10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

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

For the quarterly period ended June 30, 2011

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

Commission File Number: 000-52728

NORTHPORT NETWORK SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Washington	76-0674579
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

601 Union Street, Suite #4200, Seattle, Washington 98101

(Address of principal executive offices) (Zip Code)

(206) 652-3451

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report(s), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer [ ] Accelerated filer [ ]

Non-accelerated filer [ ] Smaller reporting company [X]

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

As of June 30, 2011, the registrant had 33,700,012 shares of its common stock issued and outstanding.

NORTHPORT NETWORK SYSTEMS, INC.

Explanatory Note

The purpose of the Amendment No. 1 on Form 10–Q/A to Registrants’s quarterly report on Form 10–Q for the quarter ended June 30, 2011, filed with the Securities and Exchange Commission on August 19, 2011 (the “Form 10–Q”), is solely to furnish Exhibit 101 to the Form 10–Q in accordance with Rule 405 of Regulation S–T.

No other changes have been made to the Form 10–Q.  This Amendment No. 1 speaks as of the original filing date of the Form 10–Q, does not reflect events that may have occurred subsequent to the original filing date and does not modify or update in any way disclosures made in the original Form 10–Q.

Pursuant to rule 406T of Regulation S–T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liability under those sections.

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ITEM 6. EXHIBITS

(a)	Exhibits
31.1*	Rule 13a-14(a)/15d-14(a) Certification (CEO)
31.2*	Rule 13a-14(a)/15d-14(a) Certification (CFO)
32.1*	Section 1350 Certification (CEO)
32.2*	Section 1350 Certification (CFO)
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase
101.DEF**	XBRL Taxonomy Extension Definition Linkbase
101.LAB**	XBRL Taxonomy Extension Label Linkbase
101.PRE**	XBRL Taxonomy Presentation Linkbase

* Previously filed or furnished as an exhibit to Registrants quarterly report of Form 10Q for the quarter ended June 30, 2011.

** Filed herewith.

3

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NORTHPORT NETWORK SYSTEMS INC.

Per:	/s/ Yan Zhao
	Yan Zhao
	Chief Executive Officer, President and  Director
	Date: September 8, 2011
Per:	s/ Jim H. Qian
	Jim H. Qian
	Chief Financial Officer and Director
	Date: September 8, 2011

4

EXHIBIT INDEX

(a)	Exhibits
31.1*	Rule 13a-14(a)/15d-14(a) Certification (CEO)
31.2*	Rule 13a-14(a)/15d-14(a) Certification (CFO)
32.1*	Section 1350 Certification (CEO)
32.2*	Section 1350 Certification (CFO)
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase
101.DEF**	XBRL Taxonomy Extension Definition Linkbase
101.LAB**	XBRL Taxonomy Extension Label Linkbase
101.PRE**	XBRL Taxonomy Presentation Linkbase

* Previously filed or furnished as an exhibit to Registrants quarterly report of Form 10Q for the quarter ended June 30, 2011.

** Filed herewith.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2011	Dec. 31, 2010
Statement of Financial Position [Abstract]
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	100,000,000	100,000,000
Preferred Stock, shares issued
Preferred Stock, shares outstanding
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	33,700,012	31,700,012
Common Stock, shares outstanding	33,700,012	31,700,012
Treasury Stock, shares	2,500,000	2,500,000

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Consolidated Statements of Income (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Income Statement [Abstract]
Revenue	$ 1,058,539	$ 26,924	$ 1,058,632	$ 26,925
Cost of revenue	535,225	13,708	535,230	14,949
Gross profit	523,314	13,216	523,402	11,976
Selling expenses	75,854		102,321
General and administrative expenses	181,531	955,712	372,204	1,052,307
Impairment loss	(2,203)
Total operating expenses	255,182	955,712	474,525	1,052,307
Operating income (loss)	268,132	(942,496)	48,877	(1,040,331)
Other income		395		2,432
Interest income	162	91	169	150
Other expense		(1)		(403)
Interest expense		(3,164)		(5,455)
Total other income (expenses)	162	(2,679)	169	(3,276)
Income (loss) from continued operation	268,294	(945,175)	49,046	(1,043,607)
Provisions for income tax
Net income (loss) from continued operation	268,294	(945,175)	49,046	(1,043,607)
Gain (loss) from discontinued operation, net of tax		1,209,776		1,222,253
Net income (loss)	268,294	264,601	49,046	178,646
Net income (loss) attributable to:- Common stockholders	268,294	264,118	49,046	178,163
Net income (loss) attributable to: - Non-controlling interest		$ 483		$ 483
Earnings (loss) per share
Basic	$ 0.01	$ 0.01	$ 0	$ 0.01
Diluted	$ 0.01	$ 0.01	$ 0	$ 0.01
Weighted average shares outstanding
Basic	33,700,012	34,804,408	33,700,012	34,505,568
Diluted	33,700,012	34,804,408	33,700,012	34,505,568

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Share Compensation

6 Months Ended

Jun. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share Compensation

16.  Share Compensation 

Pursuant to the consultant agreement, the Company granted 2,000,000 shares of common stock to a consultant for the compensation of consulting service with a market price of $0.02 per share. A total cost of $40,000 was charged to general and administrative expense, and credited into common stock and additional paid in capital. The incorporation of this stock transaction has the impact of decreasing the current year's net income by $40,000 or $0.0012 per share using the weighted average of shares. No U.S. tax is affected since the Company has not repatriated its earnings to the United States. No tax benefit has yet to be accrued or realized for the six months ended June 30, 2011.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2011
Document And Entity Information
Entity Registrant Name	Northport Network Systems, Inc.
Entity Central Index Key	0001374976
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	33,700,012
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2011

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Plant and Equipment

6 Months Ended

Jun. 30, 2011

Property, Plant and Equipment [Abstract]

Plant and Equipment

5.  Plant and Equipment 

Plant and equipment consisted of the follows as of June 30, 2011 and December 31, 2010:

At			Accumulated
June 30, 2011:		Cost	Depreciation				Net
Motor Vehicles	$	149,004		$	136,431	$	12,573
Color Photo Printing Machines		402,713			229,862		172,851
Furniture and Equipment		69,445			30,487		38,958
	$	621,162		$	396,780	$	224,382
At			Accumulated
December 31, 2010:		Cost	Depreciation				Net
Motor Vehicles	$	145,673		$	131,742	$	13,931
Color Photo Printing Machines		417,248			190,115		227,133
Furniture and Equipment		40,861			22,073		18,788
	$	603,782		$	343,930	$	259,852

Depreciation expenses were $52,850 and $115,299 for the six months and year ended June 30, 2011 and December 31, 2010 respectively.

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Economic and political risks

6 Months Ended

Jun. 30, 2011

Risks and Uncertainties [Abstract]

Economic and political risks

10.  Economic and political risks 

The Company's operations are conducted in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC.

The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

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The Company and Principal Business Activities

6 Months Ended

Jun. 30, 2011

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Principal Business Activities

1.  The Company and Principal Business Activities 

A. Organization and Structure

Northport Network Systems, Inc. (the "Company") was originally incorporated under the laws of the State of Colorado on July 25, 2000 as Dotcom-netmgmt.com Inc. The Company changed its name to Northport Capital Inc. on April 28, 2004. On October 9, 2008, the Company re- incorporated in Washington State and changed its name to current name, Northport Network Systems, Inc. The Company was incorporated as an investment and general trading company.

On June 23, 2005, the Company entered into a definitive agreement with the shareholders of Dalian Beigang Information Industry Development Company Limited ("Dalian Beigang"), to which the Company issued 1,500,000 shares with $0,001 par value to Dalian Beigang shareholders in exchange of all issued and outstanding shares of Dalian Beigang. Since both companies were under common management, the exchange of shares had been accounted for as a reorganization of entities under common control.

The Company conducts its operations through its wholly owned subsidiary Dalian Beigang, which was incorporated in the People's Republic of China ("PRC") on June 20, 1997 with its principal place of business in Dalian, PRC.

B. Products and Operations

Dalian Beigang is principally engaged in color photo printing business. Dalian Beigang owns a trade name "Colorstar", which was registered with the Industrial and Commercial Administration of PRC, as well as a patent applied for the color photo printing technology. During the year 2010, the Company developed an online shopping website known as UrMart.net. However this website has not been launched. No revenue has been generated from sales through the site. For the year 2011, the Company developed a spilled oil clean up business on the specified seaboard for the Dalian government, the revenue for the six months ended in June 30, 2011 is all from the spilled oil clean up business.

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Related Party Transactions

6 Months Ended

Jun. 30, 2011

Related Party Transactions [Abstract]

Related Party Transactions

7.  Related Party Transactions 

A. Related party receivable

The Company's director Mr. Yu Jianhua subscribed 3,000,000 shares of the Company's common stock at a price of $0.75 on August 11, 2009. On August 28, 2009, the Company issued 1,500,000 shares valued at $1,125,000 to the subscriber. Mr. Yu Jianhua has paid $1,065,383 to the Company. The remaining balance of $59,617 was still unpaid at June 30, 2011 and was accordingly recorded as related party receivable.

B. Related party payable

Since the Company incurred accumulated operation deficits, it had difficulty to generate sufficient working capital for business activities. The Company borrowed additional capital from the shareholder and chairman Ms. Zhao Yan to maintain its daily operation. As of June 30, 2011, the Company totally recorded related party payable to Ms. Zhao Yan of $ 506,465.

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Discontinued Operation

6 Months Ended

Jun. 30, 2011

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operation

12.  Discontinued Operation 

On April 1, 2010, the Company and Dalian Beigang entered into an agreement with the 49% stockholder of Ling Xiao to divest its 51% equity interest in Ling Xiao. For exchange, the 49% stockholder returned 2,500,000 shares of the Company's common stock to the Company. The agreement was finalized on May 11, 2010. Pursuant to the agreement, the divestiture was effective on April 1, 2010. The value of the 200,000 shares common stock and the operation loss of Ling Xiao for the six months ended June 30, 2010 were classified as discontinued operation loss. The following table is a summary of Ling Xiao's financial position and result of operations as of and for the twelve months ended December 31, 2010.

Shenyang Ling Xiao Aviation Services Co., Ltd

Condensed Balance Sheet		Condensed Statement ofIncome
Assets		Sales revenue	$	-
Current assets	$	Cost of sales		-
Non-current assets	-	Gross Profit		-
Total assets	-
		Operating Income		-
Liabilities
Current liabilities	-	Income tax		-
Non-current liabilities		Loss from discontinued
Total liabilities	-	operation, net of tax		(125,062)
Net Assets	$	Net Income	$	(125,062)

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Income Taxes

6 Months Ended

Jun. 30, 2011

Income Tax Disclosure [Abstract]

Income Taxes

8.  Income Taxes 

In respect of the Company and its subsidiary domiciled and operated in United States and the People's Republic of China, the taxation of these entities is summarized below:-

Entities	Countries of Domicile	Income Tax Rate
Northport Network Systems, Inc.	United States	34.00%
Dalian Beigang	PRC	25%

Since the Company is primarily a holding company without any business activities in United States, the Company did not incur any tax for the six months ended June 30, 2011 and 2010.

The following tabulation presents the income tax and deferred tax of the Company and its individual subsidiary:-

Description	6/30/2011			6/30/2010
Income (loss) before taxes:
US Federal	$	(164,005	)	$	(7,629	)
PRC		213,051			185,792
Total income before taxes	$	49,046		$	178,163
Provision for taxes:
Current:
U.S. Federal	$	—		$	—
State		—			—
China		53,263			—
	$	53,263		$	—
Deferred:
U.S. Federal	$	—		$	—

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China		(53,263	)		—
Valuation Allowance		—			—
Deferred tax:		(53,263	)		—
Total provision for taxes	$	—		$	—
Effective tax rate		N/A			N/A

The differences between the U.S. federal statutory income tax rates and the Company's effective tax rate for the six months ended June 30, 2011 and 2010 are shown in the following table:-

	6/30/2011	6/30/2010
U.S. federal statutory income tax rate	N/A	N/A
Lower rates in PRC, net	N/A	N/A
Accruals in foreign jurisdictions	N/A	N/A
Effective tax rate	N/A	N/A

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Other Payables and Accruals

6 Months Ended

Jun. 30, 2011

Accounts Payable and Accrued Liabilities [Abstract]

Other Payables and Accruals

6.  Other Payables and Accruals 

Other payables and accruals at June 30, 2011 and December 31, 2010 consisted of the follows:-

Description	6/30/2011		12/31/2010
Deposits received	$	19,378	$	16,636
Advanced payment received		142,785		139,593
Accrued expenses		—		208,270
Others		123,762		120,998
	$	285,925	$	485,497

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Comprehensive Income (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2011	Dec. 31, 2010
Comprehensive Income
Net Income	$ 49,046	$ (681,835)
Other Comprehensive Income
Foreign Currency Translation Adjustmen	(25,799)	415,016
Total	$ 23,247	$ (266,819)

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2011

Accounting Policies [Abstract]

Significant Accounting Policies

2.  Significant Accounting Policies

A. Method of accounting

The Company maintains its general ledger and journals with the accrual method of accounting. The financial statements and accompanying notes are representations of management. The Company's financial statements have been prepared in accordance to generally accepted accounting principles in the United States of America.

B. Principles of consolidation

On June 18, 2010, the Company and Dalian Beigang entered into a purchase agreement with the stockholders of Beijing Xin Lu Zheng Bao Cheng Education Technology Co., Ltd. ("Xin Lu Zheng"), in which the Company would issue 3,000,000 shares of common stock at a fair market value of $2,700,000 to acquire 65% equity interest of Xin Lu Zheng. Xin Lu Zheng registered its business license with Beijing City Industrial and Commercial Administration on December 21, 2009. Xin Lu Zheng was principally engaged in professional training services business

In compliance with the PRC Foreign Corporation Investment rule, which prohibits foreign owned entity to directly acquire domestic enterprise within the territory of China, the acquisition structure will be classified as the acquiree Xin Lu Zheng being 65% equity owned subsidiary of Dalian Beigang upon the closing of this acquisition. However, as of June 30, 2011, The Company, Dalian Beigang and Xin Lu Zheng have not finished the equity transfer procedure with Beijing City Industrial and Commercial Administration.

Therefore, the accompanying consolidated financial statements as of and for the six months ended June 30, 2011 include only the accounts of the Company and its wholly owned subsidiary Dalian Beigang, but not the accounts of Xin Lu Zheng. All significant inter-company balances such as due to/due from, investment in subsidiaries, and subsidiaries' capitalization have been eliminated.

C. Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions are used for, but not limited to: (1) allowance for trade receivables, (2) economic lives of property, plant and equipment, (3) asset impairments, and (4) contingency reserves. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates

D. Cash and cash equivalents

The Company classifies the following instruments as cash and cash equivalents: cash on hand, unrestricted bank deposits, and all highly liquid investments purchased with original maturities of three months or less.

E. Accounts receivable

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. Accounts receivable are disclosed at the net value of all outstanding invoice amounts less management's estimate for doubtful accounts. Management regularly reviews outstanding accounts and provides an allowance for doubtful accounts. When collection of the original invoice amount is no longer probable, the Company will either partially or fully write-off the balance against the allowance for doubtful accounts.

F. Plant and equipment

Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows:

Color printing machine	4 years
Motor vehicles	5 -10 years
Furniture, fixtures and equipment

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred.

G. Accounting for impairment of long lived Assets

The Company has adopted Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS 144"), ASC 360-10-35. The Company evaluates its long lived assets for impairment when indicators of impairment are present or annually, whichever occurs sooner. In the event that there are indications of impairment, the Company will record a loss to statements of income equal to the difference between the carrying value and the fair value of the long lived asset. The Company typically, but not exclusively uses the expected future discounted flows method to determine fair value of long lived asset subject to impairment. The fair value of long lived assets that held for disposition will include the cost of disposal.

The Company's long-lived assets are grouped by their presentation on the consolidated balance sheets, and further segregated by their operating and asset type. The Company makes its determinations based on various factors that impact those assets.

At June 30, 2011, the Company assessed its color printing machine, motor vehicle and equipment for production and has concluded that its long-lived assets have not experienced any impairment losses.

H. Income taxes

The Company uses the accrual method of accounting to determine income taxes for the year. The Company has implemented FASB ASC 740 Accounting for Income Taxes. Income tax liabilities computed according to the United States and PRC tax laws provide for the tax effects of transactions reported in the financial statements and consists of taxes currently due, plus deferred taxes, related primarily to differences arising from the recognition of expenses related to the depreciation of plant and equipment and provisions for doubtful accounts between financial and tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses that are available to offset future income taxes.

A valuation allowance is recognized for deferred tax assets if it is more likely than not, that the deferred tax assets will either expire before the Company is able to realize that tax benefit, or that future realization is uncertain.

I. Statutory reserves

Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations.

J. Foreign currency translation

The accompanying financial statements are presented in United States dollars. The functional currency of Dalian Beigang is the Renminbi (RMB). The financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollar at the rates used in translation.

K. Revenue recognition

The Company recognizes revenues under the provisions of FASB Codification Topic 605 ("ASC Topic 605"), Revenue Recognition when all of the following have occurred: persuasive evidence of arrangement with the customer, services have been performed, fees are fixed or determinable and collectability of the fees is reasonably assured. These criteria as related to the Company's revenues are considered to have been met asfollows:-

(1) Color photo printing services

Revenue from the sale of color photo printing services is derived from its own and affiliate operations, which consist of franchise agency and licensing programs. The Company follows the guidance of ASC Topic 605, "Recording Revenue Gross as a Principal versus Net as an Agent" for its presentation of revenue and direct costs. This guidance requires the Company to assess whether it acts as a principal in the transaction or as an agent acting on behalf of others. Where the Company is the principal in the transaction and has the risks and rewards of ownership, the transactions are recorded gross in the statements of income. Revenue and related costs of services generated by the franchise agents are included as part of the Company's consolidated revenue and costs of services, respectively, since the Company has the direct contractual relationships with the customers, holds title to the related customer receivables and is the legal employer of the employees.

The franchise agent acts as the Company's agent in a similar manner as a branch manager in the Company-owned locations. In the franchise arrangement, the Company has the direct contractual relationships with its customers and contracts with customers are binding to the Company. The Company is also responsible for the employees' payroll, electricity and related overheads regardless of customer acceptance of the services. These factors, among others, designate the Company as the principal with respect to its franchise agent operations. Franchise agents' sales were $0 for the six months ended June 30, 2011 and 2010 respectively.

The Company also has a licensing program whereby the licensee has direct contractual relationships with the customers, held title to the related customers' receivables and is the legal employer of the employees. Accordingly, net sales and costs of services generated by the licensee are not included in the Company's consolidated financial statements. Fees are paid to the Company based on a fixed price for each of the photo printed and such license fees are recorded by the Company as revenue. Fees received from licensees were $0 for the six months ended June 30, 2011 and 2010 respectively.

For sale from its own operations, revenue is recognized after the photos are printed and delivered to the customers and cash has been collected.

(2) Online shopping

The website UrMart.net is at its trial stage, the revenue derived from is insignificant and recorded on receipt of subscription fees from members. The management will review this policy on official launch of this website.

(3) Air-ticketing agency services

The Company receives commissions from travel suppliers for air-ticketing services through the Company's transaction and service platform under various services agreements. Commissions from air-ticketing services rendered are recognized after air tickets are issued, net of estimated cancellations. The Company presents revenues from such transactions on a net basis in the statements of operations as the Company does not assume inventory risks and has no obligations for cancelled airline ticket reservations. Contracts with certain airlines contain discretionary escalating commissions that are paid to the Company subject to achieving specific performance targets. Such discretionary escalating commissions are recognized when the air tickets are issued and performance guarantees, if any, are achieved.

Since the Company has divested the acquisition of Ling Xiao in 2010, the air-ticketing agency services are no longer applicable.

(4) Spilled oil clean up business

The Company engaged contract with PRC government for oil clean up service. Government retained the environmental protection agent to assess the work process and approve the completion of spilled oil cleanup project. Revenue is recognized only upon the receipt of protection agency's report, which used the percentage of completion method to evaluate the completeness assertion. For the six months ended June 30, 2011, total 67% of contract revenue was recognized and approved by the government's agent.

L. Earnings per share

The Company computes earnings per share ("EPS") in accordance with FASB ASC 260 "Earnings per share". SFAS No. 128 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., contingent shares, convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

M. Comprehensive income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company presents components of comprehensive income with equal prominence to other financial statements. The Company's current component of other comprehensive income is the foreign currency translation adjustment.

N. Commitments and contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

O. Subsequent events

The Company evaluates subsequent events that have occurred after the consolidated balance sheet date but before the consolidated financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. The Company has evaluated subsequent events, and based on this evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustments to the consolidated financial statements.

P. Recent accounting pronouncements

No New Pronouncement issued since FASB issued in October 2009 ASU No. 2009-13 "Revenue Recognition (Topic 605) that management adopted on January 1, 2011.

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Other receivables

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Other receivables

4.  Advance to Suppliers 

On July 16, 2010, in the northeastern port city of Dalian, a blast hit two oil pipelines and spread an estimated 1,500 metric tons of crude oil (462,000 gallons) into the Yellow Sea. The PRC government closed the beaches and port facility, and retained environment protection companies to clean up the spill.

Dalian Beigang was authorized as a legal representative of BioRangers, Inc. (Oppenheimer Technology Japan, Inc.) to act as sole agent of TerraZyme and other enzymatic products in the territory of China. TerraZyme was recognized by the United States Environmental Protection Agency ("EPA") for the environment program as a safer oil spill treatment. TerraZyme was designed to be used to absorb spilled material. Full absorption of the spill took as little as few minutes for light diesel fuel or up to 1 hour for heavy oil. Dalian Beigang was selected by the Dalian government to use TerraZyme products to clean up the spill. The engagement contract is formalized with the government in 2011.

The balance of advance to suppliers was related to the payment deposit of TerraZyme products and other spill clean cost, which will be converted into cost of revenue when Dalian Beigang recognizes oil spill treatment revenue

	6/30/2011		12/31/2010
Prepayment for TerraZyme products	$	116,902	$	346,328
Project related cost		150,143		444,809
	$	267,045	$	791,137

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Financial Instruments

6 Months Ended

Jun. 30, 2011

Investments, All Other Investments [Abstract]

Financial Instruments

11.  Financial Instruments 

The Company's financial instruments consist of cash and cash equivalents, accounts and other receivables, accounts and other payables, accrued liabilities, and amounts due from and due to related parties. The fair values of these financial instruments approximate their carrying values due to the relatively short-term maturity of these instruments.

Interest Rate and Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risks consist principally of accounts receivable and amounts due from related parties.

The Company's accounts receivable are from repeat customers. The Company extends credits to its customer and has accrued an allowance for doubtful accounts to account for the risk of default by its customers. Management regularly monitors the level of accounts receivable attributable to each customer and the length of time taken for amounts to be settled and where necessary, takes appropriate action to collect on past due balances.

Management does not believe that there is a concentration of credit risk arising from any one customer related to accounts receivables. In the event that a customer becomes unable to pay its balance due, the maximum loss would be the carrying value of the accounts receivable. Management does believe there is significant concentration of risk from related parties and if any of the related parties as detailed in Note 5 become insolvent, the Company may suffer material losses.

Currency Risk

The Company generates revenues and incurs expenses and expenditures primarily in China and is exposed to risk from changes in foreign currency rates if it were to actually convert its RMB into USD. The Company has not hedged its exposure to currency fluctuations.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's objective to managing liquidity risk is to ensure that it has sufficient cash available to meet its liabilities when they become due. The ability to settle it obligations is reliant on the Company collecting its accounts receivables and amounts due from related parties in a timely manner and by maintaining sufficient cash on hand

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Advance to Suppliers

6 Months Ended

Jun. 30, 2011

Receivables [Abstract]

Advance to Suppliers

4.  Advance to Suppliers 

On July 16, 2010, in the northeastern port city of Dalian, a blast hit two oil pipelines and spread an estimated 1,500 metric tons of crude oil (462,000 gallons) into the Yellow Sea. The PRC government closed the beaches and port facility, and retained environment protection companies to clean up the spill.

Dalian Beigang was authorized as a legal representative of BioRangers, Inc. (Oppenheimer Technology Japan, Inc.) to act as sole agent of TerraZyme and other enzymatic products in the territory of China. TerraZyme was recognized by the United States Environmental Protection Agency ("EPA") for the environment program as a safer oil spill treatment. TerraZyme was designed to be used to absorb spilled material. Full absorption of the spill took as little as few minutes for light diesel fuel or up to 1 hour for heavy oil. Dalian Beigang was selected by the Dalian government to use TerraZyme products to clean up the spill. The engagement contract is formalized with the government in 2011.

The balance of advance to suppliers was related to the payment deposit of TerraZyme products and other spill clean cost, which will be converted into cost of revenue when Dalian Beigang recognizes oil spill treatment revenue

	6/30/2011		12/31/2010
Prepayment for TerraZyme products	$	116,902	$	346,328
Project related cost		150,143		444,809
	$	267,045	$	791,137

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Operating Lease Commitments

6 Months Ended

Jun. 30, 2011

Leases, Operating [Abstract]

Operating Lease Commitments

14.  Operating Lease Commitments 

The Company leases office spaces from external parties under 4 operating agreements, which will expire on August 1, 2011, August 12, 2012, July 19, 2013, and November 26, 2013 at monthly rentals of $451, $1,936, $4,397 and $255. The impact to the Company's results of operations, in the form of rent expense, for the six months ended June 30, 2011 was $14,623. The Company's lease contracts with the third parties calls for non-cancellable operating lease commitment as follow:

For the year ending December 31:-

Fiscal Years	Commitments
2011	$	76,087
2012		71,255
2013		56,760
	$	204,102

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Consolidated Statements of Cash Flows (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Statement of Cash Flows [Abstract]
Net lncome/(loss)	$ 268,294	$ 264,601	$ 49,046	$ 178,646
Adjustments to reconcile net income to net cash provided by / (used in) operating activities
Gain(Loss) on disposal of property and equipment				(1,886)
Impairment of inventory			2,195
Depreciation	28,445	9,229	52,850	12,976
Imputed interest expense on due to stockholders		3,164		5,455
(lncrease)/decrease in other receivable	2,256		2,231
(IncreaseJ/decrease in prepayments	529,114	(37,717)	524,092	(36,611)
Increase/fdecrease) in accounts payables and accruals	(36,286)	(148,649)	(211,488)	(76,892)
lncrease/(decrease) in related party payable	(767,664)	116,071	(426,631)	116,071
Increase/fdecrease) in taxes payables	(183)	849	66	843
lncrease/(decrease) in Deferred revenue		200,785		200,785
Net cash used in operating activities of discontinued operation		(1,198,216)		(1,210,235)
Net cash provided by / (used in (operating activities	23,976	(789,883)	(7,639)	(810,848)
Cash flows from investing activities
Net cash inflow from acquisition of subsidiary		104,881		104,881
Net cash outflow from disposal of subsidiary		(237,053)		(237,053)
Increasej/decrease of deposits	5,750		11,980
Increasej/decrease of plant and equipment	(11,963)	(1,242)	(17,380)	1,391
Net cash used in investing activities	(6,213)	(133,414)	(5,400)	(130,781)
Cash flows from financing activities
Issuance of Common Stock		903,638	40,000	900,000
Net cash used in financing activities		903,638	40,000	900,000
Net increase (decrease) of cash and cash equivalents	17,763	(19,659)	26,961	(41,629)
Effect of foreign currency translation on cash	(16,071)	217,700	(25,799)	217,312
Cash & cash equivalents at beginning of year	3,870	7,476	4,400	29,834
Cash & cash equivalents at end of year	5,562	205,517	5,562	205,517
Non-cash flow transaction:
Issuance of shares for consultant service		900,000	40,000	900,000
Supplementary information
Interest received	162	91	169	150
Income taxes paid				$ (6,888)

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Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Segment Information

15.  Segment Information 

The Company reports its primary segment information based on its principal operating activities. For management purpose, during six months ended June 30, 2011, the Company was organized into three major operating divisions and reporting segments based on product line: (1) Color photo printing, (2) Online shopping, (3) Air-ticketing agency services, and (4) Spilled oil clean service.

However, the Company only generated revenue from the oil clean service in the current year. Therefore, management concludes that segment reporting is not applicable as of and for the six months ended June 30, 2011

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Consolidated Statements of Stockholders' Equity (USD $)	Common Stock	Additional Paid-In Capital	Noo5StockSubscriptionReceivableMember	Treasury Stock	Additional Paid-in Capital [Member]	Statutory Reserve	Noncontrolling Interest	Retained Earnings / Accumulated Deficit	Other Comprehensive Income / Loss	Total
Balance at Dec. 31, 2009	$ 34,200	$ 5,862,090	$ (224,641)			$ 146,648	$ 144,308	$ (5,678,857)	$ 88,191	$ 195,557
Balance, shares at Dec. 31, 2009	34,200,012
Net loss(income)										(681,835)
Cancellation of Lingxiao Acquisition		(2,997,500)		2,500	29,978,500		(144,308)
Compensation Receipt			224,641
Adjustment of prior year APIC		(52,446)
Foreign currency translation adjustment									415,016	415,016
Balance at Dec. 31, 2010	31,700	2,812,144		2,500	2,997,500	58,985		(6,273,030)	326,825	(43,375)
Balance, shares at Dec. 31, 2010	31,700,012
Net loss(income)								49,046		49,046
Shares compensation	2,000	38,000								40,000
Shares compensation, shares	2,000,000
Foreign currency translation adjustment									(25,799)	(25,799)
Balance at Jun. 30, 2011	$ 33,700	$ 2,850,144		$ 2,500	$ 2,997,500	$ 58,985		$ (6,223,984)	$ 301,027	$ 19,872
Balance, shares at Jun. 30, 2011	33,700,012

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Earnings per Share

6 Months Ended

Jun. 30, 2011

Earnings (loss) per share

Earnings per Share

9.  Earnings per Share 

	6/30/2011		6/30/2010
Basic earnings per share numerator Net income (loss)	$	49,046	$	178,646
Net income (loss) attributable to common stockholders	$	49,046	$	178,163
Diluted earnings per share numerator	$	49,046	$	178,163
Original shares:		31,700,012		34,200,012
- Weighted issuance of common stock		2,000,000		305,556
Basic weighted average shares outstanding		33,700,012		34,505,568
Dilutive shares:		—			_
Diluted weighted average shares outstanding:		33,700,012		34,505,568
Earnings (loss) per share - Basic	$	0.00	$	0.01
-Diluted	$	0.00	$	0.01
Weighted average shares outstanding - Basic		33,700,012		34,505,568
-Diluted		33,700,012		34,505,568

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Going Concern

6 Months Ended

Jun. 30, 2011

Liquidity Disclosure [Abstract] (Deprecated 2009-01-31)

Going Concern

13.  Going Concern 

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 June 30, 2011, the Company has an accumulated deficit of $6,223,984 due to the fact that the Company incurred losses over the past few years.

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.

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Consolidated Balance Sheets (USD $)	Jun. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 5,562	$ 4,400
Other receivables	224,352	226,584
Related party receivable	59,617	59,617
Inventory		2,195
Advance to suppliers	267,045	791,137
Total current assets	556,576	1,083,933
Non-current assets
Plant and equipment, net	224,382	259,852
Deposits	56,439	68,420
Total non-current assets	280,821	328,272
Total Assets	837,397	1,412,205
Current liabilities
Accounts payable	24,796	36,712
Other payables and accruals	285,925	485,497
Taxes payable	339	273
Related party payable	506,465	933,098
Total current liabilities	817,525	1,455,580
Total Liabilities	817,525	1,455,580
Stockholders' Equity
Preferred stock, $0,001 par value, 100,000,000 shares authorized; nil shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively
Common stock, $0,001 par value, 100,000,000 shares authorized; 33,700,012 and 31,700,012 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively	33,700	31,700
Additional paid in capital - common stock	2,850,144	2,812,144
Treasury Stock, $0,001 par value, 2,500,000 shares issued and outstanding as of June 30, 2011 and December 31, 2010	2,500	2,500
Additional paid in capital - treasury stock	2,997,500	2,997,500
Statutory reserves	58,985	58,985
Retained earnings (accumulated deficits)	(6,223,984)	(6,273,030)
Accumulated other comprehensive income	301,027	326,826
Total stockholders' equity	19,872	(43,375)
Total Liabilities and Stockholders' Equity	$ 837,397	$ 1,412,205