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INVESTMENT PROPERTY IN CHINA

6 Months Ended

Dec. 31, 2011

The following table presents the Company’s investment in the property in China as of December 31, 2011. The exchange rate is based on the exchange rate as of December 31, 2011 published by the Monetary Authority of Singapore.

	Investment Date	Investment Amount			Investment Amount
		(RMB)			(U.S. Dollars)
Purchase of rental property – MaoYe	01/04/2008		5,554			880
Purchase of rental property – JiaSheng	10/23/2008		7,042			1,116
Additional cost of rental property - JiaSheng	12/01/2009		209			33
Investment rental property disposed - JiaSheng	02/05/2010		(579	)		(92	)
Purchase of rental property – JiangHuai	01/06/2010		3,600			570
Investment rental property disposed - JiaSheng	03/04/2011		(6,672	)		(1,056	)
Gross investment in rental property			9,154			1,451

Accumulated depreciation on rental property	12/31/2011		(1,380	)		(219	)

Net investment in property – China			7,774			1,232

Rental Property I

In fiscal 2008, TTCQ entered into a Memorandum Agreement with MaoYe Property Ltd. to purchase an office space in Chongqing, China, for a total cash purchase price of RMB5,554. The Company rented this property to a third party on July 13, 2008. The term of the rental agreement was five years with a monthly rental income of RMB 39 or approximately $6 based on the average exchange rate for the period six months ended December 31, 2011, for the first three years, and in the fourth year with an increase of 8% in July 2012, a monthly rental income of RMB41, or approximately $6 based on the average exchange rate for the period six months ended December 31, 2011, and another increase of 8% in July 2013.

Property purchased from Mao Ye, generated a rental income of RMB124, or approximately $19 and RMB249, or approximately $39 for the three and six months ended December 31, 2011, respectively and RMB116, or approximately $17, and RMB232, or approximately $34, respectively for the same period in the last fiscal year.

Rental Property II

In fiscal 2009, TTCQ entered into a Memorandum Agreement with JiaSheng to purchase four units of commercial property and two units of residential property, totaling 1,391.70 square meters in Chongqing, China, for a total purchase price of RMB7,042. All of the property purchased from JiaSheng was disposed of in February 2010 and March 2011 and hence there were no rental income recorded for these properties for the three and six months ended December 31, 2011, respectively. However these properties generated a rental income of RMB 233, or approximately $35 and RMB581, or approximately $86, respectively for the same periods in the last fiscal year.

TTCQ sold four commercial properties purchased on October 23, 2008 to JiaSheng for RMB6,860, or approximately $1,067, recording a gain on disposal of RMB 1,015, or approximately $158 after deducting sales tax and exchange difference, from the four properties which carried a cost of RMB6,672, or approximately $1,044 and accumulated depreciation of RMB840, or approximately $131. All payments in this sales transaction were received in full during the third quarter of fiscal 2011.

Rental Property III

In fiscal 2010, the Company entered in to a Memorandum Agreement with Chongqing JiangHuai Real Estate Development Co., Ltd to purchase eight units of commercial property, in Chongqing, China, for a total purchase price of RMB3,600. TTCQ renewed its rental agreement for this property on January 8, 2011 and the rental agreement provided for a one year renewable term with an annual rental income of RMB720, or approximately $112 based on the average exchange rate for the same period in the last fiscal year.

Property purchased from JiangHuai, generated a rental income of RMB 180, or approximately $28 and RMB 360, or approximately $56 for the three and six months ended December 31, 2011 and RMB 180, or approximately $28 and RMB 360, or approximately $56 for the same period in the last fiscal year.

Other Properties

In fiscal 2010, the Company entered into a Memorandum Agreement with Chongqing Fu Li Real Estate Development Co. Ltd., to purchase two commercial properties totaling 311.99 square meters, (“office space”) located in Jiang Bei District Chongqing. Although TTCQ currently rents its office premises from a third party, it intends to use the office space as its office premises. The total purchase price committed and paid was RMB3,678, or approximately $583 based on the exchange rate as of December 31, 2011. A down payment deposit of RMB3,678, or approximately $583, was paid in fiscal 2010, and the related tax expense of RMB150, or approximately $23, was paid. The construction has been completed as at the date of this report and the documentation of the change of title is in process.

Summary

Total rental income for both the investment properties (Property I and Property II) in China was $47 and $95 for the three and six months ended December 31, 2011 respectively and was $79 and $174 respectively for the same period in the last fiscal year. The property “office space” did not yield any rent for the three and six months ended December 31, 2011, as the possession of the property has not been handed over yet.

Depreciation expenses for both the investment property in China were $18 and $36 for the three and six months ended December 31, 2011, respectively and were $29 and $58 respectively for the same period in the last fiscal year.