10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended June 30, 2013

Commission File Number     000-32629

China Ceetop.com, Inc.

(Exact name of registrant as specified in charter)

Oregon	98-0408707
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

A2803, Lianhe Guangchang, 5022 Binhe Dadao, Futian District, Shenzhen, China	518026
(Address of principal executive offices)	(Zip Code)

(86-755) 3336-6628

Registrant’s telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No 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.  Yes x 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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  o	Accelerated Filer                      o
Non-accelerated filer    o (Do not check if 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

Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: As of August 20, 2013 the Company had outstanding 16,806,631shares of its common stock, par value $0.001.

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of Part I of this report include forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by forward-looking statements.

In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "proposed," "intended," or "continue" or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other "forward-looking" information. There may be events in the future that we are not able to accurately predict or control. Before you invest in our securities, you should be aware that the occurrence of any of the events described in this Quarterly Report could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline and you could lose all or part of your investment. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this Quarterly Report to conform these statements to actual results.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.  Financial Statements
	Consolidated Balance Sheets (unaudited and audited)	F-1
	Consolidated Statements of Income and Comprehensive Income (unaudited)	F-2
	Consolidated Statements of Cash Flows (unaudited)	F-3
	Consolidated Statements of Stockholders’  Equity (unaudited)	F-4
	Notes to Consolidated Financial Statements (unaudited)	F-5 F-17
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations		18-21
Item 3.  Quantitative and Qualitative Disclosures about Market Risk		22
Item 4.  Controls and Procedures		22
PART II – OTHER INFORMATION
Item 1.  Legal Proceedings		23
Item 1A.  Risk Factors		23
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds		23
Item 3.  Defaults Upon Senior Securities		23
Item 4.  Mine Safety Disclosures		23
Item 5.  Other Information		23
Item 6.  Exhibits		23
Signatures		24

PART I – FINANCIAL INFORMATION

Item1.  Financial Statements

TABLE OF CONTENTS

Consolidated Balance Sheets (unaudited and audited)	F-1
Consolidated Statements of Income and Comprehensive Income (unaudited)	F-2
Consolidated Statements of Cash Flows (unaudited)	F-3
Consolidated Statements of Stockholders’ Equity (unaudited)	F-4
Notes to Consolidated Financial Statements (unaudited)	F-5 - F-17

CHINA CEETOP.COM, INC.

CONSOLIDATED BALANCE SHEETS

			June 30,			December 31,
	Notes		2013			2012
			(Unaudited)			(Audited)
ASSETS
Current Assets
Cash and cash equivalents			$	3,020,833		$	71,608
Accounts receivable, net of provision of $257,678 (2012 : $179,867)		3		217,043			285,184
Other receivables				120,747			172,514
Prepayments and deposits				47,982			6,495
Total Current Assets				3,406,605			535,801
Property and equipment, net of accumulated depreciation of $263,723 (2012 : $248,335)		3		104,877			17,828
Total Assets			$	3,511,482		$	553,629
LIABILITIES AND STOCKHOLDERS' EQUITY
Current and Total Liabilities
Accrued expenses and other payable			$	445,024		$	697,546
Amounts due to trustees		4		3,529,700			-
Total Current and Total Liabilities				3,974,724			697,546
Stockholders' Equity
Common stock, USD0.001 par value, 100,000,000 shares
authorized, 16,806,631 and 16,790,631 shares issued
and outstanding at June 30, 2013 and December 31,
2012 respectively		6		16,806			16,790
Preferred stock, USD0.001 par value		6		-			-
Additional paid-in capital		7		5,840,837			5,836,413
Common stock issued for prepaid service		8		(249,650	)		(394,664	)
Statutory reserve		9		-			-
Accumulated other comprehensive income		10		150,800			116,580
Accumulated deficit				(6,222,035	)		(5,719,036	)
Stockholders' Equity				(463,242	)		(143,917	)
Total Liabilities and Stockholders' Equity			$	3,511,482		$	553,629

The accompanying notes are an integral part of these consolidated financial statements.

F-1

CHINA CEETOP.COM, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVEINCOME

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Sales, net	$	-		$	1,333,633		$	-		$	2,643,658
Cost of sales		-			(1,310,734	)		-			(2,556,672	)
Gross profit		-			22,899			-			86,986
Stock based compensation		(73,457	)		(74,259	)		(149,454	)		(155,448	)
Selling, general and administrative expenses		(222,228	)		(223,571	)		(356,002	)		(444,933	)
(Loss) from operations		(295,685	)		(274,931	)		(505,456	)		(513,395	)
Other Income
Interest income		2,455			19			2,457			184
Other income		-			732			-			732
Total other income		2,455			751			2,457			916
Net (loss)	$	(293,230	)	$	(274,180	)	$	(502,999	)	$	(512,479	)
Weighted average shares (including common shares and
non-convertible preferred shares) outstanding
Basic - note 3)		16,804,426			35,839,109			16,803,245			35,839,109
Diluted - note 3)		16,804,426			35,839,109			16,803,245			35,839,109
Net (loss) per share (include common shares and
non-convertible preferred shares)
Basic - note 3)	$	(0.0174	)	$	(0.0077	)	$	(0.0299	)	$	(0.0143	)
Diluted - note 3)	$	(0.0174	)	$	(0.0077	)	$	(0.0299	)	$	(0.0143	)
Net (loss)	$	(293,230	)	$	(274,180	)	$	(502,999	)	$	(512,479	)
Other comprehensive income - gain on foreign currency translation		34,040			536			34,220			7,488
Comprehensive (loss)	$	(259,190	)	$	(273,644	)	$	(468,779	)	$	(504,991	)

The accompanying notes are an integral part of these consolidated financial statements.

F-2

CHINA CEETOP.COM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2013 AND 2012

(UNAUDITED)

	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(502,999	)	$	(512,479	)
Adjustments to reconcile net loss to net cash
(used in) operating activities :
Depreciation		10,057			21,729
Share-based payment expense		149,454			155,448
Provision for doubtful accounts		73,161			-
Changes in operating assets and liabilities :
Accounts receivable		-			(185,708	)
Advances to suppliers		-			(146,375	)
Other receivable, deposits and prepayment		10,280			(194,083	)
Inventories		-			(844,734	)
Accounts payable		-			169,732
Deposits from customers		-			36,382
Accrued expense and other payable		(252,522	)		29,588
Net cash (used in) operating activities		(512,569	)		(1,470,500	)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment		(96,902	)		-
Net cash (used in) investing activities		(96,902	)		-
CASH FLOWS FROM FINANCING ACTIVITIES
Advance from a director		-			684,720
Net amounts due to trustees		3,529,700			-
Net cash provided by financing activities		3,529,700			684,720
Effect of exchange rate changes on cash and cash equivalents		28,996			7,051
Net increase/(decrease) in cash and cash equivalents		2,949,225			(778,729	)
Cash and cash equivalents, beginning balance		71,608			855,713
Cash and cash equivalents, ending balance	$	3,020,833		$	76,984

The accompanying notes are an integral part of these consolidated financial statements.

F-3

CHINA CEETOP. COM, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

(UNAUDITED)

	Common Stock						Preferred Stock
															Common
													Additional		stock issued			Other					Total
	Stock						Stock						paid-in		for prepaid			comprehensive		(Accumulated			stockholders
	outstanding			Amount			outstanding			Amount			capital		service			income		loss)			equity
Balance at January 1, 2012		32,281,642		$	32,281			3,558,046		$	3,558		$	5,815,844	$	(702,743	)	$	108,193	$	(4,325,648	)	$	931,485
Foreign currency translation
adjustments - note 10)		-			-			-			-			-		-			8,387		-			8,387
Record of common stock for
prepaid service - note 8)		-			-			-			-			-		308,079			-		-			308,079
Issuance of common stock for
Legal adviser - notes 6, 8)		40,000			40			-			-			760		-			-		-			800
Issuance of common stock for
consultancy service - notes 6, 8)		9,000			9			-			-			711		-			-		-			720
Cancellation of shares - note 6)		(15,540,011	)		(15,540	)		(3,558,046	)		(3,558	)		19,098		-			-		-			-
(Loss) for the year ended
December 31, 2012		-			-			-			-			-		-			-		(1,393,388	)		(1,393,388	)
Balance at December 31, 2012		16,790,631		$	16,790			-		$	-		$	5,836,413	$	(394,664	)	$	116,580	$	(5,719,036	)	$	(143,917	)
Foreign currency translation
adjustments - note 10)		-			-			-			-			-					34,220		-			34,220
Record of common stock for
prepaid service - note 8)		-			-			-			-			-		145,014			-		-			145,014
Issuance of common stock for
Legal adviser - notes 6, 8)		16,000			16			-			-			4,424		-			-		-			4,440
(Loss) for the six months ended
June 30, 2013		-			-			-			-			-		-			-		(502,999	)		(502,999	)
Balance at June 30, 2013		16,806,631		$	16,806			-		$	-		$	5,840,837	$	(249,650	)	$	150,800	$	(6,222,035	)	$	(463,242	)

The accompanying notes are an integral part of these consolidated financial statements.

F-4

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 1 -ORGANIZATION

China Ceetop.com, Inc. (the “Company” or “China Ceetop”) was incorporated in Oregon on February 18, 2003 under the name of GL Gold Inc.  On June 6, 2003 the Company filed an amendment with the State of Oregon changing its name to Oregon Gold, Inc. On January 7, 2011 Oregon Gold Inc. changed its name to China Ceetop.com, Inc.

Surry Holdings Limited (“Surry”)was incorporated in the British Virgin Islands on September 18, 2009.  Surry holds 100% of Westow Technology Limited (“Westow”), a company incorporated in the British Virgin Islands, which in turn holds100% of Shenzhen Ceetop Network Technology Co., Limited ("SZ Ceetop"), a company incorporated in Shenzhen, Peoples’ Republic of China ("PRC") and ultimately holds 100% of Hangzhou Ceetop Network Technology Co., Limited ("HZ Ceetop"), a company incorporated in Hangzhou, PRC.

Pursuant to a series of transactions completed in September, 2009, Surry became the holding company of Westow, SZ Ceetop and HZ Ceetop ("Group Reorganization").

Since Surry, Westow, SZ Ceetop and HZ Ceetop were under common control of a controlling party both before and after the completion of the Group Reorganization, the Group Reorganization has been accounted for using merger accounting.  The consolidated financial statements have been prepared on the basis as if Surry had always been the holding company of Westow, SZ Ceetop and HZ Ceetop and this group structure had been in existence throughout the six months ended June 30, 2013 and year ended December 31, 2012 as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation”.

On January 27, 2011, the Company became the holding company of Surry through a reverse acquisition.  The Company acquired all of the issued and outstanding capital stock of Surry pursuant to the share exchange agreement dated December 30, 2010 by and among Surry, the Company and the shareholders of the Company (the “Share Exchange Agreement”).  At the same time, the Company effected a reverse stock split such that the number of all existing issued shares were reduced from 19,900,100 to 866,636 on a 23 to 1 basis.  Pursuant to the Share Exchange Agreement, the Company acquired 100% of the capital stock and ownership interests of Surry in exchange for 28,496,427 newly-issued shares of the Company’s common stock and 3,558,046 newly issued shares of the Company’s series A preferred stock.

Prior to the acquisition of the Surry, the Company was a non-operating public shell.  Pursuant to Securities and Exchange Commission (“SEC”) rules, the merger or acquisition of a private operating company into a non-operating public shell with nominal net assets is considered as a capital transaction, rather than a business combination.  Accordingly, for accounting and financial reporting purposes, the transaction was treated as a reverse acquisition, wherein Surry is considered the acquirer.  The assets and liabilities of Surry have been brought forward at their book value and no goodwill has been recognized.  The historical financial statements prior to January 27, 2011 are those of Surry.

The Company operates in a single reportable segment, the principal activities of the Company were engaged in the provision of an online platform for distribution of 3C products (computers/communications/consumer electronics) in the PRC by way of a website named www.ceetop.com mainly through its wholly owned legal subsidiaries HZ Ceetop and SZ Ceetop.

The Company is in the transition from online retail sales to focus more on sales to a relatively smaller number of distributors due to high competition in online shopping.  Through the stimulation of Labor Specialization, the original competition between products or companies has turned into the competition between supply chains. Each supply chain is a consolidation of companies to provide the final products. The Company is now focusing on B2B supply chain service.

On March 5, 2013, the name of subsidiary company, Shenzhen Ceetop Network Technology Co., Limited (“SZ Ceetop ) was changed to Guizhou Ceetop Network Technology Co., Limited (“GZ Ceetop”).

F-5

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 1 –ORGANIZATION(CONTINUED)

On May 29, 2013,  GZ Ceetop established two 100% owned subsidiaries, Hangzhou Tuoyin Management Consulting Co., Limited and Hangzhou Lianzhan Supply Chain Management Co., Limited to enhance the management of B2B supply chain service.

These Consolidated Financial Statements present the Company and its subsidiaries on a historical basis.

Note 2 - GOING CONCERN

The accompanying Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern.  As shown in the accompanying Consolidated Financial Statements, the Company incurred net losses of $502,999 and $512,479 for the six months ended June 30, 2013 and 2012 respectively, has accumulated deficit of $6,222,035 and has net deficiency in assets of $463,242 respectively at June 30, 2013.  Although as mentioned in Note 7 “Additional Paid in Capital”, a former major preferred stock shareholder of the Company has undertaken to inject funds in the amount of RMB10,000,000 (equivalent to $1,547,000) to HZ Ceetop as its working capital on or before December 31, 2011.  However, up to June 30, 2013, only RMB2,000,000 (equivalent to $312,412) was injected by that former major shareholder and at the same time of injection was waived for repayment by that shareholder so that the amount $312,412 was credited to additional paid in capital.  Management is unable and in particular following returning cancellation of all preferred stock for no consideration on September 5, 2012 (note7) to ascertain when the balance of RMB8,000,000 (equivalent to $1,234,588) would be injected to the Company.  These factors create an uncertainty about the Company’s ability to continue as a going concern.  In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans or through additional sales of common stock.  As mentioned in more detail in Note 4, net funds of $3,529,700 were received during the six month period ended June 30, 2013, from potential investors pending execution of formal stock purchase agreements and the related issuance of common stocks. During the year ended December 31, 2012, a verbal agreement was reached by the Government of Guiyang (the “Government”) and the Company.  Under the terms of agreement, the Government will provide subsidies to the Company amounting to RMB10,000,000 in three consecutive years to encourage the Company establish the business in the city in order to enhance the economic development of the city.  With respect to the verbal agreement, management considers that the main terms of the agreement have been agreed and the remaining details are still in the process of negotiation.  Management is confident that the agreement will be finalized and executed in the near future.  During the negotiation in six months ended June 30, 2013 between both parties, the Company did not generate any supply chain service income pending the finalization of the agreement.  The Consolidated Financial Statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These Unaudited Consolidated Financial Statements were prepared by the Company pursuant to the rules and regulations of the SEC.  The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) that are, in the opinion of management, necessary to present fairly the operating results for the respective periods.  Certain information and footnote disclosures normally present in Annual Consolidated Financial Statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) were omitted pursuant to such rules and regulations.  These Unaudited Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements and footnotes for the year ended December 31, 2012.  The results for six months ended June 30, 2013, are not necessary indicative of the results to be expected for the full year ending December 31, 2013.

F-6

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company adopted the new accounting guidance (“Codification”) on July 1, 2009. For the six months ended June 30, 2013, all reference for periods subsequent to July 1, 2009 are based on the codification. The Company's functional currency is the Chinese Renminbi; however the accompanying consolidated financial statements have been translated and presented in the United States Dollars (“USD”).

Principles of Consolidation

The Consolidated Financial Statements incorporate the financial statement items of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party.

The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognized in respect of goodwill or excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling party’s interest.

The Consolidated Statements of Income and Comprehensive Income include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control, where this is a shorter period.

A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. Such business combinations are referred to as common control combinations which are in line with U.S. GAAP.

Translation Adjustment

As of June 30, 2013 and December 31, 2012, the accounts of the Company were maintained, and its financial statements were expressed, in RMB.  Such financial statements were translated into USD in accordance with the Foreign Currency Matters Topic of the Codification, with the RMB as the functional currency.  According to the Codification, all assets and liabilities were translated at the current exchange rate, stockholders’ equity are translated at the historical rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with the Comprehensive Income Topic of the Codification, as a component of shareholders’ equity.  Transaction gains and losses are reflected in the income statement.

Use of Estimates

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

F-7

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Comprehensive Income

The Company uses SFAS 130 “Reporting Comprehensive Income” (codified in FASB ASC Topic 220). Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income for the six months and three months ended June 30, 2013 and 2012 included net income and foreign currency translation adjustments.

Risks and Uncertainties

The Company’s operations are carried out in the PRC.  Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy.  The Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

The Company is subject to substantial risks from, among other things, intense competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history, foreign currency exchange rates and the volatility of public markets.

Contingencies

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. There were no contingencies of this type as of June 30, 2013 and December 31, 2012.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. There were no contingencies of this type as of June 30, 2013 and December 31, 2012.

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

F-8

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Accounts Receivable

The Company maintains reserves for potential credit losses on accounts receivable.   Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves.  Reserves are recorded based on the Company’s historical collation history.  Allowances for doubtful accounts as of June 30, 2013 and December 31, 2012 were $257,678 and $179,867 respectively.

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property, plant and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property, plant and equipment is provided using the straight-line method for substantially all assets with estimated lives of:

Office equipment   3 - 5 years

As of June 30, 2013 and December 31, 2012 Property, Plant & Equipment consist of the following:

	06/30/2013			12/31/2012
Office equipment		368,600			266,163
Accumulated depreciation		(263,723	)		(248,335	)
	$	104,877		$	17,828

Depreciation expense for the six months ended June 30, 2013 and 2012 was $10,057 and $21,729, respectively.

Depreciation expense for the three months ended June 30, 2013 and 2012 was $2,822 and $12,220, respectively.

Long-Lived Assets

The Property, Plant and Equipment Topic of the Codification addresses financial accounting and reporting for the impairment or disposal of long-lived assets and supersedes previous accounting guidance, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,” and “Reporting the Results of Operations for a Disposal of a Segment of a Business”. The Company periodically evaluates the carrying value of long-lived assets to be held and used, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. Based on its review, the Company believes that, as of June 30, 2013 and December 31, 2012, there were no impairments of its long-lived assets.

Fair Value of Financial Instruments

The Financial Instrument Topic of the Codification requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the balance sheets for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value.

F-9

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Revenue Recognition

The Company’s revenue recognition policies are in compliance with SEC Staff Accounting bulletin (“SAB”) 104 (codified in FASB ASC Topic 605). Sales revenue is recognized at the completion of delivery to customers when a formal arrangement exists, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured at the date of completion of delivery. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

Shipping and Handling costs

Shipping and handling costs consist primarily of freight charges and packaging charges for delivery of goods to the customers and are included in selling, general and administrative expenses.  The Company expenses all shipping and handling costs when they are incurred.  For the six months ended June 30, 2013 and 2012, the Company incurred freight charges of $Nil and $1,320 respectively and the company did not incur any packaging charges.  For the three months ended June 30, 2013 and 2012, the Company did not incur any freight charges and packaging charges.

Income Taxes

The Company utilizes the accounting standards (“SFAS”) No. 109, “Accounting for Income Taxes,” codified in Financial Accounting Standard Board Accounting Standards Codification (“ASC”) Topic 740 which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN 48”), codified in FASB ASC Topic 740. When tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits are classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. The adoption of FIN 48 did not have a material impact on the Company’s financial statements. At June 30, 2013 and December 31, 2012, the Company did not take any uncertain positions that would necessitate recording a tax related liability.

Statement of Cash Flows

In accordance with SFAS 95 “Statement of Cash Flows”, codified in FASB ASC Topic 230, cash flows from the Company’s operations are based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.

F-10

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basic and Diluted Earnings per Share

Earnings per share are calculated in accordance with FASB ASC Topic 260, “Earnings per Share”.  Basic earnings per share are based upon the weighted average number of common shares and preferred shares outstanding.  Preferred shares are included in the denominator of basic earnings per share because preferred shares participate with common shares in the earnings and dividends of the Company on a one-for-one basis. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options were converted or exercised.  Dilution is computed by applying the treasury stock method.  Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Share-Based payment

Share-based payment is accounted for based on the FASB Statement No. 123R, “Share-Based Payment, an Amendment of FASB Statement No. 123” (“FAS No. 123R”) and Emerging Issue Task Force 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling, Goods or Services” (“EITF 96-18”) and Emerging Issue Task Force 00-18 “Accounting Recognition for Certain Transactions involving Equity Instruments Granted to Other Than Employees” (“EITF 00-18”) (codified in FASB ASC Topic 505-50).  The Company recognized in the Consolidated Statements of Income and Comprehensive Income the fair value of shares, stock options and other equity-based compensation issued to non-employees when the service provided by non-employees is completed, or the date when the shares were issued (provided that the shares issued are fully vested and not subject to forfeiture) with the prepaid services presented as contra equity.  This is in accordance with the consensus reached in EITF 00-18 that in the event that a note or receivable is acquired in exchange for the fully vested, non-forfeitable equity instruments, the note or receivable should be displayed as contra-equity by the granter.  The Company as granter interprets that the term “receivable” also embraces prepaid service fees. For employees, the Company recognized in the Consolidated Statements of Income and Comprehensive Income the grant date fair value of the shares, stock options and other equity-based compensation over the requisite service period.  In respect of the service agreement the Company entered into with a service provider for provision of investor relations and financial media service, the service provider is compensated for 9,000 common shares of the Company no later than the 5th day of and for each month over the period of the agreement.  In accordance with the consensus reached in EITF 96-18, the Company recognized in the Consolidated Statement of Income and Comprehensive Income the fair value of each 9,000 common shares issued to the service provider each month as share based payment on the same basis in the same period and in the same manner as if the Company had paid cash for the service rendered by the service provider instead of paying with equity instruments (common shares) of the Company in each month and that the measurement date of the fair value of each 9,000 common shares issued to the service provider will be the issue date which is before the 5th day of each month. However, both parties signed an early termination agreement on August 14, 2012 agreeing that the effective date of termination of the agreement was February 01, 2012.  The Company recognized the stock based compensation expense amounted to $720 for this service which was based on stock price measured at fair market value at the date of allotment of shares on August 23, 2012 (9,000 common shares at $0.08 per share).On December 17, 2012, the Company recognized stock based compensation expense amounted to $800 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (40,000 common shares at $0.02 per share).  On January 1, 2013, the Company recognized stock based compensation expense amounted to $240 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (12,000 common shares at $0.02 per share).  On May 8, 2013, the Company recognized stock based compensation expense amounted to $4,200 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (4,000 common shares at $1.05 per share).

F-11

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. At present, there is a high concentration on a few outstanding accounts receivable brought forward from prior periods as more fully explained in Note 12 hereof.  The Company controls credit risk related to account receivable through credit approvals, credit limits and monitoring procedures.  The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

Recent Accounting Pronouncements

In February 2013, the FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.”  The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operation or financial condition.

As of June 30, 2013, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

Note 4 - AMOUNTS DUE TO TRUSTEES

The Company intends to increase its capital by issuing new common stocks to a group of potential shareholders.  During the quarter ended June 30, 2013, funds totaling $4,663,700 were received from these potential shareholders through three trustees for this purpose.  However, as at June 30, 2013, no formal stock purchase agreement has been executed and common stocks have not been issued, out of the funds $4,663,700 received, $1,134,000 were advanced to two potential shareholders within the group of potential shareholders, thereby leaving a net amount of $3,529,700.

The advance payments of $1,134,000 will be settled when stock purchase agreement is executed and common stocks are issued.  The net amount $3,529,700 received from these three trustees are classified under current liabilities in the Company’s balance sheet and these amounts due are unsecured, interest free and are repayable on demand.

F-12

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 5 - INCOME TAXES

The Company operates in more than one jurisdiction with the main operations conducted in  PRC and no activities in United States, with complex regulatory environments subject to different interpretations by the taxpayer and the respective governmental taxing authorities. The Company evaluates its tax positions and establishes liabilities, if required.

Pursuant to the PRC Income Tax Laws, the Enterprise Income Tax (“EIT”) through December 31, 2007 is at a statutory rate of 33%, which is comprised of 30% national income tax and 3% local income tax.  As from January 1, 2008 onwards, the EIT is at a statutory rate of 25%.

Uncertain Tax Positions

Interest associated with unrecognized tax benefits are classified as income tax and penalties in selling, general and administrative expenses in the statements of operations. For the six months and three months ended June 30, 2013 and 2012, the Company had no related interest and penalties expenses. Currently, the Company is not subject to examination by major tax jurisdictions, but the tax authority in PRC has the right to examine the Company’s tax position in all past years.

The deferred tax asset not recognized is as follows:

	06/30/2013			12/31/2012
Unused tax loss brought forward	$	5,208,680		$	4,124,891
Unused tax loss for the period/year		502,999			1,393,388
Expenses not deductible for tax (share-based payment)		(149,454	)		(309,599	)
	$	5,562,225		$	5,208,680
Unrecognized  deferred tax asset brought forward		1,302,170			1,031,223
Unrecognized  deferred tax asset for the year (at PRC tax rate of 25%)		88,386			270,947
Unrecognized  deferred tax asset carried forward	$	1,390,556		$	1,302,170
Less : valuation allowances		(1,390,556	)		(1,302,170	)
Deferred income tax benefit, net of valuation allowance	$	-		$	-

The Company has not recognized deferred tax asset in respect of PRC tax loss in these Consolidated Financial Statements as it is not more-likely-than-not that the future taxable profit against which loss can be utilized will be available to the entities operating in PRC.  The unrecognized  tax loss as of December 31, 2012 that will be expiring in 2013, 2014, 2015, 2016 and 2017are respectively $426,068, $648,473, $1,596,587, $1,453,763 and $1,083,789.The unrecognized tax loss incurred for six months ended June 30, 2013 of $353,545 (on top of the amount of unrecognized tax losses to December 31, 2012) will expire in 2018.

F-13

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 6 - COMMON STOCK AND PREFERRED STOCK

The Company is authorized to issue up to 100,000,000 shares of common stock of par value of $0.001 per share and 3,558,046 shares of Series A preferred stock of par value of $0.001 per share.  As detailed in Note 1 above, on January 27, 2011, the Company effected a reverse stock split such that the number of all existing issue shares were reduced from 19,900,100 to 866,636 on a 23 to 1 basis.  At the same time, pursuant to the Share Exchange Agreement, Surry became a wholly-owned subsidiary of the Company through issuance of 28,496,427 shares of common stock of par value of $0.001 per share and 3,558,046 shares of Series A preferred stock of par value of $0.001 per share.

For accounting purposes, this transaction was treated as reverse acquisition and the Company’s equity accounts at December 31, 2010 prior to the acquisition are restated based on the ratio of the exchange of 28,496,427 shares of common stock of the Company for 44,450 shares of common stock of Surry and exchange of 3,558,046 shares of preferred stock of the Company for 5,550 shares of preferred stock of Surry.  As the par value of each capital stock of the Company and Surry are $0.001 and $1 respectively, the difference in capital of $17,946 arising from this reverse acquisition was reallocated to additional paid-in capital.

On July 12, 2011, the Company issued 2,900,000 shares of common stock to four independent parties as payments to such parties for market research and other advisory services for $899,000 (see Note 8).

On December 27, 2011 and August 23, 2012, the Company has issued common stock of 18,000 shares and 9,000 shares respectively to an independent party for settlement of services provided to the Company regarding investor relations and financial media services amounted to $4,500 and $720 (note 8) respectively.

On September 5, 2012, 7,423,817 shares of common stock and 3,558,046 shares of preferred stock held by six shareholders and a shareholder respectively were returned and cancelled for no consideration.

On November 30, 2012, 8,116,194 shares of common stock held by four shareholders were returned and cancelled for no consideration.

The return and cancellation of common stocks and preferred stocks by major shareholders on September 5, 2012 and November 30, 2012 are for the purposes of supporting the development of the Company by those major shareholders and in order to induce more potential investors to inject capital into the Company in the future.

On December 17, 2012, the Company issued common stock of 40,000 shares to an independent party for settlement of services provided to the Company regarding general legal advisory services amounted to $800 (Note 8).

On January 1, 2013 and May 8, 2013, the Company has issued common stock of 12,000 shares and 4,000 shares to an independent party for settlement of services provided to the Company regarding general legal advisory services amounted to $240 and $4,200 (Note 8) respectively.

As of June 30, 2013, the Company has a total of 16,806,631 shares of common stock and no shares of Series A Preferred Stock outstanding.

F-14

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 7 - ADDITIONAL PAID IN CAPITAL

Included in the Additional paid-in capital balance of $5,840,837 as of June30, 2013, is an amount $4,399,000 arose from two waivers of amount due to shareholders took place in December, 2009 of $1,465,000 and February, 2010 of $2,934,000.

On July 21, 2011, the Company obtained a financial undertaking from the former holder of our preferred stock, Guoxing Wang, to inject funds in the amount of RMB10,000,000 (equivalent to $1,547,000) to HZ Ceetop as its working capital on or before December 31, 2011.  That shareholder further agreed that such capital injection will be interest free and he waived his entitlement to and right for repayment to the capital injected.  On August 8, 2011, there was a capital injection of RMB2, 000,000 (equivalent to $312,412) received from that shareholder and was credited to Additional Paid in Capital of the Company. Management is unable to ascertain when, or if, the balance of RMB8, 000,000 (equivalent to $1,234,588) will be injected to the Company.

On September 5, 2012, 7,423,817 shares of common stock and 3,558,046 shares of preferred stock held by six shareholders and a shareholder respectively were returned and cancelled for no consideration; an amount of $10,982 was therefore credited to additional paid in capital on that date.

On November 30, 2012, 8,116,194 shares of common stock held by four shareholders were returned and cancelled for no consideration; an amount of $8,116 was therefore credited to additional paid in capital on that date.

Note 8 - SHARE BASED PAYMENTS

On July 12, 2011, the Company issued 2,900,000 shares of the Company’s common stock to Wuying Wang, Xiaoghua Jin, Lifang Yang and Qingxin Huang, four independent parties, in exchange for market research and other advisory services from them pursuant to the terms of four consultancy agreements dated May 6, 2011, June 15, 2011, April 3, 2011 and May 5, 2011 respectively (“Consultancy Agreements”) (see Note 6).  The shares were fully vested and not subject to forfeiture when issued. The fair value of the shares issued was $0.31 per share and the total fair value of the shares issued was $899,000.  The fair value of the shares issued was based on the quoted market price of the Company’s shares as of July 12, 2011. The total fair value of the shares issued is recognized as a share-based payment expense over the period from the date of the Consultancy Agreements to the consultancy services are completed.  The consultancy services are to be performed for two to three years.   For the six months ended June 30, 2013 and 2012 the Company amortized $145,014 and $153,198 as share-based payment expense respectively.  For the three months ended June 30, 2013 and 2012 the Company amortized $69,257 and $76,599 as share-based payment expense respectively.  The unrecognized share-based payment expense of $249,650 as of June 30, 2013 will be amortized up to July 2014.  There is no tax benefit related to the share-based payment expense recognized.

On December 27, 2011, the Company issued 18,000 shares of the Company’s common stock to Capital Link, Inc., an independent party, in exchange for investor relations and financial media services provided by that party pursuant to the terms of service agreement dated November 9, 2011 (see Note 6).  The shares were fully vested and not subject to forfeiture when issued.  The fair value of the shares issued was $0.25 per share and total fair value of the shares issued was $4,500 and was recognized as a share-based payment expense when issued.  The fair value of the shares issued was based on the quoted market price of the Company’s shares as of December 27, 2011.  The Service Agreement was to be performed from December 1, 2011 to November 30, 2012 with a monthly retainer payable in the form of 9,000 common shares.  However, both parties signed an early termination agreement on August 14, 2012 agreeing that the effective date of termination of the agreement was February 01, 2012.  The Company recognized the stock based compensation expense amounted to $720 (As a provision of $2,250 had already been recognized in the quarter March 31, 2012, therefore a reversal of $1,530 was recognized in the quarter September 30, 2012) for this service which was based on stock price measured at fair market value at the date of allotment of shares on August 23, 2012 (9,000 common shares at $0.08 per share).

F-15

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 8 - SHARE BASED PAYMENTS (CONTINUED)

On December 17, 2012, the Company issued 40,000 shares of the Company’s common stock to the Company’s legal adviser for legal advisory services performed to the Company. The fair market value of the shares issued was $0.02 per share and total fair value of the shares issued was $800 and was recognized as a share-based payment expenses when issued.

On January 1, 2013, the Company issued 12,000 shares of the Company’s common stock to the Company’s legal adviser, for legal advisory services performed to the Company. The fair market value of the shares issued was $0.02 per share and total fair value of the shares issued was $240 and was recognized as a share-based payment expenses when issued.

On May 8, 2013, the Company issued 4,000 shares of the Company’s common stock to the Company’s legal adviser, for legal advisory services performed to the Company. The fair market value of the shares issued was $1.05 per share and total fair value of the shares issued was $4,200 and was recognized as a share-based payment expenses when issued.

Note 9 - STATUTORY RESERVE

In accordance with the laws and regulations of the PRC, a wholly-owned Foreign Invested Enterprise’s income, after the payment of the PRC income taxes, shall be allocated to the statutory reserves. The allocation is 10 percent of the net income and the cumulative allocations are not to exceed 50 percent of the registered capital.  However, the laws do not prohibit enterprises to allocate net income to this reserve after the limit of 50 percent of registered capital has been reached. These reserves are not transferable to the Company in the form of cash dividends, loans or advances. These reserves are therefore not available for distribution except in liquidation. As of June 30, 2013 and December 31, 2012, the Company has not allocated to these non-distributable reserve funds due to losses sustained in the six months ended June 30, 2013 and the year ended December 31, 2012.

Note 10 - ACCUMULATED OTHER COMPREHENSIVE INCOME

Balances and movements of accumulated other comprehensive income, included in stockholders’ equity, at June 30, 2013 and December 31, 2012, are as follows:

	Foreign Currency Translation Adjustment		Accumulated Other Comprehensive Income
Balance at December 31, 2011	$	108,193	$	108,193
Change for the year		8,387		8,387
Balance at December 31, 2012		116,580		116,580
Change for 2013 Q1		180		180
Balance at March 31, 2013	$	116,760		116,760
Change for 2013 Q2		34,040		34,040
Balance at June 30, 2013	$	150,800	$	150,800

F-16

CHINA CEETOP.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013

(UNAUDITED)

Note 11- CURRENT VULNERABILITY DUE TO CERTAIN RISK FACTORS

The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, by the general state of the PRC's economy. The Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

Note 12 - MAJOR CUSTOMERS AND CREDIT RISK

Two customers each accounted for 38% and 53% of accounts receivable respectively at June 30, 2013 and December 31, 2012 totaling 91%.  There was no vendor that accounted for more than 10% of accounts payable at June 30, 2013 and December 31, 2012.

There was no customer that accounted for more than 10% of sales for the three months ended June 30, 2013.  Three customers each accounted for more than 10% of sales for the three months ended June 30, 2012, totaling 64%.  There was no vendor that accounted for more than 10% of purchases for the three months ended June 30, 2013.  Three vendors each accounted for more than 10% of purchases for the three months ended June 30, 2012, totaling 62% of purchases.

There was no customer that accounted for more than 10% of sales for the six months ended June 30, 2013.  Two customers each accounted for more than 10% of sales for the six months ended June 30, 2012, totaling 34%.  There was no vendor that accounted for more than 10% of purchases for the six months ended June 30, 2013.  Two vendors each accounted for more than 10% of purchases for the six months ended June 30, 2012, totaling 43% of purchases.

Note 13 - LEASES

As at June 30, 2013, the Company had total future aggregate minimum lease payments under non-cancellable operating leases as follows:

		06/30/2013
Within 1year	$	60,313
In the second year		64,553
In the third year		71,621
In the fourth year		75,862
In the fifth year		51,831
	$	324,180

As at June 30, 2013, the Company has two offices situated in Hangzhou, PRC.  The operating lease for these offices provides for monthly rental payments of $6,071 and $248 that are expiring in March, 2018. As at December 31, 2012, the Company had one office situated in Hangzhou, PRC. The operating leases for these offices provided for monthly rental payments of $1,557 that was expiring in June, 2014.  In respect of these leases, the Company paid rental expenses of $13,361 and $10,952 for the six months ended June 30, 2013 and 2012 respectively.

Note 14 - SUBSEQUENT EVENTS

For the six months ended June 30, 2013, the Company has evaluated subsequent events for potential recognition and disclosure.

No significant events occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on our consolidated financial statements.

F-17

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Description of Business

Overview

China Ceetop.com, Inc. (the “Company”) is an Oregon-registered corporation. Before 2013 the company owned and operated the online retail platform: www.ceetop.com. Due to excessive competition in online retail, the Company has transformed itself into an integrated supply chain services provider, and focuses on B to B supply chain management and related value-added services among enterprises.

Since second half of 2012, the Company gradually has changed its focus from online retail business, and focused on providing warehousing management and Business to Business (“B to B”) supply chain information technology service for suppliers. After business restructuring and pilot run in the first half of 2013, the Company’s main business was adjusted as following: through warehousing management service and focusing on B to B supply chain information technology, providing third party supply chain management service for customers, provide data services, and supply chain financial services, and other value-added services for customers. The Company provides customers with B to B integrated supply chain services.

By establishing a warehousing base, using iSCM (namely, e-commerce supply chain management system) platform to build a "standardized" identity for the "non-standardized" products, and completing standard data transmission between the upstream and downstream Enterprise Resource Planning of enterprises through iSCM platform, the Company will make the information of purchase, sales and logistics of its customers more accurate and transparent. With the support of this platform, our customers’ business information will be displayed accurately in front of their partners such as banks, thus improving the credibility of our customers. By providing customers with this platform and providing customers with third party logistics supervision, the Company will assist banks and other financial institutions to provide customers with supply chain based financial services.

Through the stimulation of labor specialization, the original competition between products or companies has turned into the competition between supply chains. Each supply chain is represented by collaboration among multiple enterprises, and provides a set of final products for consumers. The Company now focuses on B to B data collection and transmission among multiple enterprises, and data analysis services. Our advanced technology, experiences in supply chain management and efficient data processing ability can provide value-added data services for other online platforms, offline stores and logistic servers, banks and others.

The Company was headquartered in Shenzhen, China, and the headquarters was moved to Guiyang, China, in the second quarter of 2013. We also maintain an operating office and warehousing base located in Hangzhou, China.

Organization History

Organizational History of China Ceetop.com, Inc

China Ceetop.com, Inc. was incorporated in Oregon on February 18, 2003 under the name of GL Gold Inc.  On June 6, 2003 the Company filed an amendment with the State of Oregon changing its name to Oregon Gold, Inc.  On January 7, 2011 Oregon Gold Inc. changed its name to China Ceetop.com, Inc.    On January 27, 2011, the Company became the holding company of Surry Holding Limited (“Surry”) through a reverse acquisition.  The Company acquired all of the issued and outstanding capital stock of Surry pursuant to the share exchange agreement dated December 30, 2010 by and among Surry, the Company and the shareholders of the Company (the “Share Exchange Agreement”).  At the same time, the Company effected a reverse stock split such that the number of all existing issued shares were reduced from 19,900,100 to 866,636 on a 23 to 1 basis.  Pursuant to the Share Exchange Agreement, the Company acquired 100% of the capital stock and ownership interests of Surry in exchange for 28,496,427 newly-issued shares of the Company’s common stock and 3,558,046 newly issued shares of the Company’s Series A preferred stock.

18

Organizational History of Surry

Surry was incorporated in the British Virgin Islands on September 18, 2009. Surry owns 100% of the outstanding securities of Westow Technology Limited (“Westow”), a company incorporated in the British Virgin Islands. Surry’s subsidiaries are engaged in supply chain services business. Pursuant to a transaction completed on February 28, 2010, the Company holds 100% of Westow.

Organizational History of Westow

Westow was incorporated on September 7, 2009, and owns 100% of the outstanding securities of Guizhou Ceetop Network Technology Co., Ltd (Formerly Shenzhen Ceetop Network Technology Co., Limited, changed name and moved to Guiyang, China, in second quarter of 2013),  a company registered in Guiyang, PRC.

Organizational History of Guizhou Ceetop Network Technology Co., Ltd, Hangzhou Ceetop Network Technology Co., Ltd,Hangzhou Lianzhan Supply Chain Management Co., Ltd,Hangzhou Tuoyin Management Consulting Co., Ltd.

Guizhou Ceetop Network Technology Co., Ltd (formerly Shenzhen Ceetop Network Technology Co., Ltd. was incorporated in Shenzhen in August, 2009) changed its name and moved to Guiyang, PRC during the second quarter of 2013. Hangzhou Ceetop Network Technology Co., Ltd. was incorporated in October 31, 2006. Both Hangzhou Lianzhan Supply Chain Management Co., Ltd. (mainly provides the integrated supply chain services, focuses on B to B supply chain management and related value-added service among enterprises.) and Hangzhou Tuoyin Management Consulting Co., Ltd. (mainly accumulates knowledge, technology expertise and patents, and provides consulting services for other enterprises.) were incorporated in Hangzhou in June 2013. Guizhou Ceetop Network Technology Co., Ltd owns 100% outstanding securities of Hangzhou Ceetop Network Technology Co., Ltd., Hangzhou Lianzhan Supply Chain Management Co., Ltd. and Hangzhou Tuoyin Management Consulting Co., Ltd.

Corporate Organization

19

The address for each entity is set forth below:

Name	Address
China Ceetop.com, Inc	A2803, Lianhe Guangchang, 5022 Binhe Dadao, Futian District, Shenzhen, China
Surry Holdings Limited	P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands
Westow Technology Limited	P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands
Guizhou Ceetop Network Technology Co. Ltd (headquarters)	East Yunhuan Road, Baiyun District, Guiyang, China
Hangzhou Ceetop Network Technology Co. Ltd	501 A YuanhuaWangzuo Center, 65 Xintang Road, Hangzhou, China, 310020
Hangzhou Lianzhan Supply Chain Management Co., Ltd.	Suite A1028, 9th Xiyuan Road, Boke Dasha, Hangzhou, China
Hangzhou Tuoyin Management Consulting Co., Ltd.	Suite A1027, 9th Xiyuan Road, Boke Dasha, Hangzhou, China

Comparison of Three Months Ended June 30, 2013 and 2012

For the three months ended June 30, 2013, our net sales decreased to $0 from $1,333,633for the three months ended June 30, 2012, representing a 100% decrease. This decrease in net sales was due to the Company’s transition from online retail sales to B to B supply chain service.

Cost of Sales

For the three months ended June 30, 2013 and 2012, the Company’s costs of sales were $0 and $1,310,734 respectively, a decrease of 100%.  This decrease in cost of sales was mainly due to the decrease in sales, and the transition of the Company into a new facet of business.

Gross Profit

For the three months ended June 30, 2013, our gross profit decreased to $0 from $22,899 for the three months ended June 30, 2012, representing a 100% decrease. The decrease in gross profit was a result of the transition of our business.

Stock Based Compensation

The Company had stock based compensation for the three months ended June 30, 2013 and 2012 of $73,457 and $74,259, respectively.  The compensation was issued for various consulting and professional services to the Company. 

Selling, General and Administrative Expenses

Our selling, general and administrative expenses decreased to $222,228 for the three months ended June 30, 2013 from $223,571 for the three months ended June 30, 2012.

Net loss

The Company’s net loss was $293,230 and $274,180 for the three months ended June 30, 2013 and 2012, respectively representing a 7% increase.

Liquidity and Capital Resources

As of June 30, 2013 and December 31, 2012, we had cash and cash equivalents of $3,020,833 and $71,608, respectively, primarily consisting of cash on hand and demand deposits.  To date, we have financed our operations primarily through cash flows from operations and capital contributions.

20

For the year ended December 31, 2012, our independent auditors, in their report on the financial statements, have indicated that the Company has experienced recurring losses from operations and may not have enough cash and working capital to fund its operations beyond the very near term, which raises substantial doubt about our ability to continue as a going concern. Management has made a similar note in the financial statements.  As indicated herein, we must raise capital for the implementation of our business plan, and we will need additional capital for continuing our operations.  We do not have sufficient revenues to pay our expenses of operations.  Unless the Company is able to raise working capital, it is likely that the Company either will have to cease operations or substantially change its methods of operations or change its business plan.

Operating activities

Net cash used in operating activities was $512,569 for the six months ended June 30, 2013, compared to net cash used in operating activities of $1,470,500 for the six months ended June 30, 2012. The primary change in cash used was due to the Company transition in its business during this period.

Investing activities

Net cash used in investing activities was ($96,902) for the six months ended June 30, 2013, compared to net cash used in investing activities of $nil for the six months ended June 30, 2012. The net cash used in investing activities was due to the payment by the Company for acquisition of property and equipment equal to $96,902 during the six months ended June 30, 2013.

Financing activities

Net cash provided by financing activities was $3,529,700 for the six months ended June 30, 2013, compared to net cash provided by financing activities of $684,720 for the six months ended June 30, 2012.The net cash used by financing activities was due to cash advance from three potential investors of $3,529,700 during the six months ended June 30, 2013.  The Company is in the process of formalizing suitable documentation for this investment into the Company and if such agreements cannot be finalized the Company may be forced to return all or a portion of such funds.

Although the Company incurred a loss of $502,999 for the six months ended June 30, 2013 and has sustained accumulated losses of $6,222,035 at June 30, 2013, the Company is actively seeking additional financing opportunities, and focusing on the transition to the new facets of its business to generate cash flow.

Off-Balance Sheet Arrangements

We have never entered into any off-balance sheet arrangements and have never established any special purpose entities. We have not guaranteed any debt or commitments of other entities or entered into any options on non-financial assets.

21

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

As a smaller reporting company, we are not required to provide the information required by this Item.

ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the Company’s reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer (the “Certifying Officers”), as appropriate to allow timely decisions regarding required disclosure.

As required by Rules 13a-15 and 15d-15 under the Exchange Act, the Certifying Officers carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of June 30, 2013. Their evaluation was carried out with the participation of the Company’s management. Based upon their evaluation, the Certifying Officers concluded that the Company’s disclosure controls and procedures were effective.

The Chief Executive Officer and the Chief Financial Officer believe that the financial statements and other information contained in this quarterly report present fairly, in all material respects, our business, financial condition and results of operations.  Nothing has come to the attention of management that causes them to believe that any material inaccuracies or errors exist in our financial statements as of June 30, 2013.

Changes in Internal Control Over Financial Reporting

There has been no change in the Company’s internal control over financial reporting that occurred in the quarter ended June 30, 2013, that has materially affected, or is reasonably likely to affect, the Company’s internal control over financial reporting.

22

PART II – OTHER INFORMATION

Item 1.  Legal Proceedings

Neither the Company nor its property is a party to any pending legal proceeding.

Item 1A.  Risk Factors

Smaller reporting companies are not required to provide disclosure pursuant to this Item.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.  Defaults Upon Senior Securities

None

Item 4.  Mine Safety Disclosures

Not applicable.

Item 5.  Other Information

None

Item 6.  Exhibits

Exhibit Number	Name of Exhibit
31.1	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.(1)
31.2	Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.(1)
32.1	Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002. (1)
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Stockholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows and (v) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text. (2)

(1)   Filed herewith

(2)   Users of this data are advised that pursuant to Rule 406T of Regulation S-T, this XBRL information is being furnished and not filed herewith for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and Sections 11 or 12 of the Securities Act of 1933, as amended, and is not to be incorporated by reference into any filing, or part of any registration statement or prospectus, of China Ceetop.com, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.

23

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

CHINA CEETOP.COM, INC.

(Registrant)

By:	Weiliang Liu
Weiliang Liu
CEO, President, Secretary, and Director

Date: August 20, 2013

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signatures	Title	Date
/s/ Weiliang Liu	CEO, President, Secretary, and Director	August 20, 2013
Weiliang Liu

/s/ Shengming Jia	CFO, and Treasurer	August 20, 2013
Shengming Jia

24

EX-31.1

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Weiliang Liu, certify that:

1. I have reviewed the report on Form 10-Q of China Ceetop.com, Inc. for the quarter ended June 30, 2013.

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

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

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and I have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

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

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

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls 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.

By:	/s/  Weiliang Liu
	Weiliang Liu, CEO
Date: August 20, 2013

EX-31.2

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Shengming Jia, certify that:

1. I have reviewed the report on Form 10-Q of China Ceetop.com, Inc. for the quarter ended June 30, 2013.

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

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

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have: 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

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

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

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls 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.

(Registrant)	CHINA CEETOP.COM, INC.
By:	/s/  Shengming Jia
	Shengming Jia, CFO
Date: August 20, 2013

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 report of China Ceetop.com, Inc. on Form 10-Q for the quarter ended June 30, 2013 as filed with the Securities and Exchange Commission (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

2.    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

CHINA CEETOP.COM, INC.
By:	/s/ Weiliang Liu
	Weiliang Liu, CEO, President, Secretary, Director
Date: August 20, 2013
By:	/s/ Shengming Jia
	Shengming Jia, CFO, Treasurer
Date: August 20, 2013

XML

Current Vulnerability Due to Certain Risk Factors

6 Months Ended

Jun. 30, 2013

Current Vulnerability Due To Certain Risk Factors [Abstract]

CURRENT VULNERABILITY DUE TO CERTAIN RISK FACTORS

Note 11- CURRENT VULNERABILITY DUE TO CERTAIN RISK FACTORS

The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, by the general state of the PRC's economy. The Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

XML

Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statements of Income and Comprehensive Income [Abstract]
Sales, net		$ 1,333,633		$ 2,643,658
Cost of sales		(1,310,734)		(2,556,672)
Gross profit		22,899		86,986
Stock based compensation	(73,457)	(74,259)	(149,454)	(155,448)
Selling, general and administrative expenses	(222,228)	(223,571)	(356,002)	(444,933)
(Loss) from operations	(295,685)	(274,931)	(505,456)	(513,395)
Other Income
Interest income	2,455	19	2,457	184
Other income		732		732
Total other income	2,455	751	2,457	916
Net (loss)	(293,230)	(274,180)	(502,999)	(512,479)
Weighted average shares (including common shares and non-convertible preferred shares) outstanding
Basic - note 3)	16,804,426	35,839,109	16,803,245	35,839,109
Diluted - note 3)	16,804,426	35,839,109	16,803,245	35,839,109
Net (loss) per share (include common shares and non-convertible preferred shares)
Basic - note 3)	$ (0.0174)	$ (0.0077)	$ (0.0299)	$ (0.0143)
Diluted - note 3)	$ (0.0174)	$ (0.0077)	$ (0.0299)	$ (0.0143)
Net (loss)	(293,230)	(274,180)	(502,999)	(512,479)
Other comprehensive income - gain on foreign currency translation	34,040	536	34,220	7,488
Comprehensive (loss)	$ (259,190)	$ (273,644)	$ (468,779)	$ (504,991)

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Amounts Due To Trustees

6 Months Ended

Jun. 30, 2013

Amount Due to Potential Investors [Abstract]

AMOUNTS DUE TO TRUSTEES

Note 4 - AMOUNTS DUE TO TRUSTEES

The Company intends to increase its capital by issuing new common stocks to a group of potential shareholders.  During the quarter ended June 30, 2013, funds totaling $4,663,700 were received from these potential shareholders through three trustees for this purpose.  However, as at June 30, 2013, no formal stock purchase agreement has been executed and common stocks have not been issued, out of the funds $4,663,700 received, $1,134,000 were advanced to two potential shareholders within the group of potential shareholders, thereby leaving a net amount of $3,529,700.

The advance payments of $1,134,000 will be settled when stock purchase agreement is executed and common stocks are issued.  The net amount $3,529,700 received from these three trustees are classified under current liabilities in the Company’s balance sheet and these amounts due are unsecured, interest free and are repayable on demand.

XML

Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2013

Common Stock and Preferred Stock and Accumulated Other Comprehensive Income [Abstract]

Summary of balances and movements of accumulated other comprehensive income

	Foreign Currency Translation Adjustment		Accumulated Other Comprehensive Income
Balance at December 31, 2011	$	108,193	$	108,193
Change for the year		8,387		8,387
Balance at December 31, 2012		116,580		116,580
Change for 2013 Q1		180		180
Balance at March 31, 2013	$	116,760		116,760
Change for 2013 Q2		34,040		34,040
Balance at June 30, 2013	$	150,800	$	150,800

XML

Major Customers and Credit Risk

6 Months Ended

Jun. 30, 2013

Major Customers and Credit Risk [Abstract]

MAJOR CUSTOMERS AND CREDIT RISK

Note 12 - MAJOR CUSTOMERS AND CREDIT RISK

Two customers each accounted for 38% and 53% of accounts receivable respectively at June 30, 2013 and December 31, 2012 totaling 91%.  There was no vendor that accounted for more than 10% of accounts payable at June 30, 2013 and December 31, 2012.

There was no customer that accounted for more than 10% of sales for the three months ended June 30, 2013.  Three customers each accounted for more than 10% of sales for the three months ended June 30, 2012, totaling 64%.  There was no vendor that accounted for more than 10% of purchases for the three months ended June 30, 2013.  Three vendors each accounted for more than 10% of purchases for the three months ended June 30, 2012, totaling 62% of purchases.

There was no customer that accounted for more than 10% of sales for the six months ended June 30, 2013.  Two customers each accounted for more than 10% of sales for the six months ended June 30, 2012, totaling 34%.   There was no vendor that accounted for more than 10% of purchases for the six months ended June 30, 2013.  Two vendors each accounted for more than 10% of purchases for the six months ended June 30, 2012, totaling 43% of purchases.

XML

Accumulated Other Comprehensive Income (Details) (USD $)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Summary of balances and movements of accumulated other comprehensive loss, included in stockholders' equity
Foreign currency translation adjustment, Beginning balance	$ 116,760	$ 116,580	$ 116,580	$ 108,193
Change in foreign currency translation adjustment	34,040	180	34,220	8,387
Foreign currency translation adjustment, Ending balance	150,800	116,760	150,800	116,580
Accumulated Other Comprehensive Income (Loss), Beginning Balance	116,760	116,580	116,580	108,193
Change in accumulated other comprehensive income (loss)	34,040	180		8,387
Accumulated Other Comprehensive Income (Loss), Ending Balance	$ 150,800	$ 116,760	$ 150,800	$ 116,580

XML

Going Concern (Details)	0 Months Ended				3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 08, 2011 USD ($)	Aug. 08, 2011 CNY	Jul. 21, 2011 USD ($)	Jul. 21, 2011 CNY	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2012 USD ($)	Jun. 30, 2013 CNY	Dec. 31, 2011 USD ($)
Going Concern (Textual)
Net (loss)					$ (293,230)	$ (274,180)	$ (502,999)	$ (512,479)	$ (1,393,388)
Accumulated deficit					(6,222,035)		(6,222,035)		(5,719,036)
Net deficiency in assets					(463,242)		(463,242)		(143,917)		931,485
Proceeds from contributed capital	312,412	2,000,000	1,547,000	10,000,000
Subsidies provided by government to company to establish business in city (in three consecutive years)										10,000,000
Proceeds from formal stock purchase agreements and issuance of common stock							$ 3,529,700

XML

Organization (Details)	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended			0 Months Ended		6 Months Ended
	Jan. 27, 2011	Jun. 30, 2013	Dec. 31, 2010 Subsidiaries [Member]	Jun. 30, 2013 Shenzhen Ceetop Network Technology Co, Limited [Member]	Jun. 30, 2013 Hangzhou Ceetop Network Technology Co, Limited [Member]	Jun. 30, 2013 Surry Holdings Limited [Member]	May 29, 2013 Hangzhou Tuoyin Management Consulting Co., Limited [Member]	May 29, 2013 Hangzhou Lianzhan Supply Chain Management Co., Limited [Member]	Jun. 30, 2013 Common Stock [Member]	Jun. 30, 2013 Series A Preferred Stock [Member]
Organization (Textual)
Percentage ownership in subsidiary				100.00%	100.00%	100.00%	100.00%	100.00%
Existing issued shares	19,900,100
Number of shares after reduction due to reverse stock split	866,636
Reverse stock split	23 to 1 basis
Newly issued shares for acquisition		28,496,427	28,496,427						28,496,427	3,558,046

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Common Stock and Preferred Stock (Details) (USD $)	0 Months Ended		6 Months Ended							0 Months Ended		1 Months Ended	0 Months Ended
	Jul. 12, 2011 Independentparty	Jan. 27, 2011	Jun. 30, 2013	May 08, 2013	Jan. 01, 2013	Dec. 31, 2012	Dec. 17, 2012	Aug. 23, 2012	Dec. 27, 2011	Dec. 31, 2010 Surry [Member]	Sep. 05, 2012 Common Stock [Member]	Nov. 30, 2012 Common Stock [Member] Shareholder	Sep. 05, 2012 Preferred Stock [Member] Shareholder	Jun. 30, 2013 Preferred Stock [Member]
Common Stock and Preferred Stock (Textual)
Common stock, par value			$ 0.001			$ 0.001
Preferred stock, par value			$ 0.001							$ 0.001
Capital stock, par value										$ 1
Series A preferred stock issued in Share Exchange Agreement			3,558,046							3,558,046
Newly issued shares for acquisition			28,496,427							28,496,427
Common shares issued by acquired entity										44,450
Preferred shares issued by acquired entity										5,550
Amount reallocated to additional paid in capital due to reverse acquisition										$ 17,946
Cancellation of shares											7,423,817	8,116,194	3,558,046
Number of shareholder												4	6
Preferred stock, shares authorized			3,558,046
Common Stock, shares outstanding			16,806,631			16,790,631
Common stock, shares issued			16,806,631			16,790,631								16,806,631
Common stock, shares authorized			100,000,000			100,000,000
Number of shares before reduction due to reverse stock split		19,900,100
Number of shares after reduction due to reverse stock split		866,636
Reverse stock split		23 to 1 basis
Number of independent parties	4
Fair value of share issued	$ 899,000			$ 4,200	$ 240		$ 800	$ 720	$ 4,500
Shares issued to independent party for settlement of services				4,000	12,000		40,000	9,000	18,000

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Leases (Details) (USD $)	Jun. 30, 2013
Summary of total future aggregate minimum lease payments under non-cancellable operating leases
Within 1 year	$ 60,313
In the second year	64,553
In the third year	71,621
In the fourth year	75,862
In the fifth year	51,831
Total future aggregate minimum lease payments	$ 324,180

XML

Amounts Due To Trustees (Details) (USD $)	6 Months Ended
	Jun. 30, 2013 Investor	Dec. 31, 2012
Amount Due To Trustees (Textual)
Fund received from shareholders through trustees	$ 4,663,700
Amount of funds advanced to trustees	1,134,000
Amount due to trustees	$ 3,529,700
Amount of fund returned to number of potential share holders	2

XML

Leases (Tables)

6 Months Ended

Jun. 30, 2013

Leases [Abstract]

Summary of total future aggregate minimum lease payments under non-cancellable operating leases

		06/30/2013
Within 1year	$	60,313
In the second year		64,553
In the third year		71,621
In the fourth year		75,862
In the fifth year		51,831
	$	324,180

XML

Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)	Total	Common stock	Preferred stock	Additional Paid-In Capital	Common stock issued for prepaid service	Other comprehensive income	(Accumulated Loss)
Beginning Balance at Dec. 31, 2011	$ 931,485	$ 32,281	$ 3,558	$ 5,815,844	$ (702,743)	$ 108,193	$ (4,325,648)
Beginning Balance, (shares) at Dec. 31, 2011		32,281,642	3,558,046
Foreign currency translation adjustments - note 10	8,387					8,387
Record of common stock for prepaid service - note 8	308,079				308,079
Issuance of common stock for Legal adviser - notes 6, 8	800	40		760
Issuance of common stock for Legal adviser - notes 6, 8 (Shares)		40,000
Issuance of common stock for consultancy service - notes 6, 8	720	9		711
Issuance of common stock for consultancy service - notes 6, 8 (Shares)		9,000
Cancellation of shares - note 6		(15,540)	(3,558)	19,098
Cancellation of shares - note 6, (shares)		(15,540,011)	(3,558,046)
Net loss	(1,393,388)						(1,393,388)
Balance at Dec. 31, 2012	(143,917)	16,790		5,836,413	(394,664)	116,580	(5,719,036)
Balance, (Shares) at Dec. 31, 2012		16,790,631
Beginning Balance at Jan. 01, 2013
Foreign currency translation adjustments - note 10	34,220					34,220
Record of common stock for prepaid service - note 8	145,014				145,014
Issuance of common stock for Legal adviser - notes 6, 8	4,440	16		4,424
Issuance of common stock for Legal adviser - notes 6, 8 (Shares)		16,000
Net loss	(502,999)						(502,999)
Balance at Jun. 30, 2013	$ (463,242)	$ 16,806		$ 5,840,837	$ (249,650)	$ 150,800	$ (6,222,035)
Balance, (Shares) at Jun. 30, 2013		16,806,631

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Going Concern

6 Months Ended

Jun. 30, 2013

Going Concern [Abstract]

GOING CONCERN

Note 2 - GOING CONCERN

The accompanying Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern.  As shown in the accompanying Consolidated Financial Statements, the Company incurred net losses of $502,999 and $512,479 for the six months ended June 30, 2013 and 2012 respectively, has accumulated deficit of $6,222,035 and has net deficiency in assets of $463,242 respectively at June 30, 2013.  Although as mentioned in Note 7 “Additional Paid in Capital”, a former major preferred stock shareholder of the Company has undertaken to inject funds in the amount of RMB10,000,000 (equivalent to $1,547,000) to HZ Ceetop as its working capital on or before December 31, 2011.  However, up to June 30, 2013, only RMB2,000,000 (equivalent to $312,412) was injected by that former major shareholder and at the same time of injection was waived for repayment by that shareholder so that the amount $312,412 was credited to additional paid in capital.  Management is unable and in particular following returning cancellation of all preferred stock for no consideration on September 5, 2012 (note7) to ascertain when the balance of RMB8,000,000 (equivalent to $1,234,588) would be injected to the Company.  These factors create an uncertainty about the Company’s ability to continue as a going concern.  In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans or through additional sales of common stock.  As mentioned in more detail in Note 4, net funds of $3,529,700 were received during the six month period ended June 30, 2013, from potential investors pending execution of formal stock purchase agreements and the related issuance of common stocks. During the year ended December 31, 2012, a verbal agreement was reached by the Government of Guiyang (the “Government”) and the Company.  Under the terms of agreement, the Government will provide subsidies to the Company amounting to RMB10,000,000 in three consecutive years to encourage the Company establish the business in the city in order to enhance the economic development of the city.  With respect to the verbal agreement, management considers that the main terms of the agreement have been agreed and the remaining details are still in the process of negotiation.  Management is confident that the agreement will be finalized and executed in the near future.  During the negotiation in six months ended June 30, 2013 between both parties, the Company did not generate any supply chain service income pending the finalization of the agreement.  The Consolidated Financial Statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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Income Taxes

6 Months Ended

Jun. 30, 2013

Income Taxes [Abstract]

INCOME TAXES

Note 5 - INCOME TAXES

The Company operates in more than one jurisdiction with the main operations conducted in  PRC and no activities in United States, with complex regulatory environments subject to different interpretations by the taxpayer and the respective governmental taxing authorities. The Company evaluates its tax positions and establishes liabilities, if required.

Pursuant to the PRC Income Tax Laws, the Enterprise Income Tax (“EIT”) through December 31, 2007 is at a statutory rate of 33%, which is comprised of 30% national income tax and 3% local income tax.  As from January 1, 2008 onwards, the EIT is at a statutory rate of 25%.

Uncertain Tax Positions

Interest associated with unrecognized tax benefits are classified as income tax and penalties in selling, general and administrative expenses in the statements of operations. For the six months and three months ended June 30, 2013 and 2012, the Company had no related interest and penalties expenses. Currently, the Company is not subject to examination by major tax jurisdictions, but the tax authority in PRC has the right to examine the Company’s tax position in all past years.

The deferred tax asset not recognized is as follows:

	06/30/2013			12/31/2012
Unused tax loss brought forward	$	5,208,680		$	4,124,891
Unused tax loss for the period/year		502,999			1,393,388
Expenses not deductible for tax (share-based payment)		(149,454	)		(309,599	)
	$	5,562,225		$	5,208,680
Unrecognized  deferred tax asset brought forward		1,302,170			1,031,223
Unrecognized  deferred tax asset for the year (at PRC tax rate of 25%)		88,386			270,947
Unrecognized  deferred tax asset carried forward	$	1,390,556		$	1,302,170
Less : valuation allowances		(1,390,556	)		(1,302,170	)
Deferred income tax benefit, net of valuation allowance	$	-		$	-

The Company has not recognized deferred tax asset in respect of PRC tax loss in these Consolidated Financial Statements as it is not more-likely-than-not that the future taxable profit against which loss can be utilized will be available to the entities operating in PRC.  The unrecognized  tax loss as of December 31, 2012 that will be expiring in 2013, 2014, 2015, 2016 and 2017are respectively $426,068, $648,473, $1,596,587, $1,453,763 and $1,083,789.The unrecognized tax loss incurred for six months ended June 30, 2013 of $353,545 (on top of the amount of unrecognized tax losses to December 31, 2012) will expire in 2018.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These Unaudited Consolidated Financial Statements were prepared by the Company pursuant to the rules and regulations of the SEC.  The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) that are, in the opinion of management, necessary to present fairly the operating results for the respective periods.  Certain information and footnote disclosures normally present in Annual Consolidated Financial Statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) were omitted pursuant to such rules and regulations.  These Unaudited Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements and footnotes for the year ended December 31, 2012.  The results for six months ended June 30, 2013, are not necessary indicative of the results to be expected for the full year ending December 31, 2013.

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company adopted the new accounting guidance (“Codification”) on July 1, 2009. For the six months ended June 30, 2013, all reference for periods subsequent to July 1, 2009 are based on the codification. The Company's functional currency is the Chinese Renminbi; however the accompanying consolidated financial statements have been translated and presented in the United States Dollars (“USD”).

Principles of Consolidation

The Consolidated Financial Statements incorporate the financial statement items of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party.

The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognized in respect of goodwill or excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling party’s interest.

The Consolidated Statements of Income and Comprehensive Income include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control, where this is a shorter period.

A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. Such business combinations are referred to as common control combinations which are in line with U.S. GAAP.

Translation Adjustment

As of June 30, 2013 and December 31, 2012, the accounts of the Company were maintained, and its financial statements were expressed, in RMB.  Such financial statements were translated into USD in accordance with the Foreign Currency Matters Topic of the Codification, with the RMB as the functional currency.  According to the Codification, all assets and liabilities were translated at the current exchange rate, stockholders’ equity are translated at the historical rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with the Comprehensive Income Topic of the Codification, as a component of shareholders’ equity.  Transaction gains and losses are reflected in the income statement.

Use of Estimates

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

Comprehensive Income

The Company uses SFAS 130 “Reporting Comprehensive Income” (codified in FASB ASC Topic 220). Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income for the six months and three months ended June 30, 2013 and 2012 included net income and foreign currency translation adjustments.

Risks and Uncertainties

The Company’s operations are carried out in the PRC.  Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy.  The Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

The Company is subject to substantial risks from, among other things, intense competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history, foreign currency exchange rates and the volatility of public markets.

Contingencies

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. There were no contingencies of this type as of June 30, 2013 and December 31, 2012.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. There were no contingencies of this type as of June 30, 2013 and December 31, 2012.

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

Accounts Receivable

The Company maintains reserves for potential credit losses on accounts receivable.   Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves.  Reserves are recorded based on the Company’s historical collation history.  Allowances for doubtful accounts as of June 30, 2013 and December 31, 2012 were $257,678 and $179,867 respectively.

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property, plant and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property, plant and equipment is provided using the straight-line method for substantially all assets with estimated lives of:

Office equipment   3 - 5 years

As of June 30, 2013 and December 31, 2012 Property, Plant & Equipment consist of the following:

	06/30/2013			12/31/2012
Office equipment		368,600			266,163
Accumulated depreciation		(263,723	)		(248,335	)
	$	104,877		$	17,828

Depreciation expense for the six months ended June 30, 2013 and 2012 was $10,057 and $21,729, respectively.

Depreciation expense for the three months ended June 30, 2013 and 2012 was $2,822 and $12,220, respectively.

Long-Lived Assets

The Property, Plant and Equipment Topic of the Codification addresses financial accounting and reporting for the impairment or disposal of long-lived assets and supersedes previous accounting guidance, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,” and “Reporting the Results of Operations for a Disposal of a Segment of a Business”. The Company periodically evaluates the carrying value of long-lived assets to be held and used, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. Based on its review, the Company believes that, as of June 30, 2013 and December 31, 2012, there were no impairments of its long-lived assets.

Fair Value of Financial Instruments

The Financial Instrument Topic of the Codification requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the balance sheets for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value.

Revenue Recognition

The Company’s revenue recognition policies are in compliance with SEC Staff Accounting bulletin (“SAB”) 104 (codified in FASB ASC Topic 605). Sales revenue is recognized at the completion of delivery to customers when a formal arrangement exists, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured at the date of completion of delivery. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

Shipping and Handling costs

Shipping and handling costs consist primarily of freight charges and packaging charges for delivery of goods to the customers and are included in selling, general and administrative expenses.  The Company expenses all shipping and handling costs when they are incurred.  For the six months ended June 30, 2013 and 2012, the Company incurred freight charges of $Nil and $1,320 respectively and the company did not incur any packaging charges.  For the three months ended June 30, 2013 and 2012, the Company did not incur any freight charges and packaging charges.

Income Taxes

The Company utilizes the accounting standards (“SFAS”) No. 109, “Accounting for Income Taxes,” codified in Financial Accounting Standard Board Accounting Standards Codification (“ASC”) Topic 740 which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN 48”), codified in FASB ASC Topic 740. When tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits are classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. The adoption of FIN 48 did not have a material impact on the Company’s financial statements. At June 30, 2013 and December 31, 2012, the Company did not take any uncertain positions that would necessitate recording a tax related liability.

Statement of Cash Flows

In accordance with SFAS 95 “Statement of Cash Flows”, codified in FASB ASC Topic 230, cash flows from the Company’s operations are based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.

Basic and Diluted Earnings per Share

Earnings per share are calculated in accordance with FASB ASC Topic 260, “Earnings per Share”.  Basic earnings per share are based upon the weighted average number of common shares and preferred shares outstanding.  Preferred shares are included in the denominator of basic earnings per share because preferred shares participate with common shares in the earnings and dividends of the Company on a one-for-one basis. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options were converted or exercised.  Dilution is computed by applying the treasury stock method.  Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Share-Based payment

Share-based payment is accounted for based on the FASB Statement No. 123R, “Share-Based Payment, an Amendment of FASB Statement No. 123” (“FAS No. 123R”) and Emerging Issue Task Force 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling, Goods or Services” (“EITF 96-18”) and Emerging Issue Task Force 00-18 “Accounting Recognition for Certain Transactions involving Equity Instruments Granted to Other Than Employees” (“EITF 00-18”) (codified in FASB ASC Topic 505-50).  The Company recognized in the Consolidated Statements of Income and Comprehensive Income the fair value of shares, stock options and other equity-based compensation issued to non-employees when the service provided by non-employees is completed, or the date when the shares were issued (provided that the shares issued are fully vested and not subject to forfeiture) with the prepaid services presented as contra equity.  This is in accordance with the consensus reached in EITF 00-18 that in the event that a note or receivable is acquired in exchange for the fully vested, non-forfeitable equity instruments, the note or receivable should be displayed as contra-equity by the granter.  The Company as granter interprets that the term “receivable” also embraces prepaid service fees. For employees, the Company recognized in the Consolidated Statements of Income and Comprehensive Income the grant date fair value of the shares, stock options and other equity-based compensation over the requisite service period.  In respect of the service agreement the Company entered into with a service provider for provision of investor relations and financial media service, the service provider is compensated for 9,000 common shares of the Company no later than the 5th day of and for each month over the period of the agreement.  In accordance with the consensus reached in EITF 96-18, the Company recognized in the Consolidated Statement of Income and Comprehensive Income the fair value of each 9,000 common shares issued to the service provider each month as share based payment on the same basis in the same period and in the same manner as if the Company had paid cash for the service rendered by the service provider instead of paying with equity instruments (common shares) of the Company in each month and that the measurement date of the fair value of each 9,000 common shares issued to the service provider will be the issue date which is before the 5th day of each month. However, both parties signed an early termination agreement on August 14, 2012 agreeing that the effective date of termination of the agreement was February 01, 2012.  The Company recognized the stock based compensation expense amounted to $720 for this service which was based on stock price measured at fair market value at the date of allotment of shares on August 23, 2012 (9,000 common shares at $0.08 per share).On December 17, 2012, the Company recognized stock based compensation expense amounted to $800 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (40,000 common shares at $0.02 per share).  On January 1, 2013, the Company recognized stock based compensation expense amounted to $240 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (12,000 common shares at $0.02 per share).  On May 8, 2013, the Company recognized stock based compensation expense amounted to $4,200 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (4,000 common shares at $1.05 per share).

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. At present, there is a high concentration on a few outstanding accounts receivable brought forward from prior periods as more fully explained in Note 12 hereof.  The Company controls credit risk related to account receivable through credit approvals, credit limits and monitoring procedures.  The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

Recent Accounting Pronouncements

In February 2013, the FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.”  The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operation or financial condition.

As of June 30, 2013, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.

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Leases (Details Textual) (Hangzhou [Member], USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2013 Office	Jun. 30, 2012	Dec. 31, 2012 Office
Hangzhou [Member]
Leases (Textual)
Number of offices	2		1
Monthly rental payments office one	$ 6,071		$ 1,557
Monthly rental payments office two	248
Lease expiration period	March, 2018		June, 2014
Rental expenses	$ 13,361	$ 10,952

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Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2013
Summary of estimated lives of property, plant and equipment
Estimated useful life of office equipment	3 - 5 years

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Income Taxes (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Summary of deferred tax asset not recognized
Unused tax loss brought forward	$ 5,208,680	$ 4,124,891
Unused tax loss for the period/year	502,999	1,393,388
Expenses not deductible for tax (share-based payment)	(149,454)	(309,599)
Unused tax loss carried forward	5,562,225	5,208,680
Unrecognized deferred tax asset brought forward	1,302,170	1,031,223
Unrecognized deferred tax asset for the year (at PRC tax rate of 25%)	88,386	270,947
Unrecognized deferred tax asset carried forward	1,390,556	1,302,170
Less : valuation allowances	(1,390,556)	(1,302,170)
Deferred income tax benefit, net of valuation allowance

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Statutory Reserve (Details)	Jun. 30, 2013
Statutory Reserve (Textual)
Percentage of net income allocated to statutory reserves	10.00%
Maximum cumulative allocation to statutory reserve of registered capital	50.00%

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Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Balance Sheets [Abstract]
Allowances for doubtful accounts	$ 257,678	$ 179,867
Accumulated depreciation	$ 263,723	$ 248,335
Common Stock, par value (In dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	16,806,631	16,790,631
Common Stock, shares outstanding	16,806,631	16,790,631

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Share Based Payments

6 Months Ended

Jun. 30, 2013

Share Based Payments [Abstract]

SHARE BASED PAYMENTS

Note 8 - SHARE BASED PAYMENTS

On July 12, 2011, the Company issued 2,900,000 shares of the Company’s common stock to Wuying Wang, Xiaoghua Jin, Lifang Yang and Qingxin Huang, four independent parties, in exchange for market research and other advisory services from them pursuant to the terms of four consultancy agreements dated May 6, 2011, June 15, 2011, April 3, 2011 and May 5, 2011 respectively (“Consultancy Agreements”) (see Note 6).  The shares were fully vested and not subject to forfeiture when issued. The fair value of the shares issued was $0.31 per share and the total fair value of the shares issued was $899,000.  The fair value of the shares issued was based on the quoted market price of the Company’s shares as of July 12, 2011. The total fair value of the shares issued is recognized as a share-based payment expense over the period from the date of the Consultancy Agreements to the consultancy services are completed.  The consultancy services are to be performed for two to three years.   For the six months ended June 30, 2013 and 2012 the Company amortized $145,014 and $153,198 as share-based payment expense respectively.  For the three months ended June 30, 2013 and 2012 the Company amortized $69,257 and $76,599 as share-based payment expense respectively.  The unrecognized share-based payment expense of $249,650 as of June 30, 2013 will be amortized up to July 2014.  There is no tax benefit related to the share-based payment expense recognized.

On December 27, 2011, the Company issued 18,000 shares of the Company’s common stock to Capital Link, Inc., an independent party, in exchange for investor relations and financial media services provided by that party pursuant to the terms of service agreement dated November 9, 2011 (see Note 6).  The shares were fully vested and not subject to forfeiture when issued.  The fair value of the shares issued was $0.25 per share and total fair value of the shares issued was $4,500 and was recognized as a share-based payment expense when issued.  The fair value of the shares issued was based on the quoted market price of the Company’s shares as of December 27, 2011.  The Service Agreement was to be performed from December 1, 2011 to November 30, 2012 with a monthly retainer payable in the form of 9,000 common shares.  However, both parties signed an early termination agreement on August 14, 2012 agreeing that the effective date of termination of the agreement was February 01, 2012.  The Company recognized the stock based compensation expense amounted to $720 (As a provision of $2,250 had already been recognized in the quarter March 31, 2012, therefore a reversal of $1,530 was recognized in the quarter September 30, 2012) for this service which was based on stock price measured at fair market value at the date of allotment of shares on August 23, 2012 (9,000 common shares at $0.08 per share).

On December 17, 2012, the Company issued 40,000 shares of the Company’s common stock to the Company’s legal adviser for legal advisory services performed to the Company. The fair market value of the shares issued was $0.02 per share and total fair value of the shares issued was $800 and was recognized as a share-based payment expenses when issued.

On January 1, 2013, the Company issued 12,000 shares of the Company’s common stock to the Company’s legal adviser, for legal advisory services performed to the Company. The fair market value of the shares issued was $0.02 per share and total fair value of the shares issued was $240 and was recognized as a share-based payment expenses when issued.

On May 8, 2013, the Company issued 4,000 shares of the Company’s common stock to the Company’s legal adviser, for legal advisory services performed to the Company. The fair market value of the shares issued was $1.05 per share and total fair value of the shares issued was $4,200 and was recognized as a share-based payment expenses when issued.

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (502,999)	$ (512,479)
Adjustments to reconcile net loss to net cash (used in) operating activities :
Depreciation	10,057	21,729
Share-based payment expense	149,454	155,448
Provision for doubtful accounts	73,161
Changes in operating assets and liabilities :
Accounts receivable		(185,708)
Advances to suppliers		(146,375)
Other receivable, deposits and prepayment	10,280	(194,083)
Inventories		(844,734)
Accounts payable		169,732
Deposits from customers		36,382
Accrued expense and other payable	(252,522)	29,588
Net cash (used in) operating activities	(512,569)	(1,470,500)
Acquisition of property and equipment	(96,902)
Net cash (used in)/provided by investing activities	(96,902)
CASH FLOWS FROM FINANCING ACTIVITIES
Advance from a director		684,720
Net amounts due to trustees	3,529,700
Net cash provided by financing activities	3,529,700	684,720
Effect of exchange rate changes on cash and cash equivalents	28,996	7,051
Net increase/(decrease) in cash and cash equivalents	2,949,225	(778,729)
Cash and cash equivalents, beginning balance	71,608	855,713
Cash and cash equivalents, ending balance	$ 3,020,833	$ 76,984

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Consolidated Balance Sheets (USD $)	Jun. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 3,020,833	$ 71,608
Accounts receivable, net of provision of $257,678 (2012 : $179,867)	217,043	285,184
Other receivables	120,747	172,514
Prepayments and deposits	47,982	6,495
Total Current Assets	3,406,605	535,801
Property and equipment, net of accumulated depreciation of $263,723 (2012 : $248,335)	104,877	17,828
Total Assets	3,511,482	553,629
Current and Total Liabilities
Accrued expenses and other payable	445,024	697,546
Amount due to trustees	3,529,700
Total Current and Total Liabilities	3,974,724	697,546
Stockholders' Equity
Common stock, USD0.001 par value, 100,000,000 shares authorized, 16,806,631 and 16,790,631 shares issued and outstanding at June 30, 2013 and December 31, 2012 respectively	16,806	16,790
Preferred stock, USD0.001 par value
Additional paid-in capital	5,840,837	5,836,413
Common stock issued for prepaid service	(249,650)	(394,664)
Statutory reserve
Accumulated other comprehensive income	150,800	116,580
Accumulated deficit	(6,222,035)	(5,719,036)
Stockholders' Equity	(463,242)	(143,917)
Total Liabilities and Stockholders' Equity	$ 3,511,482	$ 553,629

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Summary of Significant Accounting Policies (Details 1) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Summary of property, plant & equipment
Office equipment	$ 368,600	$ 266,163
Accumulated Depreciation	(263,723)	(248,335)
Total property and equipment, net	$ 104,877	$ 17,828

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

Income Taxes [Abstract]

Summary of deferred tax asset not recognized

	06/30/2013			12/31/2012
Unused tax loss brought forward	$	5,208,680		$	4,124,891
Unused tax loss for the period/year		502,999			1,393,388
Expenses not deductible for tax (share-based payment)		(149,454	)		(309,599	)
	$	5,562,225		$	5,208,680
Unrecognized  deferred tax asset brought forward		1,302,170			1,031,223
Unrecognized  deferred tax asset for the year (at PRC tax rate of 25%)		88,386			270,947
Unrecognized  deferred tax asset carried forward	$	1,390,556		$	1,302,170
Less : valuation allowances		(1,390,556	)		(1,302,170	)
Deferred income tax benefit, net of valuation allowance	$	-		$	-

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Major Customers and Credit Risk (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013 Customer Vendor	Jun. 30, 2012 Customer Vendor	Jun. 30, 2013 Vendor Customer	Jun. 30, 2012 Vendor Customer	Dec. 31, 2012 Customer Vendor
Major customers and credit risk (Textual)
Number of customer accounted for more than 10 % of account receivable			2		2
Number of vendors accounted for more than 10 % of account payable			0		0
Number of customer accounted for more than 10 % of sales	0	3	0	2
Number of vendors accounted for more than 10 % of purchase	0	3	0	2
Accounts receivable [Member]
Major customers and credit risk (Textual)
Concentration risk, percentage total			91.00%		91.00%
Accounts receivable [Member] | Customer [Member]
Major customers and credit risk (Textual)
Concentration risk, percentage total			38.00%		38.00%
Accounts receivable [Member] | Customer Two [Member]
Major customers and credit risk (Textual)
Concentration risk, percentage total			53.00%		53.00%
Sales [Member]
Major customers and credit risk (Textual)
Concentration risk, percentage total		64.00%		34.00%
Purchase [Member]
Major customers and credit risk (Textual)
Concentration risk, percentage total		62.00%		43.00%

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Additional Paid in Capital (Details)	0 Months Ended				1 Months Ended		6 Months Ended					0 Months Ended	1 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended
	Aug. 08, 2011 USD ($)	Aug. 08, 2011 CNY	Jul. 21, 2011 USD ($)	Jul. 21, 2011 CNY	Feb. 28, 2010 USD ($)	Dec. 31, 2009 USD ($)	Jun. 30, 2013 USD ($) Waivers	Jun. 30, 2013 CNY	Dec. 31, 2012 USD ($)	Nov. 30, 2012 USD ($)	Sep. 05, 2005 USD ($)	Sep. 05, 2012 Common Stock [Member] Shareholder	Nov. 30, 2012 Common Stock [Member] Shareholder	Dec. 31, 2012 Common Stock [Member]	Sep. 05, 2012 Preferred Stock [Member] Shareholder	Dec. 31, 2012 Preferred Stock [Member]
Additional Paid in Capital (Textual)
Cancellation of shares												7,423,817	8,116,194	15,540,011	3,558,046	3,558,046
Number of shareholder												6	4		6
Additional paid-in capital							$ 5,840,837		$ 5,836,413
Number of waivers due to shareholders							2	2
Waivers of amount due to shareholders					2,934,000	1,465,000	4,399,000
Proceeds from contributed capital	312,412	2,000,000	1,547,000	10,000,000
Unascertained balance capital contributions							1,234,588	8,000,000
Amount credited to additional paid in capital										$ 8,116	$ 10,982

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Share Based Payments (Details) (USD $)	0 Months Ended	3 Months Ended		6 Months Ended								0 Months Ended	3 Months Ended		6 Months Ended
	Jul. 12, 2011 Agreements Independentparty	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	May 08, 2013	Jan. 01, 2013	Dec. 17, 2012	Nov. 30, 2012	Aug. 23, 2012	Dec. 27, 2011	Dec. 27, 2011 Capital Link, Inc [Member]	Sep. 30, 2012 Capital Link, Inc [Member]	Mar. 31, 2012 Capital Link, Inc [Member]	Jun. 30, 2013 Capital Link, Inc [Member]
Share Based Payments (Textual)
Shares issued to independent parties in exchange for services, shares	2,900,000											18,000
Fair value of share (Per share)	$ 0.31					$ 1.05	$ 0.02	$ 0.02		$ 0.08		$ 0.25
Fair value of share issued	$ 899,000					$ 4,200	$ 240	$ 800		$ 720	$ 4,500	$ 4,500
Stock based compensation expense		73,457	74,259	149,454	155,448
Provision of stock based compensation													1,530	2,250
Shares issued to independent party for settlement of services						4,000	12,000	40,000		9,000	18,000
Termination date of agreement															Feb. 01, 2012
Number of independent parties	4
Number of consultancy agreements terms	4
Period of consultancy services agreement	Two to three years.
Monthly retainer payable in form of shares									9,000
Amortization of share based payment expense		69,257	76,599	145,014	153,198
Unrecognized share-based compensation expense		$ 249,650		$ 249,650

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Additional Paid in Capital

6 Months Ended

Jun. 30, 2013

Additional Paid In Capital [Abstract]

ADDITIONAL PAID IN CAPITAL

Note 7 - ADDITIONAL PAID IN CAPITAL

Included in the Additional paid-in capital balance of $5,840,837 as of June30, 2013, is an amount $4,399,000 arose from two waivers of amount due to shareholders took place in December, 2009 of $1,465,000 and February, 2010 of $2,934,000.

On July 21, 2011, the Company obtained a financial undertaking from the former holder of our preferred stock, Guoxing Wang, to inject funds in the amount of RMB10,000,000 (equivalent to $1,547,000) to HZ Ceetop as its working capital on or before December 31, 2011.  That shareholder further agreed that such capital injection will be interest free and he waived his entitlement to and right for repayment to the capital injected.  On August 8, 2011, there was a capital injection of RMB2, 000,000 (equivalent to $312,412) received from that shareholder and was credited to Additional Paid in Capital of the Company. Management is unable to ascertain when, or if, the balance of RMB8, 000,000 (equivalent to $1,234,588) will be injected to the Company.

On September 5, 2012, 7,423,817 shares of common stock and 3,558,046 shares of preferred stock held by six shareholders and a shareholder respectively were returned and cancelled for no consideration; an amount of $10,982 was therefore credited to additional paid in capital on that date.

On November 30, 2012, 8,116,194 shares of common stock held by four shareholders were returned and cancelled for no consideration; an amount of $8,116 was therefore credited to additional paid in capital on that date.

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Summary of Significant Accounting Policies (Details Textual) (USD $)	0 Months Ended				3 Months Ended		6 Months Ended
	May 08, 2013	Jan. 01, 2013	Dec. 17, 2012	Aug. 23, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Dec. 27, 2011	Jul. 12, 2011
Summary of Significant Accounting Policies (Textual)
Allowances for doubtful accounts					$ 257,678		$ 257,678		$ 179,867
Depreciation expense					2,822	12,220	10,057	21,729
Freight charges								1,320
Common shares issued to service provider							9,000
Fair value of share (Per share)	$ 1.05	$ 0.02	$ 0.02	$ 0.08							$ 0.31
Stock based compensation recognized for services under agreement	$ 4,200	$ 240	$ 800	$ 720
Shares issued to independent party for settlement of services	4,000	12,000	40,000	9,000						18,000
Agreement with a service provider for investor relations and financial media, description							Tthe service provider is compensated for 9,000 common shares of the Company no later than the 5th day of and for each month over the period of the agreement.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2013

Common Stock and Preferred Stock and Accumulated Other Comprehensive Income [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

Note 10 - ACCUMULATED OTHER COMPREHENSIVE INCOME

Balances and movements of accumulated other comprehensive income, included in stockholders’ equity, at June 30, 2013 and December 31, 2012, are as follows:

	Foreign Currency Translation Adjustment		Accumulated Other Comprehensive Income
Balance at December 31, 2011	$	108,193	$	108,193
Change for the year		8,387		8,387
Balance at December 31, 2012		116,580		116,580
Change for 2013 Q1		180		180
Balance at March 31, 2013	$	116,760		116,760
Change for 2013 Q2		34,040		34,040
Balance at June 30, 2013	$	150,800	$	150,800

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Common Stock and Preferred Stock

6 Months Ended

Jun. 30, 2013

Common Stock and Preferred Stock and Accumulated Other Comprehensive Income [Abstract]

COMMON STOCK AND PREFERRED STOCK

Note 6 - COMMON STOCK AND PREFERRED STOCK

The Company is authorized to issue up to 100,000,000 shares of common stock of par value of $0.001 per share and 3,558,046 shares of Series A preferred stock of par value of $0.001 per share.  As detailed in Note 1 above, on January 27, 2011, the Company effected a reverse stock split such that the number of all existing issue shares were reduced from 19,900,100 to 866,636 on a 23 to 1 basis.  At the same time, pursuant to the Share Exchange Agreement, Surry became a wholly-owned subsidiary of the Company through issuance of 28,496,427 shares of common stock of par value of $0.001 per share and 3,558,046 shares of Series A preferred stock of par value of $0.001 per share.

For accounting purposes, this transaction was treated as reverse acquisition and the Company’s equity accounts at December 31, 2010 prior to the acquisition are restated based on the ratio of the exchange of 28,496,427 shares of common stock of the Company for 44,450 shares of common stock of Surry and exchange of 3,558,046 shares of preferred stock of the Company for 5,550 shares of preferred stock of Surry.  As the par value of each capital stock of the Company and Surry are $0.001 and $1 respectively, the difference in capital of $17,946 arising from this reverse acquisition was reallocated to additional paid-in capital.

On July 12, 2011, the Company issued 2,900,000 shares of common stock to four independent parties as payments to such parties for market research and other advisory services for $899,000 (see Note 8).

On December 27, 2011 and August 23, 2012, the Company has issued common stock of 18,000 shares and 9,000 shares respectively to an independent party for settlement of services provided to the Company regarding investor relations and financial media services amounted to $4,500 and $720 (note 8) respectively.

On September 5, 2012, 7,423,817 shares of common stock and 3,558,046 shares of preferred stock held by six shareholders and a shareholder respectively were returned and cancelled for no consideration.

On November 30, 2012, 8,116,194 shares of common stock held by four shareholders were returned and cancelled for no consideration.

The return and cancellation of common stocks and preferred stocks by major shareholders on September 5, 2012 and November 30, 2012 are for the purposes of supporting the development of the Company by those major shareholders and in order to induce more potential investors to inject capital into the Company in the future.

On December 17, 2012, the Company issued common stock of 40,000 shares to an independent party for settlement of services provided to the Company regarding general legal advisory services amounted to $800 (Note 8).

On January 1, 2013 and May 8, 2013, the Company has issued common stock of 12,000 shares and 4,000 shares to an independent party for settlement of services provided to the Company regarding general legal advisory services amounted to $240 and $4,200 (Note 8) respectively.

As of June 30, 2013, the Company has a total of 16,806,631 shares of common stock and no shares of Series A Preferred Stock outstanding.

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Organization

6 Months Ended

Jun. 30, 2013

Organization [Abstract]

ORGANIZATION

Note 1 -ORGANIZATION

China Ceetop.com, Inc. (the “Company” or “China Ceetop”) was incorporated in Oregon on February 18, 2003 under the name of GL Gold Inc.  On June 6, 2003 the Company filed an amendment with the State of Oregon changing its name to Oregon Gold, Inc. On January 7, 2011 Oregon Gold Inc. changed its name to China Ceetop.com, Inc.

Surry Holdings Limited (“Surry”)was incorporated in the British Virgin Islands on September 18, 2009.  Surry holds 100% of Westow Technology Limited (“Westow”), a company incorporated in the British Virgin Islands, which in turn holds100% of Shenzhen Ceetop Network Technology Co., Limited ("SZ Ceetop"), a company incorporated in Shenzhen, Peoples’ Republic of China ("PRC") and ultimately holds 100% of Hangzhou Ceetop Network Technology Co., Limited ("HZ Ceetop"), a company incorporated in Hangzhou, PRC.

Pursuant to a series of transactions completed in September, 2009, Surry became the holding company of Westow, SZ Ceetop and HZ Ceetop ("Group Reorganization").

Since Surry, Westow, SZ Ceetop and HZ Ceetop were under common control of a controlling party both before and after the completion of the Group Reorganization, the Group Reorganization has been accounted for using merger accounting.  The consolidated financial statements have been prepared on the basis as if Surry had always been the holding company of Westow, SZ Ceetop and HZ Ceetop and this group structure had been in existence throughout the six months ended June 30, 2013 and year ended December 31, 2012 as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation”.

On January 27, 2011, the Company became the holding company of Surry through a reverse acquisition.  The Company acquired all of the issued and outstanding capital stock of Surry pursuant to the share exchange agreement dated December 30, 2010 by and among Surry, the Company and the shareholders of the Company (the “Share Exchange Agreement”).  At the same time, the Company effected a reverse stock split such that the number of all existing issued shares were reduced from 19,900,100 to 866,636 on a 23 to 1 basis.  Pursuant to the Share Exchange Agreement, the Company acquired 100% of the capital stock and ownership interests of Surry in exchange for 28,496,427 newly-issued shares of the Company’s common stock and 3,558,046 newly issued shares of the Company’s series A preferred stock.

Prior to the acquisition of the Surry, the Company was a non-operating public shell.  Pursuant to Securities and Exchange Commission (“SEC”) rules, the merger or acquisition of a private operating company into a non-operating public shell with nominal net assets is considered as a capital transaction, rather than a business combination.  Accordingly, for accounting and financial reporting purposes, the transaction was treated as a reverse acquisition, wherein Surry is considered the acquirer.  The assets and liabilities of Surry have been brought forward at their book value and no goodwill has been recognized.  The historical financial statements prior to January 27, 2011 are those of Surry.

The Company operates in a single reportable segment, the principal activities of the Company were engaged in the provision of an online platform for distribution of 3C products (computers/communications/consumer electronics) in the PRC by way of a website named www.ceetop.com mainly through its wholly owned legal subsidiaries HZ Ceetop and SZ Ceetop.

The Company is in the transition from online retail sales to focus more on sales to a relatively smaller number of distributors due to high competition in online shopping.  Through the stimulation of Labor Specialization, the original competition between products or companies has turned into the competition between supply chains. Each supply chain is a consolidation of companies to provide the final products. The Company is now focusing on B2B supply chain service.

On March 5, 2013, the name of subsidiary company, Shenzhen Ceetop Network Technology Co., Limited (“SZ Ceetop ) was changed to Guizhou Ceetop Network Technology Co., Limited (“GZ Ceetop”).

On May 29, 2013,  GZ Ceetop established two 100% owned subsidiaries, Hangzhou Tuoyin Management Consulting Co., Limited and Hangzhou Lianzhan Supply Chain Management Co., Limited to enhance the management of B2B supply chain service.

These Consolidated Financial Statements present the Company and its subsidiaries on a historical basis.

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Income Taxes (Details Textual) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2007	Dec. 31, 2012
Income Taxes (Textual)
Statutory rate of enterprise income tax	25.00%	33.00%
National income taxes		30.00%
State income taxes		3.00%
Unrecognized tax loss expiring in 2013			$ 426,068
Unrecognized tax loss expiring in 2014			648,473
Unrecognized tax loss expiring in 2015			1,596,587
Unrecognized tax loss expiring in 2016			1,453,763
Unrecognized tax loss expiring in 2017			1,083,789
Unrecognized tax loss	$ 353,545
Unrecognized tax loss expiration date	2018

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Leases

6 Months Ended

Jun. 30, 2013

Leases [Abstract]

LEASES

Note 13 - LEASES

As at June 30, 2013, the Company had total future aggregate minimum lease payments under non-cancellable operating leases as follows:

		06/30/2013
Within 1year	$	60,313
In the second year		64,553
In the third year		71,621
In the fourth year		75,862
In the fifth year		51,831
	$	324,180

As at June 30, 2013, the Company has two offices situated in Hangzhou, PRC.  The operating lease for these offices provides for monthly rental payments of $6,071 and $248 that are expiring in March, 2018. As at December 31, 2012, the Company had one office situated in Hangzhou, PRC. The operating leases for these offices provided for monthly rental payments of $1,557 that was expiring in June, 2014.  In respect of these leases, the Company paid rental expenses of $13,361 and $10,952 for the six months ended June 30, 2013 and 2012 respectively.

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Statutory Reserve

6 Months Ended

Jun. 30, 2013

Statutory Reserve [Abstract]

STATUTORY RESERVE

Note 9 - STATUTORY RESERVE

In accordance with the laws and regulations of the PRC, a wholly-owned Foreign Invested Enterprise’s income, after the payment of the PRC income taxes, shall be allocated to the statutory reserves. The allocation is 10 percent of the net income and the cumulative allocations are not to exceed 50 percent of the registered capital.  However, the laws do not prohibit enterprises to allocate net income to this reserve after the limit of 50 percent of registered capital has been reached. These reserves are not transferable to the Company in the form of cash dividends, loans or advances. These reserves are therefore not available for distribution except in liquidation. As of June 30, 2013 and December 31, 2012, the Company has not allocated to these non-distributable reserve funds due to losses sustained in the six months ended June 30, 2013 and the year ended December 31, 2012.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2013

Summary of Significant Accounting Policies [Abstract]

Summary of estimated lives of property, plant and equipment

Office equipment   3 - 5 years

Summary of property, plant & equipment

	06/30/2013			12/31/2012
Office equipment		368,600			266,163
Accumulated depreciation		(263,723	)		(248,335	)
	$	104,877		$	17,828

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Subsequent Events

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Note 14 - SUBSEQUENT EVENTS

For the six months ended June 30, 2013, the Company has evaluated subsequent events for potential recognition and disclosure.

No significant events occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on our consolidated financial statements.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 20, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	China Ceetop.com, Inc.Ceetop.com, Inc.
Entity Central Index Key	0001439254
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		16,806,631

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company adopted the new accounting guidance (“Codification”) on July 1, 2009. For the six months ended June 30, 2013, all reference for periods subsequent to July 1, 2009 are based on the codification. The Company's functional currency is the Chinese Renminbi; however the accompanying consolidated financial statements have been translated and presented in the United States Dollars (“USD”).

Principles of Consolidation

Principles of Consolidation

The Consolidated Financial Statements incorporate the financial statement items of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party.

The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognized in respect of goodwill or excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling party’s interest.

The Consolidated Statements of Income and Comprehensive Income include the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control, where this is a shorter period.

A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. Such business combinations are referred to as common control combinations which are in line with U.S. GAAP.

Translation Adjustment

Translation Adjustment

As of June 30, 2013 and December 31, 2012, the accounts of the Company were maintained, and its financial statements were expressed, in RMB.  Such financial statements were translated into USD in accordance with the Foreign Currency Matters Topic of the Codification, with the RMB as the functional currency.  According to the Codification, all assets and liabilities were translated at the current exchange rate, stockholders’ equity are translated at the historical rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with the Comprehensive Income Topic of the Codification, as a component of shareholders’ equity.  Transaction gains and losses are reflected in the income statement.

Use of Estimates

Use of Estimates

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

Comprehensive Income

Comprehensive Income

The Company uses SFAS 130 “Reporting Comprehensive Income” (codified in FASB ASC Topic 220). Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income for the six months and three months ended June 30, 2013 and 2012 included net income and foreign currency translation adjustments.

Risks and Uncertainties

Risks and Uncertainties

The Company’s operations are carried out in the PRC.  Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC’s economy.  The Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

The Company is subject to substantial risks from, among other things, intense competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history, foreign currency exchange rates and the volatility of public markets.

Contingencies

Contingencies

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. There were no contingencies of this type as of June 30, 2013 and December 31, 2012.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. There were no contingencies of this type as of June 30, 2013 and December 31, 2012.

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

Cash and cash equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.

Accounts receivable

Accounts Receivable

The Company maintains reserves for potential credit losses on accounts receivable.   Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves.  Reserves are recorded based on the Company’s historical collation history.  Allowances for doubtful accounts as of June 30, 2013 and December 31, 2012 were $257,678 and $179,867 respectively.

Property, Plant & Equipment

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property, plant and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property, plant and equipment is provided using the straight-line method for substantially all assets with estimated lives of:

Office equipment   3 - 5 years

As of June 30, 2013 and December 31, 2012 Property, Plant & Equipment consist of the following:

	06/30/2013			12/31/2012
Office equipment		368,600			266,163
Accumulated depreciation		(263,723	)		(248,335	)
	$	104,877		$	17,828

Depreciation expense for the six months ended June 30, 2013 and 2012 was $10,057 and $21,729, respectively.

Depreciation expense for the three months ended June 30, 2013 and 2012 was $2,822 and $12,220, respectively.

Long-Lived Assets

Long-Lived Assets

The Property, Plant and Equipment Topic of the Codification addresses financial accounting and reporting for the impairment or disposal of long-lived assets and supersedes previous accounting guidance, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,” and “Reporting the Results of Operations for a Disposal of a Segment of a Business”. The Company periodically evaluates the carrying value of long-lived assets to be held and used, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. Based on its review, the Company believes that, as of June 30, 2013 and December 31, 2012, there were no impairments of its long-lived assets.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Financial Instrument Topic of the Codification requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the balance sheets for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value.

Revenue Recognition

Revenue Recognition

The Company’s revenue recognition policies are in compliance with SEC Staff Accounting bulletin (“SAB”) 104 (codified in FASB ASC Topic 605). Sales revenue is recognized at the completion of delivery to customers when a formal arrangement exists, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured at the date of completion of delivery. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

Shipping and Handling costs

Shipping and Handling costs

Shipping and handling costs consist primarily of freight charges and packaging charges for delivery of goods to the customers and are included in selling, general and administrative expenses.  The Company expenses all shipping and handling costs when they are incurred.  For the six months ended June 30, 2013 and 2012, the Company incurred freight charges of $Nil and $1,320 respectively and the company did not incur any packaging charges.  For the three months ended June 30, 2013 and 2012, the Company did not incur any freight charges and packaging charges.

Income Taxes

Income Taxes

The Company utilizes the accounting standards (“SFAS”) No. 109, “Accounting for Income Taxes,” codified in Financial Accounting Standard Board Accounting Standards Codification (“ASC”) Topic 740 which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN 48”), codified in FASB ASC Topic 740. When tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits are classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. The adoption of FIN 48 did not have a material impact on the Company’s financial statements. At June 30, 2013 and December 31, 2012, the Company did not take any uncertain positions that would necessitate recording a tax related liability.

Statement of Cash Flows

Statement of Cash Flows

In accordance with SFAS 95 “Statement of Cash Flows”, codified in FASB ASC Topic 230, cash flows from the Company’s operations are based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.

Basic and Diluted Earnings per Share

Basic and Diluted Earnings per Share

Earnings per share are calculated in accordance with FASB ASC Topic 260, “Earnings per Share”.  Basic earnings per share are based upon the weighted average number of common shares and preferred shares outstanding.  Preferred shares are included in the denominator of basic earnings per share because preferred shares participate with common shares in the earnings and dividends of the Company on a one-for-one basis. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options were converted or exercised.  Dilution is computed by applying the treasury stock method.  Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Share-Based payment

Share-Based payment

Share-based payment is accounted for based on the FASB Statement No. 123R, “Share-Based Payment, an Amendment of FASB Statement No. 123” (“FAS No. 123R”) and Emerging Issue Task Force 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling, Goods or Services” (“EITF 96-18”) and Emerging Issue Task Force 00-18 “Accounting Recognition for Certain Transactions involving Equity Instruments Granted to Other Than Employees” (“EITF 00-18”) (codified in FASB ASC Topic 505-50).  The Company recognized in the Consolidated Statements of Income and Comprehensive Income the fair value of shares, stock options and other equity-based compensation issued to non-employees when the service provided by non-employees is completed, or the date when the shares were issued (provided that the shares issued are fully vested and not subject to forfeiture) with the prepaid services presented as contra equity.  This is in accordance with the consensus reached in EITF 00-18 that in the event that a note or receivable is acquired in exchange for the fully vested, non-forfeitable equity instruments, the note or receivable should be displayed as contra-equity by the granter.  The Company as granter interprets that the term “receivable” also embraces prepaid service fees. For employees, the Company recognized in the Consolidated Statements of Income and Comprehensive Income the grant date fair value of the shares, stock options and other equity-based compensation over the requisite service period.  In respect of the service agreement the Company entered into with a service provider for provision of investor relations and financial media service, the service provider is compensated for 9,000 common shares of the Company no later than the 5th day of and for each month over the period of the agreement.  In accordance with the consensus reached in EITF 96-18, the Company recognized in the Consolidated Statement of Income and Comprehensive Income the fair value of each 9,000 common shares issued to the service provider each month as share based payment on the same basis in the same period and in the same manner as if the Company had paid cash for the service rendered by the service provider instead of paying with equity instruments (common shares) of the Company in each month and that the measurement date of the fair value of each 9,000 common shares issued to the service provider will be the issue date which is before the 5th day of each month. However, both parties signed an early termination agreement on August 14, 2012 agreeing that the effective date of termination of the agreement was February 01, 2012.  The Company recognized the stock based compensation expense amounted to $720 for this service which was based on stock price measured at fair market value at the date of allotment of shares on August 23, 2012 (9,000 common shares at $0.08 per share).On December 17, 2012, the Company recognized stock based compensation expense amounted to $800 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (40,000 common shares at $0.02 per share).  On January 1, 2013, the Company recognized stock based compensation expense amounted to $240 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (12,000 common shares at $0.02 per share).  On May 8, 2013, the Company recognized stock based compensation expense amounted to $4,200 for the legal advice performed by the Company’s legal adviser Mr. Jeffrey Stein which was based on stock price measured at fair market value at the date of allotment of shares (4,000 common shares at $1.05 per share).

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. At present, there is a high concentration on a few outstanding accounts receivable brought forward from prior periods as more fully explained in Note 12 hereof.  The Company controls credit risk related to account receivable through credit approvals, credit limits and monitoring procedures.  The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In February 2013, the FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.”  The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operation or financial condition.

As of June 30, 2013, there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial statements.