Form 10k

Risks Related to Our Business

To Maximize Our Potential For Future Growth And Achieve Our Expected Revenues, We Need To Manage Growth In Our Current Operations.

In order to maximize potential growth in our current and potential markets, we believe that we must expand our sourcing, market research and marketing operations. This expansion will place a significant strain on our management and on our operational, accounting, and information systems. We expect that as we continue to grow we will need to improve our financial controls, operating procedures, and management information systems to handle increased operations. We will also need to effectively train, motivate, and manage our employees. Failure to manage our growth could disrupt our operations and ultimately prevent us from generating the revenues we expect.

We Cannot Guarantee That Our Organic Growth Strategy Will Be Successful.

One of our growth strategies is to grow organically by increasing the distribution and sales of our products in new provinces and regions within China. However, many obstacles to entering new provinces exist, such as the costs associated with entering into new markets, developing and implementing effective marketing efforts, cultural differences and differences in provincial government policies. We cannot, therefore, assure you that we will be able to successfully overcome such obstacles and establish our products in any additional markets. Our inability to successfully implement our organic growth strategy may have a negative impact on our growth strategy and on our future financial condition, results of operations or cash flows.

We Cannot Assure You That Our Acquisition Growth Strategy Will Be Successful.

In addition to our organic growth strategy we also expect to grow through strategic acquisitions. We cannot assure you that our acquisitions we be successful or that we will have the funds to pursue any acquisitions.

If We Are Not Able To Implement Our Strategies To Achieve Our Business Objectives, Our Business Operations And Financial Performance May Be Adversely Affected.

Our business plan and growth strategy is based on currently prevailing circumstances and the assumption that certain circumstances will or will not occur, as well as the inherent risks and uncertainties involved in various stages of development. However, there is no assurance that we will be successful in implementing our strategies or that our strategies, even if implemented, will lead to the successful achievement of our objectives. If we are not able to successfully implement our strategies, our business operations and financial performance may be adversely affected.

If We Need Additional Capital To Fund Our Growing Operations, We May Not Be Able To Obtain Sufficient Capital And May Be Forced To Limit The Scope Of Our Operations.

As we implement our growth strategies, we may experience increased capital needs and we may not have enough capital to fund future operations without additional capital investments. Our capital needs will depend on numerous factors, including (1) our profitability; (2) the release of competitive products by our competition; (3) the level of our investment in marketing research and development; and (4) the amount of our capital expenditures. We cannot assure you that we will be able to obtain capital in the future to meet our needs.

If we cannot obtain additional funding, we may be required to:

reduce our investments in marketing research;

limit our marketing efforts; and

decrease or eliminate capital expenditures

Such reductions could have a material adverse affect our business and our ability to compete. Even if we do find a source of additional capital, we may not be able to negotiate acceptable terms and conditions for receiving the additional capital. Any future capital investments could dilute or otherwise materially and adversely affect the holdings or rights of our existing shareholders. In addition, new equity or convertible debt securities issued by us to obtain financing could have rights, preferences and privileges senior to our common stock. We cannot give you any assurance that any additional financing will be available to us, or if available, will be on terms favorable to us.

We Depend On Third Parties To Supply Products, Any Adverse Changes In Such Supply Or The Costs Of Products May Adversely Affect Our Operations.

We currently obtain our products from third parties. The supply of these products can be adversely affected by any material change in the economical and political conditions in China, which may, in turn, result in increased costs to purchase these products.

We Depend On Third Parties to Supply Products, and Any Failure of Our Products In Compliance With Safety Requirements Set By Government May Adversely Affect Our Results from Operations.

We currently obtain our products from third parties. We may fail to ensure the supplied goods to be compliance with safety regulation and rules set by government, which may, in turn, results in losing our customers and region distributors which would adversely affect our revenues and stockholder value.

A Significant Portion Of Our Sales Are Derived From A Limited Number Of Customers, And Results From Operations Could Be Adversely Affected And Stockholder Value Harmed If We Lose Any Of These Customers.

A significant portion of our revenues have been derived from a limited number of customers. Beijing Shanghan International Trading Limited (“Beijing Shanghan”), a PRC company, is a major customer of the Company and contributed 97% and 82.7% of the Company’s revenues for the years ended December 31, 2009 and 2008, respectively. The loss of any of our major customers or a significant reduction in sales to either of these customers would materially adversely affect our profitability and stockholders’ value.

On March 1, 2009, the director of Beijing Shanghan was named as one of the shareholders of the Company.

Intense Competition From Existing And New Entities May Adversely Affect Our Revenues And Profitability.

We compete with other companies, many of whom are developing, or can be expected to develop, strategy similar to ours. Some of our competitors are more established than we are, and have significantly greater financial, technical, marketing and other resources than we presently possess. Some of our competitors have greater name recognition and a larger customer base. These competitors may be able to respond more quickly to new or changing opportunities and customer requirements and may be able to undertake more extensive promotional activities, offer more attractive terms to customers, and adopt more aggressive pricing policies. We intend to create greater brand awareness for our brand name so that we can successfully compete with our competitors. We cannot guarantee that we will be able to compete effectively with current or future competitors or that the competitive pressures we face will not harm our business.

We Depend On Our Key Management Personnel And The Loss Of Their Services Could Adversely Affect Our Business.

Our future success is dependent upon the continued service of our management. We rely on their industry expertise and experience in our business operations, and in particular, their business vision, management skills, and working relationships with our employees, many of our regional distributors and suppliers in our network. We do not maintain key-man life insurance for our management. If our management is unable or unwilling to continue in their present positions or if they join a competitor or form a competing company, we may not be able to replace them easily or at all. As a result, our business and growth prospects may be severely disrupted if we lose any of our management’s services.

We May Incur Significant Costs To Ensure Compliance With U.S. Corporate Governance And Accounting Requirements.

We may incur significant costs associated with our public company reporting requirements, costs associated with newly applicable corporate governance requirements, including requirements under the Sarbanes-Oxley Act of 2002 and other rules implemented by the Securities and Exchange Commission and the NASDAQ OTCBB. We expect all of these applicable rules and regulations to increase our legal and financial compliance costs and to make some activities more time-consuming and costly. We also expect that these applicable rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals to serve on our board of directors or as executive officers. We are currently evaluating and monitoring developments with respect to these newly applicable rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.

We May Have Difficulty Raising Necessary Capital To Fund Operations As A Result Of Market Price Volatility Of Our Shares Of Common Stock.

If our growth strategies are successful, we may require additional financing to continue to develop and to expand into new markets. The exploitation of our technologies may, therefore, be dependent upon our ability to obtain equity financing through debt and equity or other means. In recent years, the securities markets in the United States have experienced a high level of price and volume volatility, and the market price of securities of many companies have experienced wide fluctuations that have not necessarily been related to the operations, performance, underlying asset values or prospects of such companies.

For these reasons, our shares of common stock can also be expected to be subject to volatility resulting from purely market forces over which we will have no control. Such volatility may make it more difficult to find investors willing to invest in our common stock, or to negotiate equity financing or terms that are acceptable to us.

Risks Relating To The People's Republic of China

Currency Conversion And Exchange Rate Volatility Could Adversely Affect Our Financial Condition.

The PRC government imposes control over the conversion of Renminbi into foreign currencies. Under the current unified floating exchange rate system, the People's Bank of China publishes an exchange rate, which we refer to as the People's Bank of China exchange rate, based on the previous day's dealings in the inter-bank foreign exchange market. Financial institutions authorized to deal in foreign currency may enter into foreign exchange transactions at exchange rates within an authorized range above or below the People's Bank of China exchange rate according to market conditions. Pursuant to the Foreign Exchange Control Regulations of the PRC issued by the State Council which came into effect on April 1, 1996, and the Regulations on the Administration of Foreign Exchange Settlement, Sale and Payment of the PRC which came into effect on July 1, 1996, regarding foreign exchange control, conversion of Renminbi into foreign exchange by Foreign Investment Enterprises, for use on current account items, including the distribution of dividends and profits to foreign investors, is permissible. Foreign Investment Enterprises are permitted to convert their after-tax dividends and profits to foreign exchange and remit such foreign exchange to their foreign exchange bank accounts in the PRC. Conversion of Renminbi into foreign currencies for capital account items, including direct investment, loans, and security investment, is still under certain restrictions. On January 14, 1997, the State Council amended the Foreign Exchange Control Regulations and added, among other things, an important provision, which provides that the PRC government shall not impose restrictions on recurring international payments and transfers under current account items.

Enterprises in the PRC (including Foreign Investment Enterprises) which require foreign exchange for transactions relating to current account items, may, without approval of the State Administration of Foreign Exchange, or SAFE, effect payment from their foreign exchange account or convert and pay at the designated foreign exchange banks by providing valid receipts and proofs.

Most Of Our Assets Are Located In China; Any Dividends Of Proceeds From Liquidation Are Subject To The Approval Of The Relevant Chinese Government Agencies.

Our assets are predominantly located inside China. Under the laws governing foreign invested enterprises in China, dividend distribution and liquidation are allowed but subject to special procedures under the relevant laws and rules. Any dividend payment will be subject to the decision of the board of directors and subject to foreign exchange rules governing such repatriation. Any liquidation is subject to both the relevant government agency's approval and supervision as well the foreign exchange control. This may generate additional risk for our investors in case of dividend payment and liquidation.

China’s Economic Policies Could Affect Our Business.

Substantially all of our assets are located in China and substantially all of our revenue is derived from our operations in China. Accordingly, our results of operations and prospects are subject, to a significant extent, to the economic, political and legal developments in China.

While China's economy has experienced a significant growth in the past twenty years, growth has been irregular, both geographically and among various sectors of the economy. The Chinese government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures benefit the overall economy of China, but may also have a negative effect on us. For example, our operating results and financial condition may be adversely affected by the government control over capital investments or changes in tax regulations.

The economy of China has been transitioning from a planned economy to a more market-oriented economy. In recent years the Chinese government has implemented measures emphasizing the utilization of market forces for economic reform and the reduction of state ownership of productive assets and the establishment of corporate governance in business enterprises; however, a substantial portion of productive assets in China are still owned by the Chinese government. In addition, the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies. It also exercises significant control over China's economic growth through the allocation of resources, controlling payment of foreign currency-denominated obligations, setting monetary policy and providing preferential treatment to particular industries or companies.

We May Face Obstacles from the Communist System in the People's Republic of China.

Foreign companies conducting operations in The People's Republic of China face some political, economic and legal risks.

We May Have Difficulty Establishing Adequate Management, Legal and Financial Controls in The People's Republic of China.

The People's Republic of China historically has been deficient in Western style management and financial reporting concepts and practices, as well as in modern banking, computer and other control systems. We may have difficulty in hiring and retaining a sufficient number of qualified employees to work in The People's Republic of China. As a result of these factors, we may experience difficulty in establishing management, legal and financial controls, collecting financial data and preparing financial statements, books of account and corporate records and instituting business practices that meet Western standards.

Because Our Assets and Operations are Located in China, You May Have Difficulty Enforcing Any Civil Liabilities Against Us Under the Securities and Other Laws of the United States or Any State.

We are a holding company, and all of our assets are located in the People's Republic of China. In addition, our directors and officers are non-residents of the United States, and all or a substantial portion of the assets of these non-residents are located outside the United States. As a result, it may be difficult for investors to effect service of process within the United States upon these non-residents, or to enforce against them judgments obtained in United States courts, including judgments based upon the civil liability provisions of the securities laws of the United States or any state.

There is uncertainty as to whether courts of the People's Republic of China would enforce:

Judgments of United States courts obtained against us or these non-residents based on the civil liability provisions of the securities laws of the United States or any state; or

In original actions brought in the People's Republic of China, liabilities against us or non-residents predicated upon the securities laws of the United States or any state. Enforcement of a foreign judgment in the People's Republic of China also may be limited or otherwise affected by applicable bankruptcy, insolvency, liquidation, arrangement, moratorium or similar laws relating to or affecting creditors' rights generally and will be subject to a statutory limitation of time within which proceedings may be brought.

The PRC Legal System Embodies Uncertainties, Which Could Limit Law Enforcement Availability.

The PRC legal system is a civil law system based on written statutes. Unlike common law systems, decided legal cases have little precedence. In 1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The overall effect of legislation over the past 27 years has significantly enhanced the protections afforded to various forms of foreign investment in China. Each of our PRC operating subsidiaries and affiliates is subject to PRC laws and regulations. However, these laws and regulations change frequently and the interpretation and enforcement involve uncertainties. For instance, we may have to resort to administrative and court proceedings to enforce the legal protection that we are entitled to by law or contract. However, since PRC administrative and court authorities have significant discretion in interpreting statutory and contractual terms, it may be difficult to evaluate the outcome of administrative court proceedings and the level of law enforcement that we would receive in more developed legal systems. Such uncertainties, including the inability to enforce our contracts, could affect our business and operation. In addition, intellectual property rights and confidentiality protections in China may not be as effective as in the United States or other countries. Accordingly, we cannot predict the effect of future developments in the PRC legal system, particularly with regard to the industries in which we operate, including the promulgation of new laws. This may include changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by national laws. These uncertainties could limit the availability of law enforcement, including our ability to enforce our agreements with the government entities and other foreign investors.

Risks Related to Corporate and Stock Matters

The Limited Trading Volume in our Stock May Cause Volatility in the Market Price of our Common Stock.

Our common stock is currently traded on a limited basis on the OTCBB under the symbol, "CNGV.OB" The quotation of our common stock on the OTCBB does not assure that a meaningful, consistent and liquid trading market currently exists, and in recent years, such market has experienced extreme price and volume fluctuations that have particularly affected the market prices of many smaller companies like us. Our common stock is thus subject to volatility. In the absence of an active trading market:

investors may have difficulty buying and selling or obtaining market quotations;

market visibility for our common stock may be limited; and

a lack of visibility for our common stock may have a depressive effect on the market for our common stock.

Our Stock is a Penny Stock. Trading of our Stock May Be Restricted by the SEC’s Penny Stock Regulations Which May Limit a Stockholder’s Ability to Buy and Sell our Stock.

Our stock is a penny stock. The SEC has adopted Rule 15g-9 which generally defines "penny stock" to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors". The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.

FINRA Sales practice Requirements May Also Limit a Stockholder’s Ability to Buy and Sell our Stock.

Section 15(g) of the Securities Exchange Act of 1934, as amended, and Rule 15g-2 promulgated thereunder by the SEC require broker-dealers dealing in penny stocks to provide potential investors with a document disclosing the risks of penny stocks and to obtain a manually signed and dated written receipt of the document before effecting any transaction in a penny stock for the investor's account.

Potential investors in our common stock are urged to obtain and read such disclosure carefully before purchasing any shares that are deemed to be "penny stock." Moreover, Rule 15g-9 requires broker-dealers in penny stocks to approve the account of any investor for transactions in such stocks before selling any penny stock to that investor. This procedure requires the broker-dealer to (i) obtain from the investor information concerning his or her financial situation, investment experience and investment objectives; (ii)reasonably determine, based on that information, that transactions in penny stocks are suitable for the investor and that the investor has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of penny stock transactions; (iii) provide the investor with a written statement setting forth the basis on which the broker-dealer made the determination in (ii) above; and (iv) receive a signed and dated copy of such statement from the investor, confirming that it accurately reflects the investor's financial situation, investment experience and investment objectives. Compliance with these requirements may make it more difficult for holders of our common stock to resell their shares to third parties or to otherwise dispose of them in the market or otherwise. If we or our independent registered public accountants cannot attest our adequacy in the internal control measures over our financial reporting, as required by Section 404 of the U.S. Sarbanes-Oxley Act, for the fiscal year ended December 31, 2008, we may be adversely affected.

As a public company, we are subject to report our internal control structure and procedures for financial reporting in our annual reports on Form 10-K, as a requirement of Section 404 of the U.S. Sarbanes-Oxley Act of 2002 by the U.S. Securities and

Exchange Commission (the "SEC"). The report must contain an assessment by management about the effectiveness of our internal controls over financial reporting. Moreover, the independent registered public accountants of our Company must attest to and report on management's assessment of the same. Even if our management attests to our internal control measures to be effective, our independent registered public accountants may not be satisfied with our internal control structure and procedures. We cannot guarantee the outcome of the report and it could result in an adverse impact on us in the financial marketplace due to the loss of investor confidence in the reliability of our financial statements, which could negative influence to our stock market price.

On April 13, 2009, Jiangxi Jien formed Shenzhen Jien as a wholly-owned subsidiary. Shenzhen Jien is principally engaged in the distribution of consumer goods in the PRC, and provision of online customer services for the company’s customers. Its registered capital of RMB3,000,000 was fully paid up in April, 2009.

No segment information is reported as the Company has operated in only one segment for the years ended December 31, 2009 and 2008.

NOTE 2 – RECAPITALIZATION AND REORGANIZATION

On May 31, 2009, Plenty Fame entered into a share exchange agreement (the “Agreement for Share Exchange”) with CGC. Pursuant to which CGC acquired all of the equity ownership of Plenty Fame in exchange for 277,785,000 newly-issued shares of CGC. On September 18, 2009, the Company issued the shares and closed the Agreement for Share Exchange.

Immediately after completion of the share exchange transaction, the Company had a total of approximately 300,000,000 shares of its common stock issued and outstanding.

The above stock exchange transaction resulted in the shareholders of Plenty Fame obtaining a majority voting interest in the Company. Generally accepted accounting principles in the United States of America require that the Company whose shareholders retain the majority interest in a combined business be treated as the acquirer for accounting purposes. Consequently, the stock exchange transaction has been accounted for as a recapitalization of Plenty Fame as Plenty Fame acquired a controlling equity interest in the Company. The reverse acquisition process utilizes the capital structure of CGC and the assets and liabilities of Plenty Fame recorded at historical cost.

Plenty Fame is the continuing operating entity for financial reporting purposes and the financial statements prior to September 18, 2009 represent Plenty Fame’s financial position and results of operations. Although Plenty Fame is deemed to be the acquiring corporation for financial accounting and reporting purposes, the legal status of the Company as the surviving corporation did not change.

NOTE 3 – PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements for the years ended December 31, 2009 and 2008 include the accounts of the Company and the Company’s subsidiaries (see Note 1). The consolidated financial statements are prepared in accordance with generally accepted accounting principles used in the United States of America, and 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.

NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)

Economic and Political Risk

The Company’s major operations are conducted in China. Accordingly, the political, economic, and legal environments in the PRC, as well as the general state of the PRC’s economy may influence the Company’s business, financial condition, and results of operations.

The Company’s major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

(b)

Cash and Cash Equivalents

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

(c)

Accounts Receivable

Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Allowance for doubtful accounts is primarily determined by review of specific accounts receivable. Those accounts that are doubtful of collection are included in the allowance. An additional allowance has been established based on a percentage of receivables outstanding. These provisions are reviewed to determine the adequacy of the allowance for doubtful accounts. Accounts receivables are charged off when there is certainty as to their being uncollectible.

(d)

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.

(e)

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation. The cost of maintenance and repairs is charged to the statement of income as incurred, whereas significant renewals and betterments are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income.

(f)

Land Use Right

According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use right granted by the PRC government for 50 to 60 years.

(g)

Other Intangible Assets with Definite Lives

Other long-lived assets and intangible assets with definite lives, including cost of setting up information systems, are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is deemed to not be recoverable, an impairment loss is recorded as the amount by which the carrying amount of the long-lived asset exceeds its fair value.

(h)

Depreciation and Amortization

The Company provides for depreciation of plant and equipment principally by use of the straight-line method for financial reporting purposes.

Amortization of definite lived intangible assets is recorded on a straight-line basis over their estimated lives.

(i)

Accounting for the Impairment of Long-Lived Assets

The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

(j)

Income Tax

Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized.

The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized

In accordance with the relevant tax laws and regulations of PRC, the applicable corporation income tax rate was 25% for the years ended December 31, 2009 and 2008, respectively. At times generally accepted accounting principles requires the Company to recognize certain income and expenses that do not conform to the timing and conditions allowed by the PRC.

(k)

Fair Value of Financial Instruments

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 year ends.

(l)

Revenue Recognition

Revenue represents the invoiced value of goods sold recognized upon the shipment of goods to customers. Revenue is recognized when all of the following criteria are met:

(i)

Persuasive evidence of an arrangement exists,

(ii)

Delivery has occurred,

(iii)

The seller’s price to the buyer is fixed or determinable, and

(iv)

Collectability is reasonably assured.

(m)

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 December 31, 2009 and 2008, there were no dilutive securities outstanding.

(n)

Use of Estimates

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

(o)

Retirement Benefits

The country of PRC mandates companies to contribute funds into the national retirement system, which benefits qualified employees based on where they were born within the country. The Company pays the required payment for qualified employees of the Company as a payroll tax expense. Very few employees in the Company fall under the mandatory conditions requiring the Company to pay as a payroll tax expense into the retirement system of the PRC.

The Company’s PRC subsidiaries are required to make appropriations to staff welfare fund, based on after-tax net income determined in accordance with generally accepted accounting principles of the People’s Republic of China (the “PRC GAAP”). Appropriations to the staff welfare fund are made at the discretion of the Board of Directors. The staff welfare fund is established for the purpose of providing employee facilities and other collective benefits to the employees and is non-distributable other than in liquidation.

The Company provides no other retirement benefits to its employees.

(p)

Comprehensive Income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation gain, net of tax.

(q)

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 year. The translation rates are as follows:


	2009	2008

Year end RMB : US$ exchange rate	0.1465	0.1466
Average yearly RMB : US$ exchange rate	0.1464	0.1439

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.

(r)

Reclassifications

Certain prior year amounts have been reclassified to conform to current period presentation.

(s)

Recent Accounting Pronouncements

In June 2009, the Financial Accounting Standards Board (the "FASB") issued guidance which establishes the FASB Accounting Standards Codification (the “Codification” or “ASC”) as the official single source of authoritative GAAP. All existing accounting standards are superseded by the Codification, and all other accounting guidance not included in the Codification will be considered non-authoritative. The Codification also includes all relevant SEC guidance organized using the same topical structure in separate sections within the Codification. Following the Codification, the FASB will not issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, it will issue Accounting Standards Updates (“ASU”), which will serve to update the Codification, provide background information about the guidance and provide the basis for conclusions on the changes to the Codification. The Codification is not intended to change GAAP, but did change the way GAAP is organized and presented. The Codification was effective for interim and annual periods ending after September 15, 2009, and the Company adopted the provisions of the Codification beginning with financial statements issued after September 15, 2009. The impact on the Company’s financial statements is limited to disclosures, in that references to authoritative accounting literature no longer reference the prior guidance.

In August 2009, the FASB issued additional guidance clarifying the measurement of liabilities at fair value. When a quoted price in an active market for the identical liability is not available, the amendments require that the fair value of a liability be measured using one or more of the listed valuation techniques that should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. In addition the amendments clarify that when estimating the fair value of a liability, an entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The amendment also clarifies how the price of a traded debt security (i.e., an asset value) should be considered in estimating the fair value of the issuer’s liability. The amendments were effective immediately. The adoption of this amendment did not have a significant impact on the Company’s financial statements.

In October 2009, the FASB issued guidance that supersedes certain previous rules relating to how a company allocates consideration to all of its deliverables in a multiple-deliverable revenue arrangement. The revised guidance eliminates the use of the residual method of allocation in which the undelivered element is measured at its estimated selling price and the delivered element is measured as the residual of the arrangement consideration and alternatively requires that the relative-selling-price method be used in all circumstances in which an entity recognizes revenue for an arrangement with multiple-deliverables. The revised guidance requires both ongoing disclosures regarding an entity’s multiple-element revenue arrangements as well as certain transitional disclosures during periods after adoption. All entities must adopt the revised guidance no later than the beginning of their first fiscal year beginning on or after June 15, 2010 with earlier adoption allowed. Entities may elect to adopt the guidance through either prospective application or through retrospective application to all revenue arrangements for all periods presented. The Company plans to adopt the revised guidance effective January 1, 2011. The Company does not believe the adoption of this new guidance will have a significant impact on the Company’s financial statements.

In January 2010, the FASB issued a standard update that clarifies the scope and establishes the accounting and reporting guidance for noncontrolling interests and changes in ownership interest of a subsidiary. This standard update is effective beginning with the interim or annual reporting period ending on or after December 15, 2009. The Company began applying this new amendment in its December 31, 2009 financial statements. The adoption of this amendment did not have a significant impact on the Company’s financial statements.

NOTE 5 – ACCOUNTS RECEIVABLE

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


		2009		2008

Beijing Shanghan International Trading Limited (“Beijing Shanghan”)	$	5,867,670	$	48,733
Others		5,626		-
		5,873,296		48,733
Less: Allowance for doubtful accounts		(2,590,795)		-

Total	$	3,282,501	$	48,733

Beijing Shanghan is a related party as a director of which is also a shareholder of the Company. It contributed 97.6% and 82.7% of the Company’s revenues for years ended December 31, 2009 and 2008, respectively. The balances are unsecured, interest free and repayable according to terms of trade.

Subsequent to the balance sheet date, in January, 2010, the Company entered into a repayment arrangement with Beijing Shanghan to collect the amount under a repayment schedule of up to 12 months, and has collected $658,800 from the customer up to the date of this report. The Company reviewed the recoverability of this account and recorded an allowance of $2,590,795 or approximately 50% of the outstanding receivable as of the date of this report.

The allowance was charged to general and administrative expenses for the year ended December 31, 2009.

NOTE 6 – INVENTORIES

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


		2009		2008

Trading inventories	$	40,041	$	1,114,240
Packing and other materials		26,248		6,828

Total	$	66,289	$	1,121,068

NOTE 7 – PREPAID EXPENSES AND OTHER RECEIVABLES

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


		2009		2008

Prepaid expenses	$	199,454	$	441,723
Other receivables		32,429		5,518

Total	$	231,883	$	447,241

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.

NOTE 8 – PROPERTY, PLANT AND EQUIPMENT, NET

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


	Depreciable lives		December 31, 2009		December 31, 2008
At cost:
Plant	40 years	$	1,543,298	$	2,473,475
Machinery	15 years		158,701		1,616,324
Motor vehicle	10 years		106,945		107,722
Office equipment	5 years		154,016		42,294
Leasehold Improvement	2 years		439,500		-
Construction in progress	N/A		1,604,247		529,028
			4,006,707		4,768,843

Less: Accumulated depreciation			(658,154)		(1,337,620)

Property, plant and equipment, net		$	3,348,553	$	3,431,223

Depreciation expense for the years ended December 31, 2009 and 2008 was $407,516 and $167,375, respectively.

Impairment charges for property, plant and equipment for the years ended December 31, 2009 and 2008 were $628,169 and nil, respectively.

In 2009, the Company has commenced a technical advancement program. Certain machineries, equipment and motor vehicle with net book value of $628,169 in aggregate were removed or abandoned. These assets were fully impaired on December 31, 2009.

The Company’s plant and construction in progress are restricted to sale as of December 31, 2009 and up to the date of this report. Details of which have been disclosed in note 13 to the consolidated financial statements.

NOTE 9 – LAND USE RIGHTS, NET

The Company’s land use rights represent the cost for 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		2009		2008
At cost:
Land use rights	59 – 60 years	$	111,384	$	111,460

Less: Accumulated amortization			(15,906)		(14,404)

Land use rights, net		$	95,478	$	97,056

Amortization expense of land use rights for the years ended December 31, 2009 and 2008 was $1,510 and $1,485, respectively.

The Company’s land use rights are restricted to sale as of December 31, 2009 and up to the date of this report. Details of which have been disclosed in note 13 to the consolidated financial statements.

NOTE 10 – OTHER INTANGIBLE ASSETS, NET

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


	Useful lives		2009		2008
At cost:
Information systems	5 years	$	41,605	$	-

Less: Accumulated amortization			(2,407)		-

Other intangible assets, net		$	39,198	$	-

Amortization expense of other intangible assets for the years ended December 31, 2009 and 2008 was $2,407 and nil, respectively.

NOTE 11 – DEFERRED TAX ASSETS

As of the balance sheet dates, the components of the Company’s deferred tax assets are summarized as follows:


		2009		2008
Arising from:
Difference in depreciation and amortization	$	290,304	$	292,750
Difference in recognition of expenses between accounting and PRC tax practice (timing differences)		140,494		158,216

Total	$	430,798	$	450,966

NOTE 12 – AMOUNT DUE FROM/(TO) DIRECTORS

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


		2009		2008

Ye Xin Zhang	$	99,957	$	(12,741)

Chen Xing Hua	$	(201,033)	$	-

The amount due from/(to) Mr. Ye Xin Zhang represents temporary advances from/(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.

NOTE 13 – OTHER LIABILITIES


		2009		2008

Other liabilities	$	1,494,300	$	1,876,480

In 2003, the Company was involved in litigation matters with two local banks in PRC as Jiangxi Jien was unable to settle bank borrowings of RMB16,200,000 in aggregate.

Pursuant to legal opinion, the Court of Anyi Municipal, Jiangxi Province, China (the “Court of Anyi”) ruled in 2003 that the final settlement payable by Jiangxi Jien is RMB12,800,000. Meanwhile, Jiangxi Jien’s properties, properties under construction, and land use rights have been restricted to sale until the above debt is fully settled.

Shenzhen Hanhong Investments Limited (“Shenzhen Hanhong”), a related company with common directorship, has provided a guarantee in favor of the Court of Anyi for repayment of the outstanding debt. Mr. Chen Xing Hua is a common director of the Company and Shenzhen Hanhong. As such, the guarantee granted by Shenzhen Hanhong is a related party transaction.

Repayment of outstanding borrowings in 2009 amounted to RMB2,600,000 (equivalent to $380,640). Subsequent to the balance sheet date, the Company has paid an additional RMB8,200,000 (equivalent to $1,201,300) to the Court of Anyi. In view of management, the remaining balance of RMB2,000,000 will be settled upon the official acknowledgement from the Court of Anyi for the release of restrictions relating to the property and equipment of the Company.

NOTE 14 – LOANS FROM RELATED PARTIES

The Company has entered into arrangements with related parties to borrow unsecured RMB funds. The table below shows the details of the borrowings:


			Effective interest rate		Outstanding balance
Name of related parties	Due date	Nature	2009	2008		2009		2008

Shenzhen Hanhong Investments Limited	May, 2009	Unsecured	12.0%	12.0%	$	-	$	776,980
Chen Xing Hua	January, 2009	Unsecured	12.0%	12.0%		-		219,900
Current portion					$	-	$	996,880

Mr. Chen Xing Hua is a common director of the Company and Shenzhen Hanhong. As such, the loans from the director, and from the related company with common director, are related party transactions.

The balances were repaid by the Company during 2009. Interest expense in connection with these loans for years ended December 31, 2009 and 2008 were $25,474 and $69,962, respectively.

NOTE 15 – DEBTS

The Company’s debts are summarized as follows:


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, Guangdong Privince, China
(Address of principal executive offices)		(Zip Code)


		Page
Part I		3
Item 1	Business	3
Item 1A	Risk Factors	6
Item 1B	Unresolved Staff Comments	11
Item 2	Properties	11
Item 3	Legal Proceedings	11
Item 4	Submission of Matters to a Vote of Security Holders	11
Part II		12
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	12
Item 6	Selected Financial Data.	12
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operation	12
Item 7A	Quantitative and Qualitative Disclosures about Market Risk	15
Item 8	Financial Statements and Supplementary Data	15
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	15
Item 9A	Controls and Procedures	16
Item 9B	Other Information	17
Part III		17
Item 10	Directors and Executive Officers and Corporate Governance.	17
Item 11	Executive Compensation	19
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	20
Item 13	Certain Relationships and Related Transactions, and Director Independence.	20
Item 14	Principal Accounting Fees and Services	21
Part IV		22
Item 15	Exhibits, Financial Statement Schedules	22
Signatures		23


Item	Address	Areas	Leased/Owned
Headquarters	24/F., Unit 3 Great China International Square, No 1 Fuhua Rd ,Futian District, Shenzhen, Guangdong Province, China	262.75 sq. meters	Leased
Manufacturing base	No. 9 Zhongduan, Fenghuang Mountain Development Zone, Anyi County, Jiangxi Province, China	25,638.77 sq. meters	Owned



		Years ended December 31,				Increase/	%
		2009		2008		(decrease)	change
Revenue	$	10,417,379	$	859,110	$	9,558,269	1113
Cost of sales		2,747,490		336,237		2,411,253	717
Gross profit		7,669,889		522,873		7,147,016	1367
Selling and distribution expenses		1,289,329		368,889		920,440	250
General and administrative expenses		5,804,483		450,344		5,354,139	1189
Income/(loss) before income taxes		472,471		(407,033)		879,504	-
Provision for income taxes		218,782		(101,758)		320,540	-
Discontinued operations		-		-		-	-
Net income/(loss)	$	253,689	$	(305,275)	$	558,964	-


	Years ended
	December 31,
		2009		2008
Net cash provided by/(used in) operating activities	$	2,619,005	$	(1,311,582)
Net cash used in investing activities		(557,815)		(132,631)
Net cash (used in)/provided by financing activities		(1,953,245)		1,463,439
Net increase in cash and cash equivalents	$	107,945	$	19,226


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


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


Item 4.	Submission of Matters to a Vote of Security Holders


Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities


Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations


Item 7A.	Quantitative and Qualitative Disclosures About Market Risk


Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure


Item 9A.	(T) Controls and Procedures Evaluation of Disclosure Controls and Procedures


Item 10.	Directors, Executive Officers and Corporate Governance


Name	Age	Position	Date of Appointment
Chen Xing Hua	46	President and Director	September 18, 2009
Ye Xin Zhang	48	CEO and Director	Appointed as Director on May 31, 2009 Appointed as CEO on September 18, 2009
Chen Feng	25	Director	December 12, 2008
Deng Lin	39	CFO	September 18, 2009


Item 1A.	Risk Factors


Item 1B.	Unresolved Staff Comments


Item 2.	Properties


Item 3.	Legal Proceedings


Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters


Beneficial owners	Title	Total number of shares owned	Nature of ownership
Chen Xing Hua	President and Director	123,375,000	14,725,000 shares from 100% equity ownership of Han Sing Investments Incorporated 103,650,000 shares from 50% equity ownership of Lionhero Investments Limited
Deng Lin	CFO	500,000	500,000 shares held directly
Ye Xin Zhang	CEO and Director	103,650,000	103,650,000 shares from 50% equity ownership of Lionhero Investments Limited
Chen Xiao Ming	5% or more shareholder	16,000,000	5,000,000 shares held directly 11,000,000 shares under his wife’s name, Han Yishen
Han Yishen	5% or more shareholder	16,000,000	11,000,000 shares held directly 5,000,000 shares under her husband’s name, Chen Xiao Ming


Item 13.	Certain Relationships and Related Transactions, and Director Independence


Fee Category	2009		2008
Audit fees – Madsen	$	43,000	$	0
Audit Fees –Ronald R. Chadwick	$	7,500	$	7,500


Report of Independent Registered Public Accounting Firm	24
Consolidated Balance Sheets	25
Consolidated Statements of Operations and Comprehensive Income	26
Statements of Changes in Stockholders’ Equity and Comprehensive Income	27
Consolidated Statements of Cash Flows	28
Notes to Consolidated Financial Statements	30



Exhibit Number	Exhibit Title

31.1	Certification of Ye Xing Zhang pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Deng Lin, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Ye Xing Zhang 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 Deng Lin, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


	China Green Creative, Inc.

Dated April 13, 2010	By:	/s/ Ye Xing Zhang
		Ye Xing Zhang
		Chief Executive Officer, Director



Name	Title	Date

/s/ Ye Xing Zhang		April 13, 2010
Ye Xing Zhang	Chief Executive Officer, Director

/S/ Chen Feng		April 13, 2010
Chen Feng	Director

/s/ Deng Lin		April 13, 2010
Deng Lin	Chief Financial Officer, Principal Accounting Officer


Madsen & Associates CPA’s, Inc.

Salt Lake City, Utah 84107

April 12, 2010


		2009		2008
Assets
Current assets
Cash and cash equivalents	$	116,989	$	6,768
Accounts receivable		3,282,501		48,733
Inventories		66,289		1,121,068
Amount due from a director		99,957		-
Prepaid expenses and other receivables		231,883		447,241
Total current assets		3,797,619		1,623,810

Property, plant and equipment, net		3,348,553		3,431,223
Land use rights, net		95,478		97,056
Other intangible assets, net		39,198		-
Deferred tax assets		430,798		450,966

Total assets	$	7,711,646	$	5,603,055


Liabilities and stockholders’ equity
Liabilities
Current liabilities
Accounts payable	$	436,505	$	153,004
Accrued expenses and other payables		2,523,943		382,127
Other liabilities		1,494,300		1,876,480
Loans from related parties		-		996,880
Short term debts		230,005		689,020
Taxes payable		1,550,172		23,899
Amount due to a director		201,033		12,741
Total current liabilities		6,435,958		4,134,151

Long term debt		-		303,462
Long term accrued expenses		-		142,935

Total liabilities		6,435,958		4,580,548

Stockholders’ equity
Common stock: Par value $0.001 per share; 400,000,000 shares authorized, 300,000,000 and 277,785,000 shares issued and outstanding in 2009 and 2008, respectively		300,000		277,785
Additional paid in capital		1,632,689		1,654,904
Accumulated deficits		(919,402)		(1,173,091)
Accumulated other comprehensive income		262,401		262,909
Total stockholders’ equity		1,275,688		1,022,507

Total liabilities and stockholders’ equity	$	7,711,646	$	5,603,055


		2009		2008

Revenues	$	10,417,379	$	859,110

Cost of sales		2,747,490		336,237

Gross profit		7,669,889		522,873

Expenses
Selling and distribution		1,289,329		368,889
General and administrative (inclusive of depreciation and allowance of doubtful accounts)		5,804,483		450,344
Total operating expenses		7,093,812		819,233

Operating profit/(loss) from continuing operations		576,077		(296,360)

Other income/(expenses)
Other income		-		2,159
Other expenses		(3,243)		-
Interest expense		(100,363)		(112,832)
Total other expenses		(103,606)		(110,673)

Income/(loss) from continuing operations before provision for income taxes		472,471		(407,033)

Provision for income taxes		218,782		(101,758)

Net income/(loss) from continuing operations		253,689		(305,275)

Discontinued operations
Net loss		(2,288)		-
Gain on disposal of discontinued operations		2,288		-

Net income/(loss) from discontinued operations		-		-

Net income/(loss) for the period	$	253,689	$	(305,275)

Other comprehensive income
(Loss)/gain on foreign currency translation		(508)		81,597

Total comprehensive income/(loss) for the period	$	253,181	$	(223,678)


Earnings/(loss) per share, basic and diluted – continuing operations	$	0.001	$	(0.001)

Weighted average number of shares outstanding, basic and diluted		300,000,000		300,000,000


	Common stock				Additional paid in capital		Accumulated deficits		Accumulated other comprehensive Income		Total equity
	Number of shares		Amount		Additional paid in capital		Accumulated deficits		Accumulated other comprehensive Income		Total equity

Balance at January 1, 2008	277,785,000	$	277,785	$	1,654,904	$	(867,816)	$	181,312	$	1,246,185

Net loss for the year	-		-		-		(305,275)		-		(305,275)

Foreign currency translation adjustments	-		-		-		-		81,597		81,597

Balance at December 31, 2008 and January 1, 2009	277,785,000	$	277,785	$	1,654,904	$	(1,173,091)	$	262,909	$	1,022,507

Issuance of exchange shares	22,215,000		22,215		(22,215)		-		-		-

Net income for the year	-		-		-		253,689		-		253,689

Foreign currency translation adjustments	-		-		-		-		(508)		(508)

Balance at December 31, 2009	300,000,000	$	300,000	$	1,632,689	$	(919,402)	$	262,401	$	1,275,688


		2009		2008
Cash flows from operating activities
Net income/(loss) from continuing operations	$	253,689	$	(305,275)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation expense		407,516		167,375
Impairment charges for property, plant and equipment		628,169		-
Allowance for doubtful accounts		2,590,795		-
Amortization expense of land use rights		1,510		1,485
Amortization expense of other intangible assets		2,407		-
Deferred tax		19,847		(111,510)
Changes in operating assets and liabilities:
Increase in accounts receivable		(5,824,563)		(48,733)
Decrease/(increase) in inventories		1,054,779		(1,121,068)
Decrease/(increase) in prepaid expenses and other receivables		215,358		(437,461)
Increase in amount due from a director		(99,957)		-
Increase in accounts payable		283,501		153,004
Increase in accrued expenses and other payables		1,559,681		366,702
Increase in taxes payable		1,526,273		23,899

Net cash provided by/(used in) operating activities – continuing operations		2,619,005		(1,311,582)
Net cash used in operating activities – discontinued operations		(247)		(75,366)

Net cash provided by/(used in) operating activities		2,618,758		(1,386,948)

Cash flows from investing activities
Additions to property, plant and equipment	$	(516,210)		(132,631)
Additions to other intangible assets		(41,605)		-

Net cash used in investing activities – continuing operations		(557,815)		(132,631)
Net cash used in investing activities – discontinued operations		-		-

Net cash used in investing activities		(557,815)		(132,631)

Cash flows from financing activities
Decrease in other liabilities	$	(382,180)	$	-
Increase in loans from related parties		-		1,097,610
Repayment of loans from related parties		(996,880)		(100,730)
Proceeds from other borrowings		-		689,020
Repayment of debt		(762,477)		(205,777)
Increase/(decrease) in amount due to a director		188,292		(16,684)

Net cash (used in)/provided by financing activities – continuing operations		(1,953,245)		1,463,439
Net cash provided by financing activities – discontinued operations		-		26,587

Net cash (used in)/provided by financing activities		(1,953,245)		1,490,026

Net increase/(decrease) in cash and cash equivalents
Attributable to continuing operations	$	107,945		19,226
Attributable to discontinued operations		(247)		(48,779)
	$	107,698	$	(29,553)


		2009		2008

Effect of foreign exchange rate changes
Attributable to continuing operations	$	2,276	$	(22,754)
Attributable to discontinued operations		-		-
	$	2,276	$	(22,754)

Cash and cash equivalents at January 1
Attributable to continuing operations	$	6,768	$	10,296
Attributable to discontinued operations		247		49,026
	$	7,015	$	59,322

Cash and cash equivalents at December 31
Attributable to continuing operations	$	116,989	$	6,768
Attributable to discontinued operations		-		247
	$	116,989	$	7,015

Supplement disclosure of cash flows information:
Cash paid for interest	$	56,443	$	62,372
Cash paid for income taxes	$	-	$	-


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%	Distribution of consumer goods in the PRC

Shenzhen Jien Electronic Commerce Company Limited (“Shenzhen Jien”)	The PRC April 13, 2009	RMB3,000,000	100%	Distribution of consumer goods in the PRC, and provision of online customer services


			Effective interest rate		Outstanding balance
Name of parties	Due date	Nature	2009	2008		2009		2008

Qin Jianguo – (i)	September, 2010	Unsecured	19.1%	10.8%	$	230,005	$	303,462
Shenzhen Ziyunjin Investments Limited – (ii)	June, 2009	Unsecured	12.0%	12.0%		-		689,020
						230,005		992,482
Less: Repayable after one year but within two years (long term debt)						-		(303,462)

Short term debts					$	230,005	$	689,020


		2009		2008

Accrued operating expenses	$	70,052	$	89,947
Accrued interest expenses – (i)		186,788		142,935
Deposits received in advance from customers		380,683		-
Amount due to Shenzhen Hanhong – (ii)		826,600		-
Other payables – (iii)		1,059,820		292,180
		2,523,943		525,062
Less: Accrued interest expenses repayable after one year but within two years – (i)		-		(142,935)

Current portion	$	2,523,943	$	382,127


		2009		2008

Income tax payables	$	208,998	$	9,935
Value added tax payables		1,252,119		11,292
Other tax payables		89,055		2,672

Total	$	1,550,172	$	23,899


		2009		2008

Health products	$	882,184	$	347,780
Feminine hygiene and beauty products		1,652,838		249,439
Lingerie products		3,621,480		167,386
Chinese herbal tea products		526,047		94,505
Beverages		1,791,836		-
Trendy cellular phones		1,708,000		-
IT products		234,994		-

Total revenues	$	10,417,379	$	859,110