Smooth Global Holdings (PINK:SMGH)

On September 30, 2010 Smooth Global (Beijing) Telecom Science Limited (“Beijing Telecom”), a subsidiary of Smooth Global (China) Holdings, Inc. (the “Company”), acquired the registered equity of Beijing Yupeng Hengli Technology Co., Inc. (“BJHL”), a limited liability company organized under the laws of the People’s Republic of China.

In exchange for ownership of BJHL, the Company issued twenty million (20,000,000) shares of its common stock to the prior owners of BJHL. On June 30, 2011 Beijing Telecom transferred the registered equity of BJHL back to the original owners in exchange for that same twenty million shares of common stock. Prior to that date the operations of BJHL represented substantially all of the operations of the Company.

Third attempt at an RTO transaction:

On September 30, 2010 Smooth Global (Beijing) Telecom Science Limited (“Beijing Telecom”), a subsidiary of Smooth Global (China) Holdings, Inc. (the “Company”), acquired the registered equity of Beijing Yupeng Hengli Technology Co., Inc. (“BJHL”), a limited liability company organized under the laws of the People’s Republic of China. In exchange for ownership of BJHL, the Company issued twenty million (20,000,000) shares of its common stock to the prior owners of BJHL. Transfer of ninety percent of the registered equity was recorded by the government in October 2010; transfer of the remaining ten percent was recorded at the end of December 2010.

BJHL has been engaged in the development, manufacture and sale of polymer lithium-ion batteries and power charging instruments since it was founded in December 31, 2008. BJHL carries on manufacturing operations in a leased facility with 6000㎡for its factory area. BJHL’s headquarters are located in Yongle Economic-technical Development Zone at the Tongzhou District of Beijing.

The Company has no long term liabilities. Therefore, we believe that we can continue to fund operations at the current level of activity. However, in order to finance the Company’s continuing growth and construction of a new manufacturing facility, we will need to develop alternative sources of funds. The Company is currently negotiating with investment bankers and seeking loans from commercial banks. However, no financing agreements are yet in place.

Management has taken the steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. The Company is actively pursuing additional funding and a potential merger or acquisition candidate and strategic partners, which would enhance stockholders' investment. The Company is also developing new business lines. Management believes that these actions will allow the Company to continue operations through the next fiscal year.