China Internet Cafe (OTC BB:CICC)

On July 2, 2010 China Unitech Group consummated a reverse merger transaction with Classic Bond.

 Company Snapshot:

Classic Bond is a holding company that owns 100% of the outstanding capital stock of Zhonghefangda, a PRC company that operates a chain of internet cafés. 

 **Also upon the closing of the reverse acquisition, our board of directors increased its size from one to five members

Industry Snapshot:

• Internet cafés have been booming in China in the recent years. According to the "Survey of China Internet Café Industry" by the Ministry of Culture in 2005, China had 110,000 internet cafés, with more than 1,000,000 employees and contributing RMB 18,500,000,000 to China's GDP. According to an article entitled “China Surpasses U.S. in Number of Internet Users” written by David Barboza in the New York Times July 26, 2008 issue, the number of internet users in the China reached about 253 million in June 2008, thereby, putting China ahead of the United States as the world’s biggest internet market. Within the Chinese internet market, internet cafés have been a fast growing segment.
  
• According to Pearl Research, a business intelligence and consulting firm, China’s online game market rose 63% in 2008 to $2.8 billion. Given the relatively low rate of computer ownership in China as compared to Western countries, internet cafés have become the primary distribution point for games in China. A substantial number of game players access online games through internet cafés and these players are crucial for survival of internet cafés.  Given the pivotal position of internet cafés, many online game companies have been making great efforts to support internet cafés to expand their customer base.
  
• Besides games, internet cafés are able to develop partnerships with other online information providers. These companies provide games as well as other information services. These providers have significant revenues and profits.

Post Merger Share Calculation:

•   6,173,600: Pre reverse merger outstanding shares 
•   5,173,600: Shares cancelled as part of the Share Exchange
• 19,000,000: Newly issued shares of Common Stock

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions:  20,000,000

Financial Snapshot:

• Our revenue is generated from sales of prepaid IC cards. Sales revenue increased $516,402, or 16.11%, to $3,721,105 for the three months ended March 31, 2010 from $3,204,703 for the same period in 2009. The increase was mainly because of the revenue generated by the cafes opened in 2009 which became operative in the first quarter of 2010.
  
• Our net income increased $172,075, or 17.36%, to $1,163,259 during the three months ended March 31, 2010 from $991,184 during the same period in 2009.