10-Q/A

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

Amendment No. 1

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

For the quarterly period ended June 30, 2011

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF T SECURITIES

EXCHANGE ACT OF 1934

Commission File No. 333-147084

CHINA GREEN CREATIVE, INC.

(Exact name of Registrant as specified in its charter)

Nevada	83-0506099
(State or Other Jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

24/F., Unit 3 Great China International Square,
No. 1 Fuhua Rd., Futian District, Shenzhen
Guandong Province, China	n/a
(Address of principal executive offices)	(Zip Code)

86-755-23998799

(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                     Yeso  No o

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

Large accelerated filer   o	Accelerated filer   o
Non-accelerated filer     o(Do not check if a smaller reporting company)	Smaller reporting company  x

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

State the number of shares outstanding of each of the issuer’s classes of common equity, as of June 30, 2011, are as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.001 par value	300,000,000 shares

CHINA GREEN CREATIVE, INC. AND SUBSIDIARIES

1

TABLE OF CONTENTS

Item 6	Exhibits
	Signatures
	Ex.31.1 Section 302 Certification of CEO
	Ex 31.2 Section 302 Certification of CFO
	Ex 32    Section 906 Certifications of CEO and CFO

Explanatory Note

This Amendment No. 1 on Form 10-Q/A amends the registrant’s Quarterly Report on Form 10-Q/A for the three months ended June 30, 20111 as filed with the Securities and Exchange Commission by the registrant on August 22, 2011, and is filed solely to include the 101 XBRL Interactive Data File exhibits required by Item 6.  No other items are being amended except as described in this Explanatory Note and this Amendment does not reflect any events occurring after the filing of the original Quarterly Report on Form 10-Q/A for the three months ended June 30, 2011.

2

ITEM 6.  EXHIBITS.

Exhibit Number	Description
31.1	Certification of Chief Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document

3

SIGNATURES

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

	CHINA GREEN CREATIVE, INC.
Dated: September 7, 2011	/s/ Ye Xing Zhang
	Ye Xing Zhang
	Chief Executive Officer
Dated: September 7, 2011	/s/ Deng Lin
	Deng Lin
	Chief Financial Officer

4

EX-31.1

EXHIBIT 31.1

Certification of

Principal Executive Officer

Of China Green Creative, Inc.

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Ye Xing Zhang, certify that:

1.   I have reviewed this Second Quarterly Report on Form 10-Q/A of China Green Creative, Inc. for the period ending June 30, 2011;

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

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

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

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

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

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

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

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

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

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

Dated:  September 7, 2011

By:

/s/ Ye Xing Zhang 

Ye Xing Zhang

Chief Executive Officer and President

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

Certification of

Principal Financial Officer

Of China Green Creative, Inc.

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Deng Lin, certify that:

1.   I have reviewed this Quarterly Report on Form 10-Q/A for the period ending June 30, 2011, of China Green Creative, Inc.;

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

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

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

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

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

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

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

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

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

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

Dated:  September 7, 2011

By:

/s/ Deng Lin 

Deng Lin

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of China Green Creative, Inc. (the “Company”) on Form 10-Q/A for the quarter ended June 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

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

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

Dated:  September 7, 2011

By:

/s/ Ye Xing Zhang 

Ye Xing Zhang

Chief Executive Officer and President

(Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of China Green Creative, Inc. (the “Company”) on Form 10-Q/A for the quarter ended June 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

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

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

Dated:  September 7, 2011

By:

/s/ Ye Xing Zhang

Ye Xing Zhang

Chief Executive Officer and President

(Principal Executive Officer)

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BALANCE SHEETS (PARENTHETICAL) (USD $)	Jun. 30, 2011	Dec. 31, 2010
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	400,000,000	400,000,000
Common Stock, shares issued	300,000,000	300,000,000
Common Stock, shares oustanding	300,000,000	300,000,000

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CHINA GREEN CREATIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues	$ 406,918	$ 270,670	$ 1,126,101	$ 572,068
Cost of sales	69,490	108,295	313,388	203,540
Expenses
Selling and distribution	35,991	103,576	218,238	176,532
General and administrative (inclusive of depreciation)	332,382	162,903	511,206	719,017
Impairment loss on property, plant and equipment				231,754
Total operating expenses	368,373	266,479	729,444	1,127,303
Operating profit/(loss)	(30,945)	(104,104)	83,269	(758,775)
Other expenses
Other expenses	3,732	842	3,769	3,103
Interest expense	8,458	13,317	10,238	24,327
Total other expenses	12,190	14,159	14,007	27,430
Profit/(loss) from operations before provision for income taxes	(43,135)	(118,263)	69,262	(786,205)
Provision for income taxes
Net income/(loss) for the period	(43,135)	(118,263)	69,262	(786,205)
Other comprehensive income
Loss/(gain) on foreign currency translation	(31,944)	3,406	(51,991)	6,067
Total comprehensive income for the period	$ (75,079)	$ (114,857)	$ 17,271	$ (780,138)
Earnings per share, basic and diluted - continuing operations	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average number of shares outstanding, basic and diluted	300,000,000	300,000,000	300,000,000	300,000,000

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CONCENTRATION OF RISK

3 Months Ended

Jun. 30, 2011

CONCENTRATION OF RISK

CONCENTRATION OF RISK

NOTE 18 – CONCENTRATION OF RISK

The Company is exposed to the following concentrations of risk:

 Zhang De Jun contributed 40% and nil of the Company’s revenues for the six months ended June 30, 2011 and 2010, respectively and Beijing Shanghan International Trading Limited (“Beijing Shanghan”), contributed 15% and 34% of the Company’s revenues for the six months ended June 30, 2011 and 2010, respectively.

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Document and Entity Information	3 Months Ended
	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	China Green Creative, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Entity Central Index Key	0001388978
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	300,000,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2

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PROPERTY, PLANT AND EQUIPMENT, NET

3 Months Ended

Jun. 30, 2011

PROPERTY, PLANT AND EQUIPMENT, NET

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment of the Company consist primarily of manufacturing facilities and equipment in the PRC. As of the balance sheet dates, property, plant and equipment are summarized as follows:

	Depreciable lives		June 30, 2011			December 31,  2010
At cost:
Plant	40 years		$	1,450,908		$	1,418,125
Machinery	15 years			188,082			183,832
Motor vehicle	10 years			42,952			41,981
Office equipment	5 years			219,119			207,983
Leasehold Improvement	2 years			354,927			346,907
Construction in progress		N/A		1,730,200			1,688,058
				3,986,188			3,886,886
Less: Accumulated depreciation				(827,708	)		(742,452	)
Property, plant and equipment, net			$	3,158,480		$	3,144,434

Depreciation expense for the six months ended June 30, 2011 and 2010 was $67,521 and $193,518, respectively.

Impairment charges for property, plant and equipment for the six months ended June 30, 2011 and 2010 were nil and $231,754, respectively.

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GOING CONCERN

3 Months Ended

Jun. 30, 2011

PRINCIPLES OF CONSOLIDATION

GOING CONCERN

NOTE 20 – GOING CONCERN

Generally accepted accounting principles in the United States of America contemplate the continuation of the Company as a going concern. Since the fourth quarter of 2009, the Company has modified its sales and marketing strategies in order to diversify its concentration of credit risk, leading to a decrease in working capital and incurred significant losses. As of June 30, 2011, the Company has accumulated deficits of $4,201,150, and a negative working capital of $5,373,479. 

As of June 30, 2011 the Company may need additional cash resources to operate during the upcoming 12 months, and the continuation of the Company may dependent upon the continuing financial support of investors, directors and/or stockholders of the Company. The Company intends to attempt to acquire additional operating capital through private equity offerings to the public and existing investors to fund its business plan. However, there is no assurance that equity or debt offerings will be successful in raising sufficient funds to assure the eventual profitability of the Company. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

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ACCRUED EXPENSES AND OTHER PAYABLES

3 Months Ended

Jun. 30, 2011

ACCRUED EXPENSES AND OTHER PAYABLES

ACCRUED EXPENSES AND OTHER PAYABLES

NOTE 12 – ACCRUED EXPENSES AND OTHER PAYABLES

As of the balance sheet dates, the Company’s accrued expenses and other payables are summarized as follows:

	June 30, 2011		December 31,  2010
Accrued operating expenses	$	78,553	$	93,901
Accrued interest expense		246,124		235,750
Amount due to Shenzhen Hanhong – (i)		838,403		825,933
Other payables – (ii)		1,209,649		1,095,187
	$	2,372,729	$	2,250,771

(i)    The amount mainly represents consultancy fee payable to Shenzhen Hanhong. Shenzhen Hanhong is a related party as Mr. Chen Xing Hua is a common director of the Company and Shenzhen Hanhong. The amount is interest free, unsecured and has no fixed terms of repayment.

(ii)   Included in other payables as of June 30, 2011 is an amount payable for office decoration and expenses in the amount of $247,840, an amount payable for marketing and promotional expenses of $590,897 and fixed assets payable amounting to $122,371. The remaining balance consists of amounts owed by the Company to various entities that are incurred by the Company in daily business operations other than trading nature.  These liabilities and accrued operating expenses are non interest bearing and are payable within one year.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Jun. 30, 2011

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)   Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of six months or less to be cash equivalents.  The Company maintains bank accounts in China and Hong Kong.

(b)           Inventories

Inventories consisting of trading goods, packing and other materials are stated at the lower of cost or net realizable value. Inventory costs are calculated using a weighted average method of accounting.

The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, prepaid expenses and other receivables, amount due from/(to) directors, other liabilities, loans from related parties, debts, accounts payable, accrued expenses and other payables, and taxes payable.

The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments and the fact that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profiles at respective period ends.

(d)           Revenue Recognition

We generate revenues mainly from sale of consumer products and also revenue from regional distribution rights.

The Company recognizes trading revenue when products are delivered and customers take ownership and assume risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and selling price is fixed or determinable.

Revenues from regional distribution rights include initial fees and continuing management fee income. All moneys received will be initially recognized as receipt in advance, and will be recognized as revenues when the following criteria are met:

(i)        Initial fee income is generally recorded upon completion of admission procedures, when the rights to use the trademarks are granted to the users, and when collectability is reasonably assured.  

(ii)       Continuing management fee income represent regular contractual payments received for the use of the “GEN+Me” trademarks plus our supporting services, which are recognized as revenue when earned, generally on a straight line basis.

(e)           Earnings Per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of June 30, 2011 and 2010, there were no dilutive securities outstanding.

(f)            Foreign Currency Translation

The accompanying consolidated financial statements are presented in United States Dollars (US$). The functional currency of the Company is the Renminbi (RMB). Capital accounts of the consolidated financial statements are translated into United States dollars from RMB at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the period.  The translation rates are as follows:

	June 30, 2011	December 31, 2010	June 30, 2010
Period/year end RMB : US$ exchange rate	0.1549	0.1514	0.1475
Average yearly RMB : US$ exchange rate	0.1536	0.1477	0.1469

On July 21, 2005, the PRC changed its foreign currency exchange policy from a fixed RMB/US$ exchange rate into a flexible rate under the control of the PRC’s government.

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions.  No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.

(g)           Recent Accounting Pronouncements

The Company has adopted all recently issued accounting pronouncements.  The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.

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OTHER INTANGIBLE ASSETS, NET

3 Months Ended

Jun. 30, 2011

OTHER INTANGIBLE ASSETS, NET

OTHER INTANGIBLE ASSETS, NET

NOTE 9 – OTHER INTANGIBLE ASSETS, NET

The Company’s other intangible assets represent cost of setting up information systems for the provision of franchising services. As of the balance sheet dates, the Company’s other intangible assets are summarized as follows:

	Useful lives	June 30, 2011			December 31,  2010
At cost:
Information systems	5 years	$	42,943		$	42,996
Less: Accumulated amortization			(15,987	)		(11,086	)
Other intangible assets, net		$	26,956		$	31,910

Amortization expense of other intangible assets for the six months ended March 30, 2011 and 2010 was $5,643 and $8,271, respectively.

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TAXES PAYABLE

3 Months Ended

Jun. 30, 2011

TAXES PAYABLE

TAXES PAYABLE

NOTE 14 – TAXES PAYABLE

As of the balance sheet dates, the Company’s taxes payable are summarized as follows:

	June 30, 2011		December 31,  2010
Income tax payables	$	282,137	$	275,762
Value added tax payables		1,383,672		1,276,919
Business sales tax		-		46,111
Other tax payables		1,892		96,500
Total	$	1,667,701	$	1,695,292

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AMOUNT DUE FROM/(TO) DIRECTORS

3 Months Ended

Jun. 30, 2011

AMOUNT DUE FROM/(TO) DIRECTORS

AMOUNT DUE FROM/(TO) DIRECTORS

NOTE 10 – AMOUNT DUE FROM/(TO) DIRECTORS

As of the balance sheet dates, the Company’s current accounts with the directors are summarized as follows:

	June 30, 2011			December 31,  2010
Ye Xin Zhang	$	150,088		$	117,845
Chen Xing Hua	$	(863,400	)	$	(849,445	)

The amount due from Mr. Ye Xin Zhang represents temporary advances to the director for the Company’s daily operating expenses.  The balances are unsecured, interest free, and have no fixed terms of repayments.

The amount due to Mr. Chen Xing Hua represents temporary advance from the director for the Company’s working capital use. The balance is unsecured, interest free, and has no fixed terms of repayment.

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LAND USE RIGHTS, NET

3 Months Ended

Jun. 30, 2011

LAND USE RIGHTS, NET

LAND USE RIGHTS, NET

NOTE 8 – LAND USE RIGHTS, NET

The Company’s land use rights represent the cost of purchasing the rights to use the leasehold land in the PRC for the production facilities of Jiangxi Jien. According to the law of the PRC, the government owns all the land in the PRC. Companies or individuals are only authorized to possess and use the land through land use rights granted by the PRC government.

As of the balance sheet dates, the Company’s land use rights are summarized as follows:

	Useful lives	June 30, 2011			December 31,  2010
At cost:
Land use rights	59 – 60 years	$	117,770		$	115,109
Less: Accumulated amortization			(19,215	)		(18,000	)
Land use rights, net		$	98,555		$	97,109

Amortization expense of land use rights for the six months ended June 30, 2011 and 2010 was $792 and $758, respectively.

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ORGANIZATION AND PRINCIPAL ACTIVITIES

3 Months Ended

Jun. 30, 2011

ORGANIZATION AND PRINCIPAL ACTIVITIES

ORGANIZATION AND PRINCIPAL ACTIVITIES

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

China Green Creative, Inc. (“CGC”), a Nevada Corporation, was incorporated on August 17, 2006 under the name of Glance, Inc. On January 21, 2009, we changed our name to China Green Creative, Inc. CGC and its subsidiaries (collectively known as the “Company”) are principally engaged in the distribution of consumer goods in the People’s Republic of China (“China” or the “PRC”).

As of June 30, 2011, the details of the Company’s subsidiaries are summarized as follows:

Name	Domicile and date of incorporation	Paid-in capital	Effective ownership	Principal activities
Plenty Fame Holding, Limited (“Plenty Fame”)	British Virgin Islands (the “BVI”) January 18, 2008	$50,000	100%	Investment holding
Prospect Hong Kong Development Limited (“Prospect”)	Hong Kong Special Administrative Region (“HKSAR”) October 17, 2008	HK$10,000	100%	Investment holding
Jiangxi Jien Industries Limited  (“Jiangxi Jien”)	The PRC April 8, 1997	RMB16,000,000	100%	Sale of consumer products in the PRC.
Shenzhen Jien Electronic Commerce Company Limited (“Shenzhen Jien”)	The PRC April 13, 2009	RMB3,000,000	100%	Management of regional distribution rights and provision of related services.

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ACCOUNTS RECEIVABLE

3 Months Ended

Jun. 30, 2011

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

NOTE 4 – ACCOUNTS RECEIVABLE

As of the balance sheet dates, the Company’s accounts receivable are summarized as follows:

	June 30, 2011		December 31,  2010
Beijing Shanghan International Trading Limited (“Beijing Shanghan”)	$	-	$	5,664,885
Zhang De Jun		532,045		-
Others		231,742		35,068
		763,787		5,699,953
Less: Allowance for doubtful accounts		-		(5,664,885	)
Total	$	763,787	$	35,068

Beijing Shanghan is a related party to the Company because a director of Beijing Shanghan is also a shareholder of the Company.  The Company reviewed the recoverability of this account and recorded an accumulated allowance of $5,664,885 for the year ended December 31, 2010.

Zhang De Jun is a new customer to the Company in 2011 and contributed 40% and nil of the Company’s revenues for the six months ended June 30, 2011 and 2010, respectively.

As of the balance sheet dates, the balances are unsecured, interest free and repayable according to terms of trade.  The company will assess the collectability of accounts receivable on periodic basis and will make allowance for doubtful accounts when the amount receivable is no longer deemed to be collected by the company.

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INVENTORIES

3 Months Ended

Jun. 30, 2011

INVENTORIES

INVENTORIES

NOTE 5 – INVENTORIES

As of the balance sheet dates, the Company’s inventories are summarized as follows:

	June 30, 2011		December 31,  2010
Trading inventories	$	120,849	$	314,871
Packing and other materials		228,777		219,084
Total	$	349,626	$	533,955

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RECEIPT IN ADVANCE

3 Months Ended

Jun. 30, 2011

RECEIPT IN ADVANCE

RECEIPT IN ADVANCE

NOTE 13 – RECEIPT IN ADVANCE

As of the balance sheet dates, the Company’s accrued expenses and other payables are summarized as follows:

	June 30, 2011		December 31,  2010
Receipt in advance	$	994,301	$	1,104,597

Receipt in advance consists mainly of amounts received from customers for regional distribution rights which are yet to be performed. Revenues from regional distribution rights include initial fees and continuing management fee income. All amounts received will be initially recognized as receipt in advance, and will be recognized as revenues when the following criteria are met:

(i)        Initial fee income is generally recorded upon completion of admission procedures, when the rights to use the trademarks are granted to the users, and when collectability is reasonably assured.  

(ii)       Continuing management fee income represents regular contractual payments received for the use of the “GEN+Me” trademarks plus our supporting services, which are recognized as revenue when earned.

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PREPAID EXPENSES AND OTHER RECEIVABLES

3 Months Ended

Jun. 30, 2011

PREPAID EXPENSES AND OTHER RECEIVABLES

PREPAID EXPENSES AND OTHER RECEIVABLES

NOTE 6 – PREPAID EXPENSES AND OTHER RECEIVABLES

As of the balance sheet dates, the Company’s prepaid expenses and other receivables are summarized as follows:

	June 30, 2011		December 31,  2010
Prepaid expenses	$	652,438	$	895,646
Other receivables		133,187		178,346
Total	$	785,625	$	1,073,992

Prepaid expenses as of June 30, 2011 include prepaid promotion and advertising expenses of $529,629 to Beijing Shanghan International Cultural Creative Development Company Limited. The amount will be charged to expense when the related services  is provided by the vendor.

The Company evaluates prepaid expenses and other receivables on a periodic basis and records a charge to the current operations of the Company when the related expense has been incurred or when the amounts reported as other receivables is no longer deemed to be collectible by the Company.

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PROVISION FOR INCOME TAXES

3 Months Ended

Jun. 30, 2011

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES

NOTE 16 – PROVISION FOR INCOME TAXES

Based on management's present assessment, the Company has determined it to be more likely than not that a deferred tax asset attributable to the future utilization of the net operating loss carry-forward as of June 30, 2011 will be realized.  The Company will continue to review this valuation allowance and make adjustments as appropriate.

A reconciliation of the expected tax with the actual tax expense is as follows:

	Six months ended June 30,
	2011						2010
	Amount			%			Amount			%
Income from continuing operations before provision for income taxes	$	69,262						(786,205	)
Expected PRC income tax expense at statutory tax rate of 25%		17,316			25.0			(196,551	)		25.0
Tax effect of tax losses not provided for deferred tax					-			196,551			(25.0	)
Utilization of tax loss brought forward		(17,316	)		(25.0	)		-			-
Provision for Income Taxes	$	-			-		$	-			-

(i)        Both Jiangxi Jien and Shenzhen Jien are subject to PRC tax. The provision for PRC income tax is based on a statutory rate of 25% of the assessable income of the PRC subsidiaries as determined in accordance with the relevant income tax rules and regulations of the PRC.

(ii)       Plenty Fame is not subject to tax in accordance with the relevant tax laws and regulations of the BVI.

(iii)      Prospect did not generate any assessable profits since its incorporation and therefore is not subject to HKSAR tax.

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CHINA GREEN CREATIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities
Net income/(loss)	$ 69,262	$ (786,205)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	67,521	193,518
Impairment charges for property, plant and equipment		231,754
Amortization expense of land use rights	792	758
Amortization expense of other intangible assets	5,643	8,271
Changes in operating assets and liabilities:
(Increase)/decrease in accounts receivable	(728,719)	219,122
Decrease/(increase) in inventories	184,329	(65,552)
Decrease/(increase) in prepaid expenses and other receivables	288,367	(628,347)
(Increase)/decrease in amount due from a director	(32,243)	15,750
Increase/(decrease) in accounts payable	72,678	(13,493)
Increase in accrued expenses and other payables	121,958	1,100,807
Decrease in receipt in advance	(110,296)
(Decrease)/increase in taxes payable	(27,591)	9,860
Net cash (used in)/provided by operating activities	(88,299)	286,243
Cash flows from investing activities
Additions to property, plant and equipment	(26,685)	(38,052)
Additions to other intangible assets		(43,264)
Net cash used in investing activities	(26,685)	(81,316)
Cash flows from financing activities
Decrease in other liabilities		(1,199,300)
Increase in amount due to a director	13,955	736,833
Increase in other borrowings	170,881	244,945
Net cash provided by/(used in) financing activities	184,836	(217,522)
Net increase/(decrease) in cash and cash equivalents	69,852	(12,595)
Effect of foreign exchange rate changes	(109,800)	(19,207)
Cash and cash equivalents at January 1	43,895	116,989
Cash and cash equivalents at June 30	3,947	85,187
Supplement disclosure of cash flows information:
Cash paid for interest
Cash paid for income taxes

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RELATED PARTY TRANSACTIONS

3 Months Ended

Jun. 30, 2011

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 17 – RELATED PARTY TRANSACTIONS

In addition to the transactions detailed elsewhere in these financial statements, the Company entered into the following significant transactions with related parties:

	Six months ended June 30,
	2011		2010
Chen Xing Hua
Rental expenses payable for the Company’s office premises in Shenzhen, the PRC	$	9,682	$	23,158

Mr. Chen Xing Hua, the director of Shenzhen Hanhong, is also a director of the Company.  In the opinion of the directors, the above transactions were entered into by the Company in the normal course of business.

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CAPITAL COMMITMENT

3 Months Ended

Jun. 30, 2011

CAPITAL COMMITMENT

CAPITAL COMMITMENT

NOTE 19 – CAPITAL COMMITMENT

Capital Commitment:

As of the balance sheet dates, the Company’s capital commitments are summarized as follows:

	June 30, 2011		December 31,  2010
Construction-in-progress:
Contracted but not provided for	$	1,880,443	$	1,856,164

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PRINCIPLES OF CONSOLIDATION

3 Months Ended

Jun. 30, 2011

PRINCIPLES OF CONSOLIDATION

PRINCIPLES OF CONSOLIDATION

NOTE 2 – PRINCIPLES OF CONSOLIDATION

The unaudited interim financial statements of the Company and the Company’s subsidiaries (see Note 1) for the six months ended June 30, 2011 and 2010 have been prepared pursuant to the rules & regulations of the SEC. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading.  All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company’s operations is the Renminbi (“RMB”), while the reporting currency is the US Dollar.

In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation of the Company’s financial position as of June 30, 2011, the results of its operations and cash flows for the six months ended June 30, 2011 and 2010.

The results of operations for the six months ended June 30, 2011 are not necessarily indicative of the results for a full year period.

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DEBTS

3 Months Ended

Jun. 30, 2011

DEBTS

DEBTS

NOTE 11– DEBTS

The Company’s debts are summarized as follows:

			Effective interest rate		Outstanding balance
Name of parties	Due date	Nature	June 30, 2011	December 31,  2010		June 30, 2011		December 31,  2010
Qin Jianguo	December, 2011	Unsecured	Nil	19.1%	$	235,448	$	230,128
Shu Jian	On demand	Unsecured	5.85%	5.85%		224,605		355,104
Shenzhen Datang Hexie Investments Limited	On demand	Unsecured	Nil	Nil		61,960		75,700
China Construction Bank	April, 2012	Secured	6.56%	-		309,800		-
Short term debt					$	831,813	$	660,932

Total interest expense related to these debts for the six months ended June 30, 2011 and 2010 was $10,238 and $24,327 respectively.

At of 30 June 2011, the bank loans were secured by pledges of certain fixed assets and land use rights held by of Jiangxi Jien.

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COMMON STOCK

3 Months Ended

Jun. 30, 2011

COMMON STOCK

COMMON STOCK

NOTE 15 – COMMON STOCK

As of the balance sheet dates, the Company has authorized 400,000,000 shares $0.001 par value of common stock, of which 300,000,000 shares have been issued and outstanding. The Company has also authorized 10,000,000 shares of preferred class of stock, but no shares have been issued as of June 30, 2011.

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CHINA GREEN CREATIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 3,947	$ 43,895
Accounts receivable	763,787	35,068
Inventories	349,626	533,955
Amount due from a director	150,088	117,845
Prepaid expenses and other receivables	785,625	1,073,992
Total current assets	2,053,073	1,804,755
Property, plant and equipment, net	3,158,480	3,144,434
Land use rights, net	98,555	97,109
Other intangible assets, net	26,956	31,910
Total assets	5,337,064	5,078,208
Current liabilities
Accounts payable	696,608	623,930
Accrued expenses and other payables	2,372,729	2,250,771
Receipt in advance	994,301	1,104,597
Short term debts	831,813	660,932
Taxes payable	1,667,701	1,695,292
Amount due to a director	863,400	849,445
Total liabilities	7,426,552	7,184,967
Stockholders' equity
Common stock: Par value $0.001 per share; 400,000,000 shares authorized, 300,000,000 shares issued and outstanding	300,000	300,000
Additional paid in capital	1,632,689	1,632,689
Accumulated deficits	(4,201,150)	(4,270,412)
Accumulated other comprehensive income	178,973	230,964
Total stockholders' equity	(2,089,488)	(2,106,759)
Total liabilities and stockholders' equity	$ 5,337,064	$ 5,078,208