Half-yearly Report

Balance Sheet                                 
                                                                              
China CDM Exchange Centre                                                     
Ltd.                                                                          
                                                                              
                           Year ended 30 Jun, 2010                            
                                                                              
ITEMS                               30 Jun, 2010               30 Jun, 2010   
                                                                              
                                                     RMB                   GBP        
                                                                              
ASSETS                                                                        
                                                                              
Current assets                                                                
                                                                              
Cash and cash equivalents                  10,203,802.78            999,050.55
                                                                              
Receivables                                21,211,380.21          2,076,798.38
                                                                              
Other receivables                               2,374.98                232.53
                                                                              
Prepaid expenses                                                              
                                                                              
Total current assets                       31,417,557.97          3,076,081.46
                                                                              
Non current assets                                                            
                                                                              
Long-term investments                     352,042,500.00         34,468,350.71
                                                                              
Trading financial assets                   20,000,000.00          1,958,192.59
                                                                              
Immaterial assets                         153,340,000.04         15,013,462.58
                                                                              
Fixed assets                                                                  
                                                                              
Fixed assets-cost                             672,737.21             65,867.45
                                                                              
Less:accumlated depreciation                  274,643.42             26,890.24
                                                                              
Fixed assets-net value                        398,093.79             38,977.22
                                                                              
Total assets                              557,198,151.80         54,555,064.55
                                                                              
EQUITY AND LIABILITIES                                                        
                                                                              
Current Liabilities                                                           
                                                                              
Payroll                                                                      -
                                                                              
Other payables                              4,498,093.60            440,406.68
                                                                              
Accrued and other                                                            -
liabilities                                                                   
                                                                              
Total current liabilities                   4,498,093.60            440,406.68
                                                                              
Equity                                                                        
                                                                              
Paid up capital                           221,999,000.00         21,735,839.82
                                                                              
Capital reserve                           154,404,345.60         15,117,672.26
                                                                              
Public product of surplus                  49,336,357.17          4,830,504.45
                                                                              
Undistributed profit                      120,469,451.92         11,795,119.39
                                                                              
Net profit for the year                     6,490,903.51            635,521.96
                                                                              
Total equity                              552,700,058.20         54,114,657.87
                                                                              
Total equity and liabilities              557,198,151.80         54,555,064.55
                                                                              
                       Rate: 10.2135                                          

                               Income Statement                                
                                                                               
China CDM Exchange Centre Ltd.                                                 
                                                                               
                             01/01/2010~30/06/2010                             
                                                                               
ITEMS                                            RMB                        GBP          
                                                                               
Revenues                                                                       
                                                                               
Service revenues                       14,521,065.62               1,421,752.15
                                                                               
Total revenues                         14,521,065.62               1,421,752.15
                                                                               
Operating costs                                                                
                                                                               
Salary and Bonus                        2,400,000.00                 234,983.11
                                                                               
Rent                                    1,400,000.00                 137,073.48
                                                                               
Travelling expenses                       130,629.00                  12,789.84
                                                                               
Professional fee                          563,266.27                  55,149.19
                                                                               
Verification fee                          232,500.00                  22,763.99
                                                                               
Advisory fee of experts                    16,000.00                   1,566.55
                                                                               
Total operating costs                   4,742,395.27                 464,326.16
                                                                               
Administer expenses                                                            
                                                                               
Salary and Bonus                                                              -
                                                                               
Emploees' insurance                                -                          -
                                                                               
Employee welfare                           83,263.00                   8,152.25
                                                                               
Office expenses                            53,605.80                   5,248.52
                                                                               
Entertainment expenses                     92,637.72                   9,070.12
                                                                               
Depreciation                               60,546.36                   5,928.07
                                                                               
Transportation expenses                    66,244.45                   6,485.97
                                                                               
Communication expenses                     10,512.63                   1,029.29
                                                                               
Meeting fee                                 6,932.00                     678.71
                                                                               
Marketing expenses                                 -                          -
                                                                               
Finance costs                                      -                          -
                                                                               
Miscellaneous fee                           5,769.00                     564.84
                                                                               
Total operating expenses                  379,510.96                  37,157.78
                                                                               
Operating expenses                      1,841,344.30                 180,285.34
                                                                               
Exchange gains and                     -1,066,911.58                -104,460.92
losses                                                                         
                                                                               
Net profit for the year                 6,490,903.51                 635,521.96
                                                                               
                   Rate: 10.2135                                               

                             Cash Flow Statement                              
                                                                              
China CDM Exchange Centre Ltd.                                                
                                                                              
                           Year ended 30 Jun, 2010                            
                                                                              
                                                                     GBP               
                                                                              
CASH FLOWS FROM OPERATING ACTIVITIES                                          
                                                                              
Cash received from customer                                                   
                                                                              
Income tax refunded                                                           
                                                                              
Cash received from others operating income                                    
                                                                              
        Cash inflow from Operation Activities                                 
                                                                              
Cash paid to suppliers                                                        
                                                                              
Cash paid to employee                                                         
                                                                              
Income tax paid                                                               
                                                                              
Cash paid for others operating expenses                             55,149.19 
                                                                              
        Cash outflow from Operatin Avtivities                       55,149.19 
                                                                              
    Net cash used in operating activities                          -55,149.19 
                                                                              
CASH FLOWS FROM INVESTING ACTIVITIES                                          
                                                                              
Gain of disposal of PPE, intangible and other                                 
long-term investment                                                          
                                                                              
Funds received from other investing income                                    
                                                                              
        Cash inflow from Investing Activities                                 
                                                                              
Purchase of PPE, intangible and other                                         
long-term investment                                                          
                                                                              
Funds paid to investment                                                      
                                                                              
Funds paid for others investing expenses                                      
                                                                              
       Cash outflow from Investing Avtivities                                 
                                                                              
    Net cash used in investing activities                                     
                                                                              
CASH FLOWS FROM FINANCING ACTIVITIES                                          
                                                                              
Funds Proceed from investor                                                   
                                                                              
Loan/debentures from third parties                                            
                                                                              
Received from others financing income                                         
                                                                              
        Cash outflow from Fiancing Avtivities                                 
                                                                              
Prepayment of loan to third parties                                           
                                                                              
Dividend paid                                                                 
                                                                              
Paid for others financing expenses                                            
                                                                              
         Cash inflow from Fiancing Avtivities                                 
                                                                              
     Net cash from financing activities                                       
                                                                              
Exchage difference                                                -104,460.92 
                                                                              
Net increase in cash and cash equivalents                         -159,610.11 
                                                                              
Net increase in cash and cash equivalents                        1,158,660.66 
                                                                              
Cash and cash equivalents at year ended                            999,050.55 
                                                                              
                  Rate: 10.2135