SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Note 19- SUBSEQUENT EVENTS

On July 1, 2011, the Company entered into debt conversion agreements with various affiliated companies, related directors and shareholders (collectively the "Related Parties") pursuant to which approximately $16,440,385 of debt owed to the Related Parties by the Company's subsidiary Shaanxi Xidenghui Technology Stock Co., Ltd. (the "Subsidiary") would be contributed to paid-in capital of the Subsidiary. The contribution of debt to paid-in capital is subject to approval by the Chinese Regulators. As a result of the contribution of the debt into paid-in capital, the debt is no longer outstanding.