As of the first semester of 2010, a faculty and support staff of nearly 2800 served a total of approximately 32,238 HQ students from 21 provinces throughout China. They are taught a wide range of vocational skills in approximately 60 programs in 17 technical career categories at eight vocational schools in the Sichuan and Hunan Provinces. These operations now constitute the primary operations of the Company, which anticipates changing its name to HQ Global Education Inc., upon obtaining the necessary approvals. Following the reverse merger, the Company has 33 million shares outstanding and will continue to trade on the US OTC Bulletin Board with the same symbol until the Company formally changes its name.

EDUCATION IN CHINA

Reflecting the magnitude of the overall population, the size of the education and training market in China is the largest in the world and growing rapidly. According to the World Bank Study, among China's approximately 1.3 billion people, around 260 million are students enrolled in basic, secondary and higher education programs and an additional 68 million adults are enrolled in a variety of other education and training programs. Education spending in China is expected to grow rapidly as demand for more skilled labor force grows and the participation rate in the educational system increases consequently. According to the Eleventh Five-Year Plan of China, the Chinese government has targeted a significant increase in the overall level of spending on education, which includes both public and private spending, to 4.0% of China's GDP by 2010, compared with 2.8% of China's GDP in 2005. Assuming China's GDP increases to $2.3 trillion by 2010, as projected by China's State Council Development Research Center, achieving the Chinese government's target for the education sector would result in total education spending, both public and private, increasing from $75.0 billion in 2003 to $242.0 billion by 2010. The growth in educational spending will likely be driven by several factors, including favorable demographic trends, growth in per capita and disposable income, the limited supply of educational resources and growing demand and government initiatives.

  STUDENTS IN SECONDARY VOCATIONAL SCHOOLS IN CHINA
                                    (Person)

                (Source: National Bureau of Statistics of China)


Year        Newly-enrolled Students          Students at School        Graduates
------            -----------------------                   ------------------               ---------
2004                5,480,000                             13,679,000               3,510,000
2005                6,470,000                             15,590,000               4,030,000
2006                7,400,000                             18,090,000               4,760,000
2007                8,000,000                             20,000,000               5,300,000
2008                8,100,000                             20,563,000               5,706,000