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INVESTMENT PROPERTY IN CHINA

9 Months Ended

Mar. 31, 2012

The following table presents the Company’s investment in the property in China as of March 31, 2012. The exchange rate is based on the exchange rate as of March 31, 2012 published by the Monetary Authority of Singapore.

	Investment Date	Investment Amount			Investment Amount
		(RMB)			(U.S. Dollars)
Purchase of rental property – MaoYe	01/04/2008		5,554			881
Purchase of rental property – JiaSheng	10/23/2008		7,042			1,117
Additional cost of rental property - JiaSheng	12/01/2009		209			33
Investment rental property disposed - JiaSheng	02/05/2010		(579	)		(92	)
Purchase of rental property – JiangHuai	01/06/2010		3,600			571
Investment rental property disposed - JiaSheng	03/04/2011		(6,672	)		(1,058	)
Gross investment in rental property			9,154			1,452

Accumulated depreciation on rental property	03/31/2012		(1,495	)		(237	)

Net investment in property – China			7,659			1,215

Rental Property I

In fiscal 2008, TTCQ entered into a Memorandum Agreement with MaoYe Property Ltd. to purchase an office space in Chongqing, China, for a total cash purchase price of RMB 5,554. The Company rented this property to a third party on July 13, 2008. The term of the rental agreement was five years with a monthly rental income of RMB 39, or approximately $6 based on the average exchange rate for the nine month period ended March 31, 2012, for the first three years, and in the fourth year with an increase of 8% in July 2012, a monthly rental income of RMB 41, or approximately $7 based on the average exchange rate for the nine month period ended March 31, 2012, and another increase of 8% in July 2013.

Property purchased from Mao Ye, generated a rental income of RMB 125, or approximately $20 and RMB 374, or approximately $59 for the three and nine months ended March 31, 2012, respectively, and RMB 116, or approximately $18, and RMB 348, or approximately $52, respectively, for the same period in the last fiscal year.

Rental Property II

In fiscal 2009, TTCQ entered into a Memorandum Agreement with JiaSheng to purchase four units of commercial property and two units of residential property, totaling 1,391.70 square meters in Chongqing, China, for a total purchase price of RMB 7,042. All of the property purchased from JiaSheng was disposed of in February 2010 and March 2011 and hence there was no rental income recorded for these properties for the three and nine months ended March 31, 2012, respectively. However these properties generated a rental income of RMB 117, or approximately $18, and RMB 697, or approximately $104, respectively, for the same periods in the last fiscal year.

TTCQ sold four commercial properties purchased on October 23, 2008 to JiaSheng for RMB 6,860, or approximately $1,067, recording a gain on disposal of RMB 1,015, or approximately $158, after deducting sales tax and exchange difference, from the four properties which carried a cost of RMB 6,672, or approximately $1,044, and accumulated depreciation of RMB 840, or approximately $131. All payments in this sales transaction were received in full during the third quarter of fiscal 2011.

Rental Property III

In fiscal 2010, the Company entered in to a Memorandum Agreement with Chongqing JiangHuai Real Estate Development Co., Ltd. to purchase eight units of commercial property in Chongqing, China for a total purchase price of RMB 3,600. TTCQ renewed its rental agreement for this property on January 8, 2011 and the rental agreement provided for a one-year renewable term with an annual rental income of RMB 720, or approximately $112 based on the average exchange rate for the same period in the last fiscal year.

Property purchased from JiangHuai generated a rental income of RMB 60, or approximately $10, and RMB 420, or approximately $66, for the three and nine months ended March 31, 2012, respectively, and RMB 120, or approximately $18, and RMB 480, or approximately $72, for the same periods in the last fiscal year, respectively.

Other Properties

In fiscal 2010, the TTCQ entered into a Memorandum Agreement with Chongqing Fu Li Real Estate Development Co. Ltd., to purchase two commercial properties totaling 311.99 square meters, (“office space”) located in Jiang Bei District Chongqing. Although TTCQ currently rents its office premises from a third party, it intends to use the office space as its office premises. The total purchase price committed and paid was RMB 3,678, or approximately $583 based on the exchange rate as of March 31, 2012. A down payment deposit of RMB 3,678, or approximately $583, was paid in fiscal 2010, and the related tax expense of RMB 150, or approximately $23, was paid. During the third quarter of fiscal 2012 TTCQ paid RMB 110 or approximately $18 towards sinking fund for building maintenance. The construction has been completed as at the date of this report and the documentation of the change of title is in process.

Summary

Total rental income for both the investment properties (Property I and Property III) in China was $30 and $125 for the three and nine months ended March 31, 2012, respectively, and was $54 and $228, respectively, for the same periods in the last fiscal year. The property “office space” did not yield any rent for the three and nine months ended March 31, 2012, as the possession of the property has not been handed over yet.

Depreciation expenses for both investment properties in China were $18 and $54 for the three and nine months ended March 31, 2012, respectively, and were $30 and $88, respectively, for the same periods in the last fiscal year.