<HTML>
<HEAD>
<TITLE>sv8</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As
filed with the Securities and Exchange Commission on March&nbsp;30, 2006</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><B>Registration No.&nbsp;333-_______</B>
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM S-8</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>REGISTRATION STATEMENT</B><BR>
<B><I>UNDER<BR>
THE SECURITIES ACT OF 1933</I></B></DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>SUN NEW MEDIA, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Exact name of registrant as specified in its charter)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Minnesota</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>7389</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>410985135</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>(State or other jurisdiction of<BR>
incorporation or organization)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Primary Standard Industrial<BR>
Classification Code Number)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(I.R.S. Employer<BR>
Identification No.)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>P.O. Box 297<BR>
1142 South Diamond Bar Boulevard<BR>
Diamond Bar, California 91765<BR>
(604)&nbsp;871-9999<BR>
(Address, including zip code, and telephone number, including<BR>
area code, of registrant&#146;s principal executive offices)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Sun New Media Inc. 2006 Stock Plan<BR>
(Full title of the plan)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Ricky Gee Hing Ang<BR>
Chief Executive Officer<BR>
Sun New Media, Inc.<BR>
P.O. Box 297<BR>
1142 South Diamond Bar Boulevard<BR>
Diamond Bar, California 91765<BR>
(604)&nbsp;871-9999<BR>
(Name, address, including zip code, and telephone number, including area code, of agent for service)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B><I>Please send copies of all communications to:</I></B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Frank Zhao<BR>
Chief Financial Officer<BR>
Sun New Media, Inc.<BR>
P.O. Box 297<BR>
1142 South Diamond Bar Boulevard<BR>
Diamond Bar, California 91765<BR>
(604)&nbsp;871-9999</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Peter M. Astiz, Esq.<BR>
Elizabeth M. O&#146;Callahan, Esq.<BR>
DLA Piper Rudnick Gray Cary US LLP<BR>
2000 University Avenue<BR>
East Palo Alto, California 94303<BR>
(650)&nbsp;833-2000</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>This registration statement shall hereafter become effective in accordance with Rule&nbsp;462<BR>
promulgated under the Securities Act of 1933, as amended.</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">CALCULATION OF REGISTRATION FEE</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Proposed</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center">Title of</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">maximum</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Proposed maximum</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center">Securities to be</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Amount to be</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">offering price</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">aggregate offering</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Amount of</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center">registered<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">registered<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">per share<SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">price<SUP style="font-size: 85%; vertical-align: text-top">4</SUP></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">registration fee</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock
Par Value $.01</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">12,000,000</TD>
    <TD nowrap style="border-top: 2px solid #000000"><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">3.75</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">45,000,000</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">4,815.00</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">74,100</TD>
    <TD nowrap style="border-top: 2px solid #000000"><SUP style="font-size: 85%; vertical-align: text-top">6</SUP></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">3.75</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">277,875</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">29.74</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Total:</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">12,074,100</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">4,844.74</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The securities to be registered include options to acquire Common Stock and other
equity incentive awards.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Pursuant to Rule&nbsp;416(a), this registration statement also covers any additional
securities that may be offered or issued in connection with any stock split, stock dividend or
similar transaction.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>This price is estimated in accordance with Rule&nbsp;457(h)(1) under the Securities Act of
1933, as amended, solely for the purpose of calculating the registration fee, based on the average
of the high and low prices of the registrant&#146;s common stock on March&nbsp;28, 2006, as reported on the
OTC Bulletin Board.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Calculated pursuant to Rule 457(a) of the rules and regulations under the Securities
Act of 1933.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Represents shares subject to issuance under the Sun New Media, Inc. 2006 Stock Plan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">6</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>These shares are offered for resale. They were originally issued as part of an
employee bonus program.</TD>
</TR>

</TABLE>



<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PART I</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">PART II</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Item&nbsp;3. Incorporation of Documents by Reference</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#003">Item&nbsp;4. Description of Securities</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#004">Item&nbsp;5. Interests of Named Experts and Counsel</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#005">Item&nbsp;6. Indemnification of Directors and Officers</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#006">Item&nbsp;7. Exemption From Registration Claimed</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#007">Item&nbsp;8. Exhibits</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#008">Item&nbsp;9. Undertakings</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">SIGNATURE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="f19057exv5w1.htm">EXHIBIT 5.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="f19057exv23w1.htm">EXHIBIT 23.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="f19057exv99w1.htm">EXHIBIT 99.1</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>






<!-- link1 "PART I" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART I</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>EXPLANATORY NOTE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sun New Media, Inc. has prepared this registration statement in accordance with the requirements of
Form S-8 under the Securities Act of 1933 to register 12,000,000 shares of common stock that may be
issued under our 2006 Stock Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, we include under cover of this Form S-8 a reoffer prospectus prepared in accordance of
Part&nbsp;I of Form S-3 under the Securities Act. Pursuant to General Instruction C to Form S-8, this
reoffer prospectus and this registration statement are intended to register for reoffer and resale
up to 74,100 shares of common stock we have issued under our employee bonus program.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>REOFFER PROSPECTUS<BR>
74,100 SHARES OF<BR>
SUN NEW MEDIA, INC.<BR>
COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This reoffer prospectus covers 74,100 shares of common stock, 0.01 par value, of Sun New
Media, Inc. This prospectus relates to the reoffer and resale of shares of common stock that have
been acquired pursuant to an employee bonus program of Sun New Media, Inc. by certain of our
officers, directors, employees and consultants. We will not receive any proceeds from these sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders described in this prospectus may reoffer and resell the shares from
time to time. The shares may be offered at prevailing market prices, at prices related to such
prevailing market prices, at negotiated prices, or at fixed prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common stock is listed on the OTC Bulletin Board under the symbol &#147;SNMD.&#148; On March&nbsp;28,
2006, the last reported sale price of the common stock on the OTC Bulletin Board was $3.90 per
share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investing in the common stock involves risks. See &#147;Risk Factors&#148; beginning on page 3.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE SECURITIES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK.<BR>
PROSPECTIVE PURCHASERS SHOULD CAREFULLY REVIEW THE MATTERS SET<BR>
FORTH IN &#147;RISK FACTORS&#148; BELOW.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE<BR>
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES<BR>
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR<BR>
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR<BR>
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY<BR>
IS A CRIMINAL OFFENSE.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">The date
of this prospectus is March&nbsp;30, 2006.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have filed with the Securities and Exchange Commission (&#147;SEC&#148;) a registration statement on
Form S-8 under the Securities Act with respect to the shares of common stock registered hereby.
This prospectus, which constitutes a part of the registration statement, does not contain all of
the information set forth in our registration statement and the exhibits filed therewith. You may
refer to the registration statement, and the accompanying exhibits and schedules for more
information about us and our common stock. Statements contained in this prospectus regarding the
contents of any agreement or any other document to which reference is made are not necessarily
complete, and, in each instance, reference is made to the copy of such agreement or other document
filed as an exhibit to the registration statement, each such statement being qualified in all
respects by such reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may read and copy any document we file at the SEC&#146;s Public Reference Room at 450 Fifth
Street, N.W., Washington, D.C., 20549. Please call the SEC at 1-800-SEC-0330 for further
information regarding the operation of the Public Reference Room. Our SEC filings are also
available to the public from the SEC&#146;s website at
<U>http://www.sec.gov</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also subject to the information and periodic reporting requirements of the Exchange
Act. We file reports, proxy statements, and other information with the SEC to comply with the
Exchange Act. These reports, proxy statements, and other information can be inspected and copied
on the Internet at <U>http://www.sec.gov</U>; and at the Public Reference Room of the SEC, 450 Fifth
Street, N.W., Washington, D.C. 20549. You may call the SEC at 1-800-SEC-0330 to obtain information
regarding the operation of the Public Reference Room.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this prospectus, the terms &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; &#147;the Company&#148; and &#147;Sun New Media&#148;
mean Sun New Media, Inc. and the term &#147;common stock&#148; means our common stock, par value $0.01 per
share.
</DIV>

<P align="center" style="font-size: 10pt">1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DOCUMENTS INCORPORATED BY REFERENCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to &#147;incorporate by reference&#148; information that we file with them which means
that we can disclose important information to you by referring you to these documents. The
information incorporated by reference is an important part of this prospectus and information we
later file with the SEC will automatically update and supersede this information. The following
documents filed by us with the SEC are incorporated in this prospectus by reference:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company&#146;s latest annual report on Form 10-KSB filed pursuant to Sections 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), containing audited
financial statements for the Company&#146;s latest fiscal year ended September&nbsp;30, 2005, as filed with
the Securities and Exchange Commission on January&nbsp;13, 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All other reports filed pursuant to Section 13(a) or 15(d) of Securities Exchange Act of
1934, as since the end of the fiscal year covered by the registrant document referred to in (a)
above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The description of the Company&#146;s Common Stock contained in the Company&#146;s registration
statement filed under the Exchange Act, including any amendment or report filed for the purpose of
updating such description.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also incorporate by reference all documents and reports filed by us pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 after the date of this prospectus
and prior to the date of termination of this offering. We will provide free of charge to each
person, including any beneficial owner, to whom this prospectus is delivered, upon written or oral
request, a copy of any or all of the documents incorporated by reference in this prospectus.
Please direct such requests to our corporate headquarters at 1142 South Diamond Bar Boulevard,
Diamond Bar, California 91765.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus, including the information we incorporate by reference, includes
forward-looking statements with in the meaning of Section&nbsp;27A of the Securities Act of 1933 and
Section&nbsp;21E of the Securities Exchange Act of 1934. You can identify our forward-looking
statements by the words &#147;expects,&#148; &#147;projects,&#148; &#147;estimates,&#148; &#147;believes.&#148; &#147;anticipates,&#148; &#147;intends,&#148;
&#147;plans,&#148; &#147;budgets,&#148; &#147;estimates&#148; and similar expressions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have based these forward-looking statements relating to our operations on our current
exceptions, estimates and projections. We caution you that these statements are not guarantees of
future performance and involve risks, uncertainties, and assumptions that we cannot predict. In
addition, we have based many of these forward looking statements on assumptions about future events
that may prove to be inaccurate. Accordingly, our actual outcomes and results may differ
materially from what we have expressed or forecast in the forward looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When you consider these forward-looking statements, you should keep in mind the risk factors
and other cautionary statements in this prospectus. Our forward-looking statements speak only as
of the date made. Neither Sun New Media, Inc., nor any person acting on Sun
New Media, Inc.&#146;s behalf, undertakes any obligation to update any forward-looking statements
included or incorporated by reference in this prospectus.
</DIV>

<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ABOUT SUN NEW MEDIA, INC.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were incorporated in Minnesota on June&nbsp;20, 1972. In September&nbsp;2005, we acquired 100% of the
issued and outstanding share capital of Sun New Media Group Limited (&#147;SNMG&#148;) and changed our name
to Sun New Media, Inc. Our principal focus is on our China based interactive marketing and sales
services business. We are creating this business through the ongoing acquisition of various
entities and assets. We also continue to operate the legacy SE Global brokerage business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our executive offices are located at 1142 South Diamond Bar Boulevard, Diamond Bar, California
91765, and our telephone number is (604)&nbsp;871-9999. We maintain our main internet website at
http://www.sunnewmedia.net. Information contained on our websites does not constitute part of this
prospectus.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investment in the securities offered by this prospectus involves a high degree of risk.
You should carefully consider the following factors and other information in this prospectus before
deciding to purchase shares of our common stock. If any of these risks occur, our business could
be harmed, the trading price of our stock could decline and you may lose all or part of your
investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Risks Related to Our Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The development of our business is dependent upon the completion of a number of acquisitions
and other transactions that have not yet closed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal focus is on our China based interactive marketing and sales services business.
We are creating this business through the acquisition of various entities and assets. As of
February&nbsp;21, 2006, we have entered into a number of agreements relating to such acquisitions, as
further described elsewhere in this prospectus. Our acquisition of FCD closed on January&nbsp;27, 2006
and the acquisition of SNMH closed on February&nbsp;15, 2006, but the other transactions have not yet
closed. We expect to close the remaining acquisitions during the first quarter of 2006. However, if
we do not close such acquisitions or such closings are delayed, we may not be able to develop our
business as we have planned or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our short operating history and rapidly evolving business makes it difficult for us to
accurately forecast revenues and expenses.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We commenced our interactive marketing and sales services operations in June&nbsp;2005 and have a
very limited operating history for this division. Accordingly, you should consider our future
prospects in light of the risks and uncertainties experienced by early stage companies in evolving
industries in China. Since inception, we have announced a number of proposed transactions to
develop this business and which will have a material impact on our operations for 2006 and beyond.
As a result, it is difficult for us to predict future revenues and operating expenses. We based our
expense levels, in part, on our expectations of future revenues from these transactions. If our
interactive marketing and sales services business develops slower than we expect, our losses may be
higher than anticipated and may cause our stock price to decline.
</DIV>

<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of the other risks and uncertainties of our business relate to our ability to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>offer new and innovative products and services to attract and retain a larger
consumer base;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>attract customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increase awareness of our brand and continue to develop consumer and customer
loyalty;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>respond to competitive market conditions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>respond to changes in our regulatory environment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>manage risks associated with intellectual property rights;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>maintain effective control of our costs and expenses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>raise sufficient capital to sustain and expand our business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>attract, retain and motivate qualified personnel; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upgrade our technology to support increased traffic and expanded services.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we are unsuccessful in addressing any of these risks and uncertainties, our business may be
materially and adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If the Internet and, in particular, interactive marketing are not broadly adopted in China,
our ability to increase revenue and sustain profitability could be materially and adversely
affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The use of the Internet as a marketing channel is at an early stage in China. Internet and
broadband penetration rates in China are both relatively low compared to those in most developed
countries. Many of our current and potential customers have limited experience with the Internet as
a marketing channel, and have not historically devoted a significant portion of their marketing
budgets to online marketing and promotion. As a result, they may not consider the Internet
effective in promoting their products and services as compared to traditional print and broadcast
media. Our ability to generate significant revenues may be negatively impacted by a number of
factors, many of which are beyond our control, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties associated with developing a larger consumer base with demographic
characteristics attractive to customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increased competition and potential downward pressure on online marketing
prices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ineffectiveness of our online marketing delivery, tracking and reporting
systems; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>lack of increase in Internet usage in China.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We face significant competition and may suffer from a loss of users and customers as a result.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect to face significant competition in our interactive marketing and sales services
business, particularly from other companies that seek to provide online marketing services. Our
main competitors include Sohu.com, Tom Online, and Beijing Media in China and Next Media Group in
Hong Kong. Many of these competitors have significantly greater financial resources than we do.
They also have longer operating histories and more experience in attracting and retaining users and
managing customers than we do. They may use their experience and resources to compete with us in a
variety of ways, including by competing more heavily for users, customers, distributors and
networks of third-party websites, investing more heavily in research and development and making
acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also face competition from traditional advertising media, such as newspapers, magazines,
yellow pages, billboards and other forms of outdoor media, television and radio. Most large
companies in China allocate, and will likely continue to allocate, the bulk of their marketing
budgets to traditional advertising media and only a small portion of their budgets to online
marketing. If these companies do not devote a larger portion of their marketing budgets to online
marketing services provided by us, or if our existing customers reduce the amount they spend on
online marketing, our results of operations and future growth prospects could be adversely
affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our business depends on a strong brand, and if we are not able to maintain and enhance our
brand, our business and operating results may be harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that recognition of our brand will contribute significantly to the success of our
business. We also believe that maintaining and enhancing our brand is critical to expanding our
base of consumers and customers. As our market becomes increasingly competitive, maintaining and
enhancing our brand will depend largely on our ability to remain as an Internet marketing leader in
China, which may be increasingly difficult and expensive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If we fail to continue to innovate and provide relevant services, we may not be able to
generate sufficient user traffic levels to remain competitive.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We must continue to invest significant resources in research and development to enhance
services and introduce additional high quality services to attract and retain consumers. If we are
unable to anticipate consumer preferences or industry changes, or if we are unable to modify our
services on a timely basis, we may lose consumers and customers. Our operating results would also
suffer if our innovations do not respond to the needs of our consumers and customers, are not
appropriately timed with market opportunities or are not effectively brought to market.
</DIV>

<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If we fail to keep up with rapid technological changes, our future success may be adversely
affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The online marketing industry is subject to rapid technological changes. Our future success
will depend on our ability to respond to rapidly changing technologies, adapt our services to
evolving industry standards and improve the performance and reliability of our services. Our
failure to adapt to such changes could harm our business. New marketing media could also adversely
affect us. For example, the number of people accessing the Internet through devices other than
personal computers, including mobile telephones and hand-held devices, has increased in recent
years. If we are slow to develop products and technologies that are more compatible with non-PC
communications devices, we may not be successful in capturing a significant share of this
increasingly important market for media and other services. In addition, the widespread adoption of
new Internet, networking or telecommunications technologies or other technological changes could
require substantial expenditures to modify or adapt our products, services or infrastructure. If we
fail to keep up with rapid technological changes to remain competitive in our rapidly evolving
industry, our future success may be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may face intellectual property infringement claims and other related claims, that could be
time-consuming and costly to defend and may result in our inability to continue providing certain
of our existing services.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet, technology and media companies are frequently involved in litigation based on
allegations of infringement of intellectual property rights, unfair competition, and invasion of
privacy, defamation and other violations of third-party rights. The validity, enforceability and
scope of protection of intellectual property in Internet-related industries, particularly in China,
are uncertain and still evolving. In addition, many parties are actively developing and seeking
protection for Internet-related technologies, including seeking patent protection. There may be
patents issued or pending that are held by others that cover significant aspects of our
technologies, products, business methods or services. As we face increasing competition and as
litigation becomes more common in China for resolving commercial disputes, we face a higher risk of
being the subject of intellectual property infringement claims.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intellectual property litigation is expensive and time consuming and could divert resources
and management attention from the operations of our businesses. If there is a successful claim of
infringement, we may be required to pay substantial fines and damages or enter into royalty or
license agreements that may not be available on commercially acceptable terms, if at all. Our
failure to obtain a license of the rights on a timely basis could harm our business. Any
intellectual property litigation could have a material adverse effect on our business, financial
condition or results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may not be able to prevent others from unauthorized use of our intellectual property, which
could harm our business and competitive position.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on a combination of copyright, trademark and trade secret laws, as well as
nondisclosure agreements and other methods to protect our intellectual property rights. The
protection of intellectual property rights in China may not be as effective as those in the United
States or other countries. The steps we have taken may be inadequate to prevent the
misappropriation of our technology. Reverse engineering, unauthorized copying or other
misappropriation of our technologies could enable third parties to benefit from our technologies
without paying us. From time to time, we may have to enforce our intellectual property rights
through litigation. Such litigation may result in substantial costs and diversion of resources
and management attention.
</DIV>

<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If we fail to attract customers for our online marketing services, our business and growth
prospects could be seriously harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our online marketing customers will not maintain a business relationship with us if their
investment does not generate sales leads and ultimately consumers. Failure to retain our existing
online marketing customers or attract new customers for our online marketing services could
seriously harm our business and growth prospects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Because we primarily rely on distributors in providing our e-marketing services, our failure
to retain key distributors or attract additional distributors could materially and adversely affect
our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Online marketing is at an early stage of development in China and is not as widely accepted by
or available to businesses in China as in the United States. As a result, we rely heavily on a
nationwide distribution network of third-party distributors for our sales to, and collection of
payment from, our corporate and consumer customers. If our distributors do not provide quality
services to our consumer customers or otherwise breach their contracts with our consumer customers,
we may lose customers and our results of operations may be materially and adversely affected. We do
not have long-term agreements with any of our distributors, including our key distributors, and
cannot assure you that we will continue to maintain favorable relationships with them. Our
distribution arrangements are non-exclusive. Furthermore, some of our distributors may have
contracts with our competitors or potential competitors and may not renew their distribution
agreements with us. In addition, as new methods for accessing the Internet, including the use of
wireless devices, become available, we may need to expand our distribution network to cater to the
new technologies. If we fail to retain our key distributors or attract additional distributors on
terms that are commercially reasonable, our business and results of operations could be materially
and adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our strategy of acquiring complementary businesses, assets and technologies may fail.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of our business strategy, we have pursued, and intend to continue to pursue, selective
strategic acquisitions of businesses, assets and technologies that complement our existing
business. For example, the FCD and Shengji acquisitions involve uncertainties and risks, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential ongoing financial obligations and unforeseen or hidden liabilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>failure to achieve the intended objectives, benefits or revenue-enhancing
opportunities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>costs and difficulties of integrating acquired businesses and managing a larger
business; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>diversion of resources and management attention.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our failure to address these risks successfully may have a material adverse effect on our
financial condition and results of operations. Any such acquisition may require a significant
amount of capital investment, which would decrease the amount of cash available for working capital
or capital expenditures. In addition, if we use our equity securities to pay for acquisitions, we
may dilute the value of our common stock. If we borrow funds to finance acquisitions, such debt
instruments may contain restrictive covenants that could, among other things, restrict us from
distributing dividends. Such acquisitions may also generate significant amortization expenses
related to intangible assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may not be able to manage our expanding operations effectively.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We commenced our interactive marketing and sales services operations in 2005 and are expanding
our operations rapidly. We anticipate significant continued expansion of our business as we address
growth in our consumer and customer base and market opportunities. To manage the potential growth
of our operations and personnel, we will be required to improve operational and financial systems,
procedures and controls, and expand, train and manage our growing employee base. Furthermore, our
management will be required to maintain and expand our relationships with other websites, Internet
companies and other third parties. We cannot assure you that our current and planned personnel,
systems, procedures and controls will be adequate to support our future operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our operating results may fluctuate, which makes our results difficult to predict and could
cause our results to fall short of expectations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operating results may fluctuate as a result of a number of factors, many of which are
outside of our control. For these reasons, comparing our operating results on a period-to-period
basis may not be meaningful, and you should not rely on our past results as an indication of our
future performance. Our quarterly and annual revenues and costs and expenses as a percentage of our
revenues may be significantly different from our historical or projected rates. Our operating
results in future quarters may fall below expectations. Any of these events could cause the price
of our Common Stock to fall. Any of the risk factors listed in this &#147;Risk Factors&#148; section, and in
particular, the following risk factors, could cause our operating results to fluctuate from quarter
to quarter:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic conditions in China and economic conditions specific to the
Internet, Internet search and online marketing;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to attract additional customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the announcement or introduction of new or enhanced products and services by us
or our competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount and timing of operating costs and capital expenditures related to
the maintenance and expansion of our businesses, operations and infrastructure;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the results of our acquisitions of, or investments in, other businesses or
assets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PRC regulations or actions pertaining to activities on the Internet, including
gambling, online games and other forms of entertainment; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>geopolitical events or natural disasters such as war, threat of war, Severe
Acute Respiratory Syndrome, or SARS, or other epidemics.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of our limited operating history and our rapidly growing business, our historical
operating results may not be useful to you in predicting our future operating results. Advertising
spending in China has historically been cyclical, reflecting overall economic conditions as well as
budgeting and buying patterns. Our rapid growth has lessened the impact of the cyclicality and
seasonality of our business. As we continue to grow, we expect that the cyclicality and seasonality
in our business may cause our operating results to fluctuate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The successful operation of our business depends upon the performance and reliability of the
Internet infrastructure and fixed telecommunications networks in China.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business depends on the performance and reliability of the Internet infrastructure in
China. Almost all access to the Internet is maintained through state-owned telecommunication
operators under the administrative control and regulatory supervision of the Ministry of
Information Industry of China. In addition, the national networks in China are connected to the
Internet through international gateways controlled by the PRC government. These international
gateways are the only channels through which a domestic user can connect to the Internet. We cannot
assure you that a more sophisticated Internet infrastructure will be developed in China. We may not
have access to alternative networks in the event of disruptions, failures or other problems with
China&#146;s Internet infrastructure. In addition, the Internet infrastructure in China may not support
the demands associated with continued growth in Internet usage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our success depends on the continuing efforts of our senior management team and other key
personnel and our business may be harmed if we lose their services.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our future success depends heavily upon the continuing services of the members of our senior
management team, in particular our chairman Dr.&nbsp;Bruno Wu. If one or more of our senior executives
or other key personnel are unable or unwilling to continue in their present positions, we may not
be able to replace them easily or at all, and our business may be disrupted and our financial
condition and results of operations may be materially and adversely affected. Competition for
senior management and key personnel is intense, the pool of qualified candidates is very limited,
and we may not be able to retain the services of our senior executives or key personnel, or attract
and retain high-quality senior executives or key personnel in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if any member of our senior management team or any of our other key personnel
joins a competitor or forms a competing company, we may lose customers, distributors, know-how and
key professionals and staff members. Each of our executive officers and key employees has entered
into an employment agreement with us, which contains confidentiality and non-competition
provisions. If any disputes arise between any of our senior executives or key personnel and us, we
cannot assure you the extent to which any of these agreements may be enforced.
</DIV>

<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel
or hire qualified personnel, we may not be able to grow effectively.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our performance and future success depends on the talents and efforts of highly skilled
individuals. We will need to continue to identify, hire, develop, motivate and retain highly
skilled personnel for all areas of our organization. Competition in our industry for qualified
employees is intense. Our continued ability to compete effectively depends on our ability to
attract new employees and to retain and motivate our existing employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As competition in our industry intensifies, it may be more difficult for us to hire, motivate
and retain highly skilled personnel. If we do not succeed in attracting additional highly skilled
personnel or retaining or motivating our existing personnel, we may be unable to grow effectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Interruption or failure of our information technology and communications systems could impair
our ability to effectively provide our products and services, which could damage our reputation and
harm our operating results.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to provide our services depends on the continuing operation of our information
technology and communications systems. Any damage to or failure of our systems could interrupt our
service. Service interruptions could reduce our revenues and profits, and damage our brand if our
system is perceived to be unreliable. Our systems are vulnerable to damage or interruption as a
result of terrorist attacks, war, earthquakes, floods, fires, power loss, telecommunications
failures, computer viruses, interruptions in access to our websites through the use of &#147;denial of
service&#148; or similar attacks, hacking or other attempts to harm our systems, and similar events. Our
servers, which are hosted at third-party Internet data centers, are also vulnerable to break-ins,
sabotage and vandalism. Some of our systems are not fully redundant, and our disaster recovery
planning does not account for all possible scenarios. The occurrence of a natural disaster or a
closure of an Internet data center by a third-party provider without adequate notice could result
in lengthy service interruptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our business could be adversely affected if our software contains bugs.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our online systems, including our websites, and other software applications and products,
could contain undetected errors or &#147;bugs&#148; that could adversely affect their performance. We
regularly update and enhance our websites and our other online systems and introduce new versions
of our software products and applications. The occurrence of errors in any of these may cause us to
lose market share, damage our reputation and brand name, and materially and adversely affect our
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Concerns about the security of electronic commerce transactions and confidentiality of
information on the Internet may reduce use of our network and impede our growth.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant barrier to electronic commerce and communications over the Internet in general
has been public concern over security and privacy, including the transmission of confidential
information. If these concerns are not adequately addressed, they may inhibit the growth of the
Internet and other online services generally, especially as a means of conducting commercial
transactions. If a well-publicized Internet breach of security were to occur, general Internet
usage could decline, which could reduce traffic to our destination websites and impede our growth.
</DIV>

<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We have limited business insurance coverage.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The insurance industry in China is still at an early stage of development. Insurance companies
in China offer limited business insurance products. We do not have any business liability or
disruption insurance coverage for our operations in China. Any business disruption, litigation or
natural disaster may result in our incurring substantial costs and the diversion of our resources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Risks Related to Our Corporate Structure</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>PRC laws and regulations governing our businesses and the validity of certain of our
contractual arrangements are uncertain. If we are found to be in violation, we could be subject to
sanctions. In addition, changes in such PRC laws and regulations may materially and adversely
affect our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are substantial uncertainties regarding the interpretation and application of PRC laws
and regulations, including, but not limited to, the laws and regulations governing our business, or
the enforcement and performance of our contractual arrangements with certain of our affiliated
Chinese entities. We are considered foreign persons or foreign invested enterprises under PRC law.
As a result, we are subject to PRC law limitations on foreign ownership of Internet and advertising
companies. These laws and regulations are relatively new and may be subject to change, and their
official interpretation and enforcement may involve substantial uncertainty. The effectiveness of
newly enacted laws, regulations or amendments may be delayed, resulting in detrimental reliance by
foreign investors. New laws and regulations that affect existing and proposed future businesses may
also be applied retroactively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The PRC government has broad discretion in dealing with violations of laws and regulations,
including levying fines, revoking business and other licenses and requiring actions necessary for
compliance. In particular, licenses and permits issued or granted to us by relevant governmental
bodies may be revoked at a later time by higher regulatory bodies. We cannot predict the effect of
the interpretation of existing or new PRC laws or regulations on our businesses. We cannot assure
you that our current ownership and operating structure would not be found in violation of any
current or future PRC laws or regulations. As a result, we may be subject to sanctions, including
fines, and could be required to restructure our operations or cease to provide certain services.
Any of these or similar actions could significantly disrupt our business operations or restrict us
from conducting a substantial portion of our business operations, which could materially and
adversely affect our business, financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our corporate actions are substantially controlled by our principal shareholders and
affiliated entities.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of February&nbsp;9, 2006, our principal shareholders and their affiliated entities own
approximately 68% of our outstanding common stock (which will be reduced to approximately 52% after
completion of announced but not yet closed transactions). These shareholders, acting individually
or as a group, could exert substantial influence over matters such as electing directors and
approving mergers or other business combination transactions. This concentration of ownership may
also discourage, delay or prevent a change in control of our company, which
could deprive our shareholders of an opportunity to receive a premium for their shares as part
of a sale of our company and might reduce the price of our Common stock. These actions may be taken
even if they are opposed by our other shareholders.
</DIV>

<P align="center" style="font-size: 10pt">11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Risks Related to Doing Business in China</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Adverse changes in economic and political policies of the PRC government could have a material
adverse effect on the overall economic growth of China, which could adversely affect our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As our interactive marketing and sales services business expands, we expect an increasing
portion of our business operations to be conducted in China. Accordingly, our results of
operations, financial condition and prospects are subject to a significant degree to economic,
political and legal developments in China. China&#146;s economy differs from the economies of most
developed countries in many respects, including the amount of government involvement, level of
development, growth rate, control of foreign exchange and allocation of resources. While China&#146;s
economy has experienced significant growth in the past 20&nbsp;years, growth has been uneven across
different regions and among various economic sectors of China. The PRC government has implemented
various measures to encourage economic development and guide the allocation of resources. Some of
these measures benefit the overall PRC economy, but may also have a negative effect on us. For
example, our financial condition and results of operations may be adversely affected by
governmental control over capital investments or changes in tax regulations that are applicable to
us. Since early 2004, the PRC government has implemented certain measures to control the pace of
economic growth. Such measures may cause a decrease in the level of economic activity in China,
which in turn could adversely affect our results of operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our subsidiaries and affiliates are subject to restrictions on paying dividends and making
other payments to us.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As our interactive marketing and sales services business develops, we expect to increasingly
rely on dividends payments from our subsidiaries and affiliated entities in China. However, PRC
regulations currently permit payment of dividends only out of accumulated profits, as determined in
accordance with PRC accounting standards and regulations. Our subsidiaries and affiliated entities
in China are also required to set aside a portion of their after-tax profits according to PRC
accounting standards and regulations for certain reserve funds. The PRC government also imposes
controls on the conversion of RMB into foreign currencies and the remittance of currencies out of
China. We may experience difficulties in completing the administrative procedures necessary to
obtain and remit foreign currency. Furthermore, if our subsidiaries or affiliated entities in China
incur debt on their own in the future, the instruments governing the debt may restrict their
ability to pay dividends or make other payments. If either we or our subsidiaries is unable to
receive all of the revenues from our operations through these contractual or dividend arrangements,
we may be unable to declare dividends on our common stock.
</DIV>

<P align="center" style="font-size: 10pt">12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Uncertainties with respect to the PRC legal system could adversely affect us.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct a substantial and increasing portion our business through subsidiaries and
affiliated entities based in China. Our operations in China are governed by PRC laws and
regulations. Our subsidiaries are generally subject to laws and regulations applicable to foreign
investments in China and, in particular, laws applicable to wholly foreign-owned enterprises. The
PRC legal system is based on written statutes. Prior court decisions may be cited for reference but
have limited precedent value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since 1979, PRC legislation and regulations have significantly enhanced the protections
afforded to various forms of foreign investments in China. However, China has not developed a fully
integrated legal system and recently-enacted laws and regulations may not sufficiently cover all
aspects of economic activities in China. In particular, because these laws and regulations are
relatively new, and because of the limited published decisions and their non-binding nature, the
interpretation and enforcement of these laws and regulations involve uncertainties. In addition,
the PRC legal system is based in part on governmental policies and internal rules (some of which
are not published on a timely basis or at all) that may have a retroactive effect. As a result, we
may not be aware of our violation of these policies and rules until after the occurrence of the
violation. In addition, any litigation in China may be protracted and result in substantial costs
and diversion of resources and management attention.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>You may experience difficulties in effecting service of legal process, enforcing foreign
judgments or bringing original actions in China based on United States or other foreign laws
against us or our management.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct a substantial and increasing portion of our operations in China and a substantial
portion of our assets will be located in China. In addition, all of our senior executive officers
reside within China. As a result, it may not be possible to effect service of process within the
United States or elsewhere outside China on our senior executive officers, including matters
arising under U.S. federal securities laws or applicable state securities laws. Moreover, our PRC
counsel has advised us that PRC does not have treaties with the United States or many other
countries providing for the reciprocal recognition and enforcement of judgment of courts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Governmental control of currency conversion may affect the value of your investment.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The PRC government imposes controls on the conversion of RMB to foreign currencies and, in
certain cases, the remittance of currencies out of China. As our interactive marketing and sales
services business expands, we expect to derive an increasing percentage of our revenues in RMB.
Under our current structure, we expect our income will be primarily derived from dividend payments
from our PRC subsidiaries. Shortages in the availability of foreign currency may restrict the
ability of our PRC subsidiaries and our affiliated entities to remit sufficient foreign currency to
pay dividends or other payments to us, or otherwise satisfy their foreign currency denominated
obligations. Under existing PRC foreign exchange regulations, payments of current account items,
including profit distributions, interest payments and expenditures from trade-related transactions,
can be made in foreign currencies without prior approval from the PRC State Administration of
Foreign Exchange by complying with certain procedural requirements. However, approval from
appropriate government authorities is required when RMB is to be converted into foreign currency
and remitted out of China to pay capital expenses such as the repayment of bank loans denominated
in foreign currencies. The PRC
government may also at its discretion restrict access in the future to foreign currencies for
current account transactions. If the foreign exchange control system prevents us from obtaining
sufficient foreign currency to satisfy our demands, we may not be able to pay dividends in foreign
currencies to our shareholders, including holders of our Common stock.
</DIV>

<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Fluctuation in the value of RMB may have a material adverse effect on your investment.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The value of RMB against the U.S. dollar and other currencies may fluctuate and is affected
by, among other things, changes in political and economic conditions. On July&nbsp;21, 2005, the PRC
government changed its decade-old policy of pegging the value of the RMB to the U.S. dollar. Under
the new policy, the RMB is permitted to fluctuate within a narrow and managed band against a basket
of foreign currencies. This change in policy has resulted in an approximately 2.0% appreciation of
the RMB against the U.S. dollar. While the international reaction to the RMB revaluation has
generally been positive, there remains significant international pressure on the PRC government to
adopt a more flexible currency policy, which could result in a further and significant appreciation
of the RMB against the U.S. dollar. As our interactive marketing and sales services business
continues to grow, a greater portion of our revenues and costs will be denominated in RMB, while a
significant portion of our financial assets may be denominated in U.S. dollars. We expect to rely
significantly on dividends and other fees paid to us by our subsidiaries and affiliated entities in
China. Any significant revaluation of RMB may materially and adversely affect our cash flows,
revenues, earnings and financial position, and the value of, and any dividends payable on, our
Common stock in U.S. dollars. For example, an appreciation of RMB against the U.S. dollar would
make any new RMB denominated investments or expenditures more costly to us, to the extent that we
need to convert U.S. dollars into RMB for such purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We face risks related to health epidemics and other outbreaks.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business could be adversely affected by the effects of SARS or another epidemic or
outbreak. China reported a number of cases of SARS in April&nbsp;2004. Any prolonged recurrence of SARS
or other adverse public health developments in China may have a material adverse effect on our
business operations. For instance, health or other governmental regulations adopted in response may
require temporary closure of Internet cafes, which is one of the avenues where users could access
our websites, or of our offices. Such closures would severely disrupt our business operations and
adversely affect our results of operations. We have not adopted any written preventive measures or
contingency plans to combat any future outbreak of SARS or any other epidemic.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Risks Relating to our Brokerage Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our brokerage business could be harmed by market fluctuations and other securities industry
risks.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substantially all of our current revenues are derived from securities brokerage and clearing
and execution services. Like other brokerage businesses, we are directly affected by economic and
political conditions, broad trends in business and finance and changes in volume and price levels
of securities transactions. Trading in the U.S. securities markets can fluctuate
</DIV>

<P align="center" style="font-size: 10pt">14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">considerably, which can result in reduced trading volume, lower transaction revenues and
adversely affect our profitability. The terrorist attacks in the United States on September&nbsp;11,
2001, for example, resulted in lost commission revenues due to the closing of U.S. financial
markets for four days. When the markets reopened, there was a period of substantial market
volatility. Severe market fluctuations in the future could have a material adverse effect on our
business, financial condition and operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Substantial competition could reduce our market share and harm our financial performance.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market for brokerage services, particularly electronic brokerage services, is new, rapidly
evolving and intensely competitive. We expect the competitive environment to continue in the
future. We face direct competition from numerous brokerage firms. We also encounter competition
from financial institutions, mutual fund sponsors and other organizations. Most of our competitors
have greater financial, technical, marketing and other resources than we do. Most of our
competitors offer a wider range of services and financial products than we do and have greater name
recognition and a more extensive client base than we do. We may not be able to compete effectively
with existing or potential competitors, which could have a material adverse effect on our business,
financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Systems failures and delays could harm our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We receive and process trade orders through a variety of electronic mediums, including the
Internet, wireless web, personal digital assistants and other systems. These methods of trading are
heavily dependent on the integrity of the electronic systems supporting them. Our systems and
operations are vulnerable to damage or interruption from human error, natural disasters, power
loss, computer viruses, intentional acts of vandalism and similar events. Extraordinary trading
volumes could cause our computer systems to operate at an unacceptably low speed or even fail.
There can be no assurance that our systems will be sufficient to handle such extraordinary trading
volumes. In the past, we experienced periods of extremely high trading volume that caused
individual system components or processes to fail, resulting in the unavailability of our Web site
for online trading temporarily and delays in our telephone systems. In some other occasions, high
trading volume caused significant delays in executing trading orders, resulting in some clients&#146;
orders being executed at prices they did not anticipate. From time to time, we have reimbursed our
clients for losses incurred in connection with systems failures and delays. Systems failures and
delays may occur again in the future and could cause, among other things, unanticipated disruptions
in service to our clients, slower system response times resulting in transactions not being
processed as quickly as desired, decreased levels of client service and client satisfaction, and
reputation damage. If any of these events were to occur, we could suffer a loss of clients or a
reduction in the growth of our client base, increased operating expenses, financial losses,
additional litigation or other client claims, and regulatory sanctions or additional regulatory
burdens.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Capacity constraints of our systems could harm our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As our business increases, we may need to expand and upgrade our transaction processing
systems, network infrastructure and other aspects of our technology. We may need to continue to
make significant investments in additional hardware and software to accommodate
</DIV>

<P align="center" style="font-size: 10pt">15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">growth. We may not be able to project accurately the rate, timing or cost of any increases in
our business, or to expand and upgrade our systems and infrastructure to accommodate any increases
in a timely manner. Failure to make necessary expansions and upgrades to our systems and
infrastructure could lead to failures and delays, which could have a material adverse effect on our
business, financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Regulatory and legal uncertainties could harm our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The securities industry in the United States is subject to extensive regulation under both
federal and state laws. Broker-dealers are subject to regulations covering all aspects of the
securities business. Our operations and profitability may be directly affected by, among other
things, additional legislation, changes in rules promulgated by the SEC, the NASD, the Federal
Reserve, the various stock exchanges and other self-regulatory organizations, or changes in the
interpretation or enforcement of existing laws and rules.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC, the NASD and other self-regulatory organizations and state securities commissions can
censure, fine, issue cease-and-desist orders to, suspend or expel a broker-dealer or any of its
officers or employees. Our ability to comply with applicable laws and rules is largely dependent on
our internal system to ensure compliance, as well as our ability to attract and retain qualified
compliance personnel. We could be subject to disciplinary or other actions in the future due to
claimed noncompliance, which could have a material adverse effect on our business, financial
condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recently, various regulatory and enforcement agencies have been reviewing systems capacity,
customer access, best execution practices, other service issues and advertising claims as they
relate to the online brokerage industry. These reviews could result in enforcement actions or new
regulations, either of which could have a material adverse effect on our business, financial
condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we use the Internet as a major distribution channel to provide services to our
clients. A number of regulatory agencies have recently adopted regulations regarding client privacy
and the use of client information by service providers. These regulations may have an adverse
impact on our business in the future, including on our ability to provide client information to
certain third parties. It is possible that additional laws and regulations relating to the Internet
may be adopted in the future, including regulations regarding the taxation, pricing, content and
quality of products and services delivered over the Internet. Any such laws or regulations might
increase our cost of using, or limit our ability to use, the Internet as a distribution channel. As
a result, the adoption of such laws and regulations could have a material adverse effect on our
business, financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The success of our business will depend on continued development and maintenance of the
Internet infrastructure.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Internet has experienced, and is expected to continue to experience, significant growth in
the number of users and amount of traffic. Our success will depend on the development and
maintenance of the Internet&#146;s infrastructure to cope with this increased traffic. The Internet has
experienced a variety of outages and other delays as a result of damage to portions of its
infrastructure and could face similar outages and delays in the future. Outages and
</DIV>

<P align="center" style="font-size: 10pt">16
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">delays are likely to affect the level of Internet usage and the processing of transactions on
our web site. In addition, the Internet could lose its viability due to delays in the development
or adoption of new standards to handle increased levels of activity. The failure to develop and
maintain the Internet infrastructure could have a material adverse effect on our business,
financial condition and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We will need to introduce new products and services to remain competitive.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our future success depends in part on our ability to develop and enhance our products and
services. There are significant technical and financial risks in the development of new or enhanced
products and services, including the risk that we will be unable to effectively use new
technologies, adapt our services to emerging industry standards, or develop, introduce and market
new or enhanced products and services. If we are unable to develop and introduce enhanced or new
products and services quickly enough to respond to market or client requirements, or if our
products and services fail to achieve market acceptance, our business, financial condition and
results of operations could be materially adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We may not be able to keep up with rapid technological and other changes.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The markets in which we compete are characterized by rapidly changing technology, evolving
industry standards, frequent new product and service announcements, introductions and enhancements
and changing consumer demands. If we are not able to keep up with these rapid changes, we may be at
a competitive disadvantage. In addition, the widespread adoption of new Internet, networking or
telecommunications technologies or other technological changes could require us to incur
substantial expenditures to modify or adapt our services or infrastructure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Our networks may be vulnerable to security risks.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The secure transmission of confidential information over public networks is a critical element
of our operations. Our networks may be vulnerable to criminal access, computer viruses and other
security problems. Persons who circumvent security measures could wrongfully use our confidential
information or our clients&#146; confidential information or cause interruptions or malfunctions in our
operations. We may be required to expend significant additional resources to protect against the
threat of security breaches or to alleviate problems caused by any breaches. We may not be able to
implement security measures that will protect against all security risks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Failure to comply with net capital requirements could adversely affect our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC, the NASD and various other regulatory agencies have stringent rules with respect to
the maintenance of specific levels of net capital by securities broker-dealers. Net capital is a
SEC-defined measure of a broker-dealer&#146;s readily available liquid assets, reduced by its total
liabilities other than approved subordinated debt. All of our broker-dealer subsidiaries are
required to comply with the net capital requirements. If we fail to maintain the required net
capital, the SEC could suspend or revoke our registration, or the NASD could expel us from
membership, which could ultimately lead to our liquidation. If the net capital rules are changed or
expanded, or if there is an unusually large charge against net capital, operations that require the
intensive use of capital would be limited. A large operating loss or charge against net capital
could adversely affect our ability to expand or even maintain our present levels of business,
which could have a material adverse effect on our business, financial condition and results of
operations.
</DIV>

<P align="center" style="font-size: 10pt">17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We are exposed to credit risk.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We make margin loans to clients collateralized by client securities and periodically borrow
securities to cover trades. A significant portion of our net revenues is derived from interest on
margin loans. To the extent that these margin loans exceed client cash balances maintained with us,
we generally must obtain financing from third parties. We may not be able to obtain this financing
on favorable terms or in sufficient amounts. By permitting clients to purchase securities on
margin, we are subject to risks inherent in extending credit, especially during periods of rapidly
declining markets in which the value of the collateral held by us could fall below the amount of a
client&#146;s indebtedness. In addition, in accordance with regulatory guidelines, we collateralize
borrowings of securities by depositing cash or securities with lending institutions. Failure to
maintain required deposit levels at all times at least equal to the value of the related securities
can subject us to risk of loss if sharp changes in market values of substantial amounts of
securities occur and parties to the borrowing transactions fail to honor their commitments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Risks Related to Our Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>There has been only a limited public market for our common stock to date.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To date, there has been only a limited public market for our common stock on the
Over-the-Counter Bulletin Board. Our common stock is currently not listed on any exchange. If an
active trading market for our common stock does not develop, the market price and liquidity of our
common stock will be materially and adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The market price for our common stock may be volatile.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market price for our common stock may be volatile and subject to wide fluctuations in
response to factors including the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actual or anticipated fluctuations in our quarterly operating results;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in financial estimates by securities research analysts, if any;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>conditions in the China consumer goods and online marketing markets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the economic performance or market valuations of other U.S. public
companies with substantial operations in China;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>announcements by us or our competitors of new products, acquisitions, strategic
partnerships, joint ventures or capital commitments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>addition or departure of key personnel;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations of exchange rates between RMB and the U.S. dollar;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>intellectual property litigation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic or political conditions in China.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">18
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the securities market has from time to time experienced significant price and
volume fluctuations that are not related to the operating performance of particular companies.
These market fluctuations may also materially and adversely affect the market price of our Common
stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We will need additional capital, and the sale of additional common stock or other equity
securities could result in additional dilution to our shareholders.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect to require additional cash resources to fund our operations, as well as investments
or acquisitions which we may decide to pursue. To satisfy our cash requirements, we may seek to
sell additional equity or debt securities or obtain a credit facility. The sale of additional
equity securities could result in additional dilution to our shareholders. The incurrence of
indebtedness would result in increased debt service obligations and could result in operating and
financing covenants that would restrict our operations. We cannot assure you that financing will be
available in amounts or on terms acceptable to us, if at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Substantial future sales or the perception of sales of our common stock in the public market
could cause the price of our common stock to decline.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of our common stock in the public market or the perception that these sales could occur,
could cause the market price of our common stock to decline. As of February&nbsp;9, 2006, approximately
1,946,768 shares, or 2.4% of our outstanding shares will be freely transferable without restriction
or additional registration under the Securities Act of 1933, as amended, or the Securities Act. In
addition, upon effectiveness of the registration statement of which this prospectus is a part, the
66,530,392 shares covered by this registration statement will be freely tradeable. The remaining
common stock outstanding as of such date will be available for sale, beginning on September&nbsp;18,
2006, subject to volume and other restrictions as applicable under Rule&nbsp;144 under the Securities
Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>You may face difficulties in protecting your interests, and your ability to protect your
rights through the U.S. federal courts may be limited, because we conduct a significant portion of
our operations in China and all of our officers reside outside the United States.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct a substantial portion of our operations in China through our wholly owned
subsidiaries in China. All of our officers reside outside the United States and some or all of the
assets of those persons are located outside the United States. As a result, it may be difficult or
impossible for you to bring an action against us or against these individuals in China in the event
that you believe that your rights have been infringed under the securities laws or otherwise. Even
if you are successful in bringing an action of this kind, the laws of China may render you unable
to enforce a judgment against our assets or the assets of our directors and officers.
</DIV>

<P align="center" style="font-size: 10pt">19
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>If we fail to maintain an effective system of internal control over financial reporting, we
may not be able to accurately report our financial results or prevent fraud.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to reporting obligations under the U.S. securities laws. The Securities and
Exchange Commission, or the SEC, as required by Section&nbsp;404 of the Sarbanes-Oxley Act of 2002,
adopted rules requiring every public company to include a management report on such company&#146;s
internal controls over financial reporting in its annual report, which contains management&#146;s
assessment of the effectiveness of the company&#146;s internal controls over financial reporting. In
addition, an independent registered public accounting firm must attest to and report on
management&#146;s assessment of the effectiveness of the company&#146;s internal controls over financial
reporting. These requirements may first apply to our annual report on Form 10-K for the fiscal year
ending September&nbsp;30, 2006. Our management may conclude that our internal controls over our
financial reporting are not effective. Moreover, even if our management concludes that our internal
controls over financial reporting are effective, our independent registered public accounting firm
may still decline to attest to our management&#146;s assessment or may issue a report that is qualified
if they are not satisfied with our controls or the level at which our controls are documented,
designed, operated or reviewed, or if it interprets the relevant requirements differently from us.
Our reporting obligations as a public company will place a significant strain on our management,
operational and financial resources and systems for the foreseeable future. We are a young company
with limited accounting personnel and other resources with which to address our internal controls
and procedures. If we fail to timely achieve and maintain the adequacy of our internal controls, we
may not be able to conclude that we have effective internal controls over financial reporting at a
reasonable assurance level. Moreover, effective internal controls over financial reporting are
necessary for us to produce reliable financial reports and are important to help prevent fraud. As
a result, our failure to achieve and maintain effective internal controls over financial reporting
could result in the loss of investor confidence in the reliability of our financial statements,
which in turn could harm our business and negatively impact the trading price of our common stock.
Furthermore, we anticipate that we will incur considerable costs and use significant management
time and other resources in an effort to comply with Section&nbsp;404 and other requirements of the
Sarbanes-Oxley Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>We will incur increased costs as a result of being a public company.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a public company, we will incur significant legal, accounting and other expenses that we
did not incur as a private company. In addition, the Sarbanes-Oxley Act, as well as rules
subsequently implemented by SEC has required changes in corporate governance practices of public
companies. We expect these new rules and regulations to increase our legal, accounting and
financial compliance costs and make certain corporate activities more time-consuming and costly. In
addition, we will incur additional costs associated with our public company reporting requirements.
We are currently evaluating and monitoring developments with respect to these new rules, and we
cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any of the proceeds from the sale of shares of common stock by the selling
stockholders pursuant to this reoffer prospectus.
</DIV>

<P align="center" style="font-size: 10pt">20
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELLING STOCKHOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This reoffer prospectus covers the reoffer and resale of shares of common stock acquired by
the selling stockholders under an employee bonus program of Sun New Media, Inc. The selling
stockholders are officers, directors employees or consultants of Sun New Media, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling stockholders may sell pursuant to this prospectus up to all of the shares of
common stock they acquired under the plan in one or more transactions from time to time as
described below under &#147;Plan of Distribution.&#148; However, the selling stockholders are not obligated
to sell any of the shares of common stock offered by this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a list of the selling stockholders and the amount of shares to be offered.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>SELLING</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>STOCKHOLDER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000"><B>OFFERED</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">An, Na</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">An, Yun Feng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ang, Ricky Gee Hing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bao, Di Ke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bi, Kun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bing, Chen Hua</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cai, Zhi Ming</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cao, Xiao Lin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chang, Yong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chen, Hai Bao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chen, Juan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chen, Shuo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chen, Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chen, Xiao Peng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chen, Ya Di</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cui, Fan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cui, Zhi Yong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deng, Xiao Jun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deng, Yan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Di, Jian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Di, Lu Li</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ding, Ming Jie</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dong, Chang Hong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dou, Yi Ping</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Du, Jian Li</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Duan, Fang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fan, Jie Fei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">21
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>SELLING</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>STOCKHOLDER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000"><B>OFFERED</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fan, Shi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fei , Bao Qi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fu, Dong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gao, Guo Dong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gao, Jian Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gao, Yun Hao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gao, Zhu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ge, Wei Na</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gu, Yi Hai</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guo, Jian Jun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guo, Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guo, Wen Yi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Han, Yong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Han, Zhi Xue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">He, Yu Hua</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">He, Jiang Bing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">He, Min</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">He, Yue Juan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hong, Feng Yi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hu, Dan Dan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hu, Jin Hua</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hu, Qing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hu, Xin Xin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hua, Jia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Huang, Zhen Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jia, Yu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jia, Ruo Fei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jiang, Bo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jiang, Chang Jian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jiang, Jing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jiang, Jing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jiang, Lei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jiao, Qiang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jiao, Qiao Li</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jin, Jia Nan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jin, Juan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jing, Jie</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Ai Ling</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Guo Xun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Hong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Jian She</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Jinjing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, John Zongyang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Lu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Rui Bing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Shi Gang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">22
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>SELLING</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>STOCKHOLDER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000"><B>OFFERED</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Wen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Wen Ke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Xu Bo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Yi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Yu Ling</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Li, Zhi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lim, Lynnette Kitt Ping</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lin, Jian Jian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lin, Lin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lin, Ling</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Dong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Fang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Feng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Gang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Jia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Jia Zeng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Lei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Qi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Xiao Hua</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Ya Bin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Yan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Yan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Yang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Yi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liu, Zhou Quan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lo, Mei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lu, Feng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lu, Shuo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Luo, Bin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Luo, Chun Jie</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Luo, Hui Xin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lv, Yi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ma, Mo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ng, Hwee Ling</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Niu, Jian Jun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Niu, Li Jing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Niu, Wen Xin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oyang, Yi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peng, Ting Ting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peng, Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Qu, Qing Long</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shao, Shan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shao, Zhun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shen, Fu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shen, Shan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shen, Xiao Yu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">23
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>SELLING</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>STOCKHOLDER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000"><B>OFFERED</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shi , Kai</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shi , Yong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Si, Er Gu Leng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Song, Han Qiang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Su, Wan Qi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sun, Lu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sun, Ru Ling</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tang, Dan Ya</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tang, Rou Qin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tian, Lei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tian, Wen Hui</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tian, Xiao Yan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tong, Xiao Hua</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Bin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Chao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Dan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Dong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Gui Zhen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Guo Sheng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Hai Yan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Hai Yan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Hong Liang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Jin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Jing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Kan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Lei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Li</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Liang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Pu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Qi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Rui Jun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Shu Yun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Tao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Ting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Xiao Yan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Xin Yue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Yan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Ying Hui</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Zu Ji</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wei, Cheng Si</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wong, Po Chun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wu, Jian Jing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wu, Jian Lin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wu, Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wu, Xiao Man</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wu, Xiao Min</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">24
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>SELLING</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>STOCKHOLDER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000"><B>OFFERED</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xiang, Rong Bao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xiong, Chuan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xiong, Yi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xu, Chen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xu, Chun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xu, Han Mei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xu, Hong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Ai Hua</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Dao Hui</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Guo Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Hai Bin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Jie</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Jing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Jing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Lan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Shi Yang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yang, Xiao Ming</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yao, Rui Qing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yao, Wen Xiang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ye, Fei Fei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yi, Qiang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yu, Hui Yang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yu, Zhen Zhi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yuen, Wan Chi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhai, Zhi Lin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhan, Chang Hao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Liang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Miao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Ping</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Qin Fang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Tian Yu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Xi Ju</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Xiao Hui</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Xiao Yun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Yang Yang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Ying</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Yong Qian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Yu Gang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Zheng Gang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhang, Zhong Cheng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhao, Gui Fu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhao, Jing Cheng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhao, Jun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhao, Lu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhao, Wen Jing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhao, Zhi Gang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">25
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>SELLING</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>STOCKHOLDER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 1px solid #000000"><B>OFFERED</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zheng , Yong Xing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zheng, Ming Hua</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zheng, Qi Zhao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhong, Hua</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhou, Guang Yu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhou, Nian Yang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhou, Qiong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhou, Rong Liang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhou, Shi Jun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhou, Yan Chao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhu, Chun Lan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhu, Yue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zhu, Yun</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zuo, Jiang Hong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,100</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">26
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of common stock covered by the prospectus may be offered or sold from time to time
on the OTC Bulletin Board by the selling stockholders, or by pledgees, donees, transferees or other
successors in interest. The shares will be offered on a delayed or continuous basis pursuant to
Rule&nbsp;415 under the Securities Act. Such sales may be made in block trades, pursuant to purchases
by a broker or a dealer as principal, in private transactions, in negotiated transactions or
otherwise, at prices and at terms then prevailing or at negotiated prices. The Company will not
receive any of the proceeds from sales by the selling stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any broker or dealer involved in the offer or sale of the shares included herein may receive
brokerage commissions or discounts. To our knowledge, there is currently no agreement with any
broker or dealer respecting such transactions. Upon sale of such shares, the selling stockholders
or anyone effecting sales on behalf of the selling stockholders may be deemed an underwriter, as
that term is defined in the Securities Act. Each selling stockholder does not believe that he or
she is an underwriter within the meaning of the Securities Act. All expenses of the registration
of the common stock covered by this prospectus are to be borne by us.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the shares of common stock offered hereby will be passed upon for us by DLA
Piper Rudnick Gray Cary US LLP, East Palo Alto, California.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements incorporated in this prospectus by reference to
the Annual Report on Form&nbsp;10-KSB have been so incorporated in reliance on the reports of
Moores Rowland Mazars, Certified Public Accountants, given on the authority of said firm as experts
in auditing and accounting.
</DIV>

<P align="center" style="font-size: 10pt">27
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="f19057f1905700.gif" alt="(SUN NEWMEDIA, INC. LOGO)">
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>74,100 Shares</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Common Stock</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 6pt"><B>REOFFER PROSPECTUS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>March&nbsp;30, 2006</B>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "PART II " -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PART II
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><U>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</U>
</DIV>

<!-- link2 "Item&nbsp;3. Incorporation of Documents by Reference" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;3. <U>Incorporation of Documents by Reference</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sun New Media, Inc. (the &#147;Company&#148;) hereby incorporates by reference in this registration
statement the following documents:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company&#146;s latest annual report on Form 10-KSB filed pursuant to Sections 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), containing audited
financial statements for the Company&#146;s latest fiscal year ended September&nbsp;30, 2005 as filed with
the Securities and Exchange Commission on January&nbsp;13, 2006.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act since the
end of the fiscal year covered by the registrant document referred to in (a)&nbsp;above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The description of the Company&#146;s Common Stock contained in the Company&#146;s registration
statement filed under the Exchange Act, including any amendment or report filed for the purpose of
updating such description.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents subsequently filed by the Company pursuant to Sections&nbsp;13(a), 13(c), 14 and
15(d) of the Exchange Act, prior to the filing of a post-effective amendment to this registration
statement which indicates that all securities offered hereby have been sold or which deregisters
all securities remaining unsold, shall be deemed to be incorporated by reference in this
registration statement and to be a part hereof from the date of filing of such documents.
</DIV>

<!-- link2 "Item&nbsp;4. Description of Securities" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;4. <U>Description of Securities</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The class of securities to be offered is registered under Section&nbsp;12 of the Exchange Act.
</DIV>

<!-- link2 "Item&nbsp;5. Interests of Named Experts and Counsel" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;5. <U>Interests of Named Experts and Counsel</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inapplicable.
</DIV>


<P align="center" style="font-size: 10pt">II-1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link2 "Item&nbsp;6. Indemnification of Directors and Officers" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;6. <U>Indemnification of Directors and Officers</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;302A.521 of the <I>Minnesota Business Corporation Act </I>provides as follows with respect to
indemnification of directors and officers:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <B>Definitions.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(a)&nbsp;For purposes of this section, the terms defined in this subdivision have the
meanings given them.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(b) &#147;Corporation&#148; includes a domestic or foreign corporation that was the
predecessor of the corporation referred to in this section in a merger or other
transaction in which the predecessor&#146;s existence ceased upon consummation of the
transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(c) &#147;Official capacity&#148; means (1)&nbsp;with respect to a director, the position of
director in a corporation, (2)&nbsp;with respect to a person other than a director, the
elective or appointive office or position held by an officer, member of a committee
of the board, or the employment relationship undertaken by an employee of the
corporation, and (3)&nbsp;with respect to a director, officer, or employee of the
corporation who, while a director, officer, or employee of the corporation, is or
was serving at the request of the corporation or whose duties in that position
involve or involved service as a director, officer, partner, trustee, governor,
manager, employee, or agent of another organization or employee benefit plan, the
position of that person as a director, officer, partner, trustee, governor, manager,
employee, or agent, as the case may be, of the other organization or employee
benefit plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(d) &#147;Proceeding&#148; means a threatened, pending, or completed civil, criminal,
administrative, arbitration, or investigative proceeding, including a proceeding by
or in the right of the corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(e) &#147;Special legal counsel&#148; means counsel who has not represented the corporation or
a related organization, or a director, officer, member of a committee of the board,
or employee, whose indemnification is in issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <B>Indemnification mandatory; standard.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(a)&nbsp;Subject to the provisions of subdivision 4, a corporation shall indemnify a
person made or threatened to be made a party to a proceeding by reason of the former
or present official capacity of the person against judgments, penalties, fines,
including, without limitation, excise taxes assessed against the person with respect
to an employee benefit plan, settlements, and reasonable expenses, including
attorneys&#146; fees and disbursements, incurred by the person in connection with the
proceeding, if, with respect to the acts or omissions of the person complained of in
the proceeding, the person:
</DIV>

<P align="center" style="font-size: 10pt">II-2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(1)&nbsp;has not been indemnified by another organization or employee benefit
plan for the same judgments, penalties, fines, including, without
limitation, excise taxes assessed against the person with respect to an
employee benefit plan, settlements, and reasonable expenses, including
attorneys&#146; fees and disbursements, incurred by the person in connection with
the proceeding with respect to the same acts or omissions;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(2)&nbsp;acted in good faith;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(3)&nbsp;received no improper personal benefit and section 302A.255, if
applicable, has been satisfied;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(4)&nbsp;in the case of a criminal proceeding, had no reasonable cause to believe
the conduct was unlawful; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(5)&nbsp;in the case of acts or omissions occurring in the official capacity
described in subdivision 1, paragraph (c), clause (1)&nbsp;or (2), reasonably
believed that the conduct was in the best interests of the corporation, or
in the case of acts or omissions occurring in the official capacity
described in subdivision 1, paragraph (c), clause (3), reasonably believed
that the conduct was not opposed to the best interests of the corporation.
If the person&#146;s acts or omissions complained of in the proceeding relate to
conduct as a director, officer, trustee, employee, or agent of an employee
benefit plan, the conduct is not considered to be opposed to the best
interests of the corporation if the person reasonably believed that the
conduct was in the best interests of the participants or beneficiaries of
the employee benefit plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(b)&nbsp;The termination of a proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent does not, of itself, establish that
the person did not meet the criteria set forth in this subdivision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <B>Advances.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Subject to the provisions of subdivision 4, if a person is made or threatened to be
made a party to a proceeding, the person is entitled, upon written request to the
corporation, to payment or reimbursement by the corporation of reasonable expenses,
including attorneys&#146; fees and disbursements, incurred by the person in advance of
the final disposition of the proceeding, (a)&nbsp;upon receipt by the corporation of a
written affirmation by the person of a good faith belief that the criteria for
indemnification set forth in subdivision 2 have been satisfied and a written
undertaking by the person to repay all amounts so paid or reimbursed by the
corporation, if it is ultimately determined that the criteria for indemnification
have not been satisfied, and (b)&nbsp;after a determination that the facts then known to
those making the determination would not preclude indemnification under this
section. The written undertaking required by clause (a)&nbsp;is an unlimited general
obligation of the person making it, but need not be secured and shall be accepted
without reference to financial ability to make the repayment.
</DIV>

<P align="center" style="font-size: 10pt">II-3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <B>Prohibition or limit on indemnification or advances.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The articles or bylaws either may prohibit indemnification or advances of expenses
otherwise required by this section or may impose conditions on indemnification or
advances of expenses in addition to the conditions contained in subdivisions 2 and 3
including, without limitation, monetary limits on indemnification or advances of
expenses, if the prohibition or conditions apply equally to all persons or to all
persons within a given class. A prohibition or limit on indemnification or advances
may not apply to or affect the right of a person to indemnification or advances of
expenses with respect to any acts or omissions of the person occurring prior to the
effective date of a provision in the articles or the date of adoption of a provision
in the bylaws establishing the prohibition or limit on indemnification or advances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <B>Reimbursement to witnesses.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">This section does not require, or limit the ability of, a corporation to reimburse
expenses, including attorneys&#146; fees and disbursements, incurred by a person in
connection with an appearance as a witness in a proceeding at a time when the person
has not been made or threatened to be made a party to a proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <B>Determination of eligibility.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(a)&nbsp;All determinations whether indemnification of a person is required because the
criteria set forth in subdivision 2 have been satisfied and whether a person is
entitled to payment or reimbursement of expenses in advance of the final disposition
of a proceeding as provided in subdivision 3 shall be made:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(1)&nbsp;by the board by a majority of a quorum, if the directors who are at
the time parties to the proceeding are not counted for determining either a
majority or the presence of a quorum;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(2)&nbsp;if a quorum under clause (1)&nbsp;cannot be obtained, by a majority of a
committee of the board, consisting solely of two or more directors not at
the time parties to the proceeding duly designated to act in the matter by a
majority of the full board including directors who are parties;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(3)&nbsp;if a determination is not made under clause (1)&nbsp;or (2), by special legal
counsel, selected either by a majority of the board or a committee by vote
pursuant to clause (1)&nbsp;or (2)&nbsp;or, if the requisite quorum of the full board
cannot be obtained and the committee cannot be established, by a majority of
the full board including directors who are parties;
</DIV>

<P align="center" style="font-size: 10pt">II-4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(4)&nbsp;if a determination is not made under clauses (1)&nbsp;to (3), by the
affirmative vote of the shareholders required by section 302A.437, but the
shares held by parties to the proceeding must not be counted in determining
the presence of a quorum and are not considered to be present and entitled
to vote on the determination; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(5)&nbsp;if an adverse determination is made under clauses (1)&nbsp;to (4)&nbsp;or under
paragraph (b), or if no determination is made under clauses (1)&nbsp;to (4)&nbsp;or
under paragraph (b)&nbsp;within 60&nbsp;days after (i)&nbsp;the later to occur of the
termination of a proceeding or a written request for indemnification to the
corporation or (ii)&nbsp;a written request for an advance of expenses, as the
case may be, by a court in this state, which may be the same court in which
the proceeding involving the person&#146;s liability took place, upon application
of the person and any notice the court requires. The person seeking
indemnification or payment or reimbursement of expenses pursuant to this
clause has the burden of establishing that the person is entitled to
indemnification or payment or reimbursement of expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(b)&nbsp;With respect to a person who is not, and was not at the time of the acts or
omissions complained of in the proceedings, a director, officer, or person
possessing, directly or indirectly, the power to direct or cause the direction of
the management or policies of the corporation, the determination whether
indemnification of this person is required because the criteria set forth in
subdivision 2 have been satisfied and whether this person is entitled to payment or
reimbursement of expenses in advance of the final disposition of a proceeding as
provided in subdivision 3 may be made by an annually appointed committee of the
board, having at least one member who is a director. The committee shall report at
least annually to the board concerning its actions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <B>Insurance.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A corporation may purchase and maintain insurance on behalf of a person in that
person&#146;s official capacity against any liability asserted against and incurred by
the person in or arising from that capacity, whether or not the corporation would
have been required to indemnify the person against the liability under the
provisions of this section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <B>Disclosure.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A corporation that indemnifies or advances expenses to a person in accordance with
this section in connection with a proceeding by or on behalf of the corporation
shall report to the shareholders in writing the amount of the indemnification or
advance and to whom and on whose behalf it was paid not later than the next meeting
of shareholders.
</DIV>

<P align="center" style="font-size: 10pt">II-5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <B>Indemnification of other persons.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Nothing in this section shall be construed to limit the power of the corporation to
indemnify persons other than a director, officer, employee, or member of a committee
of the board of the corporation by contract or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Bylaws provide as follows with respect to indemnification of directors and
officers:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;ARTICLE VII INDEMNIFICATION
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors, officers, committee members, and other persons shall have the rights to
indemnification provided by Section&nbsp;302A.521 of the Minnesota Statutes and law amendatory thereof
and supplementary thereto.&#148;
</DIV>

<!-- link2 "Item&nbsp;7. Exemption From Registration Claimed" -->
<DIV align="left"><A NAME="006"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;7. <U> Exemption From Registration Claimed</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inapplicable.
</DIV>

<!-- link2 "Item&nbsp;8. Exhibits" -->
<DIV align="left"><A NAME="007"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;8. Exhibits
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
Exhibit Index.
</DIV>

<!-- link2 "Item&nbsp;9. Undertakings" -->
<DIV align="left"><A NAME="008"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Item&nbsp;9. <U>Undertakings</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant hereby undertakes:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;To include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;To reflect in the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and
any deviation from the low or high end of the estimated maximum offering range may be reflected in
the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum aggregate offering
price set forth in the &#147;Calculation of Registration Fee&#148; table in the effective registration
statement; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;To include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement;
</DIV>

<P align="center" style="font-size: 10pt">II-6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U>, <U>however</U>, that paragraphs (1)(i) and (l)(ii) do not apply if the
information required to be included in a post-effective amendment by those paragraphs is contained
in periodic reports filed by the registrant pursuant to Section&nbsp;13 or Section 15(d) of the Exchange
Act that are incorporated by reference in the registration statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;That, for the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant hereby undertakes that, for purposes of determining any liability
under the Securities Act, each filing of the registrant&#146;s annual report pursuant to Section 13(a)
or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit
plan&#146;s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by
reference in the registration statement shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities Act may be permitted
to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.
</DIV>


<P align="center" style="font-size: 10pt">II-7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURE" -->
<DIV align="left"><A NAME="009"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SIGNATURE</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant
certifies that it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by
the undersigned, thereunto duly authorized, in the City of Diamond Bar and State of California, on
the 30th day of March, 2006.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SUN NEW MEDIA INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Ricky Gee Hing Ang
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Ricky Gee Hing Ang</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">II-8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">POWER OF ATTORNEY
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes
and appoints Ricky Gee Hing Ang and Frank Zhao, and each of them, as his true and lawful
attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in
his name, place and stead, in any and all capacities, to sign any and all amendments (including
post-effective amendments) to this Registration Statement on Form S-8, and to file the same, with
all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in
connection therewith, as fully to all intents and purposes as he might or could do in person,
hereby ratifying and confirming all that said attorney-in facts and agents, or either of them, or
their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue
hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, as amended, this registration
statement has been signed by the following persons in the capacities
indicated on March&nbsp;30, 2006.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Ricky Gee Hing Ang
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Ricky Gee Hing Ang
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer (Principal Executive Officer)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Frank Zhao
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Frank Zhao
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer (Principal Financial and
Accounting Officer)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Bruno Wu
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Bruno Wu
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board, Director</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/
Kay Koplovitz
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Kay Koplovitz
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice-Chairman and Director</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Chauncey Shey
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Chauncey Shey
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice-Chairman and Director</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Herbert Kloiber
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Bing Yu
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Bing Yu
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ John Zangyang Li<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
John Zangyang Li</div></td>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</td>
</tr>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">II-9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="010"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT INDEX</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Incorporation as Amended (incorporated by reference from our Form
10-SB Registration Statement, filed June&nbsp;14, 1999)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Amendment to Articles of Incorporation, dated April&nbsp;11, 2001
(incorporated by reference from our Form&nbsp;10-KSB, filed April&nbsp;1, 2002)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Amendment to Articles of Incorporation, dated September&nbsp;15,
2005 (incorporated by reference from our Current Report on Form&nbsp;8-K filed on
September&nbsp;22, 2005)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bylaws (incorporated by reference from our Form&nbsp;10-SB Registration Statement,
filed June&nbsp;14, 1999)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of DLA Piper Rudnick Gray Cary US LLP</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Moores Rowland Mazars</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of DLA Piper Rudnick Gray Cary US LLP (included in Exhibit&nbsp;5)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (included in signature pages to this registration statement)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sun New Media Inc. 2006 Stock Plan</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>
[{"type": "S-8", "sequence": "1", "filename": "f19057sv8.htm", "description": "FORM S-8", "secsgml_size_bytes": 216098}]
{"company-data": {"conformed-name": "SUN NEW MEDIA INC.", "cik": "0001088005", "assigned-sic": "7389", "irs-number": "410985135", "state-of-incorporation": "MN", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-132840", "film-number": "06722475"}, "business-address": {"street1": "P.O. BOX 297", "street2": "1142 DIAMOND BAR BOULEVARD", "city": "DIAMOND BAR", "state": "CA", "zip": "91765", "phone": "6048719909"}, "mail-address": {"street1": "P.O. BOX 297", "street2": "1142 DIAMOND BAR BOULEVARD", "city": "DIAMOND BAR", "state": "CA", "zip": "91765"}, "former-company": [{"former-conformed-name": "SE GLOBAL EQUITIES CORP", "date-changed": "20010614"}, {"former-conformed-name": "FUTURE TECHNOLOGIES INC", "date-changed": "20010321"}]}
sv8
Table of Contents
As
filed with the Securities and Exchange Commission on March 30, 2006
Registration No. 333-_______
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
SUN NEW MEDIA, INC.
(Exact name of registrant as specified in its charter)
Minnesota
7389
410985135
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
P.O. Box 297
1142 South Diamond Bar Boulevard
Diamond Bar, California 91765
(604) 871-9999
(Address, including zip code, and telephone number, including
area code, of registrant's principal executive offices)
Sun New Media Inc. 2006 Stock Plan
(Full title of the plan)
Ricky Gee Hing Ang
Chief Executive Officer
Sun New Media, Inc.
P.O. Box 297
1142 South Diamond Bar Boulevard
Diamond Bar, California 91765
(604) 871-9999
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Please send copies of all communications to:
Frank Zhao
Chief Financial Officer
Sun New Media, Inc.
P.O. Box 297
1142 South Diamond Bar Boulevard
Diamond Bar, California 91765
(604) 871-9999
Peter M. Astiz, Esq.
Elizabeth M. O'Callahan, Esq.
DLA Piper Rudnick Gray Cary US LLP
2000 University Avenue
East Palo Alto, California 94303
(650) 833-2000
This registration statement shall hereafter become effective in accordance with Rule 462
promulgated under the Securities Act of 1933, as amended.
CALCULATION OF REGISTRATION FEE
Proposed
Title of
maximum
Proposed maximum
Securities to be
Amount to be
offering price
aggregate offering
Amount of
registered
1
registered
2
per share
3
price
4
registration fee
Common Stock
Par Value $.01
12,000,000
5
$
3.75
$
45,000,000
$
4,815.00
74,100
6
$
3.75
$
277,875
$
29.74
Total:
12,074,100
$
4,844.74
1
The securities to be registered include options to acquire Common Stock and other
equity incentive awards.
2
Pursuant to Rule 416(a), this registration statement also covers any additional
securities that may be offered or issued in connection with any stock split, stock dividend or
similar transaction.
3
This price is estimated in accordance with Rule 457(h)(1) under the Securities Act of
1933, as amended, solely for the purpose of calculating the registration fee, based on the average
of the high and low prices of the registrant's common stock on March 28, 2006, as reported on the
OTC Bulletin Board.
4
Calculated pursuant to Rule 457(a) of the rules and regulations under the Securities
Act of 1933.
5
Represents shares subject to issuance under the Sun New Media, Inc. 2006 Stock Plan.
6
These shares are offered for resale. They were originally issued as part of an
employee bonus program.
TABLE OF CONTENTS
PART I
PART II
Item 3. Incorporation of Documents by Reference
Item 4. Description of Securities
Item 5. Interests of Named Experts and Counsel
Item 6. Indemnification of Directors and Officers
Item 7. Exemption From Registration Claimed
Item 8. Exhibits
Item 9. Undertakings
SIGNATURE
EXHIBIT INDEX
EXHIBIT 5.1
EXHIBIT 23.1
EXHIBIT 99.1
Table of Contents
PART I
EXPLANATORY NOTE
Sun New Media, Inc. has prepared this registration statement in accordance with the requirements of
Form S-8 under the Securities Act of 1933 to register 12,000,000 shares of common stock that may be
issued under our 2006 Stock Plan.
In addition, we include under cover of this Form S-8 a reoffer prospectus prepared in accordance of
Part I of Form S-3 under the Securities Act. Pursuant to General Instruction C to Form S-8, this
reoffer prospectus and this registration statement are intended to register for reoffer and resale
up to 74,100 shares of common stock we have issued under our employee bonus program.
Table of Contents
REOFFER PROSPECTUS
74,100 SHARES OF
SUN NEW MEDIA, INC.
COMMON STOCK
This reoffer prospectus covers 74,100 shares of common stock, 0.01 par value, of Sun New
Media, Inc. This prospectus relates to the reoffer and resale of shares of common stock that have
been acquired pursuant to an employee bonus program of Sun New Media, Inc. by certain of our
officers, directors, employees and consultants. We will not receive any proceeds from these sales.
The selling stockholders described in this prospectus may reoffer and resell the shares from
time to time. The shares may be offered at prevailing market prices, at prices related to such
prevailing market prices, at negotiated prices, or at fixed prices.
The common stock is listed on the OTC Bulletin Board under the symbol "SNMD." On March 28,
2006, the last reported sale price of the common stock on the OTC Bulletin Board was $3.90 per
share.
Investing in the common stock involves risks. See "Risk Factors" beginning on page 3.
THE SECURITIES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK.
PROSPECTIVE PURCHASERS SHOULD CAREFULLY REVIEW THE MATTERS SET
FORTH IN "RISK FACTORS" BELOW.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
The date
of this prospectus is March 30, 2006.
Table of Contents
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the Securities and Exchange Commission ("SEC") a registration statement on
Form S-8 under the Securities Act with respect to the shares of common stock registered hereby.
This prospectus, which constitutes a part of the registration statement, does not contain all of
the information set forth in our registration statement and the exhibits filed therewith. You may
refer to the registration statement, and the accompanying exhibits and schedules for more
information about us and our common stock. Statements contained in this prospectus regarding the
contents of any agreement or any other document to which reference is made are not necessarily
complete, and, in each instance, reference is made to the copy of such agreement or other document
filed as an exhibit to the registration statement, each such statement being qualified in all
respects by such reference.
You may read and copy any document we file at the SEC's Public Reference Room at 450 Fifth
Street, N.W., Washington, D.C., 20549. Please call the SEC at 1-800-SEC-0330 for further
information regarding the operation of the Public Reference Room. Our SEC filings are also
available to the public from the SEC's website at
http://www.sec.gov
.
We are also subject to the information and periodic reporting requirements of the Exchange
Act. We file reports, proxy statements, and other information with the SEC to comply with the
Exchange Act. These reports, proxy statements, and other information can be inspected and copied
on the Internet at
http://www.sec.gov
; and at the Public Reference Room of the SEC, 450 Fifth
Street, N.W., Washington, D.C. 20549. You may call the SEC at 1-800-SEC-0330 to obtain information
regarding the operation of the Public Reference Room.
As used in this prospectus, the terms "we," "us," "our," "the Company" and "Sun New Media"
mean Sun New Media, Inc. and the term "common stock" means our common stock, par value $0.01 per
share.
1
Table of Contents
DOCUMENTS INCORPORATED BY REFERENCE
The SEC allows us to "incorporate by reference" information that we file with them which means
that we can disclose important information to you by referring you to these documents. The
information incorporated by reference is an important part of this prospectus and information we
later file with the SEC will automatically update and supersede this information. The following
documents filed by us with the SEC are incorporated in this prospectus by reference:
(a) The Company's latest annual report on Form 10-KSB filed pursuant to Sections 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), containing audited
financial statements for the Company's latest fiscal year ended September 30, 2005, as filed with
the Securities and Exchange Commission on January 13, 2006.
(b) All other reports filed pursuant to Section 13(a) or 15(d) of Securities Exchange Act of
1934, as since the end of the fiscal year covered by the registrant document referred to in (a)
above.
(c) The description of the Company's Common Stock contained in the Company's registration
statement filed under the Exchange Act, including any amendment or report filed for the purpose of
updating such description.
We also incorporate by reference all documents and reports filed by us pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 after the date of this prospectus
and prior to the date of termination of this offering. We will provide free of charge to each
person, including any beneficial owner, to whom this prospectus is delivered, upon written or oral
request, a copy of any or all of the documents incorporated by reference in this prospectus.
Please direct such requests to our corporate headquarters at 1142 South Diamond Bar Boulevard,
Diamond Bar, California 91765.
This prospectus, including the information we incorporate by reference, includes
forward-looking statements with in the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. You can identify our forward-looking
statements by the words "expects," "projects," "estimates," "believes." "anticipates," "intends,"
"plans," "budgets," "estimates" and similar expressions.
We have based these forward-looking statements relating to our operations on our current
exceptions, estimates and projections. We caution you that these statements are not guarantees of
future performance and involve risks, uncertainties, and assumptions that we cannot predict. In
addition, we have based many of these forward looking statements on assumptions about future events
that may prove to be inaccurate. Accordingly, our actual outcomes and results may differ
materially from what we have expressed or forecast in the forward looking statements.
When you consider these forward-looking statements, you should keep in mind the risk factors
and other cautionary statements in this prospectus. Our forward-looking statements speak only as
of the date made. Neither Sun New Media, Inc., nor any person acting on Sun
New Media, Inc.'s behalf, undertakes any obligation to update any forward-looking statements
included or incorporated by reference in this prospectus.
2
Table of Contents
ABOUT SUN NEW MEDIA, INC.
We were incorporated in Minnesota on June 20, 1972. In September 2005, we acquired 100% of the
issued and outstanding share capital of Sun New Media Group Limited ("SNMG") and changed our name
to Sun New Media, Inc. Our principal focus is on our China based interactive marketing and sales
services business. We are creating this business through the ongoing acquisition of various
entities and assets. We also continue to operate the legacy SE Global brokerage business.
Our executive offices are located at 1142 South Diamond Bar Boulevard, Diamond Bar, California
91765, and our telephone number is (604) 871-9999. We maintain our main internet website at
http://www.sunnewmedia.net. Information contained on our websites does not constitute part of this
prospectus.
RISK FACTORS
An investment in the securities offered by this prospectus involves a high degree of risk.
You should carefully consider the following factors and other information in this prospectus before
deciding to purchase shares of our common stock. If any of these risks occur, our business could
be harmed, the trading price of our stock could decline and you may lose all or part of your
investment.
Risks Related to Our Business
The development of our business is dependent upon the completion of a number of acquisitions
and other transactions that have not yet closed.
Our principal focus is on our China based interactive marketing and sales services business.
We are creating this business through the acquisition of various entities and assets. As of
February 21, 2006, we have entered into a number of agreements relating to such acquisitions, as
further described elsewhere in this prospectus. Our acquisition of FCD closed on January 27, 2006
and the acquisition of SNMH closed on February 15, 2006, but the other transactions have not yet
closed. We expect to close the remaining acquisitions during the first quarter of 2006. However, if
we do not close such acquisitions or such closings are delayed, we may not be able to develop our
business as we have planned or at all.
Our short operating history and rapidly evolving business makes it difficult for us to
accurately forecast revenues and expenses.
We commenced our interactive marketing and sales services operations in June 2005 and have a
very limited operating history for this division. Accordingly, you should consider our future
prospects in light of the risks and uncertainties experienced by early stage companies in evolving
industries in China. Since inception, we have announced a number of proposed transactions to
develop this business and which will have a material impact on our operations for 2006 and beyond.
As a result, it is difficult for us to predict future revenues and operating expenses. We based our
expense levels, in part, on our expectations of future revenues from these transactions. If our
interactive marketing and sales services business develops slower than we expect, our losses may be
higher than anticipated and may cause our stock price to decline.
3
Table of Contents
Some of the other risks and uncertainties of our business relate to our ability to:
o
offer new and innovative products and services to attract and retain a larger
consumer base;
o
attract customers;
o
increase awareness of our brand and continue to develop consumer and customer
loyalty;
o
respond to competitive market conditions;
o
respond to changes in our regulatory environment;
o
manage risks associated with intellectual property rights;
o
maintain effective control of our costs and expenses;
o
raise sufficient capital to sustain and expand our business;
o
attract, retain and motivate qualified personnel; and
o
upgrade our technology to support increased traffic and expanded services.
If we are unsuccessful in addressing any of these risks and uncertainties, our business may be
materially and adversely affected.
If the Internet and, in particular, interactive marketing are not broadly adopted in China,
our ability to increase revenue and sustain profitability could be materially and adversely
affected.
The use of the Internet as a marketing channel is at an early stage in China. Internet and
broadband penetration rates in China are both relatively low compared to those in most developed
countries. Many of our current and potential customers have limited experience with the Internet as
a marketing channel, and have not historically devoted a significant portion of their marketing
budgets to online marketing and promotion. As a result, they may not consider the Internet
effective in promoting their products and services as compared to traditional print and broadcast
media. Our ability to generate significant revenues may be negatively impacted by a number of
factors, many of which are beyond our control, including:
o
difficulties associated with developing a larger consumer base with demographic
characteristics attractive to customers;
o
increased competition and potential downward pressure on online marketing
prices;
o
ineffectiveness of our online marketing delivery, tracking and reporting
systems; and
o
lack of increase in Internet usage in China.
4
Table of Contents
We face significant competition and may suffer from a loss of users and customers as a result.
We expect to face significant competition in our interactive marketing and sales services
business, particularly from other companies that seek to provide online marketing services. Our
main competitors include Sohu.com, Tom Online, and Beijing Media in China and Next Media Group in
Hong Kong. Many of these competitors have significantly greater financial resources than we do.
They also have longer operating histories and more experience in attracting and retaining users and
managing customers than we do. They may use their experience and resources to compete with us in a
variety of ways, including by competing more heavily for users, customers, distributors and
networks of third-party websites, investing more heavily in research and development and making
acquisitions.
We also face competition from traditional advertising media, such as newspapers, magazines,
yellow pages, billboards and other forms of outdoor media, television and radio. Most large
companies in China allocate, and will likely continue to allocate, the bulk of their marketing
budgets to traditional advertising media and only a small portion of their budgets to online
marketing. If these companies do not devote a larger portion of their marketing budgets to online
marketing services provided by us, or if our existing customers reduce the amount they spend on
online marketing, our results of operations and future growth prospects could be adversely
affected.
Our business depends on a strong brand, and if we are not able to maintain and enhance our
brand, our business and operating results may be harmed.
We believe that recognition of our brand will contribute significantly to the success of our
business. We also believe that maintaining and enhancing our brand is critical to expanding our
base of consumers and customers. As our market becomes increasingly competitive, maintaining and
enhancing our brand will depend largely on our ability to remain as an Internet marketing leader in
China, which may be increasingly difficult and expensive.
If we fail to continue to innovate and provide relevant services, we may not be able to
generate sufficient user traffic levels to remain competitive.
We must continue to invest significant resources in research and development to enhance
services and introduce additional high quality services to attract and retain consumers. If we are
unable to anticipate consumer preferences or industry changes, or if we are unable to modify our
services on a timely basis, we may lose consumers and customers. Our operating results would also
suffer if our innovations do not respond to the needs of our consumers and customers, are not
appropriately timed with market opportunities or are not effectively brought to market.
5
Table of Contents
If we fail to keep up with rapid technological changes, our future success may be adversely
affected.
The online marketing industry is subject to rapid technological changes. Our future success
will depend on our ability to respond to rapidly changing technologies, adapt our services to
evolving industry standards and improve the performance and reliability of our services. Our
failure to adapt to such changes could harm our business. New marketing media could also adversely
affect us. For example, the number of people accessing the Internet through devices other than
personal computers, including mobile telephones and hand-held devices, has increased in recent
years. If we are slow to develop products and technologies that are more compatible with non-PC
communications devices, we may not be successful in capturing a significant share of this
increasingly important market for media and other services. In addition, the widespread adoption of
new Internet, networking or telecommunications technologies or other technological changes could
require substantial expenditures to modify or adapt our products, services or infrastructure. If we
fail to keep up with rapid technological changes to remain competitive in our rapidly evolving
industry, our future success may be adversely affected.
We may face intellectual property infringement claims and other related claims, that could be
time-consuming and costly to defend and may result in our inability to continue providing certain
of our existing services.
Internet, technology and media companies are frequently involved in litigation based on
allegations of infringement of intellectual property rights, unfair competition, and invasion of
privacy, defamation and other violations of third-party rights. The validity, enforceability and
scope of protection of intellectual property in Internet-related industries, particularly in China,
are uncertain and still evolving. In addition, many parties are actively developing and seeking
protection for Internet-related technologies, including seeking patent protection. There may be
patents issued or pending that are held by others that cover significant aspects of our
technologies, products, business methods or services. As we face increasing competition and as
litigation becomes more common in China for resolving commercial disputes, we face a higher risk of
being the subject of intellectual property infringement claims.
Intellectual property litigation is expensive and time consuming and could divert resources
and management attention from the operations of our businesses. If there is a successful claim of
infringement, we may be required to pay substantial fines and damages or enter into royalty or
license agreements that may not be available on commercially acceptable terms, if at all. Our
failure to obtain a license of the rights on a timely basis could harm our business. Any
intellectual property litigation could have a material adverse effect on our business, financial
condition or results of operations.
We may not be able to prevent others from unauthorized use of our intellectual property, which
could harm our business and competitive position.
We rely on a combination of copyright, trademark and trade secret laws, as well as
nondisclosure agreements and other methods to protect our intellectual property rights. The
protection of intellectual property rights in China may not be as effective as those in the United
States or other countries. The steps we have taken may be inadequate to prevent the
misappropriation of our technology. Reverse engineering, unauthorized copying or other
misappropriation of our technologies could enable third parties to benefit from our technologies
without paying us. From time to time, we may have to enforce our intellectual property rights
through litigation. Such litigation may result in substantial costs and diversion of resources
and management attention.
6
Table of Contents
If we fail to attract customers for our online marketing services, our business and growth
prospects could be seriously harmed.
Our online marketing customers will not maintain a business relationship with us if their
investment does not generate sales leads and ultimately consumers. Failure to retain our existing
online marketing customers or attract new customers for our online marketing services could
seriously harm our business and growth prospects.
Because we primarily rely on distributors in providing our e-marketing services, our failure
to retain key distributors or attract additional distributors could materially and adversely affect
our business.
Online marketing is at an early stage of development in China and is not as widely accepted by
or available to businesses in China as in the United States. As a result, we rely heavily on a
nationwide distribution network of third-party distributors for our sales to, and collection of
payment from, our corporate and consumer customers. If our distributors do not provide quality
services to our consumer customers or otherwise breach their contracts with our consumer customers,
we may lose customers and our results of operations may be materially and adversely affected. We do
not have long-term agreements with any of our distributors, including our key distributors, and
cannot assure you that we will continue to maintain favorable relationships with them. Our
distribution arrangements are non-exclusive. Furthermore, some of our distributors may have
contracts with our competitors or potential competitors and may not renew their distribution
agreements with us. In addition, as new methods for accessing the Internet, including the use of
wireless devices, become available, we may need to expand our distribution network to cater to the
new technologies. If we fail to retain our key distributors or attract additional distributors on
terms that are commercially reasonable, our business and results of operations could be materially
and adversely affected.
Our strategy of acquiring complementary businesses, assets and technologies may fail.
As part of our business strategy, we have pursued, and intend to continue to pursue, selective
strategic acquisitions of businesses, assets and technologies that complement our existing
business. For example, the FCD and Shengji acquisitions involve uncertainties and risks, including:
o
potential ongoing financial obligations and unforeseen or hidden liabilities;
o
failure to achieve the intended objectives, benefits or revenue-enhancing
opportunities;
o
costs and difficulties of integrating acquired businesses and managing a larger
business; and
o
diversion of resources and management attention.
7
Table of Contents
Our failure to address these risks successfully may have a material adverse effect on our
financial condition and results of operations. Any such acquisition may require a significant
amount of capital investment, which would decrease the amount of cash available for working capital
or capital expenditures. In addition, if we use our equity securities to pay for acquisitions, we
may dilute the value of our common stock. If we borrow funds to finance acquisitions, such debt
instruments may contain restrictive covenants that could, among other things, restrict us from
distributing dividends. Such acquisitions may also generate significant amortization expenses
related to intangible assets.
We may not be able to manage our expanding operations effectively.
We commenced our interactive marketing and sales services operations in 2005 and are expanding
our operations rapidly. We anticipate significant continued expansion of our business as we address
growth in our consumer and customer base and market opportunities. To manage the potential growth
of our operations and personnel, we will be required to improve operational and financial systems,
procedures and controls, and expand, train and manage our growing employee base. Furthermore, our
management will be required to maintain and expand our relationships with other websites, Internet
companies and other third parties. We cannot assure you that our current and planned personnel,
systems, procedures and controls will be adequate to support our future operations.
Our operating results may fluctuate, which makes our results difficult to predict and could
cause our results to fall short of expectations.
Our operating results may fluctuate as a result of a number of factors, many of which are
outside of our control. For these reasons, comparing our operating results on a period-to-period
basis may not be meaningful, and you should not rely on our past results as an indication of our
future performance. Our quarterly and annual revenues and costs and expenses as a percentage of our
revenues may be significantly different from our historical or projected rates. Our operating
results in future quarters may fall below expectations. Any of these events could cause the price
of our Common Stock to fall. Any of the risk factors listed in this "Risk Factors" section, and in
particular, the following risk factors, could cause our operating results to fluctuate from quarter
to quarter:
o
general economic conditions in China and economic conditions specific to the
Internet, Internet search and online marketing;
o
our ability to attract additional customers;
o
the announcement or introduction of new or enhanced products and services by us
or our competitors;
o
the amount and timing of operating costs and capital expenditures related to
the maintenance and expansion of our businesses, operations and infrastructure;
o
the results of our acquisitions of, or investments in, other businesses or
assets;
o
PRC regulations or actions pertaining to activities on the Internet, including
gambling, online games and other forms of entertainment; and
o
geopolitical events or natural disasters such as war, threat of war, Severe
Acute Respiratory Syndrome, or SARS, or other epidemics.
8
Table of Contents
Because of our limited operating history and our rapidly growing business, our historical
operating results may not be useful to you in predicting our future operating results. Advertising
spending in China has historically been cyclical, reflecting overall economic conditions as well as
budgeting and buying patterns. Our rapid growth has lessened the impact of the cyclicality and
seasonality of our business. As we continue to grow, we expect that the cyclicality and seasonality
in our business may cause our operating results to fluctuate.
The successful operation of our business depends upon the performance and reliability of the
Internet infrastructure and fixed telecommunications networks in China.
Our business depends on the performance and reliability of the Internet infrastructure in
China. Almost all access to the Internet is maintained through state-owned telecommunication
operators under the administrative control and regulatory supervision of the Ministry of
Information Industry of China. In addition, the national networks in China are connected to the
Internet through international gateways controlled by the PRC government. These international
gateways are the only channels through which a domestic user can connect to the Internet. We cannot
assure you that a more sophisticated Internet infrastructure will be developed in China. We may not
have access to alternative networks in the event of disruptions, failures or other problems with
China's Internet infrastructure. In addition, the Internet infrastructure in China may not support
the demands associated with continued growth in Internet usage.
Our success depends on the continuing efforts of our senior management team and other key
personnel and our business may be harmed if we lose their services.
Our future success depends heavily upon the continuing services of the members of our senior
management team, in particular our chairman Dr. Bruno Wu. If one or more of our senior executives
or other key personnel are unable or unwilling to continue in their present positions, we may not
be able to replace them easily or at all, and our business may be disrupted and our financial
condition and results of operations may be materially and adversely affected. Competition for
senior management and key personnel is intense, the pool of qualified candidates is very limited,
and we may not be able to retain the services of our senior executives or key personnel, or attract
and retain high-quality senior executives or key personnel in the future.
In addition, if any member of our senior management team or any of our other key personnel
joins a competitor or forms a competing company, we may lose customers, distributors, know-how and
key professionals and staff members. Each of our executive officers and key employees has entered
into an employment agreement with us, which contains confidentiality and non-competition
provisions. If any disputes arise between any of our senior executives or key personnel and us, we
cannot assure you the extent to which any of these agreements may be enforced.
9
Table of Contents
We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel
or hire qualified personnel, we may not be able to grow effectively.
Our performance and future success depends on the talents and efforts of highly skilled
individuals. We will need to continue to identify, hire, develop, motivate and retain highly
skilled personnel for all areas of our organization. Competition in our industry for qualified
employees is intense. Our continued ability to compete effectively depends on our ability to
attract new employees and to retain and motivate our existing employees.
As competition in our industry intensifies, it may be more difficult for us to hire, motivate
and retain highly skilled personnel. If we do not succeed in attracting additional highly skilled
personnel or retaining or motivating our existing personnel, we may be unable to grow effectively.
Interruption or failure of our information technology and communications systems could impair
our ability to effectively provide our products and services, which could damage our reputation and
harm our operating results.
Our ability to provide our services depends on the continuing operation of our information
technology and communications systems. Any damage to or failure of our systems could interrupt our
service. Service interruptions could reduce our revenues and profits, and damage our brand if our
system is perceived to be unreliable. Our systems are vulnerable to damage or interruption as a
result of terrorist attacks, war, earthquakes, floods, fires, power loss, telecommunications
failures, computer viruses, interruptions in access to our websites through the use of "denial of
service" or similar attacks, hacking or other attempts to harm our systems, and similar events. Our
servers, which are hosted at third-party Internet data centers, are also vulnerable to break-ins,
sabotage and vandalism. Some of our systems are not fully redundant, and our disaster recovery
planning does not account for all possible scenarios. The occurrence of a natural disaster or a
closure of an Internet data center by a third-party provider without adequate notice could result
in lengthy service interruptions.
Our business could be adversely affected if our software contains bugs.
Our online systems, including our websites, and other software applications and products,
could contain undetected errors or "bugs" that could adversely affect their performance. We
regularly update and enhance our websites and our other online systems and introduce new versions
of our software products and applications. The occurrence of errors in any of these may cause us to
lose market share, damage our reputation and brand name, and materially and adversely affect our
business.
Concerns about the security of electronic commerce transactions and confidentiality of
information on the Internet may reduce use of our network and impede our growth.
A significant barrier to electronic commerce and communications over the Internet in general
has been public concern over security and privacy, including the transmission of confidential
information. If these concerns are not adequately addressed, they may inhibit the growth of the
Internet and other online services generally, especially as a means of conducting commercial
transactions. If a well-publicized Internet breach of security were to occur, general Internet
usage could decline, which could reduce traffic to our destination websites and impede our growth.
10
Table of Contents
We have limited business insurance coverage.
The insurance industry in China is still at an early stage of development. Insurance companies
in China offer limited business insurance products. We do not have any business liability or
disruption insurance coverage for our operations in China. Any business disruption, litigation or
natural disaster may result in our incurring substantial costs and the diversion of our resources.
Risks Related to Our Corporate Structure
PRC laws and regulations governing our businesses and the validity of certain of our
contractual arrangements are uncertain. If we are found to be in violation, we could be subject to
sanctions. In addition, changes in such PRC laws and regulations may materially and adversely
affect our business.
There are substantial uncertainties regarding the interpretation and application of PRC laws
and regulations, including, but not limited to, the laws and regulations governing our business, or
the enforcement and performance of our contractual arrangements with certain of our affiliated
Chinese entities. We are considered foreign persons or foreign invested enterprises under PRC law.
As a result, we are subject to PRC law limitations on foreign ownership of Internet and advertising
companies. These laws and regulations are relatively new and may be subject to change, and their
official interpretation and enforcement may involve substantial uncertainty. The effectiveness of
newly enacted laws, regulations or amendments may be delayed, resulting in detrimental reliance by
foreign investors. New laws and regulations that affect existing and proposed future businesses may
also be applied retroactively.
The PRC government has broad discretion in dealing with violations of laws and regulations,
including levying fines, revoking business and other licenses and requiring actions necessary for
compliance. In particular, licenses and permits issued or granted to us by relevant governmental
bodies may be revoked at a later time by higher regulatory bodies. We cannot predict the effect of
the interpretation of existing or new PRC laws or regulations on our businesses. We cannot assure
you that our current ownership and operating structure would not be found in violation of any
current or future PRC laws or regulations. As a result, we may be subject to sanctions, including
fines, and could be required to restructure our operations or cease to provide certain services.
Any of these or similar actions could significantly disrupt our business operations or restrict us
from conducting a substantial portion of our business operations, which could materially and
adversely affect our business, financial condition and results of operations.
Our corporate actions are substantially controlled by our principal shareholders and
affiliated entities.
As of February 9, 2006, our principal shareholders and their affiliated entities own
approximately 68% of our outstanding common stock (which will be reduced to approximately 52% after
completion of announced but not yet closed transactions). These shareholders, acting individually
or as a group, could exert substantial influence over matters such as electing directors and
approving mergers or other business combination transactions. This concentration of ownership may
also discourage, delay or prevent a change in control of our company, which
could deprive our shareholders of an opportunity to receive a premium for their shares as part
of a sale of our company and might reduce the price of our Common stock. These actions may be taken
even if they are opposed by our other shareholders.
11
Table of Contents
Risks Related to Doing Business in China
Adverse changes in economic and political policies of the PRC government could have a material
adverse effect on the overall economic growth of China, which could adversely affect our business.
As our interactive marketing and sales services business expands, we expect an increasing
portion of our business operations to be conducted in China. Accordingly, our results of
operations, financial condition and prospects are subject to a significant degree to economic,
political and legal developments in China. China's economy differs from the economies of most
developed countries in many respects, including the amount of government involvement, level of
development, growth rate, control of foreign exchange and allocation of resources. While China's
economy has experienced significant growth in the past 20 years, growth has been uneven across
different regions and among various economic sectors of China. The PRC government has implemented
various measures to encourage economic development and guide the allocation of resources. Some of
these measures benefit the overall PRC economy, but may also have a negative effect on us. For
example, our financial condition and results of operations may be adversely affected by
governmental control over capital investments or changes in tax regulations that are applicable to
us. Since early 2004, the PRC government has implemented certain measures to control the pace of
economic growth. Such measures may cause a decrease in the level of economic activity in China,
which in turn could adversely affect our results of operations and financial condition.
Our subsidiaries and affiliates are subject to restrictions on paying dividends and making
other payments to us.
As our interactive marketing and sales services business develops, we expect to increasingly
rely on dividends payments from our subsidiaries and affiliated entities in China. However, PRC
regulations currently permit payment of dividends only out of accumulated profits, as determined in
accordance with PRC accounting standards and regulations. Our subsidiaries and affiliated entities
in China are also required to set aside a portion of their after-tax profits according to PRC
accounting standards and regulations for certain reserve funds. The PRC government also imposes
controls on the conversion of RMB into foreign currencies and the remittance of currencies out of
China. We may experience difficulties in completing the administrative procedures necessary to
obtain and remit foreign currency. Furthermore, if our subsidiaries or affiliated entities in China
incur debt on their own in the future, the instruments governing the debt may restrict their
ability to pay dividends or make other payments. If either we or our subsidiaries is unable to
receive all of the revenues from our operations through these contractual or dividend arrangements,
we may be unable to declare dividends on our common stock.
12
Table of Contents
Uncertainties with respect to the PRC legal system could adversely affect us.
We conduct a substantial and increasing portion our business through subsidiaries and
affiliated entities based in China. Our operations in China are governed by PRC laws and
regulations. Our subsidiaries are generally subject to laws and regulations applicable to foreign
investments in China and, in particular, laws applicable to wholly foreign-owned enterprises. The
PRC legal system is based on written statutes. Prior court decisions may be cited for reference but
have limited precedent value.
Since 1979, PRC legislation and regulations have significantly enhanced the protections
afforded to various forms of foreign investments in China. However, China has not developed a fully
integrated legal system and recently-enacted laws and regulations may not sufficiently cover all
aspects of economic activities in China. In particular, because these laws and regulations are
relatively new, and because of the limited published decisions and their non-binding nature, the
interpretation and enforcement of these laws and regulations involve uncertainties. In addition,
the PRC legal system is based in part on governmental policies and internal rules (some of which
are not published on a timely basis or at all) that may have a retroactive effect. As a result, we
may not be aware of our violation of these policies and rules until after the occurrence of the
violation. In addition, any litigation in China may be protracted and result in substantial costs
and diversion of resources and management attention.
You may experience difficulties in effecting service of legal process, enforcing foreign
judgments or bringing original actions in China based on United States or other foreign laws
against us or our management.
We conduct a substantial and increasing portion of our operations in China and a substantial
portion of our assets will be located in China. In addition, all of our senior executive officers
reside within China. As a result, it may not be possible to effect service of process within the
United States or elsewhere outside China on our senior executive officers, including matters
arising under U.S. federal securities laws or applicable state securities laws. Moreover, our PRC
counsel has advised us that PRC does not have treaties with the United States or many other
countries providing for the reciprocal recognition and enforcement of judgment of courts.
Governmental control of currency conversion may affect the value of your investment.
The PRC government imposes controls on the conversion of RMB to foreign currencies and, in
certain cases, the remittance of currencies out of China. As our interactive marketing and sales
services business expands, we expect to derive an increasing percentage of our revenues in RMB.
Under our current structure, we expect our income will be primarily derived from dividend payments
from our PRC subsidiaries. Shortages in the availability of foreign currency may restrict the
ability of our PRC subsidiaries and our affiliated entities to remit sufficient foreign currency to
pay dividends or other payments to us, or otherwise satisfy their foreign currency denominated
obligations. Under existing PRC foreign exchange regulations, payments of current account items,
including profit distributions, interest payments and expenditures from trade-related transactions,
can be made in foreign currencies without prior approval from the PRC State Administration of
Foreign Exchange by complying with certain procedural requirements. However, approval from
appropriate government authorities is required when RMB is to be converted into foreign currency
and remitted out of China to pay capital expenses such as the repayment of bank loans denominated
in foreign currencies. The PRC
government may also at its discretion restrict access in the future to foreign currencies for
current account transactions. If the foreign exchange control system prevents us from obtaining
sufficient foreign currency to satisfy our demands, we may not be able to pay dividends in foreign
currencies to our shareholders, including holders of our Common stock.
13
Table of Contents
Fluctuation in the value of RMB may have a material adverse effect on your investment.
The value of RMB against the U.S. dollar and other currencies may fluctuate and is affected
by, among other things, changes in political and economic conditions. On July 21, 2005, the PRC
government changed its decade-old policy of pegging the value of the RMB to the U.S. dollar. Under
the new policy, the RMB is permitted to fluctuate within a narrow and managed band against a basket
of foreign currencies. This change in policy has resulted in an approximately 2.0% appreciation of
the RMB against the U.S. dollar. While the international reaction to the RMB revaluation has
generally been positive, there remains significant international pressure on the PRC government to
adopt a more flexible currency policy, which could result in a further and significant appreciation
of the RMB against the U.S. dollar. As our interactive marketing and sales services business
continues to grow, a greater portion of our revenues and costs will be denominated in RMB, while a
significant portion of our financial assets may be denominated in U.S. dollars. We expect to rely
significantly on dividends and other fees paid to us by our subsidiaries and affiliated entities in
China. Any significant revaluation of RMB may materially and adversely affect our cash flows,
revenues, earnings and financial position, and the value of, and any dividends payable on, our
Common stock in U.S. dollars. For example, an appreciation of RMB against the U.S. dollar would
make any new RMB denominated investments or expenditures more costly to us, to the extent that we
need to convert U.S. dollars into RMB for such purposes.
We face risks related to health epidemics and other outbreaks.
Our business could be adversely affected by the effects of SARS or another epidemic or
outbreak. China reported a number of cases of SARS in April 2004. Any prolonged recurrence of SARS
or other adverse public health developments in China may have a material adverse effect on our
business operations. For instance, health or other governmental regulations adopted in response may
require temporary closure of Internet cafes, which is one of the avenues where users could access
our websites, or of our offices. Such closures would severely disrupt our business operations and
adversely affect our results of operations. We have not adopted any written preventive measures or
contingency plans to combat any future outbreak of SARS or any other epidemic.
Risks Relating to our Brokerage Business
Our brokerage business could be harmed by market fluctuations and other securities industry
risks.
Substantially all of our current revenues are derived from securities brokerage and clearing
and execution services. Like other brokerage businesses, we are directly affected by economic and
political conditions, broad trends in business and finance and changes in volume and price levels
of securities transactions. Trading in the U.S. securities markets can fluctuate
14
Table of Contents
considerably, which can result in reduced trading volume, lower transaction revenues and
adversely affect our profitability. The terrorist attacks in the United States on September 11,
2001, for example, resulted in lost commission revenues due to the closing of U.S. financial
markets for four days. When the markets reopened, there was a period of substantial market
volatility. Severe market fluctuations in the future could have a material adverse effect on our
business, financial condition and operating results.
Substantial competition could reduce our market share and harm our financial performance.
The market for brokerage services, particularly electronic brokerage services, is new, rapidly
evolving and intensely competitive. We expect the competitive environment to continue in the
future. We face direct competition from numerous brokerage firms. We also encounter competition
from financial institutions, mutual fund sponsors and other organizations. Most of our competitors
have greater financial, technical, marketing and other resources than we do. Most of our
competitors offer a wider range of services and financial products than we do and have greater name
recognition and a more extensive client base than we do. We may not be able to compete effectively
with existing or potential competitors, which could have a material adverse effect on our business,
financial condition and results of operations.
Systems failures and delays could harm our business.
We receive and process trade orders through a variety of electronic mediums, including the
Internet, wireless web, personal digital assistants and other systems. These methods of trading are
heavily dependent on the integrity of the electronic systems supporting them. Our systems and
operations are vulnerable to damage or interruption from human error, natural disasters, power
loss, computer viruses, intentional acts of vandalism and similar events. Extraordinary trading
volumes could cause our computer systems to operate at an unacceptably low speed or even fail.
There can be no assurance that our systems will be sufficient to handle such extraordinary trading
volumes. In the past, we experienced periods of extremely high trading volume that caused
individual system components or processes to fail, resulting in the unavailability of our Web site
for online trading temporarily and delays in our telephone systems. In some other occasions, high
trading volume caused significant delays in executing trading orders, resulting in some clients'
orders being executed at prices they did not anticipate. From time to time, we have reimbursed our
clients for losses incurred in connection with systems failures and delays. Systems failures and
delays may occur again in the future and could cause, among other things, unanticipated disruptions
in service to our clients, slower system response times resulting in transactions not being
processed as quickly as desired, decreased levels of client service and client satisfaction, and
reputation damage. If any of these events were to occur, we could suffer a loss of clients or a
reduction in the growth of our client base, increased operating expenses, financial losses,
additional litigation or other client claims, and regulatory sanctions or additional regulatory
burdens.
Capacity constraints of our systems could harm our business.
As our business increases, we may need to expand and upgrade our transaction processing
systems, network infrastructure and other aspects of our technology. We may need to continue to
make significant investments in additional hardware and software to accommodate
15
Table of Contents
growth. We may not be able to project accurately the rate, timing or cost of any increases in
our business, or to expand and upgrade our systems and infrastructure to accommodate any increases
in a timely manner. Failure to make necessary expansions and upgrades to our systems and
infrastructure could lead to failures and delays, which could have a material adverse effect on our
business, financial condition and results of operations.
Regulatory and legal uncertainties could harm our business.
The securities industry in the United States is subject to extensive regulation under both
federal and state laws. Broker-dealers are subject to regulations covering all aspects of the
securities business. Our operations and profitability may be directly affected by, among other
things, additional legislation, changes in rules promulgated by the SEC, the NASD, the Federal
Reserve, the various stock exchanges and other self-regulatory organizations, or changes in the
interpretation or enforcement of existing laws and rules.
The SEC, the NASD and other self-regulatory organizations and state securities commissions can
censure, fine, issue cease-and-desist orders to, suspend or expel a broker-dealer or any of its
officers or employees. Our ability to comply with applicable laws and rules is largely dependent on
our internal system to ensure compliance, as well as our ability to attract and retain qualified
compliance personnel. We could be subject to disciplinary or other actions in the future due to
claimed noncompliance, which could have a material adverse effect on our business, financial
condition and results of operations.
Recently, various regulatory and enforcement agencies have been reviewing systems capacity,
customer access, best execution practices, other service issues and advertising claims as they
relate to the online brokerage industry. These reviews could result in enforcement actions or new
regulations, either of which could have a material adverse effect on our business, financial
condition and results of operations.
In addition, we use the Internet as a major distribution channel to provide services to our
clients. A number of regulatory agencies have recently adopted regulations regarding client privacy
and the use of client information by service providers. These regulations may have an adverse
impact on our business in the future, including on our ability to provide client information to
certain third parties. It is possible that additional laws and regulations relating to the Internet
may be adopted in the future, including regulations regarding the taxation, pricing, content and
quality of products and services delivered over the Internet. Any such laws or regulations might
increase our cost of using, or limit our ability to use, the Internet as a distribution channel. As
a result, the adoption of such laws and regulations could have a material adverse effect on our
business, financial condition and results of operations.
The success of our business will depend on continued development and maintenance of the
Internet infrastructure.
The Internet has experienced, and is expected to continue to experience, significant growth in
the number of users and amount of traffic. Our success will depend on the development and
maintenance of the Internet's infrastructure to cope with this increased traffic. The Internet has
experienced a variety of outages and other delays as a result of damage to portions of its
infrastructure and could face similar outages and delays in the future. Outages and
16
Table of Contents
delays are likely to affect the level of Internet usage and the processing of transactions on
our web site. In addition, the Internet could lose its viability due to delays in the development
or adoption of new standards to handle increased levels of activity. The failure to develop and
maintain the Internet infrastructure could have a material adverse effect on our business,
financial condition and results of operations.
We will need to introduce new products and services to remain competitive.
Our future success depends in part on our ability to develop and enhance our products and
services. There are significant technical and financial risks in the development of new or enhanced
products and services, including the risk that we will be unable to effectively use new
technologies, adapt our services to emerging industry standards, or develop, introduce and market
new or enhanced products and services. If we are unable to develop and introduce enhanced or new
products and services quickly enough to respond to market or client requirements, or if our
products and services fail to achieve market acceptance, our business, financial condition and
results of operations could be materially adversely affected.
We may not be able to keep up with rapid technological and other changes.
The markets in which we compete are characterized by rapidly changing technology, evolving
industry standards, frequent new product and service announcements, introductions and enhancements
and changing consumer demands. If we are not able to keep up with these rapid changes, we may be at
a competitive disadvantage. In addition, the widespread adoption of new Internet, networking or
telecommunications technologies or other technological changes could require us to incur
substantial expenditures to modify or adapt our services or infrastructure.
Our networks may be vulnerable to security risks.
The secure transmission of confidential information over public networks is a critical element
of our operations. Our networks may be vulnerable to criminal access, computer viruses and other
security problems. Persons who circumvent security measures could wrongfully use our confidential
information or our clients' confidential information or cause interruptions or malfunctions in our
operations. We may be required to expend significant additional resources to protect against the
threat of security breaches or to alleviate problems caused by any breaches. We may not be able to
implement security measures that will protect against all security risks.
Failure to comply with net capital requirements could adversely affect our business.
The SEC, the NASD and various other regulatory agencies have stringent rules with respect to
the maintenance of specific levels of net capital by securities broker-dealers. Net capital is a
SEC-defined measure of a broker-dealer's readily available liquid assets, reduced by its total
liabilities other than approved subordinated debt. All of our broker-dealer subsidiaries are
required to comply with the net capital requirements. If we fail to maintain the required net
capital, the SEC could suspend or revoke our registration, or the NASD could expel us from
membership, which could ultimately lead to our liquidation. If the net capital rules are changed or
expanded, or if there is an unusually large charge against net capital, operations that require the
intensive use of capital would be limited. A large operating loss or charge against net capital
could adversely affect our ability to expand or even maintain our present levels of business,
which could have a material adverse effect on our business, financial condition and results of
operations.
17
Table of Contents
We are exposed to credit risk.
We make margin loans to clients collateralized by client securities and periodically borrow
securities to cover trades. A significant portion of our net revenues is derived from interest on
margin loans. To the extent that these margin loans exceed client cash balances maintained with us,
we generally must obtain financing from third parties. We may not be able to obtain this financing
on favorable terms or in sufficient amounts. By permitting clients to purchase securities on
margin, we are subject to risks inherent in extending credit, especially during periods of rapidly
declining markets in which the value of the collateral held by us could fall below the amount of a
client's indebtedness. In addition, in accordance with regulatory guidelines, we collateralize
borrowings of securities by depositing cash or securities with lending institutions. Failure to
maintain required deposit levels at all times at least equal to the value of the related securities
can subject us to risk of loss if sharp changes in market values of substantial amounts of
securities occur and parties to the borrowing transactions fail to honor their commitments.
Risks Related to Our Common Stock
There has been only a limited public market for our common stock to date.
To date, there has been only a limited public market for our common stock on the
Over-the-Counter Bulletin Board. Our common stock is currently not listed on any exchange. If an
active trading market for our common stock does not develop, the market price and liquidity of our
common stock will be materially and adversely affected.
The market price for our common stock may be volatile.
The market price for our common stock may be volatile and subject to wide fluctuations in
response to factors including the following:
o
actual or anticipated fluctuations in our quarterly operating results;
o
changes in financial estimates by securities research analysts, if any;
o
conditions in the China consumer goods and online marketing markets;
o
changes in the economic performance or market valuations of other U.S. public
companies with substantial operations in China;
o
announcements by us or our competitors of new products, acquisitions, strategic
partnerships, joint ventures or capital commitments;
o
addition or departure of key personnel;
o
fluctuations of exchange rates between RMB and the U.S. dollar;
o
intellectual property litigation; and
o
general economic or political conditions in China.
18
Table of Contents
In addition, the securities market has from time to time experienced significant price and
volume fluctuations that are not related to the operating performance of particular companies.
These market fluctuations may also materially and adversely affect the market price of our Common
stock.
We will need additional capital, and the sale of additional common stock or other equity
securities could result in additional dilution to our shareholders.
We expect to require additional cash resources to fund our operations, as well as investments
or acquisitions which we may decide to pursue. To satisfy our cash requirements, we may seek to
sell additional equity or debt securities or obtain a credit facility. The sale of additional
equity securities could result in additional dilution to our shareholders. The incurrence of
indebtedness would result in increased debt service obligations and could result in operating and
financing covenants that would restrict our operations. We cannot assure you that financing will be
available in amounts or on terms acceptable to us, if at all.
Substantial future sales or the perception of sales of our common stock in the public market
could cause the price of our common stock to decline.
Sales of our common stock in the public market or the perception that these sales could occur,
could cause the market price of our common stock to decline. As of February 9, 2006, approximately
1,946,768 shares, or 2.4% of our outstanding shares will be freely transferable without restriction
or additional registration under the Securities Act of 1933, as amended, or the Securities Act. In
addition, upon effectiveness of the registration statement of which this prospectus is a part, the
66,530,392 shares covered by this registration statement will be freely tradeable. The remaining
common stock outstanding as of such date will be available for sale, beginning on September 18,
2006, subject to volume and other restrictions as applicable under Rule 144 under the Securities
Act.
You may face difficulties in protecting your interests, and your ability to protect your
rights through the U.S. federal courts may be limited, because we conduct a significant portion of
our operations in China and all of our officers reside outside the United States.
We conduct a substantial portion of our operations in China through our wholly owned
subsidiaries in China. All of our officers reside outside the United States and some or all of the
assets of those persons are located outside the United States. As a result, it may be difficult or
impossible for you to bring an action against us or against these individuals in China in the event
that you believe that your rights have been infringed under the securities laws or otherwise. Even
if you are successful in bringing an action of this kind, the laws of China may render you unable
to enforce a judgment against our assets or the assets of our directors and officers.
19
Table of Contents
If we fail to maintain an effective system of internal control over financial reporting, we
may not be able to accurately report our financial results or prevent fraud.
We are subject to reporting obligations under the U.S. securities laws. The Securities and
Exchange Commission, or the SEC, as required by Section 404 of the Sarbanes-Oxley Act of 2002,
adopted rules requiring every public company to include a management report on such company's
internal controls over financial reporting in its annual report, which contains management's
assessment of the effectiveness of the company's internal controls over financial reporting. In
addition, an independent registered public accounting firm must attest to and report on
management's assessment of the effectiveness of the company's internal controls over financial
reporting. These requirements may first apply to our annual report on Form 10-K for the fiscal year
ending September 30, 2006. Our management may conclude that our internal controls over our
financial reporting are not effective. Moreover, even if our management concludes that our internal
controls over financial reporting are effective, our independent registered public accounting firm
may still decline to attest to our management's assessment or may issue a report that is qualified
if they are not satisfied with our controls or the level at which our controls are documented,
designed, operated or reviewed, or if it interprets the relevant requirements differently from us.
Our reporting obligations as a public company will place a significant strain on our management,
operational and financial resources and systems for the foreseeable future. We are a young company
with limited accounting personnel and other resources with which to address our internal controls
and procedures. If we fail to timely achieve and maintain the adequacy of our internal controls, we
may not be able to conclude that we have effective internal controls over financial reporting at a
reasonable assurance level. Moreover, effective internal controls over financial reporting are
necessary for us to produce reliable financial reports and are important to help prevent fraud. As
a result, our failure to achieve and maintain effective internal controls over financial reporting
could result in the loss of investor confidence in the reliability of our financial statements,
which in turn could harm our business and negatively impact the trading price of our common stock.
Furthermore, we anticipate that we will incur considerable costs and use significant management
time and other resources in an effort to comply with Section 404 and other requirements of the
Sarbanes-Oxley Act.
We will incur increased costs as a result of being a public company.
As a public company, we will incur significant legal, accounting and other expenses that we
did not incur as a private company. In addition, the Sarbanes-Oxley Act, as well as rules
subsequently implemented by SEC has required changes in corporate governance practices of public
companies. We expect these new rules and regulations to increase our legal, accounting and
financial compliance costs and make certain corporate activities more time-consuming and costly. In
addition, we will incur additional costs associated with our public company reporting requirements.
We are currently evaluating and monitoring developments with respect to these new rules, and we
cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.
USE OF PROCEEDS
We will not receive any of the proceeds from the sale of shares of common stock by the selling
stockholders pursuant to this reoffer prospectus.
20
Table of Contents
SELLING STOCKHOLDERS
This reoffer prospectus covers the reoffer and resale of shares of common stock acquired by
the selling stockholders under an employee bonus program of Sun New Media, Inc. The selling
stockholders are officers, directors employees or consultants of Sun New Media, Inc.
The selling stockholders may sell pursuant to this prospectus up to all of the shares of
common stock they acquired under the plan in one or more transactions from time to time as
described below under "Plan of Distribution." However, the selling stockholders are not obligated
to sell any of the shares of common stock offered by this prospectus.
The following is a list of the selling stockholders and the amount of shares to be offered.
NUMBER OF
SELLING
SHARES
STOCKHOLDER
OFFERED
An, Na
100
An, Yun Feng
100
Ang, Ricky Gee Hing
1,000
Bao, Di Ke
100
Bi, Kun
1,000
Bing, Chen Hua
100
Cai, Zhi Ming
100
Cao, Xiao Lin
100
Chang, Yong
100
Chen, Hai Bao
1,000
Chen, Juan
100
Chen, Shuo
1,000
Chen, Wei
1,000
Chen, Xiao Peng
100
Chen, Ya Di
100
Cui, Fan
100
Cui, Zhi Yong
100
Deng, Xiao Jun
1,000
Deng, Yan
1,000
Di, Jian
1,000
Di, Lu Li
100
Ding, Ming Jie
1,000
Dong, Chang Hong
1,000
Dou, Yi Ping
100
Du, Jian Li
100
Duan, Fang
1,000
Fan, Jie Fei
100
21
Table of Contents
NUMBER OF
SELLING
SHARES
STOCKHOLDER
OFFERED
Fan, Shi
100
Fei , Bao Qi
100
Fu, Dong
1,000
Gao, Guo Dong
100
Gao, Jian Wei
1,000
Gao, Yun Hao
100
Gao, Zhu
100
Ge, Wei Na
100
Gu, Yi Hai
1,000
Guo, Jian Jun
1,000
Guo, Wei
100
Guo, Wen Yi
100
Han, Yong
100
Han, Zhi Xue
100
He, Yu Hua
100
He, Jiang Bing
100
He, Min
100
He, Yue Juan
100
Hong, Feng Yi
100
Hu, Dan Dan
100
Hu, Jin Hua
100
Hu, Qing
100
Hu, Xin Xin
100
Hua, Jia
100
Huang, Zhen Wei
100
Jia, Yu
100
Jia, Ruo Fei
100
Jiang, Bo
100
Jiang, Chang Jian
1,000
Jiang, Jing
100
Jiang, Jing
100
Jiang, Lei
100
Jiao, Qiang
100
Jiao, Qiao Li
100
Jin, Jia Nan
1,000
Jin, Juan
1,000
Jing, Jie
100
Li, Ai Ling
1,000
Li, Guo Xun
100
Li, Hong
1,000
Li, Jian She
100
Li, Jinjing
100
Li, John Zongyang
1,000
Li, Lu
100
Li, Rui Bing
100
Li, Shi Gang
100
Li, Wei
100
22
Table of Contents
NUMBER OF
SELLING
SHARES
STOCKHOLDER
OFFERED
Li, Wen
100
Li, Wen Ke
100
Li, Xu Bo
100
Li, Yi
100
Li, Yu Ling
1,000
Li, Zhi
100
Lim, Lynnette Kitt Ping
1,000
Lin, Jian Jian
100
Lin, Lin
100
Lin, Ling
100
Liu, Dong
1,000
Liu, Fang
100
Liu, Feng
100
Liu, Gang
100
Liu, Jia
100
Liu, Jia Zeng
100
Liu, Lei
100
Liu, Qi
100
Liu, Xiao Hua
100
Liu, Ya Bin
100
Liu, Yan
100
Liu, Yan
100
Liu, Yang
100
Liu, Yi
100
Liu, Zhou Quan
100
Lo, Mei
1,000
Lu, Feng
100
Lu, Shuo
100
Luo, Bin
100
Luo, Chun Jie
100
Luo, Hui Xin
100
Lv, Yi
1,000
Ma, Mo
100
Ng, Hwee Ling
1,000
Niu, Jian Jun
100
Niu, Li Jing
100
Niu, Wen Xin
1,000
Oyang, Yi
100
Peng, Ting Ting
100
Peng, Wei
100
Qu, Qing Long
100
Shao, Shan
1,000
Shao, Zhun
100
Shen, Fu
100
Shen, Shan
100
Shen, Xiao Yu
1,000
23
Table of Contents
NUMBER OF
SELLING
SHARES
STOCKHOLDER
OFFERED
Shi , Kai
100
Shi , Yong
100
Si, Er Gu Leng
1,000
Song, Han Qiang
100
Su, Wan Qi
100
Sun, Lu
100
Sun, Ru Ling
100
Tang, Dan Ya
1,000
Tang, Rou Qin
100
Tian, Lei
1,000
Tian, Wen Hui
100
Tian, Xiao Yan
1,000
Tong, Xiao Hua
100
Wang, Bin
100
Wang, Chao
1,000
Wang, Dan
100
Wang, Dong
100
Wang, Gui Zhen
100
Wang, Guo Sheng
1,000
Wang, Hai Yan
1,000
Wang, Hai Yan
100
Wang, Hong Liang
100
Wang, Jin
1,000
Wang, Jing
100
Wang, Kan
100
Wang, Lei
100
Wang, Li
100
Wang, Liang
1,000
Wang, Pu
100
Wang, Qi
100
Wang, Rui Jun
100
Wang, Shu Yun
100
Wang, Tao
100
Wang, Ting
100
Wang, Wei
100
Wang, Xiao Yan
1,000
Wang, Xin Yue
100
Wang, Yan
100
Wang, Ying Hui
100
Wang, Zu Ji
100
Wei, Cheng Si
1,000
Wong, Po Chun
1,000
Wu, Jian Jing
100
Wu, Jian Lin
100
Wu, Wei
100
Wu, Xiao Man
1,000
Wu, Xiao Min
100
24
Table of Contents
NUMBER OF
SELLING
SHARES
STOCKHOLDER
OFFERED
Xiang, Rong Bao
1,000
Xiong, Chuan
100
Xiong, Yi
100
Xu, Chen
1,000
Xu, Chun
100
Xu, Han Mei
100
Xu, Hong
100
Yang, Ai Hua
100
Yang, Dao Hui
100
Yang, Guo Wei
1,000
Yang, Hai Bin
1,000
Yang, Jie
100
Yang, Jing
100
Yang, Jing
1,000
Yang, Lan
1,000
Yang, Shi Yang
100
Yang, Xiao Ming
100
Yao, Rui Qing
1,000
Yao, Wen Xiang
100
Ye, Fei Fei
100
Yi, Qiang
100
Yu, Hui Yang
100
Yu, Zhen Zhi
100
Yuen, Wan Chi
1,000
Zhai, Zhi Lin
100
Zhan, Chang Hao
1,000
Zhang, Liang
100
Zhang, Miao
100
Zhang, Ping
100
Zhang, Qin Fang
100
Zhang, Tian Yu
100
Zhang, Wei
100
Zhang, Xi Ju
100
Zhang, Xiao Hui
100
Zhang, Xiao Yun
100
Zhang, Yang Yang
100
Zhang, Ying
100
Zhang, Yong Qian
100
Zhang, Yu Gang
100
Zhang, Zheng Gang
100
Zhang, Zhong Cheng
1,000
Zhao, Gui Fu
100
Zhao, Jing Cheng
100
Zhao, Jun
100
Zhao, Lu
100
Zhao, Wen Jing
100
Zhao, Zhi Gang
1,000
25
Table of Contents
NUMBER OF
SELLING
SHARES
STOCKHOLDER
OFFERED
Zheng , Yong Xing
100
Zheng, Ming Hua
100
Zheng, Qi Zhao
100
Zhong, Hua
100
Zhou, Guang Yu
100
Zhou, Nian Yang
100
Zhou, Qiong
1,000
Zhou, Rong Liang
100
Zhou, Shi Jun
1,000
Zhou, Yan Chao
100
Zhu, Chun Lan
100
Zhu, Yue
100
Zhu, Yun
1,000
Zuo, Jiang Hong
100
Total
74,100
26
Table of Contents
PLAN OF DISTRIBUTION
The shares of common stock covered by the prospectus may be offered or sold from time to time
on the OTC Bulletin Board by the selling stockholders, or by pledgees, donees, transferees or other
successors in interest. The shares will be offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act. Such sales may be made in block trades, pursuant to purchases
by a broker or a dealer as principal, in private transactions, in negotiated transactions or
otherwise, at prices and at terms then prevailing or at negotiated prices. The Company will not
receive any of the proceeds from sales by the selling stockholders.
Any broker or dealer involved in the offer or sale of the shares included herein may receive
brokerage commissions or discounts. To our knowledge, there is currently no agreement with any
broker or dealer respecting such transactions. Upon sale of such shares, the selling stockholders
or anyone effecting sales on behalf of the selling stockholders may be deemed an underwriter, as
that term is defined in the Securities Act. Each selling stockholder does not believe that he or
she is an underwriter within the meaning of the Securities Act. All expenses of the registration
of the common stock covered by this prospectus are to be borne by us.
LEGAL MATTERS
The validity of the shares of common stock offered hereby will be passed upon for us by DLA
Piper Rudnick Gray Cary US LLP, East Palo Alto, California.
EXPERTS
The
financial statements incorporated in this prospectus by reference to
the Annual Report on Form 10-KSB have been so incorporated in reliance on the reports of
Moores Rowland Mazars, Certified Public Accountants, given on the authority of said firm as experts
in auditing and accounting.
27
Table of Contents
74,100 Shares
Common Stock
REOFFER PROSPECTUS
March 30, 2006
Table of Contents
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3.
Incorporation of Documents by Reference
Sun New Media, Inc. (the "Company") hereby incorporates by reference in this registration
statement the following documents:
(a) The Company's latest annual report on Form 10-KSB filed pursuant to Sections 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), containing audited
financial statements for the Company's latest fiscal year ended September 30, 2005 as filed with
the Securities and Exchange Commission on January 13, 2006.
(b) All other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act since the
end of the fiscal year covered by the registrant document referred to in (a) above.
(c) The description of the Company's Common Stock contained in the Company's registration
statement filed under the Exchange Act, including any amendment or report filed for the purpose of
updating such description.
All documents subsequently filed by the Company pursuant to Sections 13(a), 13(c), 14 and
15(d) of the Exchange Act, prior to the filing of a post-effective amendment to this registration
statement which indicates that all securities offered hereby have been sold or which deregisters
all securities remaining unsold, shall be deemed to be incorporated by reference in this
registration statement and to be a part hereof from the date of filing of such documents.
Item 4.
Description of Securities
The class of securities to be offered is registered under Section 12 of the Exchange Act.
Item 5.
Interests of Named Experts and Counsel
Inapplicable.
II-1
Table of Contents
Item 6.
Indemnification of Directors and Officers
Section 302A.521 of the
Minnesota Business Corporation Act
provides as follows with respect to
indemnification of directors and officers:
Subdivision 1.
Definitions.
(a) For purposes of this section, the terms defined in this subdivision have the
meanings given them.
(b) "Corporation" includes a domestic or foreign corporation that was the
predecessor of the corporation referred to in this section in a merger or other
transaction in which the predecessor's existence ceased upon consummation of the
transaction.
(c) "Official capacity" means (1) with respect to a director, the position of
director in a corporation, (2) with respect to a person other than a director, the
elective or appointive office or position held by an officer, member of a committee
of the board, or the employment relationship undertaken by an employee of the
corporation, and (3) with respect to a director, officer, or employee of the
corporation who, while a director, officer, or employee of the corporation, is or
was serving at the request of the corporation or whose duties in that position
involve or involved service as a director, officer, partner, trustee, governor,
manager, employee, or agent of another organization or employee benefit plan, the
position of that person as a director, officer, partner, trustee, governor, manager,
employee, or agent, as the case may be, of the other organization or employee
benefit plan.
(d) "Proceeding" means a threatened, pending, or completed civil, criminal,
administrative, arbitration, or investigative proceeding, including a proceeding by
or in the right of the corporation.
(e) "Special legal counsel" means counsel who has not represented the corporation or
a related organization, or a director, officer, member of a committee of the board,
or employee, whose indemnification is in issue.
Subd. 2.
Indemnification mandatory; standard.
(a) Subject to the provisions of subdivision 4, a corporation shall indemnify a
person made or threatened to be made a party to a proceeding by reason of the former
or present official capacity of the person against judgments, penalties, fines,
including, without limitation, excise taxes assessed against the person with respect
to an employee benefit plan, settlements, and reasonable expenses, including
attorneys' fees and disbursements, incurred by the person in connection with the
proceeding, if, with respect to the acts or omissions of the person complained of in
the proceeding, the person:
II-2
Table of Contents
(1) has not been indemnified by another organization or employee benefit
plan for the same judgments, penalties, fines, including, without
limitation, excise taxes assessed against the person with respect to an
employee benefit plan, settlements, and reasonable expenses, including
attorneys' fees and disbursements, incurred by the person in connection with
the proceeding with respect to the same acts or omissions;
(2) acted in good faith;
(3) received no improper personal benefit and section 302A.255, if
applicable, has been satisfied;
(4) in the case of a criminal proceeding, had no reasonable cause to believe
the conduct was unlawful; and
(5) in the case of acts or omissions occurring in the official capacity
described in subdivision 1, paragraph (c), clause (1) or (2), reasonably
believed that the conduct was in the best interests of the corporation, or
in the case of acts or omissions occurring in the official capacity
described in subdivision 1, paragraph (c), clause (3), reasonably believed
that the conduct was not opposed to the best interests of the corporation.
If the person's acts or omissions complained of in the proceeding relate to
conduct as a director, officer, trustee, employee, or agent of an employee
benefit plan, the conduct is not considered to be opposed to the best
interests of the corporation if the person reasonably believed that the
conduct was in the best interests of the participants or beneficiaries of
the employee benefit plan.
(b) The termination of a proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent does not, of itself, establish that
the person did not meet the criteria set forth in this subdivision.
Subd. 3.
Advances.
Subject to the provisions of subdivision 4, if a person is made or threatened to be
made a party to a proceeding, the person is entitled, upon written request to the
corporation, to payment or reimbursement by the corporation of reasonable expenses,
including attorneys' fees and disbursements, incurred by the person in advance of
the final disposition of the proceeding, (a) upon receipt by the corporation of a
written affirmation by the person of a good faith belief that the criteria for
indemnification set forth in subdivision 2 have been satisfied and a written
undertaking by the person to repay all amounts so paid or reimbursed by the
corporation, if it is ultimately determined that the criteria for indemnification
have not been satisfied, and (b) after a determination that the facts then known to
those making the determination would not preclude indemnification under this
section. The written undertaking required by clause (a) is an unlimited general
obligation of the person making it, but need not be secured and shall be accepted
without reference to financial ability to make the repayment.
II-3
Table of Contents
Subd. 4.
Prohibition or limit on indemnification or advances.
The articles or bylaws either may prohibit indemnification or advances of expenses
otherwise required by this section or may impose conditions on indemnification or
advances of expenses in addition to the conditions contained in subdivisions 2 and 3
including, without limitation, monetary limits on indemnification or advances of
expenses, if the prohibition or conditions apply equally to all persons or to all
persons within a given class. A prohibition or limit on indemnification or advances
may not apply to or affect the right of a person to indemnification or advances of
expenses with respect to any acts or omissions of the person occurring prior to the
effective date of a provision in the articles or the date of adoption of a provision
in the bylaws establishing the prohibition or limit on indemnification or advances.
Subd. 5.
Reimbursement to witnesses.
This section does not require, or limit the ability of, a corporation to reimburse
expenses, including attorneys' fees and disbursements, incurred by a person in
connection with an appearance as a witness in a proceeding at a time when the person
has not been made or threatened to be made a party to a proceeding.
Subd. 6.
Determination of eligibility.
(a) All determinations whether indemnification of a person is required because the
criteria set forth in subdivision 2 have been satisfied and whether a person is
entitled to payment or reimbursement of expenses in advance of the final disposition
of a proceeding as provided in subdivision 3 shall be made:
(1) by the board by a majority of a quorum, if the directors who are at
the time parties to the proceeding are not counted for determining either a
majority or the presence of a quorum;
(2) if a quorum under clause (1) cannot be obtained, by a majority of a
committee of the board, consisting solely of two or more directors not at
the time parties to the proceeding duly designated to act in the matter by a
majority of the full board including directors who are parties;
(3) if a determination is not made under clause (1) or (2), by special legal
counsel, selected either by a majority of the board or a committee by vote
pursuant to clause (1) or (2) or, if the requisite quorum of the full board
cannot be obtained and the committee cannot be established, by a majority of
the full board including directors who are parties;
II-4
Table of Contents
(4) if a determination is not made under clauses (1) to (3), by the
affirmative vote of the shareholders required by section 302A.437, but the
shares held by parties to the proceeding must not be counted in determining
the presence of a quorum and are not considered to be present and entitled
to vote on the determination; or
(5) if an adverse determination is made under clauses (1) to (4) or under
paragraph (b), or if no determination is made under clauses (1) to (4) or
under paragraph (b) within 60 days after (i) the later to occur of the
termination of a proceeding or a written request for indemnification to the
corporation or (ii) a written request for an advance of expenses, as the
case may be, by a court in this state, which may be the same court in which
the proceeding involving the person's liability took place, upon application
of the person and any notice the court requires. The person seeking
indemnification or payment or reimbursement of expenses pursuant to this
clause has the burden of establishing that the person is entitled to
indemnification or payment or reimbursement of expenses.
(b) With respect to a person who is not, and was not at the time of the acts or
omissions complained of in the proceedings, a director, officer, or person
possessing, directly or indirectly, the power to direct or cause the direction of
the management or policies of the corporation, the determination whether
indemnification of this person is required because the criteria set forth in
subdivision 2 have been satisfied and whether this person is entitled to payment or
reimbursement of expenses in advance of the final disposition of a proceeding as
provided in subdivision 3 may be made by an annually appointed committee of the
board, having at least one member who is a director. The committee shall report at
least annually to the board concerning its actions.
Subd. 7.
Insurance.
A corporation may purchase and maintain insurance on behalf of a person in that
person's official capacity against any liability asserted against and incurred by
the person in or arising from that capacity, whether or not the corporation would
have been required to indemnify the person against the liability under the
provisions of this section.
Subd. 8.
Disclosure.
A corporation that indemnifies or advances expenses to a person in accordance with
this section in connection with a proceeding by or on behalf of the corporation
shall report to the shareholders in writing the amount of the indemnification or
advance and to whom and on whose behalf it was paid not later than the next meeting
of shareholders.
II-5
Table of Contents
Subd. 9.
Indemnification of other persons.
Nothing in this section shall be construed to limit the power of the corporation to
indemnify persons other than a director, officer, employee, or member of a committee
of the board of the corporation by contract or otherwise.
The Company's Bylaws provide as follows with respect to indemnification of directors and
officers:
"ARTICLE VII INDEMNIFICATION
Directors, officers, committee members, and other persons shall have the rights to
indemnification provided by Section 302A.521 of the Minnesota Statutes and law amendatory thereof
and supplementary thereto."
Item 7.
Exemption From Registration Claimed
Inapplicable.
Item 8. Exhibits
See
Exhibit Index.
Item 9.
Undertakings
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and
any deviation from the low or high end of the estimated maximum offering range may be reflected in
the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the effective registration
statement; and
(iii) To include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement;
II-6
Table of Contents
provided
,
however
, that paragraphs (1)(i) and (l)(ii) do not apply if the
information required to be included in a post-effective amendment by those paragraphs is contained
in periodic reports filed by the registrant pursuant to Section 13 or Section 15(d) of the Exchange
Act that are incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
The undersigned registrant hereby undertakes that, for purposes of determining any liability
under the Securities Act, each filing of the registrant's annual report pursuant to Section 13(a)
or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit
plan's annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by
reference in the registration statement shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted
to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.
II-7
Table of Contents
SIGNATURE
Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant
certifies that it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by
the undersigned, thereunto duly authorized, in the City of Diamond Bar and State of California, on
the 30th day of March, 2006.
SUN NEW MEDIA INC.
By:
/s/ Ricky Gee Hing Ang
Ricky Gee Hing Ang
Chief Executive Officer
II-8
Table of Contents
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes
and appoints Ricky Gee Hing Ang and Frank Zhao, and each of them, as his true and lawful
attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in
his name, place and stead, in any and all capacities, to sign any and all amendments (including
post-effective amendments) to this Registration Statement on Form S-8, and to file the same, with
all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in
connection therewith, as fully to all intents and purposes as he might or could do in person,
hereby ratifying and confirming all that said attorney-in facts and agents, or either of them, or
their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue
hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended, this registration
statement has been signed by the following persons in the capacities
indicated on March 30, 2006.
Signature
Title
/s/ Ricky Gee Hing Ang
Ricky Gee Hing Ang
Chief Executive Officer (Principal Executive Officer)
/s/ Frank Zhao
Frank Zhao
Chief Financial Officer (Principal Financial and
Accounting Officer)
/s/ Bruno Wu
Bruno Wu
Chairman of the Board, Director
/s/
Kay Koplovitz
Kay Koplovitz
Vice-Chairman and Director
/s/ Chauncey Shey
Chauncey Shey
Vice-Chairman and Director
Herbert Kloiber
Director
/s/ Bing Yu
Bing Yu
Director
/s/ John Zangyang Li
John Zangyang Li
Director
II-9
Table of Contents
EXHIBIT INDEX
4.1
Articles of Incorporation as Amended (incorporated by reference from our Form
10-SB Registration Statement, filed June 14, 1999)
4.2
Certificate of Amendment to Articles of Incorporation, dated April 11, 2001
(incorporated by reference from our Form 10-KSB, filed April 1, 2002)
4.3
Certificate of Amendment to Articles of Incorporation, dated September 15,
2005 (incorporated by reference from our Current Report on Form 8-K filed on
September 22, 2005)
4.4
Bylaws (incorporated by reference from our Form 10-SB Registration Statement,
filed June 14, 1999)
5.1
Opinion of DLA Piper Rudnick Gray Cary US LLP
23.1
Consent of Moores Rowland Mazars
23.2
Consent of DLA Piper Rudnick Gray Cary US LLP (included in Exhibit 5)
24
Power of Attorney (included in signature pages to this registration statement)
99.1
Sun New Media Inc. 2006 Stock Plan