of China Longyi Group International Holdings Limited (the “Company”) on Form 10-K for the period ended December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jie Chen, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Jie Chen

Jie Chen

President & Chief Executive Officer

March 31, 2015

A signed original of this written statement required by Section 906 has been provided to China Longyi Group International Holdings Limited and will be retained by China Longyi Group International Holdings Limited 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

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

     In connection with the Annual Report of China Longyi Group International Holdings Limited (the “Company”) on Form 10-K for the period ended December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Xinmin Pan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Xinmin Pan

Xinmin Pan

Chief Financial Officer

March 31, 2015

A signed original of this written statement required by Section 906 has been provided to China Longyi Group International Holdings Limited and will be retained by China Longyi Group International Holdings Limited 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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Schedule of Inventories (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Inventories Schedule Of Inventories 1	$ 17,877
Inventories Schedule Of Inventories 2	3,861
Inventories Schedule Of Inventories 3	14,182
Inventories Schedule Of Inventories 4	14,186
Inventories Schedule Of Inventories 5	291,079
Inventories Schedule Of Inventories 6	296,678
Inventories Schedule Of Inventories 7	66,224
Inventories Schedule Of Inventories 8	86,199
Inventories Schedule Of Inventories 9	389,362
Inventories Schedule Of Inventories 10	$ 400,924

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Schedule of Depreciation and amortization (Details)	12 Months Ended
	Dec. 31, 2014 Y
Summary Of Significant Accounting Policies Schedule Of Depreciation And Amortization 1	5
Summary Of Significant Accounting Policies Schedule Of Depreciation And Amortization 2	5
Summary Of Significant Accounting Policies Schedule Of Depreciation And Amortization 3	5
Summary Of Significant Accounting Policies Schedule Of Depreciation And Amortization 4	10
Summary Of Significant Accounting Policies Schedule Of Depreciation And Amortization 5	20

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RELATED PARTY TRANSACTIONS AND STOCKHOLDERS LOAN (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Related Party Transactions - Amounts Owing [Table Text Block]

Related Party Transactions	Due from related parties	Due to related parties	Due to directors
Related parties
2014.12.31
Chen Jie			115,574
Li Changde			254,876
Wang Wei			9,204
Li, Hongliang			261,481
Beijing De Reng Sheng Limited		224,371
SiChuan Longyi Limited		22,193
Liu, Guizhi		143,278
Total	-	389,842	641,134
2013.12.31
Chen Jie			107,431
Li Changde			56,044
Wang Wei			9,206
Li, Hongliang			262,428
Beijing De Reng Sheng Limited		224,664
SiChuan Longyi Limited		22,274
Liu, Guizhi		97,599
Total	-	344,536	435,110

Schedule of Related Party Transactions [Table Text Block]

Related Party Transactions	Rental	Inventories Purchase from related party	Due to directors	Payment for related party
Related parties
2014.1-2014.12
China Cardinal Limited
China Dragon
Daykeen Investments Ltd
Trinity Creation
Chen Jie			8,143
Li Changde			198,831
Liu, Guizhi	49,028
Total	49,028		206,974
2013.1-2013.12
China Cardinal Limited				858
China Dragon				1,264
Daykeen Investments Ltd				1,264
Trinity Creation				967
Chen Jie
Li Changde
Liu, Guizhi	49,205
Total	49,205			4,353

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Schedule of Related Party Transactions (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 1	$ 8,143
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 2	198,831
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 3	49,028
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 4	49,028
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 5	206,974
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 6	858
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 7	1,264
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 8	1,264
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 9	967
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 10	49,205
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 11	49,205
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions 12	$ 4,353

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Schedule of CAPITALIZATION STRUCTURE OF THE COMPANY AT VARIOUS TIMES (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Stockholders' Equity Schedule Of Capitalization Structure Of The Company At Various Times 1	$ 198,509,866
Stockholders' Equity Schedule Of Capitalization Structure Of The Company At Various Times 2	9,925,493
Stockholders' Equity Schedule Of Capitalization Structure Of The Company At Various Times 3	0
Stockholders' Equity Schedule Of Capitalization Structure Of The Company At Various Times 4	0
Stockholders' Equity Schedule Of Capitalization Structure Of The Company At Various Times 5	1,490,134
Stockholders' Equity Schedule Of Capitalization Structure Of The Company At Various Times 6	$ 190,074,507

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BUSINESS ACQUISITIONS

12 Months Ended

Dec. 31, 2014

BUSINESS ACQUISITIONS [Text Block]

3.

BUSINESS ACQUISITIONS

On March 13, 2003, Minghua USA’s indirect subsidiary, Minghua Environmental Protection Science and Technology Limited, a Hong Kong limited company (“Minghua Science”), entered into the Acquisition Agreement with Good View Bus Manufacturing (Holdings) Company Limited, a Hong Kong limited company (Good View), Eagle Bus Development Limited, a Hong Kong limited company (Eagle), and Mr. Sin Keung Kok (Mr. Kok), relating to the acquisition of an 89.8% equity interest in the Guangzhou City View Bus Installation Company, a People’s Republic of China limited company (the Guangzhou Bus Installation Company).The Guangzhou Bus Installation Company manufactured motor coaches for domestic sale in China and for export under the “Eagle” brand name.

The acquisition of the equity interest was effective on January 2004 after obtaining certain governmental approvals. The parties to the Acquisition Agreement entered into, and simultaneously consummated the transactions contemplated by, a supplemental agreement (the Supplemental Agreement), which replaced the original Acquisition Agreement. Pursuant to the Supplemental Agreement, instead of acquiring the Guangzhou Bus Installation Company directly, Minghua Science acquired a controlling interest in the entities that control the Guangzhou Bus Installation Company. More specifically, Minghua Science acquired Good View (which owned 23.8% of the Guangzhou Bus Installation Company) and Eagle (which owned 66% of the Guangzhou Bus Installation Company), respectively. Therefore, Minghua USA became the indirect owner of an 89.8% equity interest in the Guangzhou Bus Installation Company. The remaining 10.2% was held by Guangzhou Public Automobile No. 2 Company.

The purchase price of RMB14, 000,000 (US$1,690,474) was determined by the parties based upon the fair market value the assets and business potential of Guangzhou Bus Installation Company.

The purchase price was allocated to assets and liabilities as follows on the designated effective date on January 1, 2004:

Accounts receivable	$	4,227
Inventories		1,714,957
Others receivable		523,857
Property, plant and equipment		1,295,170
Intangible – 28 bus licenses		1,018,125
Bank note payable		(66,425	)
Accounts payable		(2,055,941	)
Accrued liabilities		(816,482	)
Due to related parties		(281,131	)
Due to director		(84,519	)
Others payable		(29,910	)
Subtotal	$	1,221,928
Goodwill (cost in excess of FMV)		468,546
Total purchase price paid	$	1,690,474

Goodwill in the amount of $468,546 was written to zero at 2004 and was reported as goodwill impairment loss.

In January 2004, Minghua Hong Kong entered into a stock purchase agreement with Jinmou Li, the son of Minghua USA’s former Chairman, to acquire 100% of the equity in Asia Key Group Limited (“Asia Key”) a Hong Kong corporation, in which Jinmou Li was the sole shareholder. Asia Key’s only asset at the time was a 15% equity interest in Shenzhen Minghua Environmental Protection Vehicle Co., Ltd. (“Minghua China”). Upon the consummation of this acquisition, Minghua China become a 100% wholly-owned subsidiary of Minghua USA. The acquisition required $990,638 in cash and issuance of 28,210,000 shares of common stock at US$0.14 per share of Minghua USA for an aggregate price of $3,949,400. The book value of the net assets transferred at the time of acquisition had a negative balance. In this regard, the purchase of the 15% minority interest was recorded to goodwill. Minghua USA subsequently recorded the entire amount as impairment loss. In September 2006, Minghua USA disposed of its entire interests in Minghua Hong Kong and Minghua China.

On June 16, 2004, Minghua Hong Kong formed a wholly-owned subsidiary in the PRC, name Beijing China Cardinal Real Estate Consulting Co., Ltd. (“Beijing Cardinal Real Estate”). Minghua USA intends to use Beijing Cardinal Real Estate as a vehicle to make future real estate investments in the PRC. At December 31, 2006, Beijing Cardinal Real Estate had not begun significant operations.

During August 2006, Minghua USA restructured ownership of certain assets between its indirectly owned subsidiaries in preparation for the disposition of Minghua Science along with its wholly-owned subsidiary, Minghua China and Minghua Hong Kong. The transfers of ownership within Minghua USA’s subsidiaries are listed as follows:

(a)  Minghua USA transferred Beijing Cardinal Real Estate from Minghua Hong Kong to Euromax International Investments Limited; and

(b)  Minghua USA transferred Good View and Eagle from Minghua Science to Top Team Holdings Limited (BVI).

During September 2006, Minghua disposed of its entire interests in Minghua Hong Kong, Minghua Science to Messrs. Han Lian Zhong and Niu Rui Cheng in exchange for their assumption of Minghua Hong Kong and Minghua Science’s debt.

In aggregate, Minghua USA recognized gains of $707,825 on the sale of the subsidiaries.

		Minghua Hong			Minghua			Minghua
		Kong			Seience			China
		US$			US$			US$			Total
Inventories	$	-		$	-		$	304		$	304
Prepaid expenses		-			-			66,412			66,412
Other fixed assets		-			-			450,424			450,424
Accumulated depreciation		-			-			(401,208	)		(401,208	)
Accounts payable		-			-			(3,274	)		(3,274	)
Accrued expenses		(70,902	)		(4,486	)		(429,353	)		(504,741	)
Due to directors		-			-			(92,779	)		(92,779	)
Others payable		-			-			(51,591	)		(51,591	)
Short-term loan		-			-			(171,372	)		(171,372	)
		(70,902	)		(4,486	)		(632,437	)		(707,825	)

On October 16, 2007, Minghua USA changed its name to China LongYi Group International Holdings Limited. At the same time, the Company implemented a 1 for 20 reverse stock split of issued and outstanding shares of our common stock which reduced the number of our issued and our outstanding shares from 198,509,866 to 9,925,493.

On November 12, 2007, the Company entered into a share purchase agreement, with Daykeen Group Limited, a BVI company, pursuant to which company acquired 100% ownership of Top Time International Limited, a Hong Kong company. Daykeen is the sole shareholder of Top Time. Top Time owns 90% equity interest of Beijing SOD, which is a holding company that owns 90% equity of Chongqing SOD, a corporation incorporated in China. Chongqing SOD is a manufacturer of superoxide dismutase, or SOD products.

The Company completed an acquisition transaction with Top Time whereby we paid Daykeen, Top Time’s sole shareholder, a total consideration of $54.9 million (RMB407 million, based on an exchange ratio of $1 =RMB7.414) in exchange for 100% ownership of Top Time, consisting of $30 million in cash and $24.9 million in shares of our common stock issuable within 90 days of the closing. The equity portion of the purchase price amounts to a total of 62,250,000 shares of our common stock (based upon $0.02 /share, the average of the closing price of the Company’s common stock on the OTCBB for the 365 calendar days prior to May 31, 2007, which was adjusted for our stock split which occurred on October 16, 2007 and resulted an effective purchase price of $0.40 per share). Top Time thereby became our wholly owned subsidiary and Daykeen became our controlling stockholder upon our issuance to Daykeen of the equity portion of the purchase price in accordance with the Share Purchase Agreement.

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STOCKHOLDERS' EQUITY (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2014 D
Stockholders' Equity 1	90.00%
Stockholders' Equity 2	90.00%
Stockholders' Equity 3	372,807
Stockholders' Equity 4	$ 0.20
Stockholders' Equity 5	$ 74,561
Stockholders' Equity 6	540,260
Stockholders' Equity 7	416,000
Stockholders' Equity 8	2,000,000
Stockholders' Equity 9	1,100,000
Stockholders' Equity 10	$ 0.13
Stockholders' Equity 11	143,000
Stockholders' Equity 12	1,513,969
Stockholders' Equity 13	$ 0.12
Stockholders' Equity 14	181,676
Stockholders' Equity 15	15,000,000
Stockholders' Equity 16	$ 0.40
Stockholders' Equity 17	6,000,000
Stockholders' Equity 18	1,511,488
Stockholders' Equity 19	604,595
Stockholders' Equity 20	604,595
Stockholders' Equity 21	604,887
Stockholders' Equity 22	1,209,482
Stockholders' Equity 23	3,023,998
Stockholders' Equity 24	1,209,599
Stockholders' Equity 25	604,712
Stockholders' Equity 26	1,209,482
Stockholders' Equity 27	604,887
Stockholders' Equity 28	10,464,514
Stockholders' Equity 29	4,185,806
Stockholders' Equity 30	140,000,000
Stockholders' Equity 31	$ 0.21
Stockholders' Equity 32	29,400,000
Stockholders' Equity 33	653,795
Stockholders' Equity 34	632,911
Stockholders' Equity 35	3,013,862
Stockholders' Equity 36	24,036,269
Stockholders' Equity 37	28,210,000
Stockholders' Equity 38	15.00%
Stockholders' Equity 39	$ 0.14
Stockholders' Equity 40	4,000,000
Stockholders' Equity 41	480,000
Stockholders' Equity 42	16,483,514
Stockholders' Equity 43	$ 0.14
Stockholders' Equity 44	2,307,692
Stockholders' Equity 45	28,390,531
Stockholders' Equity 46	100.00%
Stockholders' Equity 47	830,100
Stockholders' Equity 48	5,770,000
Stockholders' Equity 49	1
Stockholders' Equity 50	20
Stockholders' Equity 51	140,000,000
Stockholders' Equity 52	0.01
Stockholders' Equity 53	29,400,000
Stockholders' Equity 54	0.21
Stockholders' Equity 55	653,795
Stockholders' Equity 56	632,911
Stockholders' Equity 57	3,013,862
Stockholders' Equity 58	28,113,294
Stockholders' Equity 59	136,986,138
Stockholders' Equity 60	50,000,000
Stockholders' Equity 61	86,986,138
Stockholders' Equity 62	4,349,307
Stockholders' Equity 63	50,000,000
Stockholders' Equity 64	4,349,307
Stockholders' Equity 65	1,131,026
Stockholders' Equity 66	54,900,000
Stockholders' Equity 67	100.00%
Stockholders' Equity 68	30,000,000
Stockholders' Equity 69	24,900,000
Stockholders' Equity 70	90
Stockholders' Equity 71	62,250,000
Stockholders' Equity 72	0.02
Stockholders' Equity 73	365
Stockholders' Equity 74	$ 0.40
Stockholders' Equity 75	62,250,000
Stockholders' Equity 76	20,000,000
Stockholders' Equity 77	2,000,000
Stockholders' Equity 78	2,000,000
Stockholders' Equity 79	5
Stockholders' Equity 80	$ 1.75
Stockholders' Equity 81	2,000,000

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BUSINESS ACQUISITIONS (Narrative) (Details)	12 Months Ended
	Dec. 31, 2014 USD ($) D	Dec. 31, 2014 CNY
Business Acquisitions 1	89.80%	89.80%
Business Acquisitions 2	23.80%	23.80%
Business Acquisitions 3	66.00%	66.00%
Business Acquisitions 4	89.80%	89.80%
Business Acquisitions 5	10.20%	10.20%
Business Acquisitions 6		14
Business Acquisitions 7	0	0
Business Acquisitions 8	1,690,474
Business Acquisitions 9	468,546
Business Acquisitions 10	100.00%	100.00%
Business Acquisitions 11	15.00%	15.00%
Business Acquisitions 12	100.00%	100.00%
Business Acquisitions 13	990,638
Business Acquisitions 14	28,210,000	28,210,000
Business Acquisitions 15	$ 0.14
Business Acquisitions 16	3,949,400
Business Acquisitions 17	15.00%	15.00%
Business Acquisitions 18	707,825
Business Acquisitions 19	1	1
Business Acquisitions 20	20	20
Business Acquisitions 21	198,509,866	198,509,866
Business Acquisitions 22	9,925,493	9,925,493
Business Acquisitions 23	100.00%	100.00%
Business Acquisitions 24	90.00%	90.00%
Business Acquisitions 25	90.00%	90.00%
Business Acquisitions 26	54,900,000
Business Acquisitions 27		407,000,000
Business Acquisitions 28	1
Business Acquisitions 29		7.414
Business Acquisitions 30	100.00%	100.00%
Business Acquisitions 31	30,000,000
Business Acquisitions 32	24,900,000
Business Acquisitions 33	90	90
Business Acquisitions 34	62,250,000	62,250,000
Business Acquisitions 35	$ 0.02
Business Acquisitions 36	365	365
Business Acquisitions 37	$ 0.40

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INVESTMENT (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Investment 1	5.50%
Investment 2	8.00%
Investment 3	$ 11,157
Investment 4	$ 11,198

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PROPERTY AND EQUIPMENT (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Property And Equipment 1	$ 21,881
Property And Equipment 2	42,893
Property And Equipment 3	0
Property And Equipment 4	$ 21,862

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

The consolidated financial statements for all periods from date of acquistion include the financial statements of China Longyi Group International Holding Limited, Top Team Holdings Limited, Full Ample Group Limited (Daykeen Group, BVI), Top Time International Limited (HK), Beijing Longyi Biology Technology Co. Ltd, and Chongqing JiuZhou Dismutase Biology Technology Co. Ltd. The consolidated statements have been prepared in accordance with US GAAP. All significant intercompany transactions have been eliminated.

The Company has determined the People’s Republic of China Chinese Yuan Renminbi (“RMB”) to be its functional currency. The accompanying consolidated financial statements are presented in United States (US) dollars. The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

NONCONTROLLING INTEREST IN SUBSIDIARIES

The Company owns 90% of the equity interest in the Beijing LongYi Biology Technology Co. Ltd, and the remaining 10% is owned by Miss Ran Wang. Therefore, the Company records non-controlling interest (expense) income to allocate 10% of the results of the Beijing Longyi Biology Technology limited to Miss Ran Wang, its non-controlling shareholder.

The Company owns 81% of the equity interest in the Chongqing JiuZhou Dismutase Biology Technology Co. Ltd, and remaining 9% is owned by Miss Ran Wang, and another 10% is owned by Mr. Guoqing Tan. Therefore, the Company records non-controlling interest (expense) income to allocate 19% of the results of the Chongqing JiuZhou Dismutase Biology Technology Co. Ltd to Miss Ran Wang and Mr. Guoqing Tan, its non-controlling shareholder.

USE OF ESTIMATES

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

SIGNIFICANT ESTIMATES

Several areas require significant management estimates relating to uncertainties for which it is reasonably possible that there will be a material change in the near term. The more significant areas requiring the use of management estimates related to the valuation of acquired companies, inventories, allowance for doubtful accounts, equipment, patent rights, accrued liabilities and stock options, and the useful lives for amortization and depreciation.

REVENUE RECOGNITION

The Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104 “Revenue recognition” (“ASC Topic 605”). Revenues are recognized as earned when the following four criteria are met: (1) a customer issues a purchase order or otherwise agrees to purchase products; (2) products are delivered to the customer; (3) pricing is fixed or determined in accordance with the purchase order or agreement; and (4) collectability is reasonably assured.

CASH AND CASH EQUIVALENTS

The Company invests idle cash primarily in money market accounts, certificates of deposits and short-term commercial paper. Money market funds and all highly liquid debt instruments with an original maturity of three months or less are considered cash equivalents.

PROPERTY AND EQUIPMENT

Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset, or related groups of assets, may not be recoverable. Under the provisions of SFAS No. 144, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of”, the Company recognizes an “impairment charge” when the expected net undiscounted future cash flows from an asset's use and eventual disposition are less than the asset's carrying value and the asset's carrying value exceeds its fair value. Measurement of fair value for an asset or group of assets may be based on appraisal, market values of similar assets or estimated discounted future cash flows resulting from the use and ultimate disposition of the asset or assets.

Expenditures for maintenance, repairs and betterments, which do not materially extend the normal useful life of an asset, are charged to operations as incurred. Upon sale or other disposition of assets, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or income (loss) is reflected in income.

Depreciation and amortization are provided for financial reporting purposes primarily on the straight-line method over the estimated useful lives of the respective assets as follows:

	Estimated
	Useful Life
Transportation equipment	5 years
Office, computer software and equipment	5 years
Furniture and fixtures	5 years
Production equipment	10 years
Building and improvements	20 years

INTANGIBLE ASSETS

The Company adopted the provisions of SFAS No. 142 (“ASC Topic 350”), Goodwill and Other Intangible Assets, effective January 1, 2002. Under ASC Topic 350, goodwill and indefinite lived intangible assets are not amortized, but are reviewed annually for impairment, or more frequently, if indications of possible impairment exist. The Company has performed the requisite annual transitional impairment tests on intangible assets and made the impairment adjustments as necessary. The Company did not perform annual impairment tests for the year ended December 31, 2013 and 2014 since all goodwill and indefinite lived intangible assets had been written down to zero in the prior years.

INCOME TAXES

Income tax expense is based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences at the reporting date between the tax bases of assets and liabilities, and their carrying amounts that are recognized for financial reporting purposes.

In accordance with Statement of Financial Accounting Standard (“SFAS”) No. 109 (“ASC Topic 740”), “Accounting for Income Taxes,” these deferred taxes are measured by applying currently enacted tax laws.

The Company did not provide any current or deferred income tax provision or benefit for any period presented to date because it has experienced operating losses since inception.

There are net operating income (loss) carry forwards allowed under the Hong Kong and China Governments’ tax system.

RESEARCH AND DEVELOPMENT COSTS

Company sponsored research and development costs, related to both present and future products, are charged to operations when incurred and are included in operating expenses. Expenditures for research and development for the years ended December 31, 2014 and 2013 were both $0 and a cumulative amount of $8,880,206 for the period from June 4, 1997 (inception) to December 31, 2014.

RELATED PARTY TRANSACTIONS AND STOCKHOLDER’S LOAN

The caption “Due to Related Company” are loans that are unsecured, non-interest bearing and have no fixed terms of repayment, therefore, deemed payable on demand. The Company rents office space from the related company.

EARNINGS (LOSS) PER SHARE

Earnings per share are calculated in accordance with SFAS No. 128 (“ASC Topic 260”), “Earnings Per Share”. Basic earnings per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares.

The numerator and denominator used in the basic and diluted LPS of common stock computations are presented in the following table:

	Year ended December 31,
	2014	2013
NUMBERATOR FOR BASIC AND DILUTED LPS
Net loss attributable to common stockholders	$ ( 367,235)	$ ( 427,931)
DENOMINATOR FOR BASIC AND DILUTED LPS
Weighed average shares of common stock outstanding	77,655,862	77,655,862
LPS – Basic and diluted	$(0.00)	$(0.01)

There were no potentially dilutive securities outstanding at December 31, 2014 as the result would be anti-dilutive.

EQUITY BASED COMPENSATION

The Company accounts for employee stock options in accordance with SFAS 123(R) (“ASC Topic 718”), “Share-Based Payment.” Under ASC Topic 718 the Company is required to recognize share-based compensation expense at the fair value of employee options granted during the year. The Company had no such compensation expense for the years ended December 31, 2014 and 2013.

COMPREHENSIVE INCOME (LOSS)

The accompanying consolidated financial statements are presented in United States (US) dollars. The functional currency is the Renminbi (RMB). The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. Currency translation adjustments are presented as other comprehensive income.

RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

RECENT ACCOUNTING PRONOUNCEMENTS

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The adoption of ASU 2014-08 is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this update supersedes the revenue recognition requirements in Topic 605 Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition — Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification., Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles — Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this update. This ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2016 for public companies and 2017 for non-public companies. Management is evaluating the effect, if any, on the Company’s financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation: Topic 718. This amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not expect the adoption of this guidance will have a significant impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material effect on the Company’s consolidated financial statements.

In November 2014, FASB issued Accounting Standards Update No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). The amendments permit the use of the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate, or OIS) as a benchmark interest rate for hedge accounting purposes. Public business entities are required to implement the new requirements in fiscal years (and interim periods within those fiscal years) beginning after December 15, 2015. All other types of entities are required to implement the new requirements in fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. The Company does not expect the adoption of ASU 2014-16 to have material impact on the Company’s consolidated financial statement.

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INCOME TAXES (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Income Taxes 1	$ (5.24)

XML

Schedule of Property, Plant and Equipment (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Property And Equipment Schedule Of Property, Plant And Equipment 1	$ 56,130
Property And Equipment Schedule Of Property, Plant And Equipment 2	56,334
Property And Equipment Schedule Of Property, Plant And Equipment 3	54,816
Property And Equipment Schedule Of Property, Plant And Equipment 4	49,677
Property And Equipment Schedule Of Property, Plant And Equipment 5	399,370
Property And Equipment Schedule Of Property, Plant And Equipment 6	400,817
Property And Equipment Schedule Of Property, Plant And Equipment 7	510,316
Property And Equipment Schedule Of Property, Plant And Equipment 8	506,828
Property And Equipment Schedule Of Property, Plant And Equipment 9	(50,475)
Property And Equipment Schedule Of Property, Plant And Equipment 10	(50,658)
Property And Equipment Schedule Of Property, Plant And Equipment 11	(298,377)
Property And Equipment Schedule Of Property, Plant And Equipment 12	(276,496)
Property And Equipment Schedule Of Property, Plant And Equipment 13	161,464
Property And Equipment Schedule Of Property, Plant And Equipment 14	179,674
Property And Equipment Schedule Of Property, Plant And Equipment 15	197,067
Property And Equipment Schedule Of Property, Plant And Equipment 16	197,781
Property And Equipment Schedule Of Property, Plant And Equipment 17	358,531
Property And Equipment Schedule Of Property, Plant And Equipment 18	$ 377,455

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CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 46,366	$ 20,715
Inventories	389,362	400,924
Account receivalbes	27,654	21,073
Other receivables	6,312	10,160
Deposits and prepayments	15,331	15,869
Total current assets	485,025	468,741
Investment	11,157	11,198
Property, plant and equipment (net)	358,531	377,455
Total Assets	854,713	857,394
Current liabilities
Accounts payable	5,657	5,706
Accrued liabilities	181,747	167,514
Due to directors	641,134	435,110
Due to related parties	389,842	344,536
Other payables	434,026	310,061
Total current liabilities	1,652,406	1,262,927
Equity
Common stock: par value $.01; 200,000,000 shares authorized; 77,655,862 shares issued and outstanding	776,558	776,558
Additional paid-in capital	28,877,540	28,877,540
Deficit accumulated during the development stage	(30,654,175)	(30,286,940)
Accumulated other comprehensive income	162,255	158,216
Total China Longyi stockholders' equity	(837,822)	(474,626)
Noncontrolling interest	40,129	69,093
Total Equity	(797,693)	(405,533)
Total Liabilities and Stockholders Equity	$ 854,713	$ 857,394

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (USD $)	Common Stock $.01 Par Value [Member]	Additional Paid-In Capital [Member]	Development Stage Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]	Total
Beginning Balance at Dec. 31, 2012	$ 776,558	$ 28,877,540	$ (29,859,009)	$ 167,426	$ 119,002	$ 81,517
Beginning Balance (Shares) at Dec. 31, 2012	77,655,862
Net loss for the year			(427,931)		(48,230)	(476,161)
Foreign currency translation adjustment				(9,210)	(1,679)	(10,889)
Ending Balance at Dec. 31, 2013	776,558	28,877,540	(30,286,940)	158,216	69,093	(405,533)
Ending Balance (Shares) at Dec. 31, 2013	77,655,862
Net loss for the year			(367,235)		(29,140)	(396,375)
Foreign currency translation adjustment				4,039	176	4,215
Ending Balance at Dec. 31, 2014	$ 776,558	$ 28,877,540	$ (30,654,175)	$ 162,255	$ 40,129	$ (797,693)
Ending Balance (Shares) at Dec. 31, 2014	77,655,862

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Schedule of Purchase Price Allocation of Assets and Liabilities (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 1	$ 4,227
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 2	1,714,957
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 3	523,857
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 4	1,295,170
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 5	28
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 6	1,018,125
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 7	(66,425)
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 8	(2,055,941)
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 9	(816,482)
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 10	(281,131)
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 11	(84,519)
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 12	(29,910)
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 13	1,221,928
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 14	468,546
Business Acquisitions Schedule Of Purchase Price Allocation Of Assets And Liabilities 15	$ 1,690,474

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STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of CAPITALIZATION STRUCTURE OF THE COMPANY AT VARIOUS TIMES [Table Text Block]

	Capital Structure	Capital Structure
	Pre-Reverse Split	Post-Reverse Split
	(As of Record Date)	(On Effective Date)
Issued and outstanding shares of Common Stock	198,509,866	9,925,493
Authorized and reserved shares of Common Stock	-	-
Authorized but unissued and unreserved shares of Common Stock	1,490,134	190,074,507

Schedule of Capital Structure [Table Text Block]

Common stock – par value $0.01	Authorized	Issued and outstanding
December 31, 2014	200,000,000	77,655,862
December 31, 2013	200,000,000	77,655,862

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Schedule of Recognized Gains on the Sale of Subdsidiaries (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 1	$ 0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 2	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 3	304
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 4	304
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 5	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 6	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 7	66,412
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 8	66,412
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 9	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 10	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 11	450,424
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 12	450,424
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 13	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 14	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 15	(401,208)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 16	(401,208)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 17	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 18	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 19	(3,274)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 20	(3,274)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 21	(70,902)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 22	(4,486)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 23	(429,353)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 24	(504,741)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 25	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 26	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 27	(92,779)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 28	(92,779)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 29	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 30	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 31	(51,591)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 32	(51,591)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 33	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 34	0
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 35	(171,372)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 36	(171,372)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 37	(70,902)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 38	(4,486)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 39	(632,437)
Business Acquisitions Schedule Of Recognized Gains On The Sale Of Subdsidiaries 40	$ (707,825)

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PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Property, Plant and Equipment [Table Text Block]

		2014			2013
Transportation equipment	$	56,130		$	56,334
Furniture and office equipment		54,816			49,677
Production equipment, buildings and improvements		399,370			400,817
Subtotal		510,316			506,828
Less: impairment provision		(50,475	)		(50,658	)
accumulated depreciation		(298,377	)		(276,496	)
		161,464			179,674
Construction in progress		197,067			197,781
		358,531			377,455

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BUSINESS DESCRIPTION AND ORGANIZATION

12 Months Ended

Dec. 31, 2014

BUSINESS DESCRIPTION AND ORGANIZATION [Text Block]

1.	BUSINESS DESCRIPTION AND ORGANIZATION
	NAME CHANGE AND REORGANIZATION
	We amended our certificate of incorporation on October 16, 2007 and changed our name from Minghua Group International Holdings Limited (“Minghua USA”) to China LongYi Group International Holdings Limited. At the same time, we implemented a 1 for 20 reverse stock split of issued and outstanding shares of our common stock which reduced the number of our issued and our outstanding shares from 198,509,866 to 9,925,493.
	Minghua USA, formerly Panagra International Corporation (“Panagra”), was incorporated under the laws of the State of New York on February 29, 1996 under the name, United Network Technologies, Inc. On August 2, 2001, an amendment to the certificate of incorporation was made changing the name from Panagra to Minghua USA. This amendment also increased the authorized common shares of Minghua USA from 40,000,000 shares to 200,000,000 shares.
	In June 2001, Panagra and its subsidiary, Minghua Acquisition Corp. acquired all the outstanding shares of Minghua Group International Holding (Hong Kong) Limited (“Minghua Hong Kong”). The acquisition was effected by paying to the shareholders of Minghua Hong Kong $1,000,000 and issuing 28,000,000 additional Minghua USA common shares that resulted in the Minghua Hong Kong shareholders owning approximately 70% of the outstanding shares of Minghua USA and having control of Minghua USA after this transaction. For financial reporting purposes, this transaction was recorded as a recapitalization of Minghua Hong Kong. Minghua Hong Kong was deemed to be the continuing, surviving entity for accounting purposes, but through reorganizations, was deemed to have adopted the capital structure of Minghua USA.
	At that time, the sole asset of Minghua Hong Kong was an 85% equity interest in the Shenzhen Minghua Environmental Protection Vehicle Co., Ltd. (“Minghua China”), a Peoples Republic of China (PRC) corporation. The remaining 15% equity minority interest in Minghua China was owned by a related party, Asia Key Group Limited, through its wholly- owned subsidiary Minghua Real Estate (Shenzhen) Ltd, formerly known as Minghua Investment Co., Ltd. (“Minghua Real Estate”). On January 29, 2004, Minghua USA acquired this 15% minority interest held by Minghua Real Estate, in a related party transaction by paying $990,638 in cash and issuing 28,210,000 common shares of Minghua USA. In September 2006, Minghua USA disposed of its entire interests in Minghua Hong Kong and Minghua China.
	On November 12, 2007, we entered into a share purchase agreement, or the Share Purchase Agreement, with Daykeen Group Limited (“Daykeen”), a BVI company, or Daykeen, pursuant to which we acquired 100% ownership of Top Time International Limited (“Top Time”), a Hong Kong company. Daykeen is the sole shareholder of Top Time. Top Time owns 90% equity interest of Beijing Longyi Biology Technology Co. Ltd (“Beijing SOD”), which is a holding company that owns 90.05% equity interest of Chongqing JiuZhou Dismutase Biology Technology Co. Ltd (“Chongqing SOD”), a corporation incorporated in China. Chongqing SOD is a manufacturer of superoxide dismutase, or SOD products. As a result of this acquisition transaction, Top Time became our wholly owned subsidiary and Daykeen became our controlling stockholder upon our issuance to Daykeen of the equity portion of the purchase price in accordance with the Share Purchase Agreement. Top Time was incorporated in Hong Kong in December 2006 and currently has two subsidiaries: Beijing SOD and Chongqing SOD. Beijing SOD is 90% owned by Top Time and was incorporated in China in March 2005. Chongqing SOD was incorporated in China in March 2007 and is 90.05% owned by Beijing SOD.

Through acquisition of Top Time, we changed our business to develop, manufacture and sell SOD products. As a result, on November 28, 2007, one of our subsidiaries, Top Team Holdings Limited (BVI), disposed of five subsidiaries including Euromax International Investments Limited, Beijing China Cardinal Real Estate Consulting Co., Ltd, Eagle Bus Development Limited (HK), Good View Bus Manufacturing Company Limited (HK), and Guangzhou City View Bus Installation Company Limited (PRC) to Mr. Chen, Zhiping for RMB5,000,000.

In aggregate, the company recognized gain of $3,385,630 on the sale of the subsidiaries.

CAPITAL RESOURCES AND BUSINESS RISKS

The Company remains in the development stage and all future business operations are subject to all of the risks inherent in the establishment of a new business enterprise. The Company has no proven revenue stream from the sales of its products. Additional capital resources through current and future offerings of securities will be needed in order to accomplish the Company's present marketing, development and manufacturing plans. The manufacturing facility and other operations in China, as well as the business financial conditions and results of operations are, to a significant degree, subject to economic, political and social events in China.

The Company had incurred losses since inception and had little working capital until June 29, 2007. However, the substantial doubt about its ability to continue as a going concern, which contemplated the realization of assets and the payment of liabilities in the ordinary course of business, was alleviated on June 29, 2007, when management obtained $28,113,294 in funding through the issuance of additional stock to one of the Company’s shareholders. On November 12, 2007, we completed an acquisition transaction with Top Time whereby we paid Daykeen, Top Time’s sole shareholder, a total consideration of $54.9 million, in exchange for 100% ownership of Top Time, consisting of $30 million in cash and $24.9 million in shares of our common stock issuable within 90 days of the closing. The equity portion of the purchase price amounts to a total of 62,250,000 shares of our common stock.

On July 27, 2007, Company instructed prior Transfer Agent to issue the 50,000,000 shares of common stock to deliverable Qiang Long in the name of Jolly Concept Management Limited, in accordance with Qiang Long’s instructions. On December 14, 2007, Company instructed the present Transfer Agent to issue the replacement certificate showing the new name of the company and the correct number of shares, post reverse-split, and the remaining 4,349,307 shares of common stock issuable to Qiang Long, to Jolly Concept Management Limited and to Zhang, Lifang. The company also agreed to issue 1,131,026 shares of common stock post-reverse-split to Luck Pond Enterprises Limited or its designee, for its services as finder in connection with the Qiang Long investment. On December 14, 2007, company instructed the present Transfer Agent to issue the total amount of 62,250,000 shares of the Company’s common stock, post-reverse-split, issuable to Daykeen, to Daykeen Investment Limited.

RESTRICTIONS ON TRANSFER OF ASSET OUT OF CHINA

Dividend payments by the Company’s operating subsidiaries are limited by certain statutory regulations in China. No dividends may be paid by these subsidiaries without first receiving prior approval from the Foreign Currency Exchange Management Bureau. Dividend payments are restricted to 85% of profits, after tax. Repayments of loans or advances from subsidiaries to China Longyi, unless certain conditions are met, will be restricted by the Chinese government.

CONTROL BY PRINCIPAL STOCKHOLDERS

The directors, executive officers, affiliates and related parties own, beneficially and in the aggregate, the majority of the voting power of the outstanding shares of the common stock of the Company. Accordingly, if they voted their shares uniformly, directors, executive officers and affiliates would have the ability to control the approval of most corporate actions, including increasing the authorized capital stock of China Longyi and the dissolution, merger or sale of the Company's assets.

GOING CONCERN

The Company is an early stage development company and has earned only insignificant revenues since its inception. As at December 31, 2014, the Company has a working capital deficiency of $1,167,381 and accumulated deficit from recurring net losses of $30,654,175 incurred for the current and prior years as of December 31, 2014. As at December 31, 2014, the Company has cash and cash equivalents of $46,366.

The application of the going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. There is, primarily as a result of the conditions described above, substantial doubt as to the appropriateness of the use of the going concern assumption. The accompanying financial statements have been prepared on a going concern basis notwithstanding these conditions.

The ability of the Company to continue as a going concern is dependent on its ability to generate sufficient positive cash flows from future operations and the continued funding from the Company’s major shareholders. If the going concern basis were not appropriate for these financial statements, then adjustments would be necessary to the carrying values of assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Common Stock, Par Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	77,655,862	77,655,862
Common Stock, Shares, Outstanding	77,655,862	77,655,862

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RELATED PARTY TRANSACTIONS AND STOCKHOLDERS LOAN

12 Months Ended

Dec. 31, 2014

RELATED PARTY TRANSACTIONS AND STOCKHOLDERS LOAN [Text Block]

11.	RELATED PARTY TRANSACTIONS AND STOCKHOLDER’S LOAN
	The caption “Due to Related Company” are loans that are unsecured, non-interest bearing and have no fixed terms of repayment, therefore, deemed payable on demand. The Company rents office space from the related company.
	The related party transactions list:

Related Party Transactions	Due from related parties	Due to related parties	Due to directors
Related parties
2014.12.31
Chen Jie			115,574
Li Changde			254,876
Wang Wei			9,204
Li, Hongliang			261,481
Beijing De Reng Sheng Limited		224,371
SiChuan Longyi Limited		22,193
Liu, Guizhi		143,278
Total	-	389,842	641,134
2013.12.31
Chen Jie			107,431
Li Changde			56,044
Wang Wei			9,206
Li, Hongliang			262,428
Beijing De Reng Sheng Limited		224,664
SiChuan Longyi Limited		22,274
Liu, Guizhi		97,599
Total	-	344,536	435,110

Related Party Transactions	Rental	Inventories Purchase from related party	Due to directors	Payment for related party
Related parties
2014.1-2014.12
China Cardinal Limited
China Dragon
Daykeen Investments Ltd
Trinity Creation
Chen Jie			8,143
Li Changde			198,831
Liu, Guizhi	49,028
Total	49,028		206,974
2013.1-2013.12
China Cardinal Limited				858
China Dragon				1,264
Daykeen Investments Ltd				1,264
Trinity Creation				967
Chen Jie
Li Changde
Liu, Guizhi	49,205
Total	49,205			4,353

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Mar. 27, 2015	Jun. 30, 2014
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Trading Symbol	cgyg
Entity Registrant Name	CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LTD
Entity Central Index Key	0001010566
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		77,655,862
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Entity Public Float			$ 350,000
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

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SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2014

SUBSEQUENT EVENT [Text Block]

12.	SUBSEQUENT EVENT
	The management assessed there were no events occurring after balance date as of December 31, 2014 and prior to the time of annual report completion which might affect the financial report.

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	12 Months Ended		211 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014
Revenues
Sales	$ 107,566	$ 58,380	$ 1,134,770
Cost of sales	192,027	48,086	1,232,286
Gross margin	(84,461)	10,294	(97,516)
Operating expenses
General and administrative expenses	486,758	583,410	19,690,601
Goodwill impairment loss	0	0	5,408,584
Write-off inventory and bus licenses	0	0	3,322,712
Research and development costs	0	0	8,880,206
Total Operating Expenses	486,758	583,410	37,302,103
Loss from operations	(571,219)	(573,116)	(37,399,619)
Other income (expense)
Interest income	60	27	325,747
Other income (expense)	179,826	84,104	1,428,037
Transaction exchange gain	(5,042)	12,824	1,084,841
Gain on asset disposal	0	0	1,172
Gain on debt settlement	0	0	156,018
Gain on disposal subsidiary	0	0	4,093,455
Interest expense	0	0	(712,302)
Total Other Income (Expense)	174,844	96,955	6,376,968
Loss before income tax expense and noncontrolling interest	(396,375)	(476,161)	(31,022,651)
Income tax expense	0	0	0
Net loss	(396,375)	(476,161)	(31,022,651)
Less: Net loss attributable to noncontrolling interest	29,140	48,230	368,476
Net loss attributable to China Longyi	(367,235)	(427,931)	(30,654,175)
Basic and diluted loss per share	$ 0.00	$ 0.00
Weighted average number of shares outstanding-basic and diluted	77,655,862	77,655,862
Comprehensive loss
Net loss	(396,375)	(476,161)	(31,022,651)
Foreign currency translation adjustment	4,215	(10,889)
Comprehensive loss attributable to noncontrolling interest	(28,964)	(49,909)
Comprehensive loss attributable to China Longyi	$ (363,196)	$ (437,141)

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INVENTORIES

12 Months Ended

Dec. 31, 2014

INVENTORIES [Text Block]

6.	INVENTORIES
	Inventories at December 31, 2014 and 2013 consisted of:

		2014		2013
Materials	$	17,877	$	3,861
Low value consumables		14,182		14,186
Work in progress		291,079		296,678
Finished goods		66,224		86,199
	$	389,362	$	400,924

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INVESTMENT

12 Months Ended

Dec. 31, 2014

INVESTMENT [Text Block]

5.	INVESTMENT
	The Company has a one year deposit certificate with an investment company in the PRC. The certificate earns interest at 5.5% to 8% per annum. The principal amount for the years ended December 31, 2014 and 2013 was $11,157 and $11,198 respectively, and were recorded on the balance sheet as investment.

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INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Inventories [Table Text Block]

		2014		2013
Materials	$	17,877	$	3,861
Low value consumables		14,182		14,186
Work in progress		291,079		296,678
Finished goods		66,224		86,199
	$	389,362	$	400,924

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION [Policy Text Block]

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

The consolidated financial statements for all periods from date of acquistion include the financial statements of China Longyi Group International Holding Limited, Top Team Holdings Limited, Full Ample Group Limited (Daykeen Group, BVI), Top Time International Limited (HK), Beijing Longyi Biology Technology Co. Ltd, and Chongqing JiuZhou Dismutase Biology Technology Co. Ltd. The consolidated statements have been prepared in accordance with US GAAP. All significant intercompany transactions have been eliminated.

The Company has determined the People’s Republic of China Chinese Yuan Renminbi (“RMB”) to be its functional currency. The accompanying consolidated financial statements are presented in United States (US) dollars. The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

NONCONTROLLING INTEREST IN SUBSIDIARIES [Policy Text Block]

NONCONTROLLING INTEREST IN SUBSIDIARIES

The Company owns 90% of the equity interest in the Beijing LongYi Biology Technology Co. Ltd, and the remaining 10% is owned by Miss Ran Wang. Therefore, the Company records non-controlling interest (expense) income to allocate 10% of the results of the Beijing Longyi Biology Technology limited to Miss Ran Wang, its non-controlling shareholder.

The Company owns 81% of the equity interest in the Chongqing JiuZhou Dismutase Biology Technology Co. Ltd, and remaining 9% is owned by Miss Ran Wang, and another 10% is owned by Mr. Guoqing Tan. Therefore, the Company records non-controlling interest (expense) income to allocate 19% of the results of the Chongqing JiuZhou Dismutase Biology Technology Co. Ltd to Miss Ran Wang and Mr. Guoqing Tan, its non-controlling shareholder.

USE OF ESTIMATES [Policy Text Block]

USE OF ESTIMATES

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

SIGNIFICANT ESTIMATES [Policy Text Block]

SIGNIFICANT ESTIMATES

Several areas require significant management estimates relating to uncertainties for which it is reasonably possible that there will be a material change in the near term. The more significant areas requiring the use of management estimates related to the valuation of acquired companies, inventories, allowance for doubtful accounts, equipment, patent rights, accrued liabilities and stock options, and the useful lives for amortization and depreciation.

REVENUE RECOGNITION [Policy Text Block]

REVENUE RECOGNITION

The Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104 “Revenue recognition” (“ASC Topic 605”). Revenues are recognized as earned when the following four criteria are met: (1) a customer issues a purchase order or otherwise agrees to purchase products; (2) products are delivered to the customer; (3) pricing is fixed or determined in accordance with the purchase order or agreement; and (4) collectability is reasonably assured.

CASH AND CASH EQUIVALENTS [Policy Text Block]

CASH AND CASH EQUIVALENTS

The Company invests idle cash primarily in money market accounts, certificates of deposits and short-term commercial paper. Money market funds and all highly liquid debt instruments with an original maturity of three months or less are considered cash equivalents.

PROPERTY AND EQUIPMENT [Policy Text Block]

PROPERTY AND EQUIPMENT

Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset, or related groups of assets, may not be recoverable. Under the provisions of SFAS No. 144, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of”, the Company recognizes an “impairment charge” when the expected net undiscounted future cash flows from an asset's use and eventual disposition are less than the asset's carrying value and the asset's carrying value exceeds its fair value. Measurement of fair value for an asset or group of assets may be based on appraisal, market values of similar assets or estimated discounted future cash flows resulting from the use and ultimate disposition of the asset or assets.

Expenditures for maintenance, repairs and betterments, which do not materially extend the normal useful life of an asset, are charged to operations as incurred. Upon sale or other disposition of assets, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or income (loss) is reflected in income.

Depreciation and amortization are provided for financial reporting purposes primarily on the straight-line method over the estimated useful lives of the respective assets as follows:

	Estimated
	Useful Life
Transportation equipment	5 years
Office, computer software and equipment	5 years
Furniture and fixtures	5 years
Production equipment	10 years
Building and improvements	20 years

INTANGIBLE ASSETS [Policy Text Block]

INTANGIBLE ASSETS

The Company adopted the provisions of SFAS No. 142 (“ASC Topic 350”), Goodwill and Other Intangible Assets, effective January 1, 2002. Under ASC Topic 350, goodwill and indefinite lived intangible assets are not amortized, but are reviewed annually for impairment, or more frequently, if indications of possible impairment exist. The Company has performed the requisite annual transitional impairment tests on intangible assets and made the impairment adjustments as necessary. The Company did not perform annual impairment tests for the year ended December 31, 2013 and 2014 since all goodwill and indefinite lived intangible assets had been written down to zero in the prior years.

INCOME TAXES [Policy Text Block]

INCOME TAXES

Income tax expense is based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences at the reporting date between the tax bases of assets and liabilities, and their carrying amounts that are recognized for financial reporting purposes.

In accordance with Statement of Financial Accounting Standard (“SFAS”) No. 109 (“ASC Topic 740”), “Accounting for Income Taxes,” these deferred taxes are measured by applying currently enacted tax laws.

The Company did not provide any current or deferred income tax provision or benefit for any period presented to date because it has experienced operating losses since inception.

There are net operating income (loss) carry forwards allowed under the Hong Kong and China Governments’ tax system.

RESEARCH AND DEVELOPMENT COSTS [Policy Text Block]

RESEARCH AND DEVELOPMENT COSTS

Company sponsored research and development costs, related to both present and future products, are charged to operations when incurred and are included in operating expenses. Expenditures for research and development for the years ended December 31, 2014 and 2013 were both $0 and a cumulative amount of $8,880,206 for the period from June 4, 1997 (inception) to December 31, 2014.

RELATED PARTY TRANSACTIONS AND STOCKHOLDER'S LOAN [Policy Text Block]

RELATED PARTY TRANSACTIONS AND STOCKHOLDER’S LOAN

The caption “Due to Related Company” are loans that are unsecured, non-interest bearing and have no fixed terms of repayment, therefore, deemed payable on demand. The Company rents office space from the related company.

EARNINGS (LOSS) PER SHARE [Policy Text Block]

EARNINGS (LOSS) PER SHARE

Earnings per share are calculated in accordance with SFAS No. 128 (“ASC Topic 260”), “Earnings Per Share”. Basic earnings per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares.

The numerator and denominator used in the basic and diluted LPS of common stock computations are presented in the following table:

	Year ended December 31,
	2014	2013
NUMBERATOR FOR BASIC AND DILUTED LPS
Net loss attributable to common stockholders	$ ( 367,235)	$ ( 427,931)
DENOMINATOR FOR BASIC AND DILUTED LPS
Weighed average shares of common stock outstanding	77,655,862	77,655,862
LPS – Basic and diluted	$(0.00)	$(0.01)

There were no potentially dilutive securities outstanding at December 31, 2014 as the result would be anti-dilutive.

EQUITY BASED COMPENSATION [Policy Text Block]

EQUITY BASED COMPENSATION

The Company accounts for employee stock options in accordance with SFAS 123(R) (“ASC Topic 718”), “Share-Based Payment.” Under ASC Topic 718 the Company is required to recognize share-based compensation expense at the fair value of employee options granted during the year. The Company had no such compensation expense for the years ended December 31, 2014 and 2013.

COMPREHENSIVE INCOME (LOSS) [Policy Text Block]

COMPREHENSIVE INCOME (LOSS)

The accompanying consolidated financial statements are presented in United States (US) dollars. The functional currency is the Renminbi (RMB). The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. Currency translation adjustments are presented as other comprehensive income.

RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

RECENT ACCOUNTING PRONOUNCEMENTS [Policy Text Block]

RECENT ACCOUNTING PRONOUNCEMENTS

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The adoption of ASU 2014-08 is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this update supersedes the revenue recognition requirements in Topic 605 Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition — Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification., Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles — Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this update. This ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2016 for public companies and 2017 for non-public companies. Management is evaluating the effect, if any, on the Company’s financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation: Topic 718. This amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not expect the adoption of this guidance will have a significant impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material effect on the Company’s consolidated financial statements.

In November 2014, FASB issued Accounting Standards Update No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). The amendments permit the use of the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate, or OIS) as a benchmark interest rate for hedge accounting purposes. Public business entities are required to implement the new requirements in fiscal years (and interim periods within those fiscal years) beginning after December 15, 2015. All other types of entities are required to implement the new requirements in fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. The Company does not expect the adoption of ASU 2014-16 to have material impact on the Company’s consolidated financial statement.

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2014

COMMITMENTS AND CONTINGENCIES [Text Block]

9.	COMMITMENTS AND CONTINGENCIES
	From time to time, the Company has disputes that arise in the ordinary course of its business. Currently, according to management, there are no material legal proceedings to which the Company is a party to or to which any of their property is subject that will have a material adverse effect on the Company’s financial condition.

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PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2014

PROPERTY AND EQUIPMENT [Text Block]

7.	PROPERTY AND EQUIPMENT
	Property and equipment at cost consisted of:

		2014			2013
Transportation equipment	$	56,130		$	56,334
Furniture and office equipment		54,816			49,677
Production equipment, buildings and improvements		399,370			400,817
Subtotal		510,316			506,828
Less: impairment provision		(50,475	)		(50,658	)
accumulated depreciation		(298,377	)		(276,496	)
		161,464			179,674
Construction in progress		197,067			197,781
		358,531			377,455

Depreciation expense for the years ended December 31, 2014 and 2013 was $21,881 and $42,893, respectively. Impairment for the year ended December 31, 2014 and 2013 was $0 and $21,862,

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INCOME TAXES

12 Months Ended

Dec. 31, 2014

INCOME TAXES [Text Block]

8.	INCOME TAXES
	The Company accounts for income taxes in accordance with the provisions of SFAS No. 109 (ASC Topic 740”), “Accounting for Income Taxes”.
	Income tax expense is based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences between assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. In accordance with SFAS No. 109, “Accounting for Income Taxes”, these deferred income taxes are measured by applying currently enacted tax laws.
	The Company has a United States federal net operating loss carryforward of approximately $(5.24) million expiring in the years 2021 - 2025. The tax benefit of this net operating loss has been offset by a full valuation allowance. A portion of the net operating loss carryforward will be subject to a limitation due to the “Change of ownership provisions” under Section 382 of the Internal Revenue Code and similar state provisions.
	Net operating income (loss) carry forwards are allowed under the Hong Kong and Chinese governments’ tax systems. In China, the previous five years’ net operating loss are allowed to be carried forward to offset future taxable income. In Hong Kong, the net operating loss can be carried forward indefinitely to offset future taxable income.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2014

FAIR VALUE OF FINANCIAL INSTRUMENTS [Text Block]

10.	FAIR VALUE OF FINANCIAL INSTRUMENTS
	Statement of Financial Accounting Standards No. 107 (“ASC Topic 825”), “Disclosures about Fair Value of Financial Instruments” requires entities to disclose the fair values of financial instruments except when it is not practicable to do so. Under SFAS No. 107ASC Topic 825, it is not practicable to make this disclosure when the costs of formulating the estimated values exceed the benefit when considering how meaningful the information would be to financial statement users.
	As a result of the difficulties presented in the valuation of the loans payable to related entities/parties because of their related party nature, estimating the fair value of these financial instruments is not considered practical. The fair values of all other assets and liabilities do not differ materially from their carrying amounts. None of the financial instruments held are derivative financial instruments and none were acquired or held for trading purposes in 2013 and 2014.

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Schedule of EARNINGS (LOSS) PER SHARE (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Summary Of Significant Accounting Policies Schedule Of Earnings (loss) Per Share 1	$ 367,235
Summary Of Significant Accounting Policies Schedule Of Earnings (loss) Per Share 2	427,931
Summary Of Significant Accounting Policies Schedule Of Earnings (loss) Per Share 3	77,655,862
Summary Of Significant Accounting Policies Schedule Of Earnings (loss) Per Share 4	77,655,862
Summary Of Significant Accounting Policies Schedule Of Earnings (loss) Per Share 5	0.00
Summary Of Significant Accounting Policies Schedule Of Earnings (loss) Per Share 6	$ (0.01)

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BUSINESS ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Purchase Price Allocation of Assets and Liabilities [Table Text Block]

Accounts receivable	$	4,227
Inventories		1,714,957
Others receivable		523,857
Property, plant and equipment		1,295,170
Intangible – 28 bus licenses		1,018,125
Bank note payable		(66,425	)
Accounts payable		(2,055,941	)
Accrued liabilities		(816,482	)
Due to related parties		(281,131	)
Due to director		(84,519	)
Others payable		(29,910	)
Subtotal	$	1,221,928
Goodwill (cost in excess of FMV)		468,546
Total purchase price paid	$	1,690,474

Schedule of Recognized Gains on the Sale of Subdsidiaries [Table Text Block]

		Minghua Hong			Minghua			Minghua
		Kong			Seience			China
		US$			US$			US$			Total
Inventories	$	-		$	-		$	304		$	304
Prepaid expenses		-			-			66,412			66,412
Other fixed assets		-			-			450,424			450,424
Accumulated depreciation		-			-			(401,208	)		(401,208	)
Accounts payable		-			-			(3,274	)		(3,274	)
Accrued expenses		(70,902	)		(4,486	)		(429,353	)		(504,741	)
Due to directors		-			-			(92,779	)		(92,779	)
Others payable		-			-			(51,591	)		(51,591	)
Short-term loan		-			-			(171,372	)		(171,372	)
		(70,902	)		(4,486	)		(632,437	)		(707,825	)

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BUSINESS DESCRIPTION AND ORGANIZATION (Narrative) (Details)	12 Months Ended
	Dec. 31, 2014 USD ($) D	Dec. 31, 2014 CNY
Business Description And Organization 1	1	1
Business Description And Organization 2	198,509,866	198,509,866
Business Description And Organization 3	9,925,493	9,925,493
Business Description And Organization 4	40,000,000	40,000,000
Business Description And Organization 5	200,000,000	200,000,000
Business Description And Organization 6	$ 1,000,000
Business Description And Organization 7	28,000,000	28,000,000
Business Description And Organization 8	70.00%	70.00%
Business Description And Organization 9	85.00%	85.00%
Business Description And Organization 10	15.00%	15.00%
Business Description And Organization 11	15.00%	15.00%
Business Description And Organization 12	990,638
Business Description And Organization 13	28,210,000	28,210,000
Business Description And Organization 14	100.00%	100.00%
Business Description And Organization 15	90.00%	90.00%
Business Description And Organization 16	90.05%	90.05%
Business Description And Organization 17	90.00%	90.00%
Business Description And Organization 18	90.05%	90.05%
Business Description And Organization 19		5,000,000
Business Description And Organization 20	3,385,630
Business Description And Organization 21	28,113,294
Business Description And Organization 22	54,900,000
Business Description And Organization 23	100.00%	100.00%
Business Description And Organization 24	30,000,000
Business Description And Organization 25	24,900,000
Business Description And Organization 26	90	90
Business Description And Organization 27	62,250,000	62,250,000
Business Description And Organization 28	50,000,000	50,000,000
Business Description And Organization 29	4,349,307	4,349,307
Business Description And Organization 30	1,131,026	1,131,026
Business Description And Organization 31	62,250,000	62,250,000
Business Description And Organization 32	85.00%	85.00%
Business Description And Organization 33	1,167,381
Business Description And Organization 34	30,654,175
Business Description And Organization 35	$ 46,366

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Schedule of Related Party Transactions - Amounts Owing (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 1	$ 115,574
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 2	254,876
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 3	9,204
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 4	261,481
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 5	224,371
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 6	22,193
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 7	143,278
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 8	0
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 9	389,842
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 10	641,134
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 11	107,431
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 12	56,044
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 13	9,206
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 14	262,428
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 15	224,664
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 16	22,274
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 17	97,599
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 18	0
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 19	344,536
Related Party Transactions And Stockholders Loan Schedule Of Related Party Transactions - Amounts Owing 20	$ 435,110

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended		211 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (396,375)	$ (476,161)	$ (31,022,651)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	22,792	38,182	1,292,028
Loss on sales of property and equipment	0	0	9,873
Loss on disposal of fixed assets	0	29,227	29,227
Impairment loss for fixed assets	0	20,646	1,073,596
Write-off goodwill and inventory	0	0	7,101,506
Stock issued for services and debt	0	0	1,869,100
(Gain) loss on disposition in subsidiary	0	0	(3,882,796)
Research and development expenses recorded in organiza	0	0	8,612,730
Reorganization expenses recorded in organization	0	0	455,830
Changes in operating assets and liabilities:
Accounts receivalbes	(6,632)	145,573	(24,230)
Other receivables	3,809	2,488	5,327,307
Due from related parties	0	56,257	31,486
Interest receivable	0	0	17,667
Deposits and prepayment	479	36	694,702
Inventory	10,075	39,715	(812,242)
Other payables	139,048	21,355	(131,170)
Due to related parties	46,289	90,513	100,865
Accounts payable and accrued liabilities	(28)	614	(3,320,211)
Net cash used in operations	(180,543)	(31,555)	(12,577,383)
Cash flows from investing activities:
Reorganization - net of cash acquired	0	0	(320,579)
Purchase of subsidiaries	0	0	(1,690,474)
Redemption of short term investment	0	0	665,092
Purchases of intangible assets	0	0	(833,357)
Purchases of property and equipment	(5,298)	(1,518)	(558,832)
Purchases of construction in progress	0	0	(169,081)
Sales of property and equipment	0	0	701,100
Deposit on subsidiary	0	0	(10,922)
Net cash provided by (used in) investing activities	(5,298)	(1,518)	(2,217,053)
Cash flows from financing activities:
Addition of short term loans	0	0	1,612
Collecttion from shareholders	0	0	503,171
Payments to stockholders	0	0	(1,634,763)
Proceeds from issuance of stock	0	0	13,149,845
Proceeds from convertible promissory note	0	0	3,128,225
Dividends paid	0	0	(1,000,000)
Proceeds to notes payable	0	0	649,492
Payments on notes payable	0	0	(612,582)
Proceeds (repayments) loans from directors	206,414	55,176	515,060
Net cash provided by financing activities	206,414	55,176	14,700,060
Effect of foreign exchange rate fluctuation	5,078	(13,304)	140,742
Increase(decrease) in cash and cash equivalents	25,651	8,799	46,366
Cash and cash equivalents, beginning of period	20,715	11,916	0
Cash and cash equivalents, end of period	46,366	20,715	46,366
Supplemental disclosures of cash flow information:
Cash paid for interest	0	0	0
Cash paid for income taxes	$ 0	$ 0	$ 0

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STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2014

STOCKHOLDERS' EQUITY [Text Block]

4.	STOCKHOLDERS' EQUITY
	Top Time was incorporated in Hong Kong in December 2006 and currently has two subsidiaries: Beijing SOD and Chongqing SOD. Beijing SOD is 90% owned by Top Time and was incorporated in China in March 2005. Chongqing SOD was incorporated in China in March 2007. Chongqing SOD is 90% owned by Beijing SOD. For accounting purposes, the acquisition of Top Time was treated as a reorganization of entities under common control.
	ISSUANCE OF COMMON STOCK
	In February 2002, the Company issued 372,807 shares of the Company's common stock at $.20 per share in a private placement. The total amount due of $74,561 was determined to be uncollectible during 2004 and was charged to additional paid in capital.
	In April 2002, 540,260 options were exercised by a former director at a cashless exercise amount of $416,000. The balance of the 2,000,000 options granted to this former director was forfeited in 2002.
	In November 2002, 1,100,000 shares were issued to the Board of Directors at $.13 per share, for a total consideration of $143,000, for services provided to the Company in 2002.
	In March 2003, the Company issued 1,513,969 shares of common stock for $.12 per share, for a total consideration of $181,676 to settle various debts with third party vendors and a loan payable to a former Director of the Company.
	On September 29, 2003, the Company entered into its first stock subscription agreement with the Beijing Qiang Long Real Estate Development Co., Ltd. (“Qiang Long”), relating to the purchase of 15,000,000 shares of the Company's common stock at a purchase price of $.40 per share, for an aggregate consideration amount of $6,000,000. In October 2003, 1,511,488 shares of stock were purchased according to the subscription agreement for $604,595. In addition to $604,595, $604,887 was received in advance for the stocks issued in January 2004. Total amount received was $1,209,482 during October 2003. In January 2004, 3,023,998 shares of stock were purchased under the same agreement for a price of $1,209,599. Amount received was $604,712 which was $1,209,482 less $604,887. In 2004, 10,464,514 shares of stock were purchased under the subscription agreement for an aggregate consideration of $4,185,806. Accordingly, the Company has received all the payments from the first stock subscription receivable.
	On January 29, 2004 a second stock subscription agreement was entered into with Qiang Long. The second agreement calls for the purchase of 140,000,000 shares of the Company's common stock at a purchase price of $.21 per share, for an aggregate consideration of $29,400,000. Qiang Long will become the controlling stockholder of the Company as a result of this second agreement. During 2004 the Company collected $653,795 as a partial payment toward the stock subscription receivable, however, no stocks were issued. In December 2006, pursuant to this agreement, Qiang Long Real Estate Development Co. Ltd., paid $632,911 in partial fulfillment of the agreement. Company issued 3,013,862 shares of common stock to Qiang Long.
	Prior to the issuance of the shares, the Company is required to hold a stockholders meeting to increase the number of common shares authorized, in order to have enough common shares to satisfy its stock obligations to Qiang Long. Qiang Long does not have the right to cancel its subscription and the consideration is not refundable.
	In January 2004 the Company issued 24,036,269 shares of its common stock to Kingsrich Development Limited in satisfaction of debt in accordance with a prior agreement.
	On January 29, 2004 the Company issued 28,210,000 shares of its common stock in the acquisition of the 15% minority interest in Minghua China. The shares were valued at $.14 per share. The transaction is further discussed in Note 1.
	In February 2004, the Company issued 4,000,000 shares of its common stock in exercise of stock options. The exercise price was paid in services to the Company. Compensation expense of $480,000 was charged to current expense as a result of the transaction.
	During May of 2004 the Company issued 16,483,514 shares of its common stock to China Cardinal Limited, of Hong Kong, in satisfaction of a subscription agreement. The stock was sold at a price of $.14 per share, for an aggregate amount of $2,307,692.

Luck Pond Enterprises Limited by Hong Kong (“Luck Pond”) had provided consulting services and acted as a finder in connection with the above-mentioned two subscription agreements with Qiang Long and an investment that was made in January 2004 by China Cardinal Limited of Hong Kong. In consideration of those services, Luck Pond will receive a ten percent commission on the total investment proceeds from both investors, payable in common stock of the Company and was determined by management to be equivalent to 28,390,531 common shares. This commission is contingent upon final funding of 100% of all the three above-mentioned subscription agreements. During 2004, at the completion of two of the agreements, the Company charged $830,100 to expense. The amount was included in accrued liabilities at December 31, 2004, and in January 2005, the Company issued 5,770,000 shares of its common stock in payment of the liability.
On June 29, 2007, the Board of Directors of Company unanimously approved, subject to the Majority Shareholders approval, the 1 -for-20 Reverse Split of company’s issued and outstanding Common Stock, which will be effectuated in conjunction with the adoption of the Certificate of Amendment. The Majority Shareholders also approved this action in the Written Consent.
The Reverse Split reduce the number of issued and outstanding shares of Company’s Common Stock and effectively increase the number of authorized and unissued shares of our Common Stock available for future issuance. The Reverse Split will become effective on the Effective Date, which occurs when the Certificate of Amendment is filed with the Secretary of State for the State of New York following the expiration of the 20 -day period mandated by Rule 14c of the Exchange Act.
Effect of Reverse Split on Common Stock
The table below sets forth, as of the Record Date and as of the Effective Date the following information both before and after the proposed Reverse Split (subject to slight adjustments resulting rounding of fractional shares):
	The number of issued and outstanding shares of Common Stock
	The number of authorized and reserved shares of Common Stock;
	The number of authorized but unissued and unreserved shares of Common Stock.

CAPITALIZATION STRUCTURE OF THE COMPANY AT VARIOUS TIMES

	Capital Structure	Capital Structure
	Pre-Reverse Split	Post-Reverse Split
	(As of Record Date)	(On Effective Date)
Issued and outstanding shares of Common Stock	198,509,866	9,925,493
Authorized and reserved shares of Common Stock	-	-
Authorized but unissued and unreserved shares of Common Stock	1,490,134	190,074,507

As shown in the table above, the Reverse Split of the outstanding shares of our Common Stock will reduce the number of issued and outstanding shares of our Common Stock and effectively increase the number of authorized and unissued shares of our Common Stock available for future issuance.

On January 29,2004, company entered into a certain contract with Qiang Long Real Estate Development Co., Ltd., under which, as amended and supplemented from time to time, Qiang Long is obligated to purchase 140,000,000 shares of the Company’s common stock, par value $0.01 at an aggregate purchase price of US$29,400,000, or $0.21 per Share, US$653,795 of which was paid to the Company as a performance bond at the signing of the Agreement, US$632,911 of which was paid to the Company in 2006 in exchange from 3,013,862 Shares, and the balance of US$28,113,294 (the “Final Installment”) of which was to be paid in full by June 30, 2007, for the remaining 136,986,138 Shares.

On June 29, 2007, the Company and Qiang Long entered into a letter agreement (the “letter Agreement”), pursuant to which the Company and Qiang Long acknowledged their consummation of the Qiang Long Contract. Pursuant to the Letter Agreement, the Company acknowledged its receipt of the Final Installment in cash from Qiang Long as fulfillment of Qiang Long’s investment obligation, and agreed to issue the remaining Shares to Qiang Long as follows:
1.	The Company will issue 50,000,000 of the Shares to Qiang Long on or before July 23, 2007, the date that is fifteen business days after the Company receives the Final Installment from Qiang Long; and
2.	Within fifteen (15) business days following the effective date of an amendment to the Company’s Certificate of Incorporation to effect a one-for-twenty reverse split of the Company’s outstanding Common Stock (the “Amendment”), the Company will issue the remaining 86,986,138 Shares to Qiang Long, which will be equal to 4,349,307 Shares post-reverse split.

On July 27, 2007, the Company instructed prior Transfer Agent to issue the 50,000,000 shares of common stock to deliverable Qiang Long in the name of Jolly Concept Management Limited, in accordance with Qiang Long’s instructions.

On December 14, 2007, according to Qiang Long’s request, company instructed present Transfer Agent to issue the replacement certificate showing the new name of the Company and the correct number of shares, post reverse-split, and the remaining 4,349,307 shares of common stock issuable to Qiang Long, to Jolly Concept Management Limited and to Zhang, Lifang. The Company also agreed to issue 1,131,026 shares of common stock post-reverse-split to Luck Pond Enterprises Limited or its designee, for its services as finder in connection with the Qiang Long investment.

On November 12, 2007, the Company completed an acquisition transaction with Top Time whereby we paid Daykeen a total consideration of $54.9 million, in exchange for 100% ownership of Top Time, consisting of $30 million in cash and $24.9 million in shares of our common stock issuable within 90 days of the closing. The equity portion of the purchase price amounts to a total of 62,250,000 shares of our common stock. The share number was calculated based upon $0.02 /share, the average of the closing price of the Company’s common stock on the OTCBB for the 365 calendar days prior to May 31, 2007, which was adjusted for our stock split which occurred on October 16, 2007. As a result, the effective purchase price per share was $0.40.

On December 14, 2007, the Company instructed present Transfer Agent to issue the total amount of 62,250,000 shares of the Company’s common stock, post-reverse-split, issuable to Daykeen, to Daykeen Investment Limited.

The Company's capital structure as of December 31, 2014 and 2013 was as follows:

Common stock – par value $0.01	Authorized	Issued and outstanding
December 31, 2014	200,000,000	77,655,862
December 31, 2013	200,000,000	77,655,862

STOCK OPTION PLAN

On April 5, 2001, the Company's 2001 Stock Option Plan (the “2001 Plan”) was adopted by the board of directors and was approved by the Company's shareholders at the stockholders' annual meeting on August 2, 2001. Pursuant to the 2001 Plan, the Company may grant incentive and non-statutory (nonqualified) stock options to key employees and directors of the Company. A total of 20,000,000 shares of common stock have been reserved for issuance under the 2001 Plan. No employee may be granted options for more than 2,000,000 restricted shares under the 2001 Plan in any one fiscal year.

The maximum term of options granted under the 2001 Plan is ten years. Options granted are nontransferable and generally expire within three months after the termination of the grantee's services.

The exercise price of incentive stock options must not be less than the fair value of the common stock on the date of the grant. The 2001 Plan expired on April 5, 2011.

In 2001, the Company granted 2,000,000 nonqualified stock options under the 2001 Plan to the Chairman with a 5 -year expiration date, and an exercise price of $1.75 per share. However, all 2,000,000 options were forfeited on May 10, 2004 when the chairman resigned.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Summary Of Significant Accounting Policies 1	90.00%
Summary Of Significant Accounting Policies 2	10.00%
Summary Of Significant Accounting Policies 3	10.00%
Summary Of Significant Accounting Policies 4	81.00%
Summary Of Significant Accounting Policies 5	9.00%
Summary Of Significant Accounting Policies 6	10.00%
Summary Of Significant Accounting Policies 7	19.00%
Summary Of Significant Accounting Policies 8	$ 0
Summary Of Significant Accounting Policies 9	$ 8,880,206

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Schedule of Capital Structure (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Stockholders' Equity Schedule Of Capital Structure 1	$ 0.01
Stockholders' Equity Schedule Of Capital Structure 2	200,000,000
Stockholders' Equity Schedule Of Capital Structure 3	77,655,862
Stockholders' Equity Schedule Of Capital Structure 4	200,000,000
Stockholders' Equity Schedule Of Capital Structure 5	$ 77,655,862

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Depreciation and amortization [Table Text Block]

	Estimated
	Useful Life
Transportation equipment	5 years
Office, computer software and equipment	5 years
Furniture and fixtures	5 years
Production equipment	10 years
Building and improvements	20 years

Schedule of EARNINGS (LOSS) PER SHARE [Table Text Block]

	Year ended December 31,
	2014	2013
NUMBERATOR FOR BASIC AND DILUTED LPS
Net loss attributable to common stockholders	$ ( 367,235)	$ ( 427,931)
DENOMINATOR FOR BASIC AND DILUTED LPS
Weighed average shares of common stock outstanding	77,655,862	77,655,862
LPS – Basic and diluted	$(0.00)	$(0.01)