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     Ja Nein
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      schrieb am 19.02.09 19:39:09
      Beitrag Nr. 1 ()
      hallo hier ist die hölle los
      :eek::eek:
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      schrieb am 19.02.09 19:41:48
      Beitrag Nr. 2 ()
      Antwort auf Beitrag Nr.: 36.614.462 von aloevera2750 am 19.02.09 19:39:09U.S. SECURITIES AND EXCHANGE COMMISSION

      WASHINGTON, D.C. 20549

      FORM 10-Q

      Mark One
      [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

      For the six month period ended December 31, 2008

      [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

      For the transition period from ______ to _______

      COMMISSION FILE NUMBER: 000-33195

      XINHUA CHINA LTD.


      (NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)

      NEVADA 88-0437644
      _______________________________ ___________________
      (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
      INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)


      B-26F, ORIENTAL KENZO DONGCHENG DISTRICT
      BEIJING 100027

      PEOPLE'S REPUBLIC OF CHINA

      (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

      86-10-64168816 OR 86-10-64168916

      (ISSUER'S TELEPHONE NUMBER)


      SUITE 304, BUILDING #1, YUANJIA INTERNATIONAL APARTMENT
      NO. 40 DONGZHONG ST., DONGCHENG DISTRICT
      BEIJING 100027

      PEOPLE'S REPUBLIC OF CHINA

      (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,

      IF CHANGED SINCE LAST REPORT)


      SECURITIES REGISTERED PURSUANT TO SECTION NAME OF EACH EXCHANGE ON WHICH
      12(b) OF THE ACT: REGISTERED:
      NONE


      SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:

      COMMON STOCK, $0.00001 PAR VALUE

      (TITLE OF CLASS)

      Indicate by checkmark whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X ] No[ ]

      Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.

      Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X]

      Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). [ ] Yes [X] No

      APPLICABLE ONLY TO ISSUER INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
      PRECEDING FIVE YEARS.


      N/A

      Indicate by checkmark whether the issuer has filed all documents and reports required to be filed by Section 12, 13 and 15(d) of the Securities Exchange Act of 1934 after the distribution of securities under a plan confirmed by a court.

      Yes[ ] No[ ]

      APPLICABLE ONLY TO CORPORATE REGISTRANTS

      Indicate the number of shares
      outstanding of each of the issuer's
      classes of common stock, as of the
      most practicable date: Outstanding as of February 13, 2009

      Class Common Stock, $0.00001 par value 148,999,008


      2

      XINHUA CHINA LTD.

      FORM 10-Q

      PART I - FINANCIAL INFORMATION

      Item 1. Financial Statements 5

      Item 2 Management's Discussion and Analysis of Financial Condition

      and Results of Operations 7

      Item 3. Quantitative and Qualitative Discloses About Market Risk 12

      Item 4. Controls and Procedures 12

      Item 4T. Controls and Procedures 13


      PART II - OTHER INFORMATION

      Item 1. Legal Proceedings 13

      Item 1A. Risk Factors 13

      Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 14

      Item 3. Defaults Upon Senior Securities 14

      Item 4. Submission of Matters to a Vote of Security Holders 14

      Item 5. Other Information 14

      Item 6. Exhibits 14

      3

      FORWARD LOOKING STATEMENTS

      Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of
      Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

      AVAILABLE INFORMATION

      Xinhua China Ltd. files annual, quarterly, current reports, proxy statements, and other information with the Securities and Exchange Commission (the "Commission"). You may read and copy documents referred to in this Quarterly Report on Form 10-Q that have been filed with the Commission at the Commission's Public Reference Room, 450 Fifth Street, N.W., Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. You can also obtain copies of our Commission filings by going to the Commission's website at http://www.sec.gov.

      4

      PART I - FINANCIAL INFORMATION

      ITEM 1. FINANCIAL STATEMENTS

      XINHUA CHINA LTD.

      UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

      DECEMBER 31, 2008 AND JUNE 30, 2008

      (STATED IN US DOLLARS)
      5

      XINHUA CHINA LTD.

      CONTENTS PAGES

      Report of Registered Independent Public Accounting Firm F-1

      Consolidated Balance Sheets F-2-3

      Consolidated Statements of Income F-4

      Consolidated Statements of Stockholders' Equity F-5

      Consolidated Statements of Cash Flows F-6

      Notes to the Financial Statements F-7-20


      6

      Board of Directors and Stockholders
      Xinhua China Ltd.

      REPORT OF REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM

      We have reviewed the accompanying interim consolidated Balance Sheets of Xinhua China Ltd. ("the Company") as of December 31, 2008 and June 30, 2008, and the related statements of income, stockholders' equity, and cash flows for the three-months and the six-months ended December 31, 2008 and 2007. These interim consolidated financial statements are the responsibility of the Company's management.

      We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

      Based on our review, we are not aware of any material modifications that should be made to the accompanying interim consolidated financial statements for them to be in conformity with U.S. generally accepted accounting principles.

      South San Francisco, California Samuel H. Wong & Co., LLP January 23, 2009 Certified Public Accountants
      F-1

      XINHUA CHINA LTD.

      CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2008 AND JUNE 30, 2008 (STATED IN US DOLLARS)

      NOTES DECEMBER 31, 2008 JUNE 30, 2008 _________________ _____________

      ASSETS CURRENT ASSETS Cash and Cash Equivalents 3D 1,814 38,733 Accounts Receivable, NET 3E 69,666 411,782 Note Receivable 4 - 1,625,000 Other Receivables and Prepayments 5 224,446 223,231 __________ ___________ Total Current Assets 295,926 2,298,746

      LONG-TERM ASSETS Property, Plant & Equipment, NET 3F,6 63,157 73,786 __________ ___________ Total Long-term Assets 63,157 73,786

      __________ ___________ Total Assets $ 359,083 $ 2,372,532 ========== ===========

      LIABILITIES & STOCKHOLDERS' EQUITY

      LIABILITIES CURRENT LIABILITIES Accounts Payable and Accrued Liabilities 7 619,888 1,095,538 Deferred Revenue - 18,355 Current portion of Loans Payable 8 1,573,943 1,635,443 __________ ___________ Total Current Liabilities 2,193,831 2,749,336

      LONG-TERM LIABILITIES Loans Payable 8 1,058,261 1,058,261 Loans from Shareholders 9 5,682,660 5,410,256 __________ ___________ Total Long-term Liabilities 6,740,921 6,468,517

      __________ ___________ Total Liabilities 8,934,752 9,217,853

      SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS AND ACCOUNTANT'S REPORT


      F-2

      NOTE DECEMBER 31, 2008 JUNE 30, 2008

      STOCKHOLDERS' EQUITY

      Common Stock $0.00001 Par Value 500,000,000 Shares Authorized; 148,999,008 and 98,655,733 shares issued and outstanding at December 31, 2008 and June 30, 2008, accordingly. 10 1,489 987 Additional Paid-In Capital 11,132,749 10,903,997 Accumulated Other Comprehensive Income 38,774 38,149 Accumulated Deficit (19,748,680) (17,788,454) _____________ _____________ Total Stockholders' (Deficit)/Equity (8,575,668) (6,845,321)

      _____________ _____________ Total Liabilities & Stockholders' Equity $ 359,083 $ 2,372,532 ============= =============

      SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS AND ACCOUNTANT'S REPORT


      F-3

      XINHUA CHINA LTD.

      CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008 AND 2007 (STATED IN US DOLLARS)

      Three-months ended Six-months ended _____________________________ _____________________________ NOTE 12/31/2008 12/31/2007 12/31/2008 12/31/2007 ____________ ____________ ____________ ____________

      REVENUE Revenue, NET 3H $ - $ - $ - $ - Cost of Sales, NET 3I - - - - ____________ ____________ ____________ ____________ Gross Profit - - - -

      OPERATING EXPENSES Selling, General, and Administrative Expenses 110,942 92,452 337,808 170,754 ____________ ____________ ____________ ____________ Total Operating Expense 110,942 92,452 337,808 170,754

      ____________ ____________ ____________ ____________ Operating Income/(Loss) (110,942) (92,452) (337,808) (170,754) ____________ ____________ ____________ ____________

      OTHER INCOME (EXPENSES) Other Income - - 179,621 - Interest Income 5 13,789 - 13,800 Gain on disposal of Beijing BoHeng - - 73,427 - Interest Expense (100,137) 146,507 (250,466) 153,496 Impairment loss on Boheng investment 4 (1,625,000) - (1,625,000) - ____________ ____________ ____________ ____________ Loss before minority interest and income tax (1,836,074) (225,170) (1,960,227) (310,450)

      Minority interest in net loss of consolidated subsidiaries ____________ ____________ ____________ ____________

      Loss before Income Tax (1,836,074) (225,170) (1,960,227) (310,450)

      Income Tax 3M,14

      ____________ ____________ ____________ ____________ Net Loss $ (1,836,074) $ (225,170) $ (1,960,227) $ (310,450) ============ ============ ============ ============ Basic & Diluted Earnings Per Share 3N,17 (.013) .003 (.014) (.005)

      Weighted Average Shares Outstanding 142,941,399 57,723,668 142,941,399 57,723,668 ____________ ____________ ____________ ____________

      SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS AND ACCOUNTANT'S REPORT


      F-4

      XINHUA CHINA LTD.

      STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE SIX MONTHS ENDED DECEMBER 31, 2008 AND JUNE 30, 2008 (STATED IN US DOLLARS)

      ADDITIONAL OTHER NUMBER OF COMMON PAID IN COMPREHENSIVE COMPREHENSIVE ACCUMULATED SHARES STOCK CAPITAL INCOME(LOSS) INCOME(LOSS) DEFICIT TOTAL ___________ ______ __________ _____________ _____________ ___________ __________

      Balance, July 1, 2007 54,638,890 546 10,423,526 (17,088,780) 8,749 (17,097,530) (6,664,709) Additional Paid-in Capital - - 151,760 - - - 151,760 Imputed interest on interest free advances from related party - - 328,711 - - - 328,711 Issuance of shares to Highgate 44,016,843 441 - - - - 441 Foreign Currency translation - - - 29,400 29,400 - 29,400 Net Loss for year - - - (690,924) - (690,924) (690,924) ___________ ______ __________ _____________ _____________ ___________ __________ Balance, June 30, 2008 98,655,733 987 10,903,997 (17,750,304) 38,149 (17,788,454) (6,845,321) =========== ====== ========== ============= ====== =========== ==========

      Balance, July 1, 2008 98,655,733 987 10,903,997 (17,750,304) 38,149 (17,788,454) (6,845,321) Additional Paid-in Capital - - 5,302 - - - 5,302 Imputed interest on interest free advances from related party - - 223,450 - - - 223,450 Issuance of shares to Highgate 50,343,275 502 - - - - 502 Foreign Currency translation - - - 625 625 - 625 Net Loss for quarter (1,960,226) (1,960,226) (1,960,226) ___________ ______ __________ _____________ _____________ ___________ __________ Balance, December 31, 2008 148,999,008 1,489 11,132,749 (25,415,157) 38,774 (19,748,680) (8,575,668) =========== ====== ========== ============= ====== =========== ==========

      DECEMBER 31, 2008 JUNE 30, 2008 _________________ _____________

      COMPREHENSIVE INCOME(LOSS) Net Loss (1,960,226) $ (690,924)

      OTHER COMPREHENSIVE INCOME Foreign Currency Translation Adjustment 625 29,400 __________ __________

      Total Comprehensive Income (1,959,601) $ (661,524) ========== ==========

      SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS AND ACCOUNTANT'S REPORT


      F-5

      XINHUA CHINA LTD.

      CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008 AND 2007 (STATED IN US DOLLARS)

      THREE MONTHS ENDED SIX MONTHS ENDED ___________________________ ___________________________ 12/31/2008 12/31/2007 12/31/2008 12/31/2007 ___________ __________ ___________ __________

      CASH FLOW FROM OPERATING ACTIVITIES: Net (Loss) $(1,836,074) $ (225,170) $(1,960,227) $ (310,450) Adjustments to reconcile net earnings/(loss) to net cash used in operating activities: Depreciation 5,394 1,732 10,629 2,554 Imputed interest expense 100,137 116,446 211,862 199,659 Amortization of deferred imputed interest from note receivable - - 13,768 13,768

      CHANGES IN ASSETS AND LIABILITIES: Decrease/(Increase) in accounts receivable 4,464 (42,271) 342,116 (67,734) Decrease/(Increase) in other receivables and prepayments - (5,678) (812) (8,546) Increase /( Decrease) in accounts payable and accrued liabilities 16,831 112,108 (489,853) 151,503 Increase/(Decrease) in deferred revenue - (13,767) (18,355) (27,535) ___________ __________ ___________ __________ Cash Sourced/(Used) in Operating Activities (1,709,248) (56,600) (1,890,872) (46,781) ___________ __________ ___________ __________

      CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of plant and equipment - (57,031) - (57,031) Loss on impairment of asset 1,625,000 1,625,000 ___________ __________ ___________ __________ Cash Used/(Sourced) in Investing Activities 1,625,000 (57,031) 1,625,000 (57,031) ___________ __________ ___________ __________

      CASH FLOWS FROM FINANCING ACTIVITIES: Stock Issue to Highgate on debt conversion - - 502 - Repayment of loan from Highgate - - (44,174) - Repayment of loans from shareholders - - - - Loans from shareholders 71,553 22,987 272,404 86,788 ___________ __________ ___________ __________ Cash Sourced/(Used) in Financing Activities 71,553 22,987 228,732 86,788 ___________ __________ ___________ __________

      NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS FOR THE YEAR (12,969) (90,644) (36,918) (17,024)

      EFFECT OF CURRENCY TRANSLATION 274 37,463 211 34,300

      CASH & CASH EQUIVALENTS AT BEGINNING OF YEAR 14,783 73,190 38,733 2,733 ___________ __________ ___________ __________

      CASH & CASH EQUIVALENTS AT END OF YEAR $ 1,814 $ 20,009 $ 1,814 $ 20,009 =========== ========== =========== ==========

      Cash paid for interest expenses $ - $ - $ - $ - =========== ========== =========== ==========

      SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS AND ACCOUNTANT'S REPORT


      F-6

      XINHUA CHINA LTD.

      NOTES TO FINANCIAL STATEMENTS
      FOR THE PERIOD ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      1. ORGANIZATION AND BUSINESS BACKGROUND

      Xinhua China Ltd. (the "Company", formerly Camden Mines Limited) was incorporated in the State of Nevada, United States of America, on September 14, 1999. Until September 2004, the Company was a non-operating shell company and considered as a development stage enterprise since its inception. Effective from October 12, 2004, the Company changed to its current name. The Company established an office in Vancouver, Canada; however, this office was closed down in December 2006. The Company established its principal executive office at B-26F, Oriental Kenzo, Dongcheng District, Beijing, 100027, People's Republic of China.

      As of May 31, 2006, the Company reduced its equity interest in Xinhua C&D from 56.14% to 7.98%. Subsequent to the deconsolidation of Xinhua C&D, the Company commenced the internet book distribution business through Beijing Joannes Information Technology Co., Ltd. ("Joannes").

      Details of the Company's subsidiaries as of December 31, 2008 are described below:

      PLACE OF
      INCORPORATION PARTICULARS OF EFFECTIVE
      AND KIND OF PRINCIPAL ACTIVITIES ISSUED/REGISTERED INTEREST
      NAME LEGAL ENTITY AND PLACE OF OPERATION SHARE CAPITAL HELD
      ___________________________ _______________________ ______________________ ___________________ _________

      Beijing Joannes Information PRC, a company with Sales and distribution Registered capital Technology Co., Ltd. limited liability of books, PRC US $1,250,000 100%

      Beijing Boheng Investments PRC, a company with Investment holding, Registered capital and Management Co., Ltd. limited liability PRC US $17,142,500 95%

      British Virgin Islands, 10,000,000 ordinary Pac-Poly Investment Ltd. a company with limited Investment holding, shares of US $1 par liability PRC value 100%


      2. GOING CONCERN UNCERTAINTIES

      These consolidated financial statements have been prepared assuming that Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

      As of December 31, 2008, the Company had no working capital but current liabilities exceeding current assets by $1,897,905 and an accumulated deficit of $19,748,680 because the Company continued to incur losses over the past several years. Management has taken certain action and continues to implement changes designed to improve the Company's financial results and operating cash flows. The actions involve certain cost-saving initiatives and growing strategies, including (a) reductions in headcount and corporate overhead expenses; and (b) development of e-commerce business. Management believes that these actions will enable the Company to improve future profitability and cash flow in its continuing operations through June 30, 2009. As a result, the financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of the Company's ability to continue as a going concern.

      F-7

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      (A.) BASIS OF PRESENTATION

      These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP").

      (B.) USE OF ESTIMATES

      In preparing these consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the year reported. Actual results may differ from these Estimates.

      (C.) BASIS OF CONSOLIDATION

      The interest of the Company in the subsidiaries was acquired by means of exchange of shares in the Company pursuant to a share exchange agreement on September 14, 2004. The transaction is considered a transfer between entities under common control, within the meaning of US GAAP. Accordingly, the assets and liabilities transferred have been accounted for at historical cost or at their "fair value" at the date of their original acquisition and have been included in the foregoing financial statements as of the beginning of the periods presented.

      The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to govern the financial and operating policies; to appoint or remove the majority of the members of the board of directors; or to cast majority of votes at the meeting of directors. All significant inter-company balances and transactions within the Company have been eliminated on consolidation.

      (D.) CASH AND CASH EQUIVALENTS

      Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

      (E.) ACCOUNTS RECEIVABLE, NET

      Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business, but mitigates the associated risks by performing credit checks and actively pursuing past due accounts.

      An allowance for doubtful accounts is established and determined based
      F-8

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      on managements' assessment of known requirements, aging of receivables, payment history, the customer's current credit worthiness, and the economic environment.

      (F.) PROPERTY, PLANT, AND EQUIPMENT, NET

      Property, plant, and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational.

      ASSET CLASSIFICATION DEPRECIABLE LIFE

      Land Use right 50 years Buildings 50 years Motor Vehicles 8-10 years Equipment and Machinery 5-8 years Leasehold Improvement 2 years


      Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of property, plant, and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statement of operations.

      (G.) IMPAIRMENT OF LONG-LIFE ASSETS

      In accordance with SFAS No. 121, "ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS TO BE DISPOSED OF', a long-lived assets and certain identifiable intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. The Company reviews long-lived assets, if any, to determine whether the carrying values are not impaired.

      (H.) REVENUE RECOGNITION

      Sales revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed and final, delivery has occurred and there is reasonable assurance of collection of the sales proceeds. The Company generally obtains purchase authorizations from its customers for a specified amount of products at a specified price and considers delivery to have occurred when the customer takes possession of the products. Net sales incorporate offsets for discounts and sales returns. Revenue is recognized upon delivery, risk and ownership of the title is transferred and a reserve for sales returns is recorded even though invoicing may not be completed. The Company has
      F-9

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      demonstrated the ability to make reasonable and reliable estimates of products returns in accordance with SFAS No. 48, "REVENUE RECOGNITION WHEN RIGHT OF RETURN EXISTS".

      Shipping and handling fees billed to customers are included in sales.

      Costs related to shipping and handling are part of selling, general, and administrative expenses in the consolidated statements of operations. EITF No. 00-10, "ACCOUNTING FOR SHIPPING AND HANDLING FEES AND COSTS" allows for the presentation of shipping and handling expenses in line items other than cost of sales. For the three and six months ended December 31, 2008, there were no shipping and handling costs included in selling, general and administrative expenses in the accompanying consolidated statements of operations.

      (I.) COST OF SALES

      Cost of sales includes depreciation of property, plant, and equipment and purchase costs to publishers.

      (J.) VALUE-ADDED TAX

      The Company is subject to value added tax ("VAT") imposed by the PRC on sales. The output VAT is charged to customers who purchase books from the Company and the input VAT is paid when the Company purchases books from publishers. The VAT rate is 13%. The input VAT can be offset against the output VAT.

      (K.) ADVERTISING EXPENSES

      The Company expenses advertising costs as incurred in accordance with the American Institute of Certified Public Accountants ("AICPA") Statement of Position 93-7, "REPORTING FOR ADVERTISING COSTS". For the three and six months ended December 31, 2008, advertising expenses amount to zero.

      (L.) COMPREHENSIVE INCOME

      SFAS No. 130, "REPORTING COMPREHENSIVE INCOME", establishes standards for reporting and display of comprehensive income, its components, and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying statement of changes in owners' equity consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

      (M.) INCOME TAXES

      The Company accounts for income tax using SFAS No. 109 "ACCOUNTING FOR INCOME TAXES", which requires the asset and liability approach for financial accounting and reporting for income taxes. Under this approach, deferred income taxes are provided for the estimated future
      F-10

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      tax effects attributable to temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases, and for the expected future tax benefits from loss carry-forwards and provisions, if any. Deferred tax assets and liabilities are measured using the enacted tax rates expected in the years of recovery or reversal and the effect from a change in tax rates is recognized in the statement of operations and comprehensive
      (loss) income in the period of enactment. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized.

      (N.) LOSS PER SHARE

      The Company calculates loss per share in accordance with SFAS No. 128, "EARNINGS PER SHARE". Basic loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding.

      Diluted loss per share is computed similar to basic loss per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive. The effect of outstanding stock options, stock purchase warrants and convertible debenture, which could result in the issuance of 148,999,008 and 98,655,733 of common stock at December 31, 2008 and June 30, 2008, respectively, are anti-dilutive. As a result, diluted loss per share data does not include the assumed exercise of outstanding stock options, stock purchase warrants, or conversion of convertible debenture and has been presented jointly with basic loss per share.

      (O.) FOREIGN CURRENCIES TRANSLATION

      The functional and reporting currency of the Company is the United States dollars ("U.S. dollars"). The accompanying consolidated financial statements have been expressed in U.S. dollars. The functional currency of the Company's foreign subsidiaries is the Renminbi Yuan ("RMB"). The balance sheet is translated into United States dollars based on the rates of exchange ruling at the balance sheet date. The statement of operations is translated using a weighted average rate for the year. Translation adjustments are reflected as cumulative translation adjustments in stockholders' equity.

      DECEMBER 31, JUNE 30, DECEMBER 31,
      EXCHANGE RATES 2008 2008 2007
      ________________________ ____________ ________ ____________

      Period/year end RMB: US$ exchange rate 6.8542 6.8718 7.3141

      Average period/year RMB: US$ exchange rate 6.85307 7.0726 7.5063


      F-11

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      (P.) FAIR VALUE OF FINANCIAL INSTRUMENTS

      The carrying value of the Company's financial instruments, which include cash and cash equivalents, accounts receivables, other payable and accrued liabilities, approximate their fair values due to the short-term maturity of these instruments.

      (Q.) RELATED PARTIES

      For the purposes of these financial statements, parties are considered to be related if one party has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

      (R.) CONVERTIBLE DEBENTURE ISSUED WITH STOCK PURCHASE WARRANTS

      The Company accounts for the issuance of and modifications to the convertible debt issued with stock purchase warrants in accordance with APB No. 14, ACCOUNTING FOR CONVERTIBLE DEBT AND DEBT ISSUED WITH STOCK PURCHASE WARRANTS , EITF No. 98-5, ACCOUNTING FOR CONVERTIBLE SECURITIES WITH BENEFICIAL CONVERSION FEATURES OR CONTINGENTLY ADJUSTABLE CONVERSION RATIOS, and EITF No. 00-27, APPLICATION OF ISSUE NO. 98-5 TO CERTAIN CONVERTIBLE INSTRUMENTS and SFAS No. 15, ACCOUNTING BY DEBTORS AND CREDITORS FOR TROUBLED DEBT RESTRUCTURINGS.

      Due to the indeterminate number of shares, which might be issued under the embedded convertible host debt conversion feature of these debentures, the Company is required to record a liability relating to both the detachable warrants and embedded convertible feature of the notes payable (included in the liabilities as a "derivative liability").

      The accompanying consolidated financial statements comply with current requirements relating to warrants and embedded derivatives as described in SFAS 133 as follows:

      o The Company treats the full fair market value of the derivative and warrant liability on the convertible secured debentures as a discount on the debentures (limited to their face value). The excess, if any, is recorded as an increase in the derivative liability and warrant liability with a corresponding increase in loss on adjustment of the derivative and warrant liability to fair value.

      o Subsequent to the initial recording, the change in the fair value of the detachable warrants, determined under the Black-Scholes option pricing formula and the change in the fair value of the embedded derivative (utilizing the Black-Scholes option pricing formula) in the conversion feature of the convertible debentures are recorded as adjustments to the liabilities as of September 30, 2006.

      o The expense relating to the change in the fair value of the Company's stock reflected in the change in the fair value of the warrants and derivatives is included in interest expense in the accompanying consolidated statements of operations.

      F-12

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      (S.) RECENTLY ISSUED ACCOUNTING STANDARD

      In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133" ("SFAS 161"). SFAS 161 applies to all derivative instruments and related hedged items accounted for under SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133"). SFAS 161 requires entities to provide greater transparency about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under SFAS 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity's financial position, results of operations and cash flows. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008.

      In May 2008, the FASB issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles" ("SFAS 162"). SFAS 162 identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles (the GAAP hierarchy).

      Statement 162 will become effective 60 days following the SEC's approval of the Public Company Accounting Oversight Board amendments to AU Section 411, "The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles." In May 2008, the FASB issued FSP Accounting Principles Board ("APB") 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" ("FSP APB 14-1"). FSP APB 14-1 requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. FSP APB 14-1 is effective for fiscal years beginning after December 15, 2008 on a retroactive basis.

      In September 2008, FASB issued FSP No. 133-1 and FIN 45-4, "Disclosures about Credit Derivatives and Certain Guarantees", an amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161.

      This FSP is intended to improve disclosures about credit derivatives by requiring more information about the potential adverse effects of changes in credit risk on the financial position, financial performance, and cash flows of the sellers of credit derivatives. The provisions of the FSP that amend Statement 133 and FIN 45 are effective for reporting periods (annual or interim) ending after November 15, 2008.

      This FSP amends FASB Statement No. 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, to require disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments. This FSP also amends FASB Interpretation (FIN) No. 45, GUARANTOR'S ACCOUNTING AND DISCLOSURE REQUIREMENTS FOR GUARANTEES, INCLUDING INDIRECT GUARANTEES OF INDEBTEDNESS TO OTHERS, to require an additional disclosure about the current status of the payment/performance risk of a guarantee. The provisions of the FSP that amend Statement 133 and FIN 45 are effective for reporting periods (annual or interim) ending after November 15, 2008.

      F-13

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      Finally, this FSP clarifies the effective date in FASB Statement No.


      161, DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES.

      The disclosures required by Statement 161 should be provided for any reporting period (annual or quarterly interim) beginning after November 15, 2008. For example, an entity with a March 31 fiscal year-end should provide the disclosures for its fourth quarter interim period ending March 31, 2009, in its 2009 annual financial statements.

      This clarification of the effective date of Statement 161 is effective upon issuance of the FSP.

      The Company is currently evaluating the potential impact, if any, of the adoption of the above recent accounting pronouncements on its consolidated results of operations and financial condition.

      4. BEIJING BOHENG INVESTMENTS AND MANAGEMENT CO. LTD.

      As a result of the termination of the acquisition of Beijing Boheng Investments and Management Co., Ltd. by Purchaser, the Company repossessed Boheng as its 95% interest subsidiary on August 25, 2008 at a value of $1,625,000 equal to the unpaid purchase price due by the Purchaser. After the repossession of Boheng, the Company conducted an evaluation of its carrying value and determined that an impairment loss in amount of $1,625,000 was incurred; this impairment loss was accordingly reflected in the income statement for the quarter ended December 31, 2008.

      5. OTHER RECEIVABLES AND PREPAYMENT

      DECEMBER 31, 2008 JUNE 30, 2008
      _________________ _____________

      Advance to suppliers $ 224,446 $ 223,231 _________ _________ $ 224,446 $ 223,231 ========= =========


      The carrying amounts of prepayments approximate their fair value.

      6. PROPERTY, PLANT, AND EQUIPMENT, NET

      Property, plant, and equipment consist of the following:

      DECEMBER 31, 2008 JUNE 30, 2008
      _________________ _____________

      Equipment and machinery $ 53,397 $ 53,108 Motor vehicles 39,673 39,458 Leasehold Improvement 16,299 16,211 _________ _________ 109,369 108,777 LESS: Accumulated Depreciation (46,212) (34,991) _________ _________ $ 63,157 $ 73,786 ========= =========


      Depreciation expense for December 31, 2008 and June 30, 2008 were $10,629 and $10,157, respectively.

      F-14

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

      Accounts payable and accrued liabilities as of December 30, 2008 and June 30, 2008 consists of the following:

      DECEMBER 31, 2008 JUNE 30, 2008
      _________________ _____________

      Accounts Payable $ 383,305 $1,095,538

      Other Payables 236,583 - _________ __________ $ 619,888 $1,095,538 ========= ==========


      8. LOANS PAYABLE/CONVERTIBLE DEBENTURE

      On November 23, 2005, the Company entered into a debt financing agreement (the "Agreement") with an institutional investor, and on March 23, 2006, the Agreement was modified to include an additional institutional investor, who is an affiliate of the original institutional investor (both institutional investors collectively referred to as "the Investors"). The Investors committed to purchase up to $4,000,000 of a secured convertible debenture ("the debenture") that shall be convertible into shares of the Company's common stock.

      After two closings on December 13, 2005 and March 23, 2006, the Company received gross proceeds of $3,250,000 (net proceeds $2,989,460) for the secured convertible debenture. The Company and debenture-holders entered into a Forbearance and Settlement Agreement on December 29, 2006 because of default in debt service, whereby the Company agreed to make cash payment and to grant rights to the creditors to cashless purchase the Company's common stock by exercising the warrant at 200,000 shares in every three month period beginning on December 29, 2006 according to the following payment plan:

      CONVERSION OF
      PAYMENT DATE CASH PAYMENT DEBENTURE

      March 10, 2007 $ 250,000 250,000

      September 30, 2007 375,000 375,000

      October 31, 2007 375,000 375,000

      January 31, 2008 250,000 250,000

      July 31, 2008 625,000 625,000 ___________ _________

      $ 1,875,000 1,875,000 ============ =========


      F-15

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      The Company paid $250,000 for the payment due March 10, 2007 and the debenture holders exercised 100,000 shares and 125,000 shares on March 1, 2007 and April 18, 2007, respectively. During the period ended December 31, 2008, the debenture holders converted 50,343,275 shares against outstanding loan at a total conversion price of $61,500.

      Loans Payable outstanding as of December 31, 2008 amount to $2,632,204 of which $1,573,943 and $1,058,261 were attributed to current portion and long-term, respectively.

      9. LOANS FROM SHAREHOLDERS

      The total outstanding amount of $5,682,660 represents cash advanced from shareholders of the Company.

      These shareholders' loans are unsecured and not repayable within the next twelve months. For the quarter ended December 31, 2008, there was $211,862 imputed interest, at 6.00% annum, recorded. For the year ended June 30, 2008, there was $328,711 imputed interest, at 6.00% per annum, recorded.

      10. COMMON STOCK AND WARRANTS

      A. COMMON STOCK

      During 2005, the authorized capital stock of the Company increased from $1,000 consisting of 100,000,000 shares of common stock of par value $0.00001 each to $5,000 consisting of 500,000,000 shares of common stock of par value $0.00001 each.

      B. WARRANTS

      (1) The Company completed a private placement in 2005 with certain individuals for 622,690 units at $3.25 per unit for total cash proceeds of $2,023,800. Each unit consists of one share of common stock and one-half of one non-transferable share purchase warrant. The warrant will expire on the earlier of:

      (i) two years from the date of issuance; and

      (ii) fifteen business days from date that the Company provides notice in writing to the subscriber that the Company's common shares have been trading or traded at a price of $7 or more for a period of ten days.

      The warrant shares shall have an exercise price of $4.50 per warrant share for the first twelve months, and if still available after twelve months, the warrant shares shall have an exercise price of $4.60 per warrant share starting on the first day of the second twelve month period and increasing by $0.10 on the first day of each subsequent month thereafter until expiration of the warrants.

      F-16

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      (2) SHARE PURCHASE WARRANT ISSUED FROM CONVERTIBLE DEBENTURE

      On December 13, 2005, the Company issued to the holder of the convertible debenture 1,035,000 warrants. One share purchase warrants is exercisable for one common share at $0.00001 per share, until expiration on November 22, 2010. As of June 30, 2008, 835,000 warrants issued to convertible debenture holders were outstanding which will lead to the issuance of a total of 213,554,987 additional shares of common stock if fully exercised at June 30, 2008.

      (3) SHARE WARRANT ISSUED FOR SERVICE

      On May 1, 2006, the Company issued 100,000 warrants at $1.47 per share to Mr. Peter Shandro, the VP Business Strategy of the Company, in association with the planning and execution of the on-line ecommerce initiative of the Company. Compensation expense of $94,775 was recorded with the issuance of these warrants.

      11. CHINA CONTRIBUTION PLAN

      Full-time employees of the Company are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a China government-mandated multi-employer defined contribution plan. The Company is required to accrue for these benefits based on certain percentages of the employees' salaries. The total contributions made for such employee benefits were $10,500 and $23,854, for the quarter ended December 31, 2008 and the year ended June 30, 2008, respectively.

      12. STATUTORY RESERVES

      The Company is required to make appropriations to reserves funds, comprising the statutory surplus reserve, statutory public welfare fund and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the People's Republic of China (the "PRC GAAP"). Appropriation to the statutory surplus reserve should be at least 10% of the after-tax net income determined in accordance with the PRC GAAP until the reserve is equal to 50% of the Company's registered capital. Appropriation to the statutory public welfare fund is 10% of the after-tax net income determined in accordance with the PRC GAAP. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The statutory public welfare fund is established for providing employee facilities and other collective benefits to the employees and is non-distributable other than in liquidation. The Company made no appropriations to the statutory reserve, as it did not have a pre-tax profit.

      13. GAIN ON DEBT RESTRUCTURING

      On December 29, 2006, the Company completed a debt restructuring with its Investors, namely Cornell Capital Partners, L.P. ("Cornell") and Highgate House Funds, Ltd. ("Highgate") under the Forbearance and Settlement Agreement (the "Forbearance and Settlement Agreement"). Pursuant to the Forbearance and Settlement Agreement, the Company agreed to make certain payments to the Investors, with respect to the Securities Purchase
      F-17

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      Agreement (the "Securities Purchase Agreement") entered into between the Company and the Investors on November 23, 2005, as amended on March 23, 2006, on the convertible debentures in the amounts of $1,250,000 (to Highgate on November 23, 2005) and $2,000,000 (to Cornell on March 23, 2006) (the "Convertible Debentures") in accordance with the terms and conditions set forth in the Forbearance and Settlement Agreement.

      In accordance with the Forbearance and Settlement Agreement, the Company agrees to use the proceeds from the disposal of Boheng to repay the principal and interest due to the Investors under the Convertible Debentures in exchange for the Investors agreeing to:

      (i) Waive on a one-time basis only any accrued liquidated damages owing to the Investors;

      (ii) Not apply the redemption premium on the scheduled repayments;

      (iii) Converting the Convertible Debentures in an amount equal to at least the amount of a scheduled repayment subject to certain conditions;

      (iv) No additional liquidated damages accruing during the term of the Forbearance and Settlement Agreement;

      (v) Permitting the Company to withdraw the Registration Statement filed on March 28, 2006 with the SEC in connection with the Convertible Debentures;

      (vi) During the term of the Forbearance and Settlement Agreement, waiving the requirement for the Company to receive written consent of each Buyer for any organizational change (as defined in the Securities Purchase Agreement) to be directly or indirectly consummated by the Company, and that the company will not effectuate any stock splits for at least nine months without the consent of the Investors; and

      (vii) Terminate the provisions for security shares as set forth in Section 9 of the Securities Purchase Agreement and in
      Section 2 of the Transfer Agent Instructions upon receipt by the Investors of the first scheduled repayment amount.

      As a result of the debt restructuring arrangement, the Company's liabilities on warrants, conversions, discounts were discharged resulting to a net gain of $1,500,132 attributable as follows:
      o Liabilities on Conversion discharged $ 2,334,198
      o Liabilities on Warrants discharged 891,537
      o Loans discharged 225,000
      o Unamortized discounts (1,950,603) $ 1,500,132
      F-18

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      14. INCOME TAX

      The Company is subject to U.S. corporate taxes at a rate of 35%. Pac-Poly is a BVI company and is not subject to income taxes. Pursuant to the PRC Income Tax Laws, the PRC subsidiaries are generally subject to enterprise income tax ("EIT") at a statutory rate of 33% (30% national income tax plus 3% local income tax). Effective January 1, 2008, PRC government adopted a new uniform tax rate of 25% applicable to domestic and foreign enterprise.

      Neither the Company nor its subsidiaries had any assessable income for the period and so neither provision nor benefit for EIT was recorded for the quarter ended December 31, 2008.

      Subject to the approval of the relevant tax authorities, the Company had tax losses carry-forward against future years' taxable income.

      As of December 31, 2008, no valuation allowance was provided to the deferred tax assets due to the uncertainty surrounding their realization.

      15. CONCENTRATION OF RISK

      (A). MAJOR CUSTOMERS AND VENDORS

      100% of the Company's revenues were derived from customers located in the PRC, and there are no customers and vendors who account for 10% or more of revenues and purchases. The Company's assets are all located in the PRC.

      (B). CREDIT RISK

      There are no concentrations of credit risk because the Company, while in operation, entered into large number of cash sale transactions without deploying financial instruments, which may potentially drive to significant concentrations.

      16. COMMITMENT AND CONTINGENCIES

      The Company leases an office premise under a non-cancelable operating lease for a term of two years from January 1, 2008 to December 31, 2009. The cost incurred under this operating lease is recorded as rental expense and totaled $30,755 and $51,261 for the period ended December 31, 2008 and year ended June 30, 2008, respectively. Future minimum rental payments due according to the operating lease until termination at December 31, 2009 are:

      Year Amount

      2009 80,035 _______ $80,035 =======


      F-19

      XINHUA CHINA LTD.


      NOTES TO FINANCIAL STATEMENTS
      FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2008

      (STATED IN US DOLLARS)

      17. NET LOSS PER SHARE

      Basic net loss per share is computed using the weighted average number of the ordinary shares outstanding during the year. Diluted net loss per share is computed using the weighted average number of ordinary shares and ordinary share equivalents outstanding during the year.

      The following table sets forth the computation of basic and diluted net loss per share for the periods indicated:

      Basic and diluted net loss
      per share calculation: DECEMBER 31, 2008 DECEMBER 31, 2007

      (a). Numerator: Net loss used in com- puting basic net loss per share (1,960,227) (310,450)

      (b). Denominator: Weighted-average ordinary shares outstanding 142,941,399 57,723,668

      Basic and diluted net loss per share (.014) (.005)


      For the period ended December 31, 2008 in which the Company had a net loss, inclusion of warrants outstanding would have been anti-dilutive and therefore not included in the computation of diluted losses per share.

      F-20

      ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

      BUSINESS DEVELOPMENT

      Xinhua China Ltd. was incorporated September 14, 1999 under the laws of the State of Nevada as Camden Mines Limited ("Camden"). On October 12, 2004, Camden changed its name from "Camden Mines Limited" to its current corporate name "Xinhua China Ltd." We have certain digital media distribution and related rights in "China" where we mostly operate and seek to pursue our business. We are in the development stage seeking to grow our Company.

      SUBSIDIARIES

      PAC-POLY INVESTMENTS LIMITED/BEIJING BOHENG INVESTMENTS LIMITED

      As of the date of this Quarterly Report, we hold of record 100% of the total issued and outstanding shares of Pac-Poly Investments Limited ("Pac-Poly"), which is our wholly-owned subsidiary. Pac-Poly is an investment holding company.

      We maintain a 7.98% effective interest in Xinhua C&D through Pac-PolyAs of the date of this Quarterly Report, we hold of record 95% of the total issued and outstanding shares of Beijing Boheng Investments Limited ("Beijing Boheng"). We re-acquired our interest in Beijing Boheng on August 25, 2008 at a value of $1,625,000, which amount was equal to the unpaid purchase price due by the original purchaser.

      BEIJING JOANNES INFORMATION TECHNOLOGY CO. LT.

      On May 9, 2006, we formed Beijing Joannes Information Technology Co. Lt.

      ("Beijing Joannes"), as our Chinese wholly owned subsidiary, to launch a digital media content initiative. We held of record 100% of the total issued and outstanding shares of Beijing Joannes. Beijing Joannes was formed for the purpose of launching a digital media content initiative with the web site branded WWW.GEEPIP.COM. The business focus is building online communities with connectivity to an ecommerce engine, which allows for the online purchase of e-books, e-audio, and computer games. Hard copies of books can also be purchase through the portal. A unique customer loyalty program and digital redemption or trade-in strategy will be a market differentiator. Subsequent to the deconsolidation of Xinhua C&D as discussed below, we have commenced the internet book distribution business through Beijing Joannes.

      RECENT BUSINESS OPERATIONS

      We are focused to develop a plan for funding, sales, marketing and other benefits relating to China and this plan may include other related pursuits such as assisting one or more USA or international companies to navigate the regulatory demands of doing related business in China and to possibly join with us by joint venture or similar arrangement to pursue business in one of the world's if not the world's most rapidly growing financial and consumer population environments. As part of this we still seek to establish ourselves as a leader in the digital media industry first in China and then possibly elsewhere. We intend to maximize our strategic position in the publishing industry.

      We are developing a new business plan focused on fiscal year 2009 to achieve several key areas or goals: restructure certain aspects of our organization and relationships after careful consideration as part of our plan to grow our Company and revenues; focus on market awareness primarily making those investors in the USA stock markets aware of us, given our arrangements, discussed below, with the People's Republic of China (China) seek how we can expand our business in both our core license rights and to possibly obtain other benefits or rights similar in nature, and seek acquisitions of mainly China companies or assets that may be the subject of registrations or "spin-off" transactions in the USA markets, both stock and business trade, given the extensive energy, time and expense we have been through in learning about the markets. These plans need to be developed and approved by the Board of Directors, which we also plan to restructure by adding Directors to expand.

      We are subject to many risks and there is no assurance of success in our plans.

      7

      RESULTS OF OPERATION

      The summarized consolidated financial data set forth in the tables below and discussed in this section should be read in conjunction with our consolidated financial statements and related notes for the six-month period ended December 31, 2008 and 2007, which financial statements are included elsewhere in this Quarterly Report.

      FOR QUARTER ENDED FOR QUARTER ENDED
      DECEMBER 31, 2008 DECEMBER 31, 2007
      (UNAUDITED) (UNAUDITED)
      _________________ _________________
      REVENUE
      Net revenue -0- -0-
      Cost of Sales -0- -0-
      GROSS PROFIT -0- -0-

      OPERATING EXPENSES Selling, general and administrative expenses $337,808 $170,754 OPERATING INCOME (LOSS) (337,808) (170,754)

      OTHER INCOME (EXPENSES) Other Income 179,621 -0- Interest income -0- 13,800 Gain on disposal of Beijing Boheng 73,427 -0- Interest expense (250,466) (153,496) Impairment loss on Boheng investment (1,625,000) -0- NET LOSS (1,960,227) (310,450)


      RESULTS OF OPERATION

      FOR SIX MONTH PERIOD ENDED DECEMBER 31, 2008 COMPARED TO SIX MONTH PERIOD ENDED


      DECEMBER 31, 2007.

      REVENUES AND GROSS MARGIN AND COST OF SALES

      We had net sales of $-0- for both six month periods ended December 31, 2008 and December 31, 2007. Our cost of sales for both six month period ended December 31, 2008 and December 31, 2007 was $-0-. Cost of sales decreased proportionately with the decrease in revenues to $-0- during both the six month periods ended December 31, 2008 and December 31, 2007 due to the divesture of certain interest in our assets.

      OPERATING EXPENSES

      Our total operating expenses were $337,808 for the six month period ended December 31, 2008 as compared to total operating expenses of $170,754 for the six month period ended December 31, 2007. The increase in operating expenses during the six month period ended December 31, 2008 as compared to the six month period ended December 31, 2007 was due to a variety of expenditures relating to our restructuring efforts.

      Selling, general and administrative expenses increased to $337,808 for the six month period ended Decemebr 31, 2008 compared to selling, general and administrative expenses of $170,754 for the six month period ended December 31, 2007. The increase in selling, general and administrative expenses was a result of an increase of fees to our consultants and professional, including legal and accounting, in relation to our fund raising and restructuring.

      INTEREST EXPENSE

      We incurred $250,466 in interest expense during the six month period ended December 31, 2008 as compared to $153,496 incurred as interest expense during the six month period ended December 31, 2007. Interest expense incurred consisted primarily of interest charged on loans from related parties and increased due to the increase in loan activity relating to our restructuring.

      OTHER INCOME/IMPAIRMENT LOSS ON INVESTMENT

      We earned other income of $179,621 during the six month period ended December 31, 2008 as compared to other income of $-0- during the six month period ended December 31, 2007. We, however, recognized an impairment loss on the Boheng investment of ($1,625,000) during the six month period ended December 31, 2008 compared to $-0- during the six month period ended December 31, 2007.

      8

      Thus, we incurred a net loss of ($1,960,227) for the six month period ended December 31, 2008 compared to a net loss of ($310,450) incurred during the six month period ended December 31, 2007. This difference resulted primarily from recognition of the impairment on the Boheng investment and the increase in selling, general and administrative expenses resulting from the restructuring efforts.

      FOR THREE MONTH PERIOD ENDED DECEMBER 31, 2008 COMPARED TO THREE MONTH PERIOD ENDED DECEMBER 31, 2007.

      REVENUES AND GROSS MARGIN AND COST OF SALES

      We had net sales of $-0- for both three month periods ended December 31, 2008 and December 31, 2007. Our cost of sales for both three month period ended December 31, 2008 and December 31, 2007 was $-0-. Cost of sales decreased proportionately with the decrease in revenues to $-0- during both the three month periods ended December 31, 2008 and December 31, 2007 due to the divesture of certain interest in our assets.

      OPERATING EXPENSES

      Our total operating expenses were $110,942 for the three month period ended December 31, 2008 as compared to total operating expenses of $92,452 for the three month period ended December 31, 2007. The increase in operating expenses during the three month period ended December 31, 2008 as compared to the three month period ended December 31, 2007 was due to a variety of expenditures relating to our restructuring efforts.

      Selling, general and administrative expenses increased to $110,942 for the three month period ended Decemebr 31, 2008 compared to selling, general and administrative expenses of $92,452 for the three month period ended December 31, 2007. The increase in selling, general and administrative expenses was a result of an increase of fees to our consultants and professional, including legal and accounting, in relation to our fund raising and restructuring.

      INTEREST EXPENSE

      We incurred $100,137 in interest expense during the three month period ended December 31, 2008 as compared to $146,507 incurred as interest expense during the three month period ended December 31, 2007. Interest expense incurred consisted primarily of interest charged on loans from related parties and increased due to the increase in loan activity relating to our restructuring.

      INTEREST INCOME/IMPAIRMENT LOSS ON INVESTMENT

      We earned interest income of $5 during the three month period ended December 31, 2008 as compared to interest income of $13,789 during the three month period ended December 31, 2007. We recognized an impairment loss on the Boheng investment of ($1,625,000) during the three month period ended December 31, 2008 compared to $-0- during the three month period ended December 31, 2007.

      Thus, we incurred a net loss of ($1,836,074) for the three month period ended December 31, 2008 compared to a net loss of ($225,170) incurred during the three month period ended December 31, 2007. This difference resulted primarily from recognition of the impairment on the Boheng investment and the increase in selling, general and administrative expenses resulting from the restructuring efforts.

      LIQUIDITY AND CAPITAL RESOURCES

      SIX MONTH PERIOD ENDED DECEMBER 31, 2008

      Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

      As at the six month period ended December 31, 2008, our current assets were $295,926 and our current liabilities were $2,193,831, resulting in a working capital deficit of $1,897,905. As at the six month period ended December 31, 2008, current assets were comprised of: (i) $1,814 in cash and cash equivalents;
      (ii) $69,666 in net accounts receivable; and (iii) $224,446 in other receivables and prepayments. As at the six month period ended December 31, 2008, our current liabilities were comprised of: (i) $619,888 in accounts payable and accrued liabilities; and (ii) $1,573,943 in current portion of loans payable. See " - Material Commitments."
      9

      As at the six month period ended December 31, 2008, our total assets were $359,083 comprised of: (i) $295,926 in current assets; and (ii) $63,157 in net property, plant and equipment. The decrease in total assets during the six month period ended December 31, 2008 from fiscal year ended June 30, 2008 was primarily due to the note receivable in the amount of $1,625,000. The note receivable represented the sales proceeds of $1,875,000 from the disposal of Beijing Boheng in accordance with the terms and provisions of the disposal agreement.

      As at the six month period ended December 31, 2008, our total liabilities were $8,934,752 comprised of: (i) $2,193,831 in current liabilities; (ii) $1,058,261 in loans payable; and (iii) $5,682,660 in loans from shareholders. The slight decrease in total liabilities during the six month period ended December 31, 2008 from fiscal year ended June 30, 2008 was primarily due to the decrease in accounts payable and accrued liabilities.

      Stockholders' deficit increased from ($6,845,321) for June 30, 2008 to ($8,575,668) for December 31, 2008.

      OPERATING ACTIVITIES

      We have not generated positive cash flows from operating activities. For the six month period ended December 31, 2008, net cash flow used in operating activities was ($1,890,872) compared to net cash used in operating activities of ($46,781) during the six month period ended December 31, 2007. Net cash flow from operating activities during the six month period ended December 31, 2008 consisted primarily of a net loss of ($1,960,227) adjusted by $10,629 in depreciation, $211,862 in imputed interest expense and $13,768 in amortization of deferred imputed interest from note receivable. Changes in assets and liabilities consisted of a decrease of $342,116 in account receivable, $489,853 in accounts payable and accrued liabilities and $18,355 in deferred revenue, and an increase of $812 in other receivables and prepayments.

      INVESTING ACTIVITIES

      During the six month period ended December 31, 2008, net cash flow used in investing activities was $1,625,000 compared to net cash flow sourced from investing activities of ($57,031) for the six month period ended December 31, 2007. Net cash flow used in investing activities during the six month period ended December 31, 2008 was primarily the result of $1,625,000 as a loss on impairment of asset.

      FINANCING ACTIVITIES

      During the six month period ended December 31, 2008, net cash flow provided by financing activities was $228,732 compared to net cash flow provided by financing activities of $86,788 for the six month period ended December 31, 2007. Net cash flow provided from financing activities during the six month period ended December 31, 2008 pertained primarily to $272,404 received as loan from shareholders and $502 in stock issued to Highgate on debt conversion (offset by $44,174 in repayment of long-term borrowings).

      PLAN OF OPERATION

      The local and regional distribution business for books is competitive and fragmented in the People's Republic of China. Estimates range up to 500 as to the number of entrants in this field. It is our plan that economy of scale, relationships with Chinese publishers and also with sub-distributors and retailers and our nationwide scope which allows us the flexibility to distribute books in any region will assist us in maintaining and enhancing our competitive position.

      Our goal is to expand our business to include electronic sales, delivery and distribution of media contents. We also plan to partner with foreign publishers to provide foreign media contents in China. We seek to achieve our goal on a national scale to maximize opportunities in one of the largest and fastest growing economies in the world.

      To execute on our strategy to become a digital media company we formed our new subsidiary, Beijing Joannes. Beijing Joannes is intended to be our digital media company and it is expected to distribute all digital content for Xinhua C&D and others. Beijing Joannes has anticipated in operating its business to consumer (B2C) e-commerce portal as www.geezip.com, and expects to allow customers to purchase electronic and hard copies of books on-line.

      We expect to also establish a co-publishing company which anticipates on co-publishing agreements with both domestic and foreign publishers, publishing both hard copy and digital works.

      10

      Existing working capital, further advances and possible debt instruments, warrant exercises, further private placements, monetization of existing assets, and anticipated cash flow are expected to be adequate to fund our operations over the next two months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt securities and loans from our shareholders. In connection with our business plan, management will delay additional increases in operating expenses and capital expenditures. We intend to utilize our best efforts to settle current finance accounts payables and liabilities with further issuances of securities, debt and or advances, monetization of existing assets, and revenues from operations. We will need to raise additional capital and increase revenues to meet both short term and long-term operating requirements.

      We have undertaken certain actions and continue to implement changes designed to improve our financial results and operating cash flows. The actions involve certain cost-saving initiatives and growing strategies, including: (i) reductions in headcounts and corporate overhead expenses; and (ii) continue to develop e-commerce business through Beijing Joannes. We believe that these actions will enable us to improve future profitability and cash flow in our continuing operations through June 30, 2009.

      The report of the independent registered public accounting firm that accompanies our June 30, 2008 and June 30, 2007 consolidated financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The consolidated financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

      MATERIAL COMMITMENTS

      LOANS PAYABLE/CONVERTIBLE DEBENTURE

      During 2007/8, a material commitment for us relates to the Forbearance and Settlement Agreement with Cornell and Highgate. On December 29, 2006, we completed the debt restructuring with Cornell and Highgate under the Forbearance and Settlement Agreement. Pursuant to the Forbearance and Settlement Agreement, we agreed to make certain payments to Cornell and Highgate with respect to the Securities Purchase Agreement previously entered into by us with Cornell and Highgate dated November 23, 2005 and amended on March 23, 2006, and the two convertible debentures in the amounts of $1,250,000 to Highgate dated November 23, 2005 and $2,000,000 to Cornell dated March 23, 2006 (collectively, the "Convertible Debentures") in accordance with the terms and conditions set forth in the Forbearance and Settlement Agreement.

      In further accordance with the Forbearance and Settlement Agreement, we agreed to use the proceeds from the disposal of Beijing Boheng to repay the principal and interest due to Cornell and Highgate under the Convertible Debentures in exchange for the agreement of Cornell and Highgate to: (i) waive on a one-time basis only any accrued liquidated damages owing to Cornell and Highgate; (ii) no application of the redemption premium on the scheduled repayments; (iii) conversion of the Convertible Debentures in an amount equal to at least the amount of a scheduled repayment subject to certain conditions; (iv) no additional liquidated damages accruing during the term of the Forbearance and Settlement Agreement; (v) permitting us to withdraw the registration statement filed on March 28, 2006 with the Securities and Exchange Commission in connection with the Convertible Debentures; (vi) during the term of the Forbearance and Settlement Agreement, waiving the requirement for us to receive written consent of Cornell and Highgate for any organizational change (as defined in the Securities Purchase Agreement) to be directly or indirectly consummated by us, and that we will not effectuate any stock splits for at least nine months without the consent of Cornell and Highgate; and (vii) terminating the provisions for security shares as set forth in Section 9 of the Securities Purchase Agreement and in Section 2 of the transfer agent instructions upon receipt by Cornell and Highgate of the first scheduled repayment amount.

      The payment plan under the Forbearance and Settlement Agreement is as follows:

      CONVERSION OF
      PAYMENT DATE CASH PAYMENT DEBENTURE

      March 10, 2007 $ 250,000 250,000 June 30, 2007 375,000 375,000 October 31, 2007 375,000 375,000 January 31, 2008 250,000 250,000 July 31, 2008 625,000 625,000 ___________ _________ $ 1,875,000 1,875,000 =========== =========


      11

      As of March 31, 2008, we paid $250,000 for the payment due March 10, 2007 and issued 100,000 shares of our common stock on March 1, 2007 and 125,000 shares on April 18, 2007, respectively, pursuant to exercise rights. The scheduled payments of $375,000 due on September 30, 2007 and October 31, 2007, respectively, were not paid as of March 31, 2008. During the six month period ended December 31, 2008, an aggregate of 50,343,275 shares of our common stock were issued pursuant to conversion of the debt at a total conversion price of $61,500. As of December 31, 2008, an aggregate of $2,632,204 remains due and owing.

      LOANS FROM SHAREHOLDERS

      During fiscal year 2007/8, a material commitment for us relates to the loans from shareholders. The outstanding amount of $5,682,660 represents cash advanced to us from our shareholders. These shareholder loans are unsecured, and not repayable within the next twelve months. For the six month period ended December 31, 2008, we calculated imputed interest expense of $167,755 in relation to shareholders loans at its effective interest rate of 6% per annum and accounted for it in the consolidated financial statements.

      ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

      Market risk represents the risk of loss that may impact our financial position, results of operations or cash flows due to adverse change in foreign currency and interest rates.

      EXCHANGE RATE

      Our reporting currency is United States Dollars ("USD"). The Chinese Renminbi ("RMB") has been informally pegged to the USD. However, China is under international pressure to adopt a more flexible exchange rate system. If the RMB were no longer pegged to the USD, rate fluctuations may have a material impact on the Company's consolidated financial reporting and make realistic revenue projections difficult. Recently (July 2005) the Renminbi was allowed to rise 2%.

      This has not had an appreciable effect on our operations and seems unlikely to do so.

      As Renminbi is the functional currency of Joannes and Boheng, the fluctuation of exchange rates of Renminbi may have positive or negative impacts on the results of operations of the Company. However, since all sales revenue and expenses of these two subsidiary companies are denominated in Renminbi, the net income effect of appreciation and devaluation of the currency against the US Dollar will be limited to the net operating results of the subsidiary companies attributable to us.

      INTEREST RATE

      Interest rates in China are low and stable and inflation is well controlled, due to the habit of the population to deposit and save money in the banks (among with other reasons, such as the People's Republic of China's perennial balance of trade surplus). Our loans relate mainly to trade payables and are mainly short-term. However our debt is likely to rise with physical plant in connection with expansion and, were interest rates to rise at the same time, this could become a significant impact on our operating and financing activities.

      We have not entered into derivative contracts either to hedge existing risks or for speculative purposes.

      ITEM 4. CONTROLS AND PROCEDURES

      FINANCIAL DISCLOSURE CONTROLS AND PROCEDURES

      We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the SECURITIES EXCHANGE ACT OF 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president (also our principal executive officer) and our secretary, treasurer and chief financial officer (also our principal financial and accounting officer) to allow for timely decisions regarding required disclosure.

      12

      As of December 31, 2008, the end of our second quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (also our principal executive officer and our principal financial and accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president (also our principal executive officer and chief financial officer also our principal financial and accounting officer) concluded that our disclosure controls and procedures were effective in providing reasonable assurance in the reliability of our financial reports as of the end of the period covered by this quarterly report.

      INHERENT LIMITATIONS ON EFFECTIVENESS OF CONTROLS

      Internal control over financial reporting has inherent limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation of existing and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors.

      Internal control over financial reporting is a process which involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis, however these inherent limitations are known features of the financial reporting process and it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

      Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

      CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

      There have been no significant changes in our internal controls over financial reporting that occurred during the quarter ended December 31, 2008 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

      AUDIT COMMITTEE

      Our Board of Directors has not established an audit committee. The respective role of an audit committee has been conducted by our Board of Directors. We are contemplating establishment of an audit committee during fiscal year 2009. When established, the audit committee's primary function will be to provide advice with respect our financial matters and to assist our Board of Directors in fulfilling its oversight responsibilities regarding finance, accounting, and legal compliance. The audit committee's primary duties and responsibilities will be to: (i) serve as an independent and objective party to monitor our financial reporting process and internal control system; (ii) review and appraise the audit efforts of our independent accountants; (iii) evaluate our quarterly financial performance as well as its compliance with laws and regulations; (iv) oversee management's establishment and enforcement of financial policies and business practices; and (v) provide an open avenue of communication among the independent accountants, management and our Board of Directors.

      ITEM 4T. CONTROLS AND PROCEDURES

      Not applicable.

      PART II - OTHER INFORMATION

      ITEM 1. LEGAL PROCEEDING

      Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. None of our directors, officers or affiliates are (i) a party adverse to us in any legal proceedings, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

      ITEM 1A. RISK FACTORS

      Not applicable.

      13

      ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

      During the six month period ended December 31, 2008, we issued an aggregate of 50,343,275 shares of our common stock to Highgate in accordance with conversion of a certain portion on the Debt.

      ITEM 3. DEFAULTS UPON SENIOR SECURITIES

      Not applicable.

      ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

      Not applicable.

      ITEM 5. OTHER INFORMATION

      Not applicable.

      ITEM 6. EXHIBITS

      The following exhibits are filed as part of this Quarterly Report:

      Exhibit

      31.1 Certification under Rule 13a-14(a).

      31.2 Certification under Rule 13a-14(a).

      32.1 Certification under Section 1350.

      32.2 Certification under Section 1350.


      14

      SIGNATURES

      In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

      XINHUA CHINA LTD.

      Dated: February 16, 2009 By: /s/ XIANPING WANG
      _________________________________________
      Xianping Wang
      President/Chief Executive Officer

      Dated: February 16, 2009 By: /s/ XIANPING WANG _________________________________________ Xianping Wang Acting as Interim Chief Financial Officer


      Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities.

      SIGNATURES TITLE DATE

      /s/ XIANPING WANG President, Chief Executive Officer May 20, 2008 _________________ and a Director Xianping Wang
      Avatar
      schrieb am 19.02.09 19:44:36
      Beitrag Nr. 3 ()
      Avatar
      schrieb am 19.02.09 19:46:28
      Beitrag Nr. 4 ()
      Antwort auf Beitrag Nr.: 36.614.462 von aloevera2750 am 19.02.09 19:39:09die hölle ist gut. kommen doch schon wieder die ersten großen roten. ich denke hier geht nicht mehr viel. eintagsfliege. die gestern drin waren können jetzt kasse machen und für den rest eher uninteressant denke ich.....
      Avatar
      schrieb am 19.02.09 19:49:42
      Beitrag Nr. 5 ()
      Antwort auf Beitrag Nr.: 36.614.539 von Imperator7 am 19.02.09 19:46:28ist ja auch ein lotto spiel :D

      Trading Spotlight

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      3,2000EUR +3,23 %
      Jetzt der Turnaround und Rallye bis 10 USD? mehr zur Aktie »
      Avatar
      schrieb am 19.02.09 20:35:41
      Beitrag Nr. 6 ()
      Antwort auf Beitrag Nr.: 36.614.568 von aloevera2750 am 19.02.09 19:49:42ok lotto könig. bin mal zu 0,0016 rein. der jahreschart sieht zumindestens nach rebound aus. hoffe nur nicht das das ding jetzt gleich noch total weg bricht. lol:D
      Avatar
      schrieb am 19.02.09 20:38:22
      Beitrag Nr. 7 ()
      Antwort auf Beitrag Nr.: 36.614.568 von aloevera2750 am 19.02.09 19:49:42jetzt besser weg gucken. das ist hier wirklich lotto.

      entweder es kommt gleich ein schlussspurt auf über 0,002 oder es kippt. denke nicht das es so bleibt bis 22 uhr.
      Avatar
      schrieb am 19.02.09 20:40:51
      Beitrag Nr. 8 ()
      Antwort auf Beitrag Nr.: 36.614.996 von Imperator7 am 19.02.09 20:35:41bin kein lotto könig aber der chart hatte mich auch heute mittag überzeugt denke das wir hier noch einiges sehen :D
      Avatar
      schrieb am 19.02.09 20:42:41
      Beitrag Nr. 9 ()
      Antwort auf Beitrag Nr.: 36.615.032 von Imperator7 am 19.02.09 20:38:22also ich gehe auch davon aus das wir die 0,002 locker erreichen
      mal abwarten:D
      Avatar
      schrieb am 19.02.09 20:46:25
      Beitrag Nr. 10 ()
      Antwort auf Beitrag Nr.: 36.615.083 von aloevera2750 am 19.02.09 20:42:41ich hoffe es. bin gerade rein und schon geht es runter. so ist es meistens wenn man mal schnell rein will. oje... aber der chart sieht wirklich gut aus.
      Avatar
      schrieb am 19.02.09 20:48:20
      Beitrag Nr. 11 ()
      Antwort auf Beitrag Nr.: 36.615.104 von Imperator7 am 19.02.09 20:46:25der sieht echt richtig lecker aus und die amis haben es ja auch mitbekommen wir haben ja noch etwas zeit:D
      Avatar
      schrieb am 19.02.09 21:04:44
      Beitrag Nr. 12 ()
      Antwort auf Beitrag Nr.: 36.615.124 von aloevera2750 am 19.02.09 20:48:20der letzte run 2008 war ja schon recht ordentlich. wenn man dann noch schaut von wo der wert kommt kann der run noch weiter gehen. daher bin ich dabei. aber dennoch das risiko ist auch enorm das ruck zuck alles vorbei ist
      Avatar
      schrieb am 19.02.09 21:11:54
      Beitrag Nr. 13 ()
      das ist mien 0,0016 ja wieder. so jetzt noch ein schub nach norden bitte.

      noch keiner in deutschland hier investiert ausser wir beiden. :confused: kommen sicher wieder alle wenn es zu spät ist:D
      Avatar
      schrieb am 19.02.09 21:21:01
      Beitrag Nr. 14 ()
      Antwort auf Beitrag Nr.: 36.615.307 von Imperator7 am 19.02.09 21:11:54die kommen morgen rein:D:D:D
      Avatar
      schrieb am 19.02.09 21:23:45
      Beitrag Nr. 15 ()
      Antwort auf Beitrag Nr.: 36.615.395 von aloevera2750 am 19.02.09 21:21:01ja denke ich auch. RT: 0,0017usd ist bin nun auch zum ersten mal grün:D:D:laugh:
      Avatar
      schrieb am 19.02.09 21:25:34
      Beitrag Nr. 16 ()
      Antwort auf Beitrag Nr.: 36.615.395 von aloevera2750 am 19.02.09 21:21:01Naaaaaaaa, nicht zufrieden mit dem Juniper-Schrott ???

      Oder warum bist Du hier ???

      :D

      Ist zwar auch bloß Schrott, aber vielleicht bist Du ja lernfähig !

      :keks:
      ;)
      Avatar
      schrieb am 19.02.09 21:25:58
      Beitrag Nr. 17 ()
      Antwort auf Beitrag Nr.: 36.615.395 von aloevera2750 am 19.02.09 21:21:01RT: 0,0018usd jetzt zieht sie nochmal an. wurde ja auch zeit.
      Avatar
      schrieb am 19.02.09 21:27:54
      Beitrag Nr. 18 ()
      Antwort auf Beitrag Nr.: 36.615.423 von Csillagok am 19.02.09 21:25:34hi ich brauche nicht lernen nur ich sage selten bescheid das ich schon drausen bin:D:D
      ich nehme viele zocks mit ab und zu melde ich mich mal bei wo:laugh::laugh: so wie hier mal das ihr auch mitbekommst wie mann zockt:laugh::laugh:
      Avatar
      schrieb am 19.02.09 21:28:14
      Beitrag Nr. 19 ()
      Antwort auf Beitrag Nr.: 36.615.426 von Imperator7 am 19.02.09 21:25:58Pusher-Alaaaaaaaaaaarm !!!!!!!!!!

      :laugh::laugh::laugh::laugh:
      Avatar
      schrieb am 19.02.09 21:29:39
      Beitrag Nr. 20 ()
      Antwort auf Beitrag Nr.: 36.615.443 von aloevera2750 am 19.02.09 21:27:54Ausdruck : 5
      Rechtschreibung : 5

      Setzen !

      (danke)

      :D;)
      Avatar
      schrieb am 19.02.09 21:29:45
      Beitrag Nr. 21 ()
      Antwort auf Beitrag Nr.: 36.615.447 von Csillagok am 19.02.09 21:28:14WO:eek::eek:
      Avatar
      schrieb am 19.02.09 21:30:46
      Beitrag Nr. 22 ()
      Antwort auf Beitrag Nr.: 36.615.454 von Csillagok am 19.02.09 21:29:39das ist doch scheiß egal hauptsache du weiß bescheid:D:D
      Avatar
      schrieb am 19.02.09 21:52:06
      Beitrag Nr. 23 ()
      Antwort auf Beitrag Nr.: 36.615.426 von Imperator7 am 19.02.09 21:25:58:lick::lick:
      Avatar
      schrieb am 19.02.09 22:01:36
      Beitrag Nr. 24 ()
      Antwort auf Beitrag Nr.: 36.615.623 von aloevera2750 am 19.02.09 21:52:06SK 0,0017 plus 325% das ist doch supi start mal schauen wie es morgen weiter geht;);)
      Avatar
      schrieb am 19.02.09 22:06:38
      Beitrag Nr. 25 ()
      Ich tippe mindestens 30% MIMUS ....

      :rolleyes::rolleyes::rolleyes:

      GoodN8 !
      :kiss:
      Avatar
      schrieb am 19.02.09 22:08:50
      Beitrag Nr. 26 ()
      Antwort auf Beitrag Nr.: 36.615.726 von Csillagok am 19.02.09 22:06:38"MINUS" meinte ich ...

      :):rolleyes::O
      Avatar
      schrieb am 19.02.09 22:10:00
      Beitrag Nr. 27 ()
      Antwort auf Beitrag Nr.: 36.615.742 von Csillagok am 19.02.09 22:08:50:laugh::laugh:
      nacht mein freund;):kiss::kiss:
      Avatar
      schrieb am 20.02.09 02:15:47
      !
      Dieser Beitrag wurde moderiert. Grund: Spammposting
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      schrieb am 20.02.09 02:19:40
      !
      Dieser Beitrag wurde moderiert. Grund: Spammposting
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      schrieb am 20.02.09 02:21:14
      !
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      schrieb am 20.02.09 02:22:04
      !
      Dieser Beitrag wurde moderiert. Grund: Spammposting
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      schrieb am 20.02.09 02:36:49
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      schrieb am 20.02.09 06:52:53
      Beitrag Nr. 33 ()
      Hey, bin auch dabei....das geht ja richtig ab hier....Morgen gehts weiter....hab gehört (ihub) das die MM´s sich morgen weiter eindecken!?!? :D:D:D:D:D:D:D:D:D:D:D:D:D
      Avatar
      schrieb am 20.02.09 08:22:08
      Beitrag Nr. 34 ()
      Antwort auf Beitrag Nr.: 36.616.523 von Eichler8799 am 20.02.09 06:52:53so langsam füllt der thread sich ja. im i-hub ist auch reges treiben. denke das wir heute erst mal schön grün starten. da ist noch viel platz nach oben wenn man sich mal den letzten ausbruch im chart anschaut. wenn dieser hier nur halb so stark wird ist für uns alle noch was drin.

      aber der threadtitel sagt es ja schon!!! xhua lotto?? mehr braucht man dazu eigentlich nicht zu sagen. ist wie fast immer an der otc. zockeennnnnnnnnn...:D:D

      uns allen einen dunkel grünen tag und darauf das wir heute die 0,003usd knacken:cool:
      Avatar
      schrieb am 20.02.09 08:41:28
      Beitrag Nr. 35 ()
      na sischerrrrr:D:D
      Avatar
      schrieb am 20.02.09 11:24:49
      Beitrag Nr. 36 ()
      Antwort auf Beitrag Nr.: 36.616.874 von Eichler8799 am 20.02.09 08:41:28da müssen wir uns wohl bis 15:30uhr gedulden. hier in D bis jetzt kein handel. heute nachmaittag geht das spiel weiter. am anfang wird es sicher ein mega volumen geben, nach so einem anstieg gestern. mal sehen in welche richtung sich das ganze entwickelt. wird heute sicher ein spannendes ding hier.

      ab 15:30 uhr bin ich wieder da:D:D:D
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      schrieb am 20.02.09 12:29:19
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      schrieb am 20.02.09 12:29:57
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      schrieb am 20.02.09 12:31:03
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      schrieb am 20.02.09 12:31:47
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      schrieb am 20.02.09 12:32:22
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      schrieb am 20.02.09 12:32:45
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      schrieb am 20.02.09 12:33:29
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      schrieb am 20.02.09 12:33:46
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      schrieb am 20.02.09 12:34:08
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      schrieb am 20.02.09 12:34:28
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      schrieb am 20.02.09 12:35:02
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      schrieb am 20.02.09 12:35:33
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      schrieb am 20.02.09 12:36:02
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      schrieb am 20.02.09 12:36:24
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      schrieb am 20.02.09 12:58:54
      Beitrag Nr. 51 ()
      servus leute
      seid ihr aber fleißig am schreiben:D
      Avatar
      schrieb am 20.02.09 13:12:45
      Beitrag Nr. 52 ()
      @all Guten Tag,

      wegen massivem rechtswidrigen Spam schliessen wir diesen Thread
      Weitere Threads zu der Aktie werden wir ebenfalls schliessen.

      Bei Fragen senden Sie mir eine BM

      MfG MaatMOD


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