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<SEC-DOCUMENT>0001116502-06-002033.txt : 20061005
<SEC-HEADER>0001116502-06-002033.hdr.sgml : 20061005
<ACCEPTANCE-DATETIME>20061005172311
ACCESSION NUMBER:		0001116502-06-002033
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061001
FILED AS OF DATE:		20061005
DATE AS OF CHANGE:		20061005

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHINA NATURAL RESOURCES INC
		CENTRAL INDEX KEY:			0000793628
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ADVERTISING [7310]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26046
		FILM NUMBER:		061131937

	BUSINESS ADDRESS:	
		STREET 1:		ROOM 2105 WEST TOWER SHUN TAK CENTRE
		STREET 2:		200 CONNAUGHT ROAD C
		CITY:			SHEUNG WAN
		STATE:			K3
		ZIP:			-
		BUSINESS PHONE:		01185228107205

	MAIL ADDRESS:	
		STREET 1:		ROOM 2105 WEST TOWER SHUN TAK CENTRE
		STREET 2:		200 CONNAUGHT ROAD C
		CITY:			SHEUNG WAN HONG KONG
		STATE:			K3
		ZIP:			-

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHINA RESOURCES DEVELOPMENT INC
		DATE OF NAME CHANGE:	19950104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MAGENTA CORP
		DATE OF NAME CHANGE:	19940217
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>china6k.htm
<DESCRIPTION>REPORT OF FOREIGN PRIVATE ISSUER
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>BP - x1-55589 - China Natural Resources - 6-K</TITLE>
<META NAME="author" CONTENT="Bassett Press, Inc. 888 805 9953">
<META NAME="date" CONTENT="10/04/2006">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height:24px; margin:0px; font-size:21.333px" align=center><B>UNITED STATES</B></P>
<P style="line-height:24px; margin:0px; font-size:21.333px" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="line-height:24px; margin:0px; font-size:21.333px" align=center><B>Form 6-K</B></P>
<P style="margin:0px" align=center>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 <BR>
UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>For the month of October&nbsp;2006</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Commission File Number 0-26046</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:26.667px; margin:0px; font-size:24px" align=center><B><U>China Natural Resources, Inc.</U></B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Translation of registrant's name into English)</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Room 2105, West Tower, Shun Tak Centre,</B></P>
<P style="margin:0px" align=center><B><U>200 Connaught Road C., Sheung Wan, Hong Kong</U></B></P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>(Address of principal executive offices)</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark whether the registrant files of will file annual reports under cover of <FONT FACE="Wingdings">&#168;</FONT>&nbsp;Form 20-F or <FONT FACE="Wingdings">&#168;</FONT>&nbsp;Form 40-F. <FONT FACE="Wingdings">&#168;</FONT>&nbsp;Form 20-F <FONT FACE="Wingdings">&#253;</FONT>&nbsp;Form 40-F</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule&nbsp;101(b)(1):&nbsp;<FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule&nbsp;101(b)(7):&nbsp;<FONT FACE="Wingdings">&#168;</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12b3-2(b) under the Securities Exchange Act of 1934. Yes&nbsp;<FONT FACE="Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT FACE="Wingdings">&#253;</FONT>.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">If &quot;Yes&quot; is marked, indicated below the file number assigned to the registrant in connection with Rule 12b3-2(b): 82-_________.</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=right><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><B>Disposition of Assets</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">On October&nbsp;3, 2006, China Natural Resources, Inc. (the &#147;Company&#148;) consummated the sale of all of its right, title and interest in and to the capital stock of Hainan Cihui Industrial Co. Ltd. (&#147;HARC&#148;) to Allied Clear Investments Limited, an unaffiliated British Virgin Islands corporation (&#147;Allied&#148;).</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">The purchase price paid by Allied for the capital stock of HARC is RMB30,900,000 (US$3,862,000* and approximately HK$30,000,000, as reported in Form 6-K filed on July 11, 2006). The purchase price was paid in cash, at the closing.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">HARC was a wholly owned subsidiary of the Company whose primary asset is 38,910,192 restricted shares of Hainan Sundiro Motorcycle Co. Ltd., a PRC corporation whose unrestricted shares are listed on the Shenzhen Stock Exchange, PRC. The Company realized a gain of approximately RMB7,760,000 (US$970,000)* on the sale of its interest in HARC.</P>
<P style="margin-top:8.867px; margin-bottom:0px">* Translations from RMB to US$ are based upon the exchange rate on October&nbsp;3, 2006.</P>
<P style="margin-top:8.867px; margin-bottom:0px"><B>Other Information</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">On July&nbsp;31, 2006, the Company consummated the sale of all of the issued and outstanding capital stock of iSense Limited, which, prior to the disposition, had been a wholly owned subsidiary of the Company engaged in providing advertising, promotion and public relations services in Hong Kong and mainland China to both local and international customers.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">The shares of iSense were purchased by its director and former owner for a purchase price of RMB2,060,000 (US$257,000)*. The purchase price was paid in cash, at the July&nbsp;31, 2006 closing of the transaction. The Company originally acquired the shares of iSense in March&nbsp;2000 for a purchase price of RMB5,793,000 (US$724,000)*. The Company realized a gain of approximately RMB1,058,000 (US$132,000)* on the sale of its interest in iSense. iSense was not deemed to be a significant subsidiary of the Company and the financial impact of the disposition is not, in and of itself, deemed material to the Company.</P>
<P style="margin-top:8.867px; margin-bottom:0px">* Translations from RMB to US$ are based upon the exchange rate on October&nbsp;3, 2006.</P>
<P style="margin-top:8.867px; margin-bottom:0px"><B>Pro-Forma Financial Information</B></P>
<P style="margin-top:9.8px; margin-bottom:0px; text-indent:48px">Attached to this Report on Form&nbsp;6-K is pro-forma financial information of the Company as of December&nbsp;31, 2005 and for the year ended December&nbsp;31, 2005, giving effect to the Company&#146;s disposition of its interests in HARC and iSense, based upon the exchange rate on December&nbsp;31, 2005.</P>
<P style="margin-top:13.333px; margin-bottom:0px"><B>Exhibits</B></P>
<P style="margin-top:8.867px; margin-bottom:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=60></TD><TD width=33.333></TD><TD width=530.667></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=60><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Exhibit&nbsp;No.</B></P>
</TD><TD valign=top width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=530.667><P style="line-height:13.333px; margin:0px; font-size:10.667px"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=60><P style="margin:0px" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=33.333><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=530.667><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=60><P style="margin:0px" align=center>10.1</P>
</TD><TD valign=top width=33.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=530.667><P style="margin:0px">Sale and Purchase Agreement dated July&nbsp;5, 2006 (incorporated by reference to Exhibit&nbsp;10.1 to the Company&#146;s Current Report on Form&nbsp;6-K filed on July&nbsp;11, 2006)</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>SIGNATURES</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunder duly authorized.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=271.933></TD><TD width=30.333></TD><TD width=321.733></TD></TR>
<TR><TD valign=bottom width=271.933><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=352.067 colspan=2><P style="margin:0px"><B>CHINA NATURAL RESOURCES, INC.</B></P>
</TD></TR>
<TR><TD valign=bottom width=271.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=30.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=321.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=271.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=30.333><P style="margin:0px" align=right>By:&nbsp;&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=321.733><P style="line-height:normal; margin:0px">/s/&nbsp;<SMALL>&nbsp;<BIG>L<SMALL>I<BIG> F<SMALL>EILIE<BIG> </P>
</TD></TR>
<TR><TD valign=bottom width=271.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=30.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=321.733><P style="margin:0px">Li Feilie </P>
</TD></TR>
<TR><TD valign=bottom width=271.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=30.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=321.733><P style="margin:0px">Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>Date: October 3, 2006</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>CHINA NATURAL RESOURCES, INC.</B></P>
<P style="margin:0px" align=center><B>PRO FORMA CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)</B></P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">On July&nbsp;31, 2006, China Natural Resources, Inc. (the &#147;Company&#148;) consummated the sale of all the issued and outstanding capital stock of iSense Limited (&#147;iSense&#148;), a wholly-owned Hong Kong Corporation acquired by the Company in 2003. The stock was sold to the former owner and a current director of iSense for RMB2,080,000 (US$258,000) (based upon the exchange rate on December&nbsp;31, 2005). On October&nbsp;3, 2006, the Company consummated the sale of its complete ownership interest in the capital stock of Hainan Cihui Industrial Company Limited (&#147;HARC&#148;) to Allied Clear Investments Limited, an unaffiliated British Virgin Islands (&#147;BVI&#148;) corporation for RMB31,200,000 (US$3,866,000)<SUP> </SUP>(based upon the exchange rate on December&nbsp;31, 2005).</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">The pro forma consolidated statement of operations for the year ended December&nbsp;31, 2005 is based on the historical financial statements of the Company and has been prepared assuming the sale of HARC and iSense was completed on January&nbsp;1, 2005. The pro forma consolidated balance sheet as of December&nbsp;31, 2005 assumes the sale of HARC and iSense was completed on December&nbsp;31, 2005. The unaudited pro forma financial statement information is presented for informational purposes only. The pro forma balance sheet and statement of operations do not purport to represent what the Company&#146;s actual financial position or results of operations would have been had the sale of HARC and iSense occurred as of such dates, or to project the Company&#146;s financial position or results of operations for any period or date, nor does it give effect to any matters other than those described in the notes thereto. The unaudited pro forma financ
ial information should be read in conjunction with the Company&#146;s consolidated financial statements and notes thereto for the year ended December&nbsp;31, 2005 filed on Form&nbsp;20-F on June&nbsp;12, 2006 and to the Company&#146;s Form&nbsp;6-K filed on June&nbsp;19, 2006.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">Certain assumptions, estimates and adjustments are preliminary and have been made solely for purposes of developing such pro forma information. The pro forma adjustments are based on preliminary estimates and certain assumptions that the Company believes are reasonable under the circumstances.</P>
<P style="margin-top:8.867px; margin-bottom:0px; text-indent:48px">The functional currency of all the operations of the Company is the Renminbi (&#147;RMB&#148;), the national currency of the People&#146;s Republic of China. The translation of amounts from RMB into US$ is included solely for the convenience of the reader and has been made at the rate of exchange quoted by the People&#146;s Bank of China on December&nbsp;31, 2005 of US$1.00 = RMB8.07. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December&nbsp;31, 2005 or at any other date.</P>
<A NAME="OLE_LINK1"></A><P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>4</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>CHINA NATURAL RESOURCES, INC.</B></P>
<P style="margin:0px" align=center><B>PRO FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED)</B></P>
<P style="margin:0px" align=center><B>DECEMBER 31, 2005</B></P>
<P style="margin:0px" align=center><B>(Amounts in thousands)</B></P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=298.8></TD><TD width=16.6></TD><TD width=1.4></TD><TD width=63></TD><TD width=13.2></TD><TD width=1.467></TD><TD width=55.067></TD><TD width=8></TD><TD width=16.6></TD><TD width=1.4></TD><TD width=63></TD><TD width=16.6></TD><TD width=1.4></TD><TD width=63></TD><TD width=4.467></TD></TR>
<TR><TD valign=bottom width=298.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Historical</B></P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64.533 colspan=3><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Pro Forma <BR>
Adjustments</B></P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Pro Forma</B></P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Pro Forma</B></P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64.533 colspan=3><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:8px; text-indent:-8px">ASSETS</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">CURRENT ASSETS:</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Cash and cash equivalents</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>1,297</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(257)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>34,320</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>4,253</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>33,280&nbsp;</P>
</TD><TD valign=bottom width=8><P style="margin:0px">b</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Trading securities</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>4,257</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>4,257</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>528</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Trade receivables</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>617</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(617)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Other receivables, deposits and prepayments</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>123</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(123)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL CURRENT ASSETS</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>6,294</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>38,577</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>4,781</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:8px; text-indent:-8px">INVESTMENTS</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>24,700</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(24,700)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:8px; text-indent:-8px">GOODWILL</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>830</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(830)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:8px; text-indent:-8px">PROPERTY AND EQUIPMENT, NET</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>890</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(453)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>437</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>54</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL ASSETS</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63><P style="margin:0px" align=right>32,714</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63><P style="margin:0px" align=right>39,014</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63><P style="margin:0px" align=right>4,835</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">CURRENT LIABILITIES:</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accounts payable</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>432</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(432)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accrued liabilities and other payables</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>2,825</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(1,913)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>912</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>113</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Current portion of capital lease</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>167</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(14)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>153</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>19</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Amount due to related parties</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>122</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(122)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Taxes payable</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>15</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(15)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL CURRENT LIABILITIES</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>3,561</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>1,065</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>132</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">Capital lease, net of current portion</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>36</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(36)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL LIABILITIES</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>3,597</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>1,065</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>132</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Common shares</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>13</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>13</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>2</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Additional paid in capital</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>186,622</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>28,028&nbsp;</P>
</TD><TD valign=bottom width=8><P style="margin:0px">c</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>214,650</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>26,598</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">(Accumulated deficit)/retained earnings</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>(185,833</P>
</TD><TD valign=bottom width=13.2><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>8,832&nbsp;</P>
</TD><TD valign=bottom width=8><P style="margin:0px">d</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>(177,001</P>
</TD><TD valign=bottom width=16.6><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>(21,933</P>
</TD><TD valign=bottom width=4.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Reserves</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>28,028</P>
</TD><TD valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="margin:0px" align=right>(28,028)</P>
</TD><TD valign=bottom width=8><P style="margin:0px">c</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin:0px; padding-left:24px; text-indent:-8px">Accumulated other comprehensive Income</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>287</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>287</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>36</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>29,117</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>37,949</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63><P style="margin:0px" align=right>4,703</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=298.8><P style="margin-top:6.667px; margin-bottom:0px; padding-left:8px; text-indent:-8px">TOTAL LIABILITIES AND SHAREHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63><P style="margin:0px" align=right>32,714</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=13.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=55.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63><P style="margin:0px" align=right>39,014</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63><P style="margin:0px" align=right>4,835</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:3.333px">&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="margin-top:0px; margin-bottom:3.333px">Notes to Unaudited Proforma Balance Sheet as of December 31, 2005 (amounts in thousands):</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:28.4px; text-indent:-28.4px">(a)</P>
<P style="margin-top:0px; margin-bottom:3.333px; padding-left:28.4px">To eliminate the assets and liabilities of HARC and iSense.</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:28.4px; text-indent:-28.4px">(b)</P>
<P style="margin-top:0px; margin-bottom:3.333px; padding-left:28.4px">To record the consideration for the sale of HARC and iSense.</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:28.4px; text-indent:-28.4px">(c)</P>
<P style="margin-top:0px; margin-bottom:3.333px; padding-left:28.4px">To eliminate reserves of HARC against additional paid in capital.</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:28.4px; text-indent:-28.4px">(d)</P>
<P style="margin-top:0px; margin-bottom:3.333px; padding-left:28.4px">To record the gain on disposal of HARC and iSense.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>5</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; text-indent:56.8px; page-break-before:always" align=center><B>CHINA NATURAL RESOURCES, INC.</B></P>
<P style="margin:0px" align=center><B>PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)</B></P>
<P style="margin:0px" align=center><B>YEAR ENDED DECEMBER 31, 2005</B></P>
<P style="margin:0px" align=center><B>(Amounts in thousands, except share and per share data)</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=297.267></TD><TD width=16.733></TD><TD width=1.4></TD><TD width=63.133></TD><TD width=13.333></TD><TD width=1.467></TD><TD width=54.067></TD><TD width=9.333></TD><TD width=16.733></TD><TD width=1.4></TD><TD width=63.267></TD><TD width=16.733></TD><TD width=1.4></TD><TD width=63.267></TD><TD width=4.467></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64.533 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Historical</B></P>
</TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64.867 colspan=3><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Pro Forma <BR>
Adjustments</B></P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Pro Forma</B></P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=64.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Pro Forma</B></P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64.533 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>RMB</B></P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=64.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>US$</B></P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">NET SALES</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="margin:0px" align=right>3,890</P>
</TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>(3,890)</P>
</TD><TD valign=bottom width=9.333><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">COST OF SALES</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.133><P style="margin:0px" align=right>(3,322</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>3,322&nbsp;</P>
</TD><TD valign=bottom width=9.333><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">GROSS PROFIT</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="margin:0px" align=right>568</P>
</TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">SELLING, GENERAL AND ADMINISTRATIVE EXPENSES</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.133><P style="margin:0px" align=right>(14,265</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>8,147&nbsp;</P>
</TD><TD valign=bottom width=9.333><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>(6,118</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.733><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>(758</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">LOSS FROM OPERATIONS</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="margin:0px" align=right>(13,697</P>
</TD><TD valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>(6,118</P>
</TD><TD valign=bottom width=16.733><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>(758</P>
</TD><TD valign=bottom width=4.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">INTEREST INCOME</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="margin:0px" align=right>8</P>
</TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>8</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>1</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">INTEREST EXPENSE</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="margin:0px" align=right>(13</P>
</TD><TD valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>3&nbsp;</P>
</TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>(10</P>
</TD><TD valign=bottom width=16.733><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>(1</P>
</TD><TD valign=bottom width=4.467><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">OTHER INCOME/(EXPENSE), NET</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.133><P style="margin:0px" align=right>(132</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>88&nbsp;</P>
</TD><TD valign=bottom width=9.333><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>8,612</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>1,067</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>8,832&nbsp;</P>
</TD><TD valign=bottom width=9.333><P style="margin:0px">b</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">(LOSS)/INCOME BEFORE INCOME TAXES</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="margin:0px" align=right>(13,834</P>
</TD><TD valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>2,492</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>309</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">INCOME TAXES</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.133><P style="margin:0px" align=right>(30</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="margin:0px" align=right>30&nbsp;</P>
</TD><TD valign=bottom width=9.333><P style="margin:0px">a</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=63.267><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">NET (LOSS)/INCOME</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.133><P style="margin:0px" align=right>(13,864</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.267><P style="margin:0px" align=right>2,492</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=63.267><P style="margin:0px" align=right>309</P>
</TD><TD style="border-bottom:4px double #FFFFFF" valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">WEIGHTED AVERAGE SHARES OUTSTANDING</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:24px; text-indent:-8px">- BASIC AND DILUTED</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="margin:0px" align=right>1,247,823</P>
</TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>1,247,823</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>1,247,823</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:8px; text-indent:-8px">BASIC LOSS PER SHARE</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="margin:0px; padding-left:24px; text-indent:-8px">- BASIC AND DILUTED</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="margin:0px" align=right>(11.11</P>
</TD><TD valign=bottom width=13.333><P style="margin:0px">)</P>
</TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>2.00</P>
</TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="margin:0px" align=right>0.25</P>
</TD><TD valign=bottom width=4.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=297.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=13.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=9.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=1.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=63.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=4.467><P st
yle="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:3.333px">&#151;&#151;&#151;&#151;&#151;&#151;&#151;</P>
<P style="margin-top:0px; margin-bottom:3.333px">Notes to Unaudited Proforma Statement of Operations for the year ended December 31, 2005:</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:37.333px; text-indent:-37.333px">(a)</P>
<P style="margin-top:0px; margin-bottom:3.333px; padding-left:37.333px">To eliminate the operating results of HARC and iSense.</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:37.4px; text-indent:-37.4px" align=justify>(b)</P>
<P style="margin-top:0px; margin-bottom:3.333px; padding-left:37.4px" align=justify>To record the gain on disposal of HARC and iSense.</P>
<P style="margin-top:0px; margin-bottom:3.333px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>6</P>
<P style="margin:0px"><BR></P>
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