2.	Pro forma financial information

The following supplemental unaudited pro forma financial information presents the financial results as if the effective control of Ailibao International had occurred as of the beginning of the earliest period presented herein, or on January 1, 2010.

The unaudited pro forma condensed consolidated financial statements are not necessarily indicative of the financial position or operating results that would have occurred if the Acquisition had been completed at the Closing Date.

The unaudited pro forma condensed consolidated balance sheet as of December 31, 2010 was presented as follows:

	Company			Ailibao International		Pro Forma Adjustments			Consolidated
	(Historical)			(Historical)		(a)
Assets
Current assets:
Cash and cash equivalents	$	-		$	13,086,927	$	-		$	13,086,927
Restricted cash		-			28,065		-			28,065
Accounts receivable, net		-			23,827,368		-			23,827,368
Inventories		-			2,244,519		-			2,244,519
Other current assets		-			649,454		-			649,454
Total current assets		-			39,836,333		-			39,836,333

Non-current assets:
Property, plant and equipment, net		-			3,766,941		-			3,766,941
Land use rights, net		-			1,340,740		-			1,340,740
Deferred tax assets		-			352,640		-			352,640
Total non-current assets		-			5,460,321		-			5,460,321
Total assets	$	-		$	45,296,654	$	-		$	45,296,654

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	2,428		$	10,280,466	$	-		$	10,282,894
Accrued expenses and other payables		90			2,458,130		-			2,458,220
Short term bank loans		-			1,759,765		-			1,759,765
Income tax payable		-			3,241,644		-			3,241,644
Total current liabilities		2,518			17,740,005		-			17,742,523

Non-current liabilities:
Related party loan		10,000			-		-			10,000
Total liabilities		12,518			17,740,005		-			17,752,523

Stockholders’ equity
Common stock		8,533			1,000		316,409			325,942
Additional paid-in capital		56,994			1,307,484		(394,454	)		970,024
Accumulated other comprehensive income		-			1,869,085		-			1,869,085
Statutory surplus reserve		-			654,242		-			654,242
Retained earnings (Accumulated losses)		(78,045	)		23,724,838		78,045			23,724,838
Total stockholders’ equity		(12,518	)		27,556,649		-			27,544,131
Total liabilities and stockholders’ equity	$	-		$	45,296,654	$	-		$	45,296,654

The following adjustment to the unaudited pro forma condensed balance sheets is based on the assumption that the share exchange for the Acquisition was consummated at the Closing Date.

(a)	Adjustment to reflect the capital amounts had the Acquisition occurred at the Closing Date.

The Company had no movement on the statements of operations and cash flows for the three and six months ended June 30, 2010 (incorporated by reference to the Company’s quarterly report on Form 10-Q filed on May 11, 2010 and August 11, 2010, respectively). Hence the unaudited pro forma condensed consolidated statements of operations and cash flows for the three and six months ended June 30, 2010, as disclosed in these financial statements, were entirely attributable to Ailibao International.