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China Media Group CORP
0001211211
10-Q
2016-03-31
false
--12-31
No
No
Yes
Smaller Reporting Company
Q1
2016
11307232960
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
1</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>ORGANIZATION</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; padding-left: 0.1pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Median
Group Inc. (formerly known as Clixster Mobile Group Inc. with effect from April 3, 2014 to October 7, 2015 and prior to this
period known as China Media Group Corporation) (the "Company") is a Texas corporation, incorporated on October 1,
2002.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
January 2006, the Company established a wholly owned subsidiary Ren Ren Media Group Limited, a company incorporated in Hong
Kong, as its operating company in Hong Kong. In March 2007, the Company acquired all the outstanding shares of Good World
Investments Limited, a British Virgin Islands corporation that holds 50% of Beijing Ren Ren Health Culture Promotion Limited,
a company incorporated in China in the advertising and media business in China.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2009, the Group established a 50/50 joint venture company, ATC Marketing Limited, which is to be in the business of marketing
and distributing of convergent multimedia communication and internet devices.  </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
June 2012, the Company acquired 100% equity interests of A-Team Resources Sdn. Bhd. (“A-Team”), a distributor
of electronics and light appliances, at a consideration price of $2,011,607 by the issuance of 558,779,837 shares, at a price
of $0.0036 per share.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group is engaged in the distribution of electronics and light appliances and the marketing and distribution of convergent
devices and the consultancy of resources management.  During the period, the Group derived its revenue from telecom
services.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
January 15, 2014, the Company sold its subsidiaries namely Ren Ren Media Group Limited, ATeam Resources Sdn Bhd, Good World Investments
Limited and Beijing Ren Ren Health Culture Promotion Limited (the “Disposed Subsidiaries”) containing its light appliances
distribution business and advertising business in China.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
January 31, 2014, the Group closed the transaction to acquire 63.2% of Clixster Mobile Sdn. Bhd. (“CMSB”), a company
incorporated in Malaysia. CMSB is a mobile virtual network provider and principally engaged in providing cellular and mobile broadband
services in Malaysia. </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On July 28, 2015,
the Company disposed of its 63.2% of CMSB to refocus the business of the Group to sell prepaid telecom cards rather than operating
a mobile network virtual operator (“MNVO”) operation, with a gain of approximately $5 million. Also, on December
11, 2015 the Company acquired shares in Naim Indah Mobile Communication Limited (“NIMC”), a company engaged in
providing mobile communication services through MVNO platform. NIMC has an exclusive agreement with MyAngkasa Holdings Sdn.
Bhd. for the provision of telecom services to Angkasa members. Further details can be found in Note 13 of the financial statements
enclosed herein this report. The Company intends to focus on post-paid customers in working with Angkasa.       </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
2</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Basis
of Presentation</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
accompanying condensed consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America and the rules of the U.S. Securities
and Exchange Commission, and should be read in conjunction with the audited financial statements and
notes thereto for the year ended December 31, 2015. As permitted under the rules of the SEC for interim
reporting, they do not include all information and footnotes required by accounting principles generally
accepted in the United States of America for complete financial statements. However, except as disclosed
herein, there has been no material change in the information disclosed in the notes to the financial
statements for the year ended December 31, 2014 included in the Company Form 10-K filed with the Securities
and Exchange Commission.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
of financial position and results of operations for the interim period presented have been included. Operating results
for the interim period are not necessary indicative of the results that may be expected for the respective full year.</font></p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Principles
of Consolidation</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
condensed consolidated financial statements for the period ended March 31, 2016 include the financial statements of the Company
and its wholly owned subsidiary Alpha Sunray Sdn. Bhd and its 50.001% equity interest subsidiary NAIM INDAH Mobile Communications
Sdn. Bhd (“NIMC”). In the prior year the Company disposed its subsidiary companies namely its 63.2% subsidiary
in Clixster Mobile Sdn. Bhd and its 50% subsidiary ATC Marketing Limited (collectively the “Disposed Companies”).
Accordingly the operating results of the Disposed Companies are disclosed as Discontinued Operations - Net of Tax in the condensed
statement of operation for all period presented. In addition, the assets and liabilities of these Disposed Companies are reported
as Assets of Operations Held for Sale and Liabilities of Operations Held for Sale, as appropriate, in the condensed consolidated
balance sheet.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
results of subsidiaries acquired or sold during the period are consolidated from their effective dates of acquisition or through
their effective dates of disposition, respectively.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
significant inter-company transactions and balances have been eliminated on consolidation.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-size: 11pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Use
of Estimates</b></font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-size: 11pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles 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 condensed consolidated financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net
Loss Per Share</b></font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Basic
earnings per share were computed by dividing net loss by the weighted average number of shares of common stock outstanding
during the year. Diluted loss per common share for the period ended March 31, 2016 and 2015 respectively, are not presented
as it would be anti-dilutive.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; padding-left: 0.2pt; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Fair
Value Measurements and Disclosures</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC 820 "Fair
Value Measurements and Disclosures" codified SFAS No. 107, "Disclosures about Fair Value of Financial Instruments".
ASC 820 applies to all entities, transactions, and instruments that require or permit fair value measurements, with specific
exceptions and qualifications. The Company is required to disclose estimated fair values of financial instruments. Unless
otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments, none of
which are held for trading purposes, approximate their respective carrying values of such amounts.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Cash
and Cash Equivalents</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily
convertible into cash to be cash equivalents.</font></td></tr>
</table>
<p style="font: 2pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Impairment
of long-lived assets</b></font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with the provisions of ASC Topic 360, “<i>Impairment or Disposal of Long-Lived Assets</i>”, all long-lived
assets such as plant and equipment held and used by the Company are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and
used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected
to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by
the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no impairment charge
for the year/period presented.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Revenue</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company recognizes its revenue in accordance with the Securities and Exchange Commissions ("SEC") Staff Accounting
Bulletin No. 104, "Revenue Recognition in Financial Statements" ("SAB 104"). Revenue is recognized when
persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability
is reasonably assured. The recognition of revenues involves certain management judgments. The amount and timing of our revenues
could be materially different for any period if management made different judgments or utilized different estimates.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Revenue
is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Prepaid
telecom revenues are collected by its distributors and/or resellers through the sale of our branded prepaid or reload cards,
which are sold in a form of SIM/reload cards to its final customers through its distributors and/or resellers. The sale of
Sim, prepaid or reload cards is recognized as revenue when the products are delivered to its distributors and/or resellers,
based upon their request. Prepaid cards will expire two years after the date of card production if they have never been activated.
The proceeds from the expired cards are recognized as revenue upon expiration of cards.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Cost
of revenue</b></font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Cost
of revenue consists primarily of cost of SIM and prepaid/reload cards, telecommunication services and traffic charges which
are directly attributable to the delivery of telecom service upon the activation of prepaid and/or reload cards.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Comprehensive
Income</b></font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC
Topic 220, “Comprehensive Income” establishes standards for reporting and display of comprehensive income, its
components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner
sources. Accumulated comprehensive income, as presented in the accompanying statements of stockholders’ equity consists
of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the
computation of income tax expense or benefit.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Segment
Reporting</b></font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC
Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis
consistent with the Company’s internal organization structure as well as information about geographical areas, business
segments and major customers in financial statements. The Company operates in one reportable operating segment in Malaysia
during the period ended March 31, 2016.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Related
Parties</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly,
to control the other party or exercise significant influence over the other party in making financial and operating decisions.
Companies are also considered to be related if they are subject to common control or common significant influence.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Income
Taxes</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for income taxes under ASC 740 “Income Taxes”. Under the asset and liability method of ASC 740,
deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain
deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial
statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially
be recognized in the financial statements when it is more likely than not the position will be sustained upon examination
by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit
that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge
of the position and relevant facts.</font></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 6%; font-size: 11pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(a)</font></td>
<td style="width: 94%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Current
Tax</b></font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Current
tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting
date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Current
taxes are recognized in the statement of income except to the extent that the tax relates to items recognized outside
the statement of income, either in other income or directly in equity.</font></p></td></tr>
</table>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 6%; font-size: 11pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">(b)</font></td>
<td style="width: 94%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Deferred
Tax</b></font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax
credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes
the enactment date. The Company records a valuation allowance for deferred tax assets if, based upon the available evidence,
it is more likely than not that some or all of the deferred tax assets will not be realized.</font></p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Foreign
Currency Translation</b></font></td></tr>
<tr style="vertical-align: top">
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
accounts of the Company's Hong Kong and Malaysia subsidiaries are maintained in Hong Kong dollars (HK) and Malaysia Ringgit
(RM), respectively. Such financial statements are translated into U.S. Dollars (USD) in accordance with ASC 830 “Foreign
Currency Translation” which codified Statement of Financial Accounts Standards ("SFAS") No. 52, "Foreign
Currency Translation," with the respective currency as the functional currency. According to the Statement, all assets
and liabilities were translated at the exchange rate on the balance sheet date, stockholder's equity are translated at
the historical rates and statement of operations items are translated at the weighted average exchange rate for the year.
The resulting translation adjustments are reported under other comprehensive income in accordance with SFAS No. 130, “Reporting
Comprehensive Income”. As of March 31, 2016, the comprehensive loss was $1,337.</font></p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Recently
Issued Accounting Pronouncements</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact to
its financial position, results of operations or cash flows.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Reclassifications</b></font></td></tr>
<tr style="vertical-align: top">
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Certain
comparative amounts have been reclassified to conform to the current period’s presentation.</font></p></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
3</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>UNCERTAINTY
OF ABILITY TO CONTINUE AS A GOING CONCERN</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's condensed consolidated financial statements are prepared using the generally accepted accounting principles applicable
to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.
As of March 31, 2016, the Company has incurred an accumulated deficits totaling $5,990,034 and its current liabilities exceed
its current assets by $1,115,929. In view of the matters described above, recoverability of a major portion of the recorded
asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn
is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a
going concern.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Management
has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide
the Company with the ability to continue as a going concern. The Company is actively pursuing additional funding and potential
merger or acquisition candidates and strategic partners, which would enhance stockholders' investment. Management believes
that the above actions will allow the Company to continue operations through the next fiscal year.</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
4</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>STOCKHOLDERS’
EQUITY</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Common
Stock</i></b></font></td></tr>
<tr>
<td style="vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
January 31, 2014, the Company issued 10,193,609,664 shares of its common stock in consideration
for the acquisition of 63.2% equity interests in Clixster Mobile Sdn Bhd (Note 1).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td></tr>
<tr>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of March 31, 2016, the Company had a total of 11,307,232,960 shares of its common stock issued and outstanding.</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
5</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>STOCK
OPTIONS</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company adopted ASC 718 “Compensation – Stock Compensation” and requires companies to measure and recognize
the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-decoration: underline"><font style="font: 10pt Times New Roman, Times, Serif"><u>2007
Stock Incentive Plan</u></font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
February 19, 2007, the Company adopted the 2007 Stock Incentive Plan (the "2007 Plan") allowing for the awarding
of options to acquire shares of common stock. This plan provides for the grant of incentive stock options to key employees,
directors and consultants. Options issued under this plan will expire over a maximum term of ten years from the date of grant.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
March 8, 2007, the Company registered 38,400,000 shares underlying stock options under the 2007 Stock Incentive Plan with
the SEC pursuant to a registration statement on Form S-8.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the year 2007 to 2013, the Company had issued a total of 6,522,309 shares to its staff and consultants for their service provided.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
2014 and 2015, the Company did not issue any share options under the 2007 Plan.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
at March 31, 2016 and December 31, 2015, there were i) no outstanding stock options and ii) 31,877,691
shares available to be issued under the 2007 Plan.</font></p></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
6</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>DISCONTINUED
OPERATIONS HELD FOR SALE</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
the prior year, the Company sold its subsidiaries namely its 63.2% subsidiary Clixster Mobile Sdn. Bhd. on July 28, 2015 and its
50% subsidiary ATC Marketing Limited on August 3, 2015 (the “Disposed Subsidiaries”) containing its MVNO business
and electronics trading company to an independent third party buyer. The buyer paid $8,500 and the assuming of debts without recourse
in the Disposed Subsidiaries which resulted in a gain of $5,091,189 to the Company. As a result of the sale, the historical activities
and balances of these operations are reported as discontinued operations held for sale in the accompanying condensed consolidated
financial statements for all periods presented.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; padding-left: 0.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table provides the components of Discontinued operations – net of tax:    </font></td></tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Three
months ended March 31 </b></font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; padding-right: 3.1pt; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2016</b></font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; padding-right: 2.05pt; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2015</b></font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; padding-right: 3.1pt; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>US$</b></font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; padding-right: 2.05pt; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>US$</b></font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1; padding-right: 3.1pt; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1; padding-right: 2.05pt; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Net
revenue</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">639,380</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif">Less:
sales discount</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(65,670)</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Cost
of revenue</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(561,064)</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif">Gross
profit</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">12,646</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Administrative
expenses</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(736,805)</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Loss
from operations</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; border-top: Black 1pt solid; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-top: Black 1pt solid; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(724,159)</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif">Other
expenses</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1; padding-right: 3.1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1; padding-right: 2.05pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">  
Foreign exchange loss</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(469,577)</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif">   
Other expense</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(9,924)</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">   
Interest expenses</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(90,000)</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif">Loss
from discontinued operations before taxation</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,293,660)</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">Taxation</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid; padding-right: 3.1pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; padding-right: 2.05pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
</tr>
<tr>
<td colspan="3" style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif">Loss
from discontinued operations</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 3pt double; background-color: #DEEAF6; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: bottom; background-color: #DBE5F1"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 3pt double; background-color: #DEEAF6; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(1,293,660)</font></td>
</tr>
<tr>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 59%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 7%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 13%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
</tr>
</table>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: top">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 5.75pt 0 0.4pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
net cash flows of our discontinued operations for each of the categories of operating, investing and financing activities
are not significant for any periods presented.</font></p></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
7</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>OTHER
PAYABLES AND ACCRUALS</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-size: 11pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
payables and accruals consist of the following:</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 69%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>March
31</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2016</b></font></p></td>
<td style="width: 3%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2015</b></font></p></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>US$</b></font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>US$</b></font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Potential tax penalty liability</font></td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">410,000</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">410,000</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Other payables and accruals</font></td>
<td style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">435,472</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">417,384</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">845,472</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">827,384</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"></font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
8</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>AMOUNTS
DUE TO RELATED PARTIES</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>March
31</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2016</b></font></p></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2015</b></font></p></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>US$</b></font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>US$</b></font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 68%"><font style="font: 10pt Times New Roman, Times, Serif">Amount
due from a related party, a director of a subsidiary company</font></td>
<td style="vertical-align: top; width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 13%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 3%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; width: 13%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 8.8pt; text-indent: -7.1pt"><font style="font: 10pt Times New Roman, Times, Serif">-  
Non-trade</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 3pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">240,753</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 3pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">146,835</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">Amounts due to related
parties:</font></td>
<td style="vertical-align: top; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">- Trade</font></td>
<td style="vertical-align: top; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">- Non-trade</font></td>
<td style="vertical-align: top; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">591,464</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">448,421</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 3pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">591,464</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 3pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">448,421</font></td></tr>
<tr>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amount due from a related party, a director of a subsidiary company, is unsecured, non-interest bearing and
repayable on demand.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
amounts due to related parties are unsecured, non-interest bearing and repayable on demand. Imputed interest on these
amounts is considered insignificant.</font></p></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
9</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>SHAREHOLDER
LOAN</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td colspan="2" style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>March
31 </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>2016</b></font></p></td>
<td style="vertical-align: top; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31 2015</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td colspan="2" style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>US$</b></font></td>
<td style="vertical-align: top; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>US$</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td colspan="2" style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td colspan="2" style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif">Shareholder
loan</font></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 3pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td style="vertical-align: top; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="vertical-align: top; border-bottom: Black 3pt double; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 68%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 13%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 3%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 12%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td>
<td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">This
long term shareholder loan is due to Central High Limited, a major shareholder of the Company. This loan is unsecured and
repayable on November 25, 2017, and bears interest of 8% per annum. The accrued interest for the three months ended March
31, 2016 was $40,000 (2015: $40,000).</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
10</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>RELATED
PARTY TRANSACTIONS</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-size: 11pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the three months period ended March 31, 2016, the Company paid no remuneration (2015: $18,622) to its directors and its officers
for their services provided to the Company.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-size: 11pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the three months period ended March 31, 2016 the Company paid no rebate (2015: $ 201,212) for telecom SIM/reload cards through
two distributors that are owned and controlled by the directors of the Company. The terms of trade with these distributors
are similar to the other third-party distributors of the Company.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; font-size: 11pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
a prior year, a Group company has $8,000,000 promissory notes from a company that is beneficially owned by directors of the
Company. The promissory note bears interest at a rate of 4.5% per annum, and $4,000,000 is payable in November 2018 and the
remaining $4,000,000 is payable in February 2019. During the 3 months ended March 31, 2015 the Group company recorded $90,000
in interest expenses relating to these promissory notes. On July 28, 2015, this Group company was disposed together with these
promissory notes, and the Group was no longer liable for these promissory notes as a result.</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 11%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
11</b></font></td>
<td style="width: 89%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>INCOME
TAXES</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; padding-right: 1.4pt; padding-left: 1.4pt"><p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: normal 10pt Times New Roman, Times, Serif">No
provision was made for income tax for the three months ended March 31, 2016 and 2015,
since the Company and its subsidiaries had significant net operating loss. In the three
months ended March 31, 2016 and 2015, the Company and its subsidiaries incurred net operating
losses for tax purposes of approximately $173,384 and $0,356, respectively. Total net
operating losses carry forward as at March 31, 2016 and 2015, (i) for Federal and State
purpose were $11,761,918 and $11,523,939, respectively and (ii) for its entities outside
of the United States $152,489 and $78,483. The net operating loss carry-forwards may
be used to reduce taxable income through the year 2025. The availability of the Company's
net operating loss carry-forwards are subject to limitation if there is a 50% or more
change in the ownership of the Company's stock.</font></p>
<p style="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">There
was no significant difference between reportable income tax and statutory income tax. The gross deferred tax asset balance
as at March 31, 2016 and December 31, 2015 was approximately $5,067,280 and $4,945,148 respectively. A full valuation
allowance has been established against the deferred tax assets, as the utilization of the loss carry-forwards cannot reasonably
be assured.</font></p>
<p style="font: 12pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
reconciliation between the income tax computed at the Hong Kong and PRC China statutory rate and the Group's provision
for income tax is as follows:</font></p></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 68%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 6%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td>
<td style="width: 2%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Malaysia statutory rate</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25%</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25%</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Tax allowance</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Valuation allowance – Loss carryforward
under Malaysia rate</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(25%)</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(25%)</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">Provision for income tax</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
12</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>COMMITMENTS
AND CONTINGENCIES</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The
Company’s commitments and contingencies are set out below as follows:-</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif">(a)</font></td>
<td style="width: 95%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
announced in a Form 8K on December 16, 2015 on December 11, 2015 the Company acquired and a 51% interests
in Naim Indah Mobile Communication Sdn. Bhd. (“NIMC”), a company engaged in providing mobile
communication services through MVNO platform. NIMC has a registered capital of RM2,000,001 (or about
US$480,000) of which the Company is required to pay RM1,000,001 (or about US$240,000) for its 51% interests.
Our director Ahmad Shukri Abdul Ghani is a 30% shareholder of NIMC.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Our
subsidiary Naim Indah Mobile Communication Sdn. Bhd. (“NIMC”) has an exclusive business partnership agreement
(“Exclusive Agreement”) with MyAngkasa Holdings Sdn. Bhd. (“MyAngkasa”), a wholly owned company
of the National Cooperative Malaysia Bhd and known as Angkatan Koperasi Kebangsaan Malaysia Berhad (“Angkasa”).
The Exclusive Agreement has a fix term of 5 years ending in August 2020 and subject to renewal by mutual consent. Pursuant
to this agreement, MyAngkasa agrees to use NIMC’s services under the trade name of “Median Mobile” products
to co-operatives and members of the co-operatives under Angkasa and to exclusively appoint NIMC as the official mobile
telecommunication services based on MVNA platform to Angkasa members. MyAngkasa agrees to undertake to deliver certain
number of subscribers for pre/post-paid services (“Targeted Subscribers”) for each year. In return, NIMC agrees
to a profit share scheme whereby MyAngkasa will receive RM100,000 (or about US$24,000) for the first financial year of
the contract, and for each financial year thereafter the higher of RM500,000 (or about US$120,000) and a set percentage
of NIMC’s net annual profit after tax, less any unapplied accumulative losses brought forward from previous years.
If the Targeted Subscribers are not achieved for any each then the set percentage to be applied will be the pro-rate of
the actual subscribers to the Targeted Subscribers for that year.</font></p></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 9%; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
13</b></font></td>
<td style="width: 91%; font-weight: bold; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>SUBSEQUENT
EVENTS</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 100%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Group has evaluated all subsequent events through the date these consolidated financial statements were issued, and determined
that, other than as disclosed below, there were no subsequent events or transactions that require recognition or disclosures
in the financial statements.  </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 4%"><font style="font: 10pt Times New Roman, Times, Serif">(a)</font></td>
<td style="width: 96%"><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 1, 2016 the Group signed a tenancy agreement for the corporate office at Level 17, Tower 2, Bank
Rakyat Twin Towers, No. 33, Jalan Travers, 50470 Kuala Lumpur, Malaysia. Pursuant to the terms of the
agreement, the Group lease the 7,537 sq. feet office for 3 years at a monthly rent of RM33,916.50 (approximately
US$8,745).</font></p></td></tr>
</table>
13108
77164
6970
6970
67146
102025
102025
240753
146835
146835
321007
332994
332994
1211
1211
1211
322218
334205
334205
6273
6273
845472
827384
827384
591464
448421
448421
1436936
1282078
1282078
1211
1211
1211
2000000
2000000
2000000
2000000
2000000
2000000
3436936
3282078
3282078
2775230
2775230
2775230
-5990034
-5842785
-5842785
-1337
2331
2331
-3216141
-3065224
-3065224
101423
117351
117351
-3114718
-2947873
-2947873
322218
334205
334205
2775230
85000000000
85000000000
11307232960
11307232960
11307232960
11307232960
20897
-13618
7279
-141048
-7155
-141048
-7155
-133769
-7155
465
-173384
-47155
-1293660
-173384
-1340815
-26135
-476067
-147249
-864748
0
0
0
0
0
0
11307232960
11307232960
-80
6539
268258
-166845
-1072557
-26135
-476067
10207
97748
-150917
-694238
11307232960
11307232960
-3114718
2775230
2775230
2331
-1337
-5842785
-5990034
117351
101423
-2947873
6539
-3668
10207
-173384
-1340815
-147249
-26135
6970
34879
3960
-93918
-6273
1028042
18088
555
-213638
-308258
143043
40000
143043
40000
6539
268258
-64056
-40000
-40000