<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD><TITLE>wemumar09</TITLE>
<META content="" name=author>
<META content="" name=date>
</HEAD>
<BODY
style="FONT-SIZE: 10pt; COLOR: #000000; LINE-HEIGHT: 12pt; FONT-FAMILY: Times New Roman"><A
name=_Toc80349518></A>
<DIV style="WIDTH: 627px; HEIGHT: 3308px">
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>UNITED STATES</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>Washington, D.C. 20549</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center><B>FORM
10-Q</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><U>X
&nbsp;&nbsp;&nbsp;</U>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center><B>For
the quarterly period ended March 31, 2009</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>___
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=center>For the transition period
from ____ to ____</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B><U>WORLDWIDE ENERGY AND MANUFACTURING USA, INC.</U></B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>(Exact
name of registrant as specified in its charter)</P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=220></TD>
<TD width=186></TD>
<TD width=220></TD></TR>
<TR>
<TD vAlign=top width=220>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Colorado</P></TD>
<TD vAlign=top width=186>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>0-31761</P></TD>
<TD vAlign=top width=220>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>84-1536519</P></TD></TR>
<TR>
<TD vAlign=top width=220>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(State or other jurisdiction of incorporation or
organization)</P></TD>
<TD vAlign=top width=186>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(Commission File Number)</P></TD>
<TD vAlign=top width=220>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(I.R.S. Employer Identification No.)</P></TD></TR>
<TR>
<TD vAlign=top width=220>
<P>&nbsp;</P></TD>
<TD vAlign=top width=186>
<P>&nbsp;</P></TD>
<TD vAlign=top width=220>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=628 colSpan=3>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>408 N. Canal Street</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>South San Francisco, &nbsp;CA &nbsp;94080</P></TD></TR>
<TR>
<TD vAlign=top width=628 colSpan=3>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(Address of principal executive
offices)</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Registrant&#146;s telephone number, including area code: (650) 794-9888
</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer, or a smaller reporting company. &nbsp;See the
definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller
reporting company&#148; in Rule 12b-2 of the Exchange Act.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Large Accelerated
Filer&nbsp;&nbsp;&nbsp;[
&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated
Filer&nbsp;&nbsp;&nbsp;[ &nbsp;] &nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Non-Accelerated
Filer&nbsp; &nbsp;&nbsp;&nbsp;[ &nbsp;]
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Smaller
reporting company &nbsp;&nbsp;<U>X</U></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes__ &nbsp;&nbsp;No <U>X</U></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Indicate the number
of shares outstanding of each of the issuer's classes of stock, as of the latest
practicable date.</P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=338></TD>
<TD width=286></TD></TR>
<TR>
<TD vAlign=top width=338>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Class of Securities</P></TD>
<TD vAlign=top width=286>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Shares Outstanding at May 14, 2009</P></TD></TR>
<TR>
<TD vAlign=top width=338>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Common Stock, no par value</P></TD>
<TD vAlign=top width=286>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>3,617,512</P></TD><A name=_Toc133030766></A><A
name=_Toc143508260></A><A name=_Toc143509054></A><A
name=_Toc143509150></A><A name=_Toc166657191></A><A
name=_Toc166657341></A></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 1 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>PART 1 - FINANCIAL
INFORMATION</B></P>
<P style="MARGIN: 0px"><BR></P><A name=_Toc133030767></A>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>ITEM
1. </B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"><B>FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; TEXT-INDENT: -48px; LINE-HEIGHT: 15pt">(a)</P>
<P
style="PADDING-LEFT: 72px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The
unaudited financial statements of registrant for the three months ended March
31, 2009, follow. &nbsp;The financial statements reflect all adjustments which
are, in the opinion of management, necessary to a fair statement of the results
for the interim period presented.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><BR>&nbsp;</P>
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 2 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px">&nbsp;</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><STRONG>INDEX</STRONG></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=632></TD>
<TD width=60></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>Page</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>ITEM 1.
&nbsp;FINANCIAL STATEMENTS</B></P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>CONDENSED
CONSOLIDATED BALANCE SHEETS </B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>4</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
</B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>5</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS </B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>6</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>NOTES TO THE
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS </B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>7</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>ITEM
2.</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 72px; LINE-HEIGHT: 13pt"><B>MANAGEMENT&#146;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS</B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>21</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>ITEM
3.</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 72px; LINE-HEIGHT: 13pt"><B>CONTROLS
AND PROCEDURES</B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>28</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>&nbsp;PART
II. &nbsp;OTHER INFORMATION</B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>29</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>EXHIBITS</B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>30</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P>&nbsp;</P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>SIGNATURES</B></P></TD>
<TD vAlign=top width=60>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>31</B></P></TD></TR>
<TR>
<TD vAlign=top width=632>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>&nbsp;</B></P></TD>
<TD vAlign=top width=60>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 3 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=441></TD>
<TD width=14></TD>
<TD width=101></TD>
<TD width=14></TD>
<TD width=124></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>March 31, 2009</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>December 31, 2008</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(Unaudited)</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>ASSETS</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Current
assets:</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Cash
and cash equivalents</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,520,399</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>5,092,476</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Accounts
receivables, net of allowances of $272,430 and $45,634,
respectively</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>8,600,995</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>4,790,506</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Notes
receivables</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>149,937</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>269,507</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Inventories</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>4,665,481</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,754,765</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Tax
receivable</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>240,001</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Advances
to suppliers</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>745,603</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>99,824</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Related
parties receivables</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>439,100</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>446,373</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Prepaid
and other current assets</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>405,069</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>451,770</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total current
assets</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>18,766,585</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>14,905,221</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Property, plant
and equipment, net</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2,029,878</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,353,539</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Intangible
assets</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,101,000</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,101,000</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Goodwill</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>293,279</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Deposits paid
for investment</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,551,890</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,724,976</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;Investment</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>16,000</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Other
assets</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-<FONT style="FONT-FAMILY: Arial">&#12288;</FONT></P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>7,559</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total
assets</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>23,758,632</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>19,092,295</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Current
liabilities:</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Accounts
payable</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>7,563,166</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,400,253</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Accrued
expenses</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>524,468</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>867,291</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Bank
loan</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,300,000</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Tax
payable</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>120,903</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>147,165</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Due
to related parties</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,242,248</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,243,024</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Customer
deposits</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>133,599</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>964,998</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total current
liabilities</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>10,884.384</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>6,622,731</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Non-current
liabilities</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Bank
loan-long term portion</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>877,869</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>937,075</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Loan
payable to stockholders</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>60,024</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total
non-current liabilities</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>877,869</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>997,099</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total
liabilities</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>11,762,253</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>7,619,830</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Worldwide&#146;s
Stockholders&#146; equity </P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Common
stock (No Par Value : 100,000,000 shares authorized;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">3,617,512
shares issued and outstanding)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>6,296,899</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>6,108,379</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Retained
earnings</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>4,702,687</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>4,259,533</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Deferred
stock based compensation</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(140,400)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Accumulated
other comprehensive income</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>512,949</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>491,914</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total
Worldwide&#146;s stockholders&#146; equity </P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>11,372,135</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>10,859,826</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 14px; LINE-HEIGHT: 13pt">Non-controlling
interest</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>624,244</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>612,639</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total
equity</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>11,996,379</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>11,472,465</P></TD></TR>
<TR>
<TD vAlign=bottom width=441>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=101>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=124>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=441>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total
liabilities and stockholders&#146; equity </P></TD>
<TD vAlign=bottom width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=101>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>23,758,632</P></TD>
<TD vAlign=bottom width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=124>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>19,092,295</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>See accompanying notes to unaudited
condensed consolidated financial statements.</P><A name=_Toc80349519></A>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 4 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 626px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>COMPREHENSIVE INCOME</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>(UNAUDITED)</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=425></TD>
<TD width=14></TD>
<TD width=91></TD>
<TD width=11></TD>
<TD width=91></TD>
<TD width=14></TD></TR>
<TR>
<TD vAlign=bottom width=425>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=194 colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;For The
Three Months Ended </P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=425>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=194 colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;March 31. </P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=425>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2009</P></TD>
<TD vAlign=bottom width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2008</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Revenue</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Sales, net of returns of $0 in 2009 and $0 in 2008</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>10,281,867</P></TD>
<TD vAlign=top width=11>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>5,404,083</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Cost of goods sold</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>8,382,275</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>4,239,033</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Gross
profit</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,899,592</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,165,050</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Operating Expenses</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Other
selling, general and administrative expenses</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,205,781</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>701,085</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Management
and professional fees paid to shareholders (Note 10)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>90,000</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>80,320</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Stock
based compensation</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>32,120</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>110,000</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Depreciation</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>73,176</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,972</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Total operating expenses</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,401,077</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>895,377</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Operating income</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>498,515</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>269,673</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Other Income (expenses)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Interest
income</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>11,113</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,137</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Interest
expenses</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(7,602)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(34,441)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Interest
expense paid to shareholders (Note 10)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(17,446)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Other
income</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>903</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Exchange
gain</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,928</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Total other expenses</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>8,342</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(50,750)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Net income before income taxes</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>506,857</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>218,923</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Income
taxes (expense)/benefit</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(38,546)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>11,404</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net income
before non-controlling interest</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>468,311</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>230,327</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Non-controlling
interest</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(25,157)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&#12288;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Net income attributable to the Company</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>443,154</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>230,327</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Other comprehensive income</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency
translation</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>21,035</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>98,423</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income
attributable to the non-controlling interest</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(13,552)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Comprehensive income attributable to the Company</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 3px double"
vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>450,637</P></TD>
<TD vAlign=top width=11>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 3px double"
vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>328,750</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Earnings per share</P></TD>
<TD vAlign=top width=14>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.13</P></TD>
<TD vAlign=top width=11>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.11</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Weighted average shares outstanding</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,527,956</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2,069,863</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=425>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>See accompanying notes to unaudited
condensed consolidated financial statements.</P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 5 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 626px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>(UNAUDITED)</B></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=472></TD>
<TD width=16></TD>
<TD width=82></TD>
<TD width=11></TD>
<TD width=91></TD>
<TD width=14></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=184 colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;For The
Three Months Ended </P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=184 colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;March 31,</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2009</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2008</P></TD>
<TD vAlign=bottom width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash flows from
operating activities</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Net
income</P></TD>
<TD vAlign=top width=16>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>443,154</P></TD>
<TD vAlign=top width=11>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>230,327</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Income
attributable to non-controlling interest</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>11,605</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Adjustments
to reconcile net income to net cash used in operating activities:</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Depreciation</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>73,176</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>27,830</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Allowance
for bad debts</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>226,796</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(20,000)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Stock
issued for services</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>48,120</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>110,000</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Changes in
operating assets and liabilities:</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Accounts
receivable</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(4,037,285)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(2,543,985)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Inventories</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(910,716)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>240,934</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Income
tax receivable</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(240,001)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(10,974)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Loan
receivable-affiliate</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>126,067</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Notes
receivable</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(519,712)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(987,203)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Prepaid
and other current assets</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>54,260</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>98,312</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Accounts
payable</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>4,162,913</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,826,234</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Accrued
expense</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(342,823)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(12,028)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Income
tax payable</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(26,262)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(19,344)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Customer
deposits</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(831,399)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net cash used
in operating activities</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(1,888,174)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(1,059,897)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash flows from
investing activities</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Loan
to related parties</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(25,987)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Purchase
of property and equipment</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(749,515)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(26,570)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Purchase
of investment </P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(136,193)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(40,680)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net cash used
in investing activities</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(885,708)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(93,237)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash flows from
financing activities</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Proceeds
from &nbsp;shareholders loan</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;-</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,606,954</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Repayment
of shareholders loan</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(60,024)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Principal
payments on loan term debt</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(884)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Proceeds
from line of credit</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,300,000</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Repayment
&nbsp;of bank loans</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(59,206)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(116,962)</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net cash flows
provided by financing activities:</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,180,770</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,489,108</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Effect of
exchange rate changes in cash</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>21,035</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>55,331</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net (decrease)/
increase in cash</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(1,572,077)</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>391,305</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash- beginning
of period</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>5,092,476</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2,111,825</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash- end of
period</P></TD>
<TD vAlign=top width=16>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,520,399</P></TD>
<TD vAlign=top width=11>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2,503,130</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=top width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Supplemental
disclosure of non cash investing and financing activities:</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82>
<P>&nbsp;</P></TD>
<TD vAlign=top width=11>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=91>
<P>&nbsp;</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Interest
paid in cash</P></TD>
<TD vAlign=top width=16>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-<FONT style="FONT-FAMILY: Arial">&#12288;</FONT></P></TD>
<TD vAlign=top width=11>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>51,887</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=472>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 29px; LINE-HEIGHT: 13pt">Income
taxed paid in cash</P></TD>
<TD vAlign=top width=16>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>39,564<FONT style="FONT-FAMILY: Arial">&#12288;</FONT></P></TD>
<TD vAlign=top width=11>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=91>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top width=14>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>See accompanying notes to unaudited
condensed consolidated financial statements.</P>
<P style="MARGIN: 0px" align=center><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 6 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt"><B>1.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"><B>MANAGEMENT'S
REPRESENTATION OF INTERIM FINANCIAL INFORMATION</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
accompanying unaudited financial statements have been prepared by Worldwide
Energy and Manufacturing USA, Inc. without audit pursuant to the rules and
regulations of the Securities and Exchange Commission. &nbsp;Certain information
and disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted as
allowed by such rules and regulations, and management believes that the
disclosures are adequate to make the information presented not misleading.
&nbsp;These financial statements include all of the adjustments, which in the
opinion of management are necessary to a fair presentation of financial position
and results of operations. &nbsp;All such adjustments are of a normal and
recurring nature. Interim results are not necessarily indicative of results for
a full year.&nbsp;These financial statements should be read in conjunction with
the audited financial statements at December 31, 2008 as filed in the Company
Form 10-K filed with the Commission on April 14, 2009. &nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 96px; MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt"><B>2.
</B></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"><B>SIGNIFICANT
ACCOUNTING POLICIES </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>This
summary of significant accounting policies of the Company is presented to assist
in understanding the Company&#146;s financial statements. &nbsp;The financial
statements and notes are representations of the Company&#146;s management, which is
responsible for their integrity and objectivity. These accounting policies
conform to generally accepted accounting principles and have been consistently
applied in the preparation of the financial statements. </P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Description
of Business </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Worldwide Energy and Manufacturing USA, Inc. (&#147;Worldwide&#148; or &#147;the
Company&#148;) is a manufacturing engineering firm and international contract
manufacturer, using factories in China, primarily servicing customers in Europe,
South Korea for our solar modules and United States-based companies that
outsource their smaller scale production orders for offshore production in
China. From our inception in 1993 until 2005, we were strictly an intermediary
or &#147;middle man,&#148; working with our customers and our subcontractors to assure
that our customers received high quality components on a timely basis that
fulfilled their specific needs. While we still subcontract a significant portion
of our business, since 2005, we have begun the transition to becoming a direct
contract manufacturer, operating several of our own factories. &nbsp;Recently,
we announced two additional factories allowing us to become a direct
manufacturer for solar modules and for power supply units as described
below:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In
February of 2008, Worldwide established a solar division that focuses on
photovoltaic module technology under the brand name of &#147;AmeriSolar.&#148; &nbsp;On
February 25, 2008, the Company changed its name from Worldwide Manufacturing
USA, Inc. to Worldwide Energy and Manufacturing USA, Inc. in order to reflect
its expansion into the solar energy industry. The Company issued 300,000
restricted shares for the AmeriSolar brand name. Worldwide leased a 129,167
square foot facility in Ningbo, China. The lease term is from July 18, 2008 to
July 17, 2013.This facility houses the production operations and R&amp;D center
for the Company&#146;s solar division. This factory has the capability of producing
80MW which translates into approximately $224 million in revenues at full
capacity based on current prices. By opening this factory we hope to increase
gross margins and net margins in our solar division. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 7 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited (&#147;De Hong&#148;) through acquiring 55% of the
outstanding capital stock of De Hong, a China corporation, through Worldwide&#146;s
wholly owned subsidiary Intech Electro- Mechanical Products Co., Ltd., a Chinese
corporation (&#147;Intech&#148;). The Company funded the acquisition with the sale of
1,055,103 shares of its common stock, or $4,747,970. The sale of stock took
place on June 23, 2008. &nbsp;Shanghai De Hong Electric and Electronic Company
is the holding company for the operating subsidiary Shanghai Intech -Detron
Electronic Co. (&#147;Detron&#148;). Therefore, Worldwide received 55% control of the
operating subsidiary Shanghai Intech-Detron Electric and Electronic Company
Limited (&#147;Detron&#148;). Detron is a power supply factory in Shanghai, China with
designing and R &amp; D. The terms of Agreement dated February 3, 2008 was that
Worldwide USA paid cash consideration of approximately 1 million dollars for 55%
interest in DeHong. Intech paid the first installment of $714,286 on behalf of
Worldwide in September, 2008. During the three months ended March 31, 2009,
Worldwide paid back $714,286 to Intech and further paid $308,414 for the second
installment and the total consideration of the investment is $1,022,700.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
August 15, 2008, the Company formed a new company called Nantong Ningbo Solar
factory (&#147;Ningbo Solar&#148;), which is the solar energy research and development
manufacturer. The Company established a factory to provide installation services
to different solar project. The Company also acts as agent to import or export
the products and services overseas.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
November 14, 2005, we established a die-casting and machining factory through
leasing an existing facility from a former supplier, and initially investing
approximately $500,000 to upgrade the equipment and manufacturing buildings. In
these transactions we acquired assets, the expertise of the employees, the
managers of the factories, and a portion of the existing customers of those
factories. In the third quarter of 2005, we also established an electronics
manufacturing factory. As a result, of these two continued factory operations
and the recently announced new factories described above, as of December 31,
2008 we own and operate four factories that we now use for the manufacture of
certain product lines that we historically had to subcontract, and we are using
the services of approximately 40 subcontractors to manufacture those product
lines for which we do not have our own manufacturing capabilities.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Principles
of Consolidation </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
accompanying financial statements include Worldwide Energy and Manufacturing
USA, Inc., a Colorado corporation and a public company, its operating
subsidiary, Worldwide USA, a California corporation, and six subsidiary
companies, Shanghai Intech Electro-Mechanical Products Co., Ltd., Shanghai
Intech Precision Mechanical Products Ltd., Shanghai Intech-Detron Electric and
Electronic Company Limited, Ningbo Solar Factory, and Shanghai De Hong Electric
and Electronic Company Limited, owned by Worldwide USA. &nbsp;Intercompany
transactions have been eliminated in consolidation. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Property and equipment</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Property and equipment are stated at historical cost and are
depreciated over the useful lives of the assets. Depreciation is computed
primarily using the straight-line method based on estimated useful lives, which
range from 3 to 25 years. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 8 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>2. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Impairment of Long-lived Assets</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Long-lived tangible assets and definite-lived intangible assets
are reviewed for possible impairment whenever events or changes in circumstances
indicate that the carrying amount of such assets may not be recoverable. The
Company uses an estimate of undiscounted future net cash flows of the assets
over the remaining useful lives in determining whether the carrying value of the
assets is recoverable. If the carrying values of the assets exceed the expected
future cash flows of the assets, the Company recognizes an impairment loss equal
to the difference between the carrying values of the assets and their estimated
fair values. Impairment of long-lived assets is assessed at the lowest levels
for which there are identifiable cash flows that are independent from other
groups of assets. The evaluation of long-lived assets requires the Company to
use estimates of future cash flows. However, actual cash flows may differ from
the estimated future cash flows used in these impairment tests.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Inventories
</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Inventories consist of finished goods of manufactured products.
&nbsp;Cost is stated at the lower of cost or market on a first-in, first-out
(FIFO) basis. &nbsp;The Company has not recorded an allowance for slow-moving or
obsolete inventory. &nbsp;Obsolete inventory at March 31, 2009 and December 31,
2008 was minimal. &nbsp;&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Revenue
Recognition </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company recognizes revenues in accordance with the guidelines of the Securities
and Exchange Commission (&#147;SEC&#148;) Staff Accounting Bulletin (&#147;SAB&#148;) No. 104
&#147;Revenue Recognition&#148;. &nbsp;The Company recognizes revenue from product sales
when the orders are completed and shipped, provided that collection of the
resulting receivable is reasonably assured. &nbsp;Amounts billed to customers
are recorded as sales while the shipping costs are included in cost of sales.
Returns on defective custom parts may only be exchanged for replacement parts
within 30 days of the invoice date. &nbsp;Returns on defective catalogue parts,
which can be resold, may be exchanged for replacement parts or for a refund.
&nbsp;Revenue from non-refundable customer tooling deposits is recognized when
the materials are shipped or when the deposit is forfeited, whichever is
earlier. &nbsp;&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Repairs
and Maintenance </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Repairs
and maintenance of a routine nature are charged as incurred to operations, while
those that extend or improve the life of existing assets are capitalized. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Cash
and Cash Equivalents </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>For
purposes of the statement of cash flows, the Company considers all highly liquid
debt instruments purchased with a maturity of three months or less to be cash
equivalents. &nbsp;&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Income
Taxes </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The Company uses the
liability approach to financial accounting and reporting for income taxes.
&nbsp;The differences between the financial statement and tax bases of assets
and liabilities are determined annually. &nbsp;Deferred income tax assets and
liabilities are computed for those differences that have future </P>
<P style="MARGIN: 0px" align=center><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 9 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><STRONG></STRONG>&nbsp;</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>2. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>tax
consequences using the currently enacted tax laws and rates that apply to the
period in which they are</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>expected to affect taxable income. &nbsp;Valuation allowances are
established, if necessary, to reduce deferred tax asset accounts to the amounts
that will more likely than not be realized. &nbsp;Income tax expense is the
current tax payable or refundable for the period, plus or minus the net change
in the deferred tax asset and liability accounts. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Intangibles
</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Brand
name has an indefinite useful life and it is carried at cost and is not being
amortized. The Company reviews its intangible assets annually for impairment, or
sooner, if events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Research
and Development </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 11pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company expenses the cost of research and development as incurred. &nbsp;No
research and development costs were charged to operations during 2009 or 2008.
&nbsp;&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Goodwill
</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Goodwill represents the excess of the purchase price over the net
of the fair value of the identifiable tangible and intangible assets acquired
and the fair value of liabilities assumed in business acquisitions. In
accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;)
No.&nbsp;142, Goodwill and Other Intangible Assets, management of the Company
evaluates the carrying value of goodwill annually or when a possible impairment
is indicated. The Company performs its impairment annually during the fourth
quarter of the fiscal year.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Non-Cash
Equity Transactions </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Shares
of other equity instruments issued for non-cash consideration are recorded at
the fair value of the consideration received, or at the value of the stock
given, considered in reference to contemporaneous cash sale of stock. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Estimates</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the amounts of assets and liabilities, as
well as footnote disclosures included in the financial statements and
accompanying notes. &nbsp;Actual results may differ from those estimates and
such differences may be material to the financial statements. &nbsp;The more
significant estimates include: &nbsp;useful lives and residual values of fixed
assets, fair market values of inventory, goodwill and intangible impairment
tests, reserves for warranty, returns, and product liability losses, and credits
losses. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Accounting
Method </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company&#146;s financial statements are prepared using the accrual method of
accounting. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify><BR>&nbsp;</P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 10 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>2. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Foreign
Currency Transactions and Translation </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Transaction gains and losses result from a change in exchange
rates between the functional currencies in which a foreign currency transaction
is denominated. &nbsp;They represent an increase or decrease in (a) the actual
functional current cash flows realized upon settlement of foreign currency
transactions and (b) the expected functional currency cash flows on unsettled
foreign currency transactions. &nbsp;All transaction gains and losses are
included in other income or expense. &nbsp;For all years presented, sales to
customers were primarily denominated in U.S. dollars.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Assets
and liabilities of Intech are translated into U.S. dollars at the prevailing
exchange rate in effect at each period end. &nbsp;Revenue and expenses are
translated into U.S. dollars at the average exchange rate during the reporting
period. &nbsp;Contributed capital is translated into U.S. dollars at the
historical exchange rate when capital was injected. &nbsp;Any difference
resulting from using the current rate, historical rate, and average rate in
determination of retained earnings is accounted for as a translation adjustment
and reported as part of comprehensive income or loss in the equity section.
&nbsp;Exchange differences are recognized in the income statement in the period
in which they occur.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Fair
Value of Financial Instruments </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Unless
otherwise indicated, the fair value of all reported assets and liabilities,
which represent financial instruments (none of which are held for trading
purposes), approximate the carrying values of such instruments. &nbsp;At March
31, 2009 and December 31, 2008, accounts receivable in the amounts of $8,600,995
and $4,790,506 respectively, were pledged as collateral in connection with bank
loans. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Compensated
Absences </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Employees of the Company are entitled to be compensated for
absences depending on job classification, length of service, and other factors.
&nbsp;At March 31, 2009 and 2008, the minimal amounts unused by employees could
not be estimated, and accordingly, no provision is recorded.</P>
<P style="MARGIN: 0px"><BR></P><A name=FIS_UNIDENTIFIED_TABLE_5></A>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Concentrations,
Risks, and Uncertainties </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company did not have concentration of business with suppliers constituting
greater than 10% of the Company&#146;s gross sales during 2009 and 2008. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In the
first quarter of 2009 and 2008, 62% and 0% of the company's business was in the
renewable energy industry.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As part
of the production process, the Company may be required by its suppliers to
advance funds under short-term agreements for tooling and other pre-production
costs. &nbsp;The loans are generally unsecured and may carry interest at the
prevailing market rate for short-term instruments. &nbsp;Such tooling is in most
cases owned by the suppliers, and is a value primarily for the specific needs of
the Company&#146;s customers. &nbsp;The Company in turn requires its customers to
provide a non-refundable down payment to cover such startup costs. &nbsp;In the
event that a supplier is unable to fulfill its production agreements with the
Company, management believes that other suppliers can be found for the Company&#146;s
products. &nbsp;However, a change in suppliers would cause a delay in the
production process, and could result in loss of tooling deposits and </P>
<P style="MARGIN: 0px" align=center><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 11 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>2. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>other
supplier advances, which could negatively affect the Company&#146;s operating
results. &nbsp;At March 31, 2009, the balance of advances owed to the Company is
$745,603.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company sells its goods and services internationally, although the majority of
its revenue is derived from customers in the United States and Europe. &nbsp;As
such, the Company is susceptible to credit risk on accounts and notes receivable
from customers in that region. &nbsp;Additionally, a significant portion of the
Company&#146;s U.S. customers consists of entities in the solar industry, which has
proven to be sensitive to swings in the economic cycle. &nbsp;Generally, the
Company does not obtain security from its customers in support of accounts
receivable. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Stock
Based Compensation </B>&nbsp;&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company will account for employee stock option plans under the intrinsic value
method prescribed by Accounting Principles Board Opinion No. 25, <I>&#147;Accounting
for Stock Issued to Employees&#148; </I>, and has adopted the disclosure only
provisions of Statement of Financial Accounting Standards No. 123,
<I>&#147;Accounting for Stock-Based Compensation&#148; </I>(&#147;SFAS 123&#148;). &nbsp;The Company
accounts for equity instruments issued to non-employees in accordance with the
provisions of SFAS No. 123 and Emerging Issues Task Force No.&nbsp;96-18,
&#147;Accounting<I> for Equity Instruments that are Issued to Other than Employees
for Acquiring, or in Conjunction with Selling Goods and Services&#148;.</I></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Earnings
Per Share </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company adopted Statement of Financial Accounting Standard No. 128, &#147;Earnings
per Share&#148; (&#147;SFAS No. 128"), which is effective for annual periods ending after
December 15, 1997. &nbsp;Earnings per share (EPS) are computed based on the
weighted average number of shares actually outstanding. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=328></TD>
<TD width=138></TD>
<TD width=15></TD>
<TD width=144></TD></TR>
<TR>
<TD vAlign=top width=328>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">For the Three
months Ended</P></TD>
<TD vAlign=top width=138>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=right>March 31, 2009</P></TD>
<TD vAlign=top width=15>
<P>&nbsp;</P></TD>
<TD vAlign=top width=144>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=right>March 31, 2008</P></TD></TR>
<TR>
<TD vAlign=top width=328>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Weighted
average number of common shares used</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=138>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,527,956</P></TD>
<TD vAlign=top width=15>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=144>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;2,069,863</P></TD></TR>
<TR>
<TD vAlign=top width=328>
<P>&nbsp;</P></TD>
<TD vAlign=top width=138>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P>&nbsp;</P></TD>
<TD vAlign=top width=144>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Recent Accounting Pronouncements</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In
March 2008, the FASB issued SFAS No. 161 &#147;Disclosures about Derivative
Instruments and Hedging Activities amendment of FASB Statement No. 133&#148; (&#147;SFAS
161&#148;). &nbsp;This statement changes the disclosure requirements for derivative
instruments and hedging activities. &nbsp;Entities are required to provide
enhanced disclosures stating how and why an entity uses derivative instruments;
how derivatives and related hedged items are accounted for under SFAS No. 133,
&#147;Accounting for Derivative Instruments and Hedging Activities&#148; (&#147;SFAS 133&#148;) and
its related interpretations; and how derivative instruments and related hedge
items affect an entity&#146;s financial position, financial performance and cash
flows. &nbsp;SFAS 161 is effective in fiscal years beginning after November 15,
2008 and is required to be adopted by the Company in the first quarter of fiscal
year 2009. &nbsp;The Company does not expect the adoption of SFAS 161 will have
a material impact on the Company&#146;s disclosures. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In May
2008, the FASB issued Statement of Financial Accounting Standards No. 162,
<I>The Hierarchy </I>of <I>Generally Accepted Accounting Principles </I>(&#147;FAS
162"). This Standard identifies the sources of accounting principles and the
framework for selecting the principles to be used in the preparation of
financial statements of nongovernmental entities that are presented in
conformity with generally accepted </P>
<P style="MARGIN: 0px" align=justify><BR>&nbsp;</P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 12 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>2. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>accounting principles. FAS 162 directs the<I> </I>hierarchy to the
entity, rather than the independent auditors, as the entity is responsible for
selecting accounting principles for financial statements that are presented in
conformity with generally accepted accounting principles. The Standard is
effective 60 days following SEC approval of the Public Company Accounting
Oversight Board amendments to remove the hierarchy of generally accepted
accounting principles from the auditing standards. FAS 162 is not expected to
have an impact on the financial statements.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Recent Accounting Pronouncements (Continued)</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>In May 2008, the FASB
issued SFAS No. 163, Accounting for Financial Guarantee Insurance Contracts, an
interpretation of FASB Statement No. 60 (SFAS 163). &nbsp;This statement
clarifies accounting for financial guarantee insurance contracts by insurance
enterprises under FASB Statement No. 60, Accounting and Reporting by Insurance
Enterprises. &nbsp;SFAS 163 is effective beginning this interim period ended
March 31, 2009. Because the Company does not issue financial guarantee insurance
contracts, the adoption of this standard did not have an effect on its financial
position or results of operations.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
January 1, 2009, the Company adopted FASB Staff Position (FSP) FAS 142-3,
Determination of the Useful Life of Intangible Assets, which amends the factors
that should be considered in developing renewal or extension assumptions used to
determine the useful life of a recognized intangible asset under FASB Statement
No. 142, Goodwill and Other Intangible Assets. Application of this FSP is not
expected to have a significant impact on the financial statements</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
January 1, 2009, the Company adopted FSP EITF 03-6-1, Determining Whether
Instruments Granted Share-Based Payment Transactions are Participating
Securities. This FSP provides that unvested share-based payment awards that
contain nonforfeitable rights to dividends or dividend equivalents (whether paid
or unpaid) are participating securities and shall be included in the computation
of earnings per share pursuant to the two-class method. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>All
prior-period EPS data presented shall be adjusted retrospectively (including
interim financial statements, summaries of earnings, and selected financial
data) to conform with the provisions of this FSP. &nbsp;The adoption of EITP
03-6-1 did not have an impact on the Company as the Company does not currently
have any share-based awards that would qualify as participating securities.
Therefore, application of this FSP is not expected to have an effect on the
Company's financial reporting.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In
April 2008, the FASB issued EITF 07-05, Determining whether an Instrument (or
Embedded Feature) Is Indexed to an Entity's Own Stock, (EITF 07-05). &nbsp;EITF
07-05 provides guidance on determining what types of instruments or embedded
features in an instrument held by a reporting entity can be considered indexed
to its own stock for the purpose of evaluating the first criteria of the scope
exception in paragraph 11(a) of FAS 133. The Company adopted EITF 07-05 on
January 1, 2009, the adoption of EITF 070-05 is not expected to have an effect
on the Company&#146;s financial reporting.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>3. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>COMMITMENTS AND CONTINGENCIES</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company leases its office spaces and certain vehicles under non-cancelable
operating leases. &nbsp;The Worldwide office lease requires increasing annual
payments plus a share of operating costs. &nbsp;Minimum future rental payments
under non-cancelable operating leases with remaining terms in excess of one year
as of March 31, 2009, in the aggregate and for each of the five succeeding
fiscal years are as follows: </P>
<P style="MARGIN: 0px" align=justify><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 13 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=244></TD>
<TD width=15></TD>
<TD width=139></TD></TR>
<TR>
<TD vAlign=top width=244>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Year ended
December 31</P></TD>
<TD vAlign=top width=155 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=244>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2009</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=bottom width=139>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>201,096</P></TD></TR>
<TR>
<TD vAlign=top width=244>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2010</P></TD>
<TD vAlign=top width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=139>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>188,851</P></TD></TR>
<TR>
<TD vAlign=top width=244>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2011</P></TD>
<TD vAlign=top width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=139>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>152,512</P></TD></TR>
<TR>
<TD vAlign=top width=244>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2012</P></TD>
<TD vAlign=top width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=139>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>152,512</P></TD></TR>
<TR>
<TD vAlign=top width=244>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2013</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=139>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>150,120</P></TD></TR>
<TR>
<TD vAlign=top width=244>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=139>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&#12288;</P></TD></TR>
<TR>
<TD vAlign=top width=244>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total minimum
future rental payment</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=139>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>845,091</P></TD></TR>
<TR>
<TD vAlign=top width=244>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=139>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Total
rent and lease expense was $103,874 and $42,274 for the three months ended March
31, 2009 and 2008, respectively.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>4.</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>ACCOUNTS RECEIVABLE</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Accounts receivable by major categories are summarized as
follows:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=256></TD>
<TD width=15></TD>
<TD width=136></TD></TR>
<TR>
<TD vAlign=top width=256>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>March 31, 2009</P></TD></TR>
<TR>
<TD vAlign=top width=256>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=256>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Accounts
Receivable &#150; pledged to banks</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;$</P></TD>
<TD vAlign=bottom width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,424,576</P></TD></TR>
<TR>
<TD vAlign=top width=256>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Accounts
Receivable &#150; others</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>5,448,849</P></TD></TR>
<TR>
<TD vAlign=top width=256>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;8,873,425</P></TD></TR>
<TR>
<TD vAlign=top width=256>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Less:
allowances for doubtful accounts</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;272,430</P></TD></TR>
<TR>
<TD vAlign=top width=256>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;$</P></TD>
<TD style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 3px double"
vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;8,600,995</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify>Under
the terms of a revolving line of credit agreement with Bank of the West
indicated in note 11, the revolving line of credit is secured by 70% of accounts
receivable and all business assets of the company and guaranteed by its
officers. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Concentrations in Accounts Receivable - At March 31, 2009, three
customers accounted for more than 10% of the company's accounts receivables with
total amounts of $4,909,491 representing 45.5% of the total accounts receivables
in aggregate. At March 31, 2008, one customer accounted for more than 10% of the
Company&#146;s accounts receivable, with a total amount of $2,497,855, representing
52% of total accounts receivable in the aggregate.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt"><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</B><B>INVENTORIES</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Inventories by major categories are summarized as follows:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=333></TD>
<TD width=16></TD>
<TD width=24></TD>
<TD width=15></TD>
<TD width=136></TD></TR>
<TR>
<TD vAlign=top width=333>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>March 31, 2009</P></TD></TR>
<TR>
<TD vAlign=top width=333>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;</P></TD>
<TD vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=333>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Raw
materials</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;$</P></TD>
<TD vAlign=bottom width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;922,888</P></TD></TR>
<TR>
<TD vAlign=top width=333>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Work in
progress</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;490,492</P></TD></TR>
<TR>
<TD vAlign=top width=333>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Finished
goods</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2,336,054</P></TD></TR>
<TR>
<TD vAlign=top width=333>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Finished goods
&#150; Pledge to the bank (refer to note 11)</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>916,047</P></TD></TR>
<TR>
<TD vAlign=top width=333>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom width=136>
<P
style="PADDING-LEFT: 26px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;4,665,481</P></TD></TR>
<TR>
<TD vAlign=top width=333>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Less:
allowances for slowing moving items</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;-</P></TD></TR>
<TR>
<TD vAlign=top width=333>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total</P></TD>
<TD vAlign=top width=16>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=136>
<P
style="PADDING-LEFT: 26px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;4,665,481</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 14 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px">&nbsp;</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=333></TD>
<TD width=16></TD>
<TD width=24></TD>
<TD width=15></TD>
<TD width=136></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt"
align=justify><B>6. </B></P>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 23px; LINE-HEIGHT: 13pt"
align=justify><B>PROPERTY AND EQUIPMENT </B></P>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; LINE-HEIGHT: 13pt"
align=justify>Property and equipment, which is located in the USA and PRC,
consisted of the following at March 31, 2009: </P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=252></TD>
<TD width=24></TD>
<TD width=100></TD>
<TD width=15></TD>
<TD width=136></TD></TR>
<TR>
<TD vAlign=top width=252>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>March 31, 2009</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Vehicles</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;$</P></TD>
<TD width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>381,404</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Furniture &amp; fixtures</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>196,152</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Equipment</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,701,081</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Software</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>37,252</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Others</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>38,429</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Leasehold improvements</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;229,126</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD width=136>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Less: accumulated depreciation</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(985,546)</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD width=136>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Construction in progress</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="MARGIN: 0px"><BR></P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>431,980</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P>&nbsp;</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD width=136>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=252>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Total</P></TD>
<TD vAlign=top width=24>
<P>&nbsp;</P></TD>
<TD vAlign=top width=100>
<P>&nbsp;</P></TD>
<TD vAlign=top width=15>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" width=136>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2,029,878</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt"
align=justify><B>7. </B></P>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 23px; LINE-HEIGHT: 13pt"
align=justify><B>INTANGIBLE ASSET </B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -1064px; LINE-HEIGHT: 14pt"
align=justify>The &nbsp;1,101,000 or $3.67 per share. The &#147;AMERISOLAR&#148; modules
are backed by ISO 9001:2000 and ISO 14000 environmental quality </P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>The intangible asset of $1,101,000 represents the brand name of
&#147;Amerisolar&#148; and the Company acquired this brand name by the issuance of 300,000
restricted shares at $3.67 per share. The "AMERISOLAR" modules are backed by ISO
9001:2000 and ISO 14000 environmental quality certifications. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>The brand name is carried at cost and is not being amortized. If
an intangible asset has an indefinite useful life it is not amortized. The
useful life of an intangible asset is the period over which the asset is
expected to contribute directly or indirectly to the future cash flows of the
Company. If no legal, regulatory, contractual, competitive, economic or other
factors limit the useful life of the asset it shall be considered to be
indefinite. &nbsp;In recording of the brand name is was determined that the
expected useful life is indefinite and cash flows from the brand name are
expected to contribute to the Company over an indefinite period of time.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>8. &nbsp;</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>DEPOSITS PAID FOR INVESTMENT </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On June
24, 2008, the Company paid $51,876 for an investment in Tomii International. The
$51,876 gave Worldwide a 21% interest in Tomii International, which is
developing a pocket translation device for Chinese and English.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
February 1, 2009, the Company paid $1,500,000 as deposits for the incorporation
of the subsidiaries of Nantong Ningbo Solar factory located in China for the
purpose of registered capital and working capital. &nbsp;The money will be used
to purchase the land and to build a new facility.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>9. &nbsp;</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>INVESTMENT </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>On March 20, 2009 the
Company exchanged 8,000 shares at $2.00 for one investment unit in JK Advisors
Fund, LLC (&#147;JK&#148;) which is a partnership with approximately $1,250,000 in assets.
Management of the Company has reviewed the investment in JK for impairment and
determined there is no indication that the carrying amount of JK may not be
recoverable.</P>
<P style="MARGIN: 0px" align=justify><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 15 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>10. &nbsp;</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>GOODWILL </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited (&#147;De Hong&#148;) through acquiring 55% of the
outstanding capital stock of De Hong, a China corporation, through Worldwide&#146;s
wholly owned subsidiary Intech Electro- Mechanical Products Co., Ltd., a Chinese
corporation (&#147;Intech&#148;). The Company funded the acquisition with the sale of
1,055,103 shares of its common stock, or $4,747,970. The sale of stock took
place on June 23, 2008. &nbsp;Shanghai De Hong Electric and Electronic Company
is the holding company for the operating subsidiary Shanghai Intech -Detron
Electronic Co. (&#147;Detron&#148;). Therefore, Worldwide received 55% control of the
operating subsidiary Shanghai Intech-Detron Electric and Electronic Company
Limited (&#147;Detron&#148;). Detron is a power supply factory in Shanghai, China with
designing and R &amp; D. The terms of Agreement dated February 3, 2008 was that
Worldwide USA paid cash consideration of approximately 1 million dollars for 55%
interest in DeHong. Intech paid the first installment of $714,286 on behalf of
Worldwide in September, 2008. During the three months ended March 31, 2009,
Worldwide paid back $714,286 to Intech and further paid $308,414 for the second
installment and the total consideration of the investment is $1,022,700. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company recorded the difference between the net tangible assets of Detron
$729,421 less the purchase price of $1,022,700 of $293,279 as goodwill.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=480></TD>
<TD width=16></TD>
<TD width=128></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Cash</P></TD>
<TD vAlign=bottom width=16>
<P style="MARGIN: 0px; FONT-FAMILY: Arial" align=center>$</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;411,316
</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Accounts Receivable</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,929,314
</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Note receivable</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;226,877
</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Inventories</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;774,295
</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Advances to suppliers</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21,703
</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Prepaid and other current assets</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;231,967
</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Property, plant and equipment, net</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158,520
</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Other assets</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,494
</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Goodwill</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>293,279</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Trade payables</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(962,839)</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Accrued expenses</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(422,943)</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Income taxes payable</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29,717)</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Related parties payable</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,015,773)</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>45% Minority Interest</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(596,793)</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=128>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD></TR>
<TR>
<TD vAlign=bottom width=480>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>55% Net assets acquired</P></TD>
<TD vAlign=bottom width=16>
<P style="MARGIN: 0px; FONT-FAMILY: Arial" align=center>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=128>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,022,700
</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=center><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 16 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>11. &nbsp;</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>BANK LOANS </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify>As of
March 31, 2009, the Company has the following lines of credit:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=128></TD>
<TD width=16></TD>
<TD width=96></TD>
<TD width=88></TD>
<TD width=96></TD>
<TD width=112></TD>
<TD width=16></TD>
<TD width=88></TD></TR>
<TR>
<TD vAlign=top width=128>
<P style="PADDING-LEFT: 0px; MARGIN: 0px; TEXT-INDENT: -7px">&nbsp;&nbsp;Banker</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P style="MARGIN: 0px" align=right>Amount of the credit line</P></TD>
<TD vAlign=top width=88>
<P style="MARGIN: 0px" align=right>Loan period</P></TD>
<TD vAlign=top width=96>
<P style="MARGIN: 0px" align=right>Interest rate</P></TD>
<TD vAlign=top width=112>
<P style="MARGIN: 0px" align=right>Secured by</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=88>
<P style="MARGIN: 0px" align=right>&nbsp;Balance as of </P>
<P style="MARGIN: 0px" align=right>&nbsp;March 31, 2009</P></TD></TR>
<TR>
<TD vAlign=top width=128>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=88>
<P>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=112>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD>
<TD vAlign=top width=88>
<P style="MARGIN: 0px" align=right><B></B>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=128>
<P style="PADDING-LEFT: 0px; MARGIN: 0px; TEXT-INDENT: -7px">&nbsp;&nbsp;Bank of the
West</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;$</P></TD>
<TD vAlign=top width=96>
<P style="MARGIN: 0px" align=right>$1,300,000</P></TD>
<TD vAlign=top width=88>
<P style="MARGIN: 0px" align=right>5/20/2009-</P>
<P style="MARGIN: 0px" align=right>5/20/2010</P></TD>
<TD vAlign=top width=96>
<P style="MARGIN: 0px" align=right>WallStreet Journal prime + 0.5%</P></TD>
<TD vAlign=top width=112>
<P style="MARGIN: 0px" align=right>70% Accounts receivable + 50%
inventory</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;$</P></TD>
<TD vAlign=top width=88>
<P style="MARGIN: 0px" align=right>&nbsp;</P>
<P style="MARGIN: 0px" align=right>&nbsp;</P>
<P style="MARGIN: 0px" align=right>&nbsp;1,300,000</P></TD></TR>
<TR>
<TD vAlign=top width=128>
<P style="PADDING-LEFT: 0px; MARGIN: 0px; TEXT-INDENT: -7px">&nbsp;&nbsp;Bank of the
West</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;$</P></TD>
<TD vAlign=top width=96>
<P style="MARGIN: 0px" align=right>$1,025,000</P></TD>
<TD vAlign=top width=88>
<P style="MARGIN: 0px" align=right>5/20/2008</P>
<P style="MARGIN: 0px" align=right>-6/1/2011</P></TD>
<TD vAlign=top width=96>
<P style="MARGIN: 0px" align=right>WallStreet Journal prime + 0.5%</P></TD>
<TD vAlign=top width=112>
<P style="MARGIN: 0px" align=right>70% Accounts receivable + 50%
inventory</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;$</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=88>
<P style="MARGIN: 0px" align=right>&nbsp;</P>
<P style="MARGIN: 0px" align=right>&nbsp;</P>
<P style="MARGIN: 0px" align=right>&nbsp;877,869</P></TD></TR>
<TR>
<TD vAlign=top width=128>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=88>
<P>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=112>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD>
<TD vAlign=top width=88>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=128>
<P style="PADDING-LEFT: 0px; MARGIN: 0px; TEXT-INDENT: -7px">&nbsp;&nbsp;Total
loans</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=88>
<P>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=112>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;$</P></TD>
<TD vAlign=top width=88>
<P style="MARGIN: 0px" align=right>&nbsp;2,177,868</P></TD></TR>
<TR>
<TD vAlign=top width=240 colSpan=3>
<P style="MARGIN: 0px" align=justify>Less : long term portion</P></TD>
<TD vAlign=top width=88>
<P>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=112>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=88>
<P style="MARGIN: 0px" align=right>&nbsp;(877,869)</P></TD></TR>
<TR>
<TD vAlign=top width=128>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=88>
<P>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=112>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="MARGIN: 0px" align=right>&nbsp;$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=88>
<P style="MARGIN: 0px" align=right>&nbsp;1,300,000</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">For maturities of
long-term loans are as follows as of March 31, 2009:</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=112></TD>
<TD width=16></TD>
<TD width=96></TD>
<TD width=88></TD>
<TD width=16></TD>
<TD width=96></TD></TR>
<TR>
<TD vAlign=top width=112>
<P
style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -7px; LINE-HEIGHT: 13pt"
align=center>June 1, 2011</P></TD>
<TD vAlign=top width=16>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=88>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=96>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;877,869</P></TD></TR>
<TR>
<TD vAlign=top width=112>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top width=96>
<P>&nbsp;</P></TD>
<TD vAlign=top width=88>
<P>&nbsp;</P></TD>
<TD vAlign=top width=16>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=96>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;877,869</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>On May 20, 2008 the
Company paid off its line of credit with Well Fargo in the amount of $960,000
and established a new credit facility with Bank of the West. Under the terms of
the revolving line of credit agreement with Bank of the West dated May 20, 2008,
the Company could borrow up to $3,025,000 at a rate of 5%. This rate is subject
to change based on the prime rate for both credit lines. The revolving line of
credit is secured by the assets of the Company and guaranteed by its
officers.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>The Company can borrow up
to $2,000,000 and $1,025,000 under the two credit lines. The maturity dates of
these two credit lines are May 20, 2010 and June 1, 2011, respectively. The
balance outstanding on the first line as of March 31, 2009 is $1,300,000 and
$700,000 is still available for used on the line of credit. The second line of
credit has a balance of $877,869 as of March 31, 2009 resulting in $147,131
available for use of equipment and facility purchases.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt; FONT-FAMILY: TimesNewRomanPSMT-Identity-H"><B>12.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"><B>STOCK
TRANSACTIONS</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"
align=justify>On March 6, 2009, the Company issued 120,000 shares of its common
stock to consultants, valued at $187,200, as part of their compensation for the
consulting services. The Company amortized the consultancy fee of $187,200 over
the 12-month term of the agreement from January 1, 2009 to December 31, 2009.
The expense is $15,600 for each month and total stock-based compensation expense
would have been $46,800 for the quarter ended March 31, 2009. However, on
January 2, 2009, one of the consultants returned 4,000 shares to the Company for
the work that he did not perform, valued at $14,680 or $3.67 per share, so the
total for the quarter was $32,120. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt" align=justify><BR></P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"
align=justify>On March 20, 2009, the Company issued 8,000 shares of its common
stock in exchange for one unit investment of JK Advisors Fund LLC, of which
1,000 shares were paid to the broker arranging the sale and the remainder was
distributed to the members of the fund.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt" align=justify><BR></P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"
align=justify>The total number of shares of common stock outstanding as of March
31, 2009 was 3,617,512.</P>
<P style="MARGIN: 0px" align=center><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 17 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>13.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>PENSION
PLAN AND STOCK OPTION PLAN </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company established a SEP plan for the benefit of all full-time employees.
&nbsp;Contributions to the plan are limited to a statutory amount per employee.
&nbsp;No contributions were made for 2005 or 2006. &nbsp;The Company also
established a stock option plan for its employees on April 1, 2004. &nbsp;The
Company approved the plan to issue up to 300,000 shares of common stock.
&nbsp;The stock option plan provides employees, consultants and directors the
opportunity to purchase shares. &nbsp;The exercise price of an incentive stock
option granted under this plan must be equal to or greater than the fair market
value of the shares of the Company&#146;s common stock on the date the option is
granted. &nbsp;The exercise price of a non-qualified option granted under this
plan must be equal to or greater than 85% of the fair market value of the shares
of the common stock on the date the option is granted. &nbsp;An incentive stock
option granted to an optionee owning more than 10% of the voting stock must have
an exercise price equal to or greater than 110% of the fair market value of our
common stock on the date the option is granted. On April 1, 2004, the Board
granted options to purchase 109,213 shares at an exercise price of $6.00 per
share. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>14. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>RELATED PARTY TRANSACTIONS </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The Company paid
wages in the amount of $90,000 and $80,320 to certain stockholders, who are also
members of the Board of Directors, as of March 31, 2009 and 2008 respectively.
</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As of
March 31, 2009 the Company has no outstanding loan balance or accrued interest
between Jimmy and Mindy Wang, who are principal stockholders, executive officers
and members of the Board of Directors of the Company. &nbsp;At March 31, 2008,
the Company owed Jimmy and Mindy Wang $ 1,195,766 which consisted of funds
provided for working capital for the Company. &nbsp;The advances are interest
bearing at 8% per annum, with a default interest rate of 10%. &nbsp;The Company
paid cash in the amount of $17,446 for interest expense to Mr. and Mrs. Wang for
the three months ended March 31, 2008 and no cash to such persons in the quarter
ending March 31, 2009. </P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>15. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>OPERATING RISK</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify>Interest rate risk</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
interest rates and terms of repayment to the bank are disclosed in Note 11.
Other financial assets and liabilities do not have material interest rate risk.
</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify>Credit risk</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company is exposed to credit risk from its cash in bank and bills and accounts
receivable. &nbsp;The credit risk on cash in bank is limited because the
counterparties are recognized financial institutions. &nbsp;Bills and accounts
receivable are subjected to credit evaluations. &nbsp;An allowance has been made
for estimated irrecoverable amounts which have been determined by reference to
past default experience and the current economic environment. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=center><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 18 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>15. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>OPERATING RISK&nbsp;(CONTINUED)</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Foreign
currency risk</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Most of
the transactions of the Company were settled in Euros, Renminbi, and U.S.
dollars. &nbsp;Thus, the company has significant foreign currency risk exposure.
</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Substantially all of the Company&#146;s products are manufactured in
China. The Company&#146;s operations are subject to various political, economic, and
other risks and uncertainties inherent in China. Among other risks, the
Company&#146;s operations are subject to the risks of restrictions on transfer of
funds; export duties, quotas, and embargoes; domestic and international customs
and tariffs; changing taxation policies; foreign exchange restrictions; and
political conditions and governmental regulations</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 2px; MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>16.
</B></P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SEGMENT
INFORMATION </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company&#146;s operations are classified into seven principal reportable segments
that provide different products or services. &nbsp;Worldwide USA purchases and
sells manufactured goods from China procured by its subsidiary, Shanghai Intech
Electro-Mechanical Products Co., Ltd. (&#147;Intech Electro&#148;). &nbsp;Intech Electro
provides technical advisory, design, delivery, material procurement, and
manufacturing quality control services. &nbsp;Separate management of each
segment is required because each business unit is subject to different
marketing, production, and technology strategies, and because of the geographic
location of each entity. <A name=FIS_UNIDENTIFIED_TABLE_7></A>Shutai Precision
sells die cast parts. Intech Detron is a power supply factory in Shanghai, China
with designing and R &amp; D capabilities. &nbsp;Worldwide's Ningbo (&#147;WM
Ningbo&#148;) manufactures and sells solar modules.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Segmental
Data &#150; 2009</B></P>
<P style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>Reportable Segments</B></P>
<P
style="PADDING-RIGHT: 96px; PADDING-LEFT: 14px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt">(Amounts
in thousands)</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=140></TD>
<TD width=90></TD>
<TD width=5></TD>
<TD width=73></TD>
<TD width=8></TD>
<TD width=52></TD>
<TD width=5></TD>
<TD width=64></TD>
<TD width=5></TD>
<TD width=58></TD>
<TD width=5></TD>
<TD width=52></TD>
<TD width=8></TD>
<TD width=56></TD>
<TD width=8></TD>
<TD width=56></TD>
<TD width=26></TD></TR>
<TR>
<TD width=140>
<P>&nbsp;</P></TD>
<TD width=90>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>WWMUSA</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Manufacturing</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=73>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>WWMUSA</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Solar</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Intech<BR>Electro</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Intech<BR>Precision</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Shutai</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Precision</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Intech<BR>Detron</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD vAlign=top width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>WM<BR>Ningbo</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Total</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=140>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">External
revenue</P></TD>
<TD vAlign=bottom width=90>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1,781</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>6,412</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>47</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>260</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>218</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1,087</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=top width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>477</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>10,282</P></TD>
<TD vAlign=bottom width=26>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=140>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Intersegment
revenue</P></TD>
<TD vAlign=bottom width=90>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1,215</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>170</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=top width=56>
<P>&nbsp;</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1,385</P></TD>
<TD vAlign=bottom width=26>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=140>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Interest
income</P></TD>
<TD vAlign=bottom width=90>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>8</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>3</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>11</P></TD>
<TD vAlign=bottom width=26>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=140>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Interest
expense</P></TD>
<TD vAlign=bottom width=90>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=26>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=140>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Depreciation</P></TD>
<TD vAlign=bottom width=90>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(2)</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(21)</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(8)</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(1)</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(13)</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(28)</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(73)</P></TD>
<TD vAlign=bottom width=26>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=140>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net (loss)
profit after tax</P></TD>
<TD vAlign=bottom width=90>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>338</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>166</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(35)</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(33)</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>31</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(24)</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>443</P></TD>
<TD vAlign=bottom width=26>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>(1)</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=140>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=90>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=64>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=58>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P>&nbsp;</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=26>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=140>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Expenditures
for long-lived assets</P></TD>
<TD vAlign=bottom width=90>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>12</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1</P></TD>
<TD vAlign=bottom width=5>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=52>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>11</P></TD>
<TD vAlign=bottom width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>733</P></TD>
<TD vAlign=top width=8>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>760</P></TD>
<TD vAlign=bottom width=26>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"><B>(1)</B>
No inter-company profit was eliminated in consolidation.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt"><BR></P>
<P style="MARGIN: 0px" align=justify><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 19 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Segmental
Data &#150; 2008</B></P>
<P style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>Reportable Segments</B></P>
<P
style="PADDING-RIGHT: 96px; PADDING-LEFT: 14px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt">(Amounts
in thousands)</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=200></TD>
<TD width=80></TD>
<TD width=8></TD>
<TD width=64></TD>
<TD width=5></TD>
<TD width=64></TD>
<TD width=5></TD>
<TD width=58></TD>
<TD width=5></TD>
<TD width=82></TD>
<TD width=8></TD>
<TD width=56></TD>
<TD width=19></TD></TR>
<TR>
<TD width=200>
<P>&nbsp;</P></TD>
<TD width=80>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>WWMUSA</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Intech<BR>Electro</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Intech<BR>Precision</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Shutai</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Precision</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Discontinued Operations</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Total</P></TD>
<TD vAlign=top width=19>
<P>&nbsp;</P></TD></TR>
<TR>
<TD width=200>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">External
revenue</P></TD>
<TD width=80>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>4,391</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>114</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>872</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>14</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>13</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>5,404</P></TD>
<TD vAlign=top width=19>
<P>&nbsp;</P></TD></TR>
<TR>
<TD width=200>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Intersegment
revenue</P></TD>
<TD width=80>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1,152</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1,152</P></TD>
<TD vAlign=top width=19>
<P>&nbsp;</P></TD></TR>
<TR>
<TD width=200>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Interest
income</P></TD>
<TD width=80>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>1</P></TD>
<TD vAlign=top width=19>
<P>&nbsp;</P></TD></TR>
<TR>
<TD width=200>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Interest
expense</P></TD>
<TD width=80>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(30)</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(5)</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(35)</P></TD>
<TD vAlign=top width=19>
<P>&nbsp;</P></TD></TR>
<TR>
<TD width=200>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Depreciation</P></TD>
<TD width=80>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(4)</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(4)</P></TD>
<TD vAlign=top width=19>
<P>&nbsp;</P></TD></TR>
<TR>
<TD width=200>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net profit
after tax</P></TD>
<TD width=80>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>175</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>34</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>19</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(7)</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>9</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>230</P></TD>
<TD vAlign=top width=19>
<P style="MARGIN: 0px; LINE-HEIGHT: normal" align=center><B>(1</B><FONT
style="FONT-SIZE: 11pt"><B>)</B></FONT></P></TD></TR>
<TR>
<TD width=200>
<P>&nbsp;</P></TD>
<TD width=80>
<P>&nbsp;</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P>&nbsp;</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P>&nbsp;</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=58>
<P>&nbsp;</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD vAlign=top width=82>
<P>&nbsp;</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P>&nbsp;</P></TD>
<TD vAlign=top width=19>
<P>&nbsp;</P></TD></TR>
<TR>
<TD width=200>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Expenditures
for long-lived assets</P></TD>
<TD width=80>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>6</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>12</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD vAlign=top width=5>
<P>&nbsp;</P></TD>
<TD width=58>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>9</P></TD>
<TD width=5>
<P>&nbsp;</P></TD>
<TD width=82>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>-</P></TD>
<TD width=8>
<P>&nbsp;</P></TD>
<TD width=56>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>27</P></TD>
<TD vAlign=top width=19>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"><B>(1)</B>
$(16,555) in inter-company profit was eliminated in consolidation.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 20 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -96px; LINE-HEIGHT: 13pt"><B>ITEM
&nbsp;2.</B></P>
<P
style="PADDING-LEFT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>MANAGEMENT&#146;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">DISCLAIMER REGARDING
FORWARD LOOKING STATEMENTS</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Certain statements in
this Form 10-Q, which are not statements of historical fact, are what are known
as "forward-looking statements," which are basically statements about the
future. For that reason, these statements involve risk and uncertainty since no
one can accurately predict the future. Words such as "plans," "intends,"
"hopes," "seeks," "anticipates," "expects," and the like, often identify such
forward looking statements, but are not the only indication that a statement is
a forward-looking statement. Such forward-looking statements include statements
concerning our plans and objectives with respect to our present and future
operations, and statements which express or imply that such present and future
operations will or may produce revenues, income or profits. These and other
factors may cause our actual results to differ materially from any
forward-looking statement. &nbsp;We caution you not to place undue reliance on
these forward-looking statements. &nbsp;Although we base these forward-looking
statements on our expectations, assumptions, and projections about future
events, actual events and results may differ materially, and our expectations,
assumptions, and projections may prove to be inaccurate. The forward-looking
statements speak only as of the date hereof, and we expressly disclaim any
obligation to publicly release the results of any revisions to these
forward-looking statements to reflect events or circumstances after the date of
this filing. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Overview</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Worldwide Energy and Manufacturing USA, Inc. (&#147;Worldwide&#148; or &#147;the
Company&#148;) is a manufacturing engineering firm and international contract
manufacturer, using factories in China, primarily supplying customers in Europe
and South Korea with respect to our solar modules and United States-based
companies that outsource their smaller scale production orders for offshore
production in China. From our inception in 1993 until 2005, we were strictly an
intermediary or &#147;middle man,&#148; working with our customers and our subcontractors
to assure that our customers received high quality components on a timely basis
that fulfilled their specific needs. While we still subcontract a significant
portion of our business, since 2005, we have begun the transition to becoming a
direct contract manufacturer, operating several of our own factories.
&nbsp;Recently, we announced two additional factories allowing us to become a
direct manufacturer for solar modules and for power supply units as described
below:</P>
<P style="MARGIN-TOP: 7px; MARGIN-BOTTOM: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited (&#147;De Hong&#148;) through acquiring 55% of the
outstanding capital stock of De Hong, a China corporation, through Worldwide&#146;s
wholly owned subsidiary Intech Electro- Mechanical Products Co., Ltd., a Chinese
corporation (&#147;Intech&#148;). The Company funded the acquisition with the sale of
1,055,103 shares of its common stock, or $4,747,970. The sale of stock took
place on June 23, 2008. &nbsp;Shanghai De Hong Electric and Electronic Company
is the holding company for the operating subsidiary Shanghai Intech -Detron
Electronic Co. (&#147;Detron&#148;). Therefore, Worldwide received 55% control of the
operating subsidiary Shanghai Intech-Detron Electric and Electronic Company
Limited (&#147;Detron&#148;). Detron is a power supply factory in Shanghai, China with
designing and R &amp; D. The terms of Agreement dated February 3, 2008 was that
Worldwide USA paid cash consideration of approximately 1 million dollars for 55%
interest in DeHong. Intech paid the first installment of $714,286 on behalf of
Worldwide in September, 2008. During the three months ended March 31, 2009,
Worldwide paid back $714,286 to Intech and further paid $308,414 for the second
installment and the total consideration of the investment is $1,022,700.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
August 15, 2008, the Company formed a new company called Nantong Ningbo Solar
factory (&#147;Ningbo Solar&#148;), which is the solar energy research and development
manufacturer. The Company established a </P>
<P style="MARGIN: 0px" align=justify><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 21 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>factory
to provide installation services to different solar projects. The Company also
acts as agent to import or export the products and services overseas.</P>
<P style="MARGIN-TOP: 7px; MARGIN-BOTTOM: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">On November 10, 2008
the Company announced the establishment of a new solar module production and
R&amp;D facility. We leased a 128,000-square-foot facility in Ningbo, China.
This facility will house the Company&#146;s research center and part of its
photovoltaic (PV) manufacturing operations.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 7px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt">The
city of Ningbo is about two hours and 15 minutes away from downtown Shanghai.
The capacity of the factory is 60 to 80 megawatts per year. Based on current
market prices for solar modules 60 to 80 megawatts equates to approximately
US$225 million to $300 million in potential revenues per year.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Despite these
additions and enlarging our capability as a direct manufacturer for several
products lines we are still constrained in our growth for a number of reasons.
Many Fortune 500 and other large companies either cannot, or choose not, to work
with contract manufacturers preferring to go directly to the source that can
manufacture the product and thereby avoid the additional expense of the
middleman. This is particularly true for very large orders, where the added cost
of the middleman can have a material impact on the customers&#146; bottom line. As a
result, our revenues have for the most part, but not entirely, been limited to
smaller scale production orders primarily (but not entirely) placed by companies
that are not among the largest companies in the United States or elsewhere.
Additionally, as a middleman we must share any potential gross profit with the
subcontracting factory. Therefore, our customers are generally smaller, the
orders they place are generally smaller and the income and profit we can
generate from those orders is of necessity limited because we are not directly
manufacturing the products. On the other hand, when we subcontract the actual
manufacturing of our customers&#146; products and components, we do not need to hire
factory employees, purchase materials, purchase and maintain manufacturing
equipment or incur the costs of the manufacturing facilities. To some extent,
these costs are built into the price charged by our subcontractors, but if we do
not place orders, we do not incur those costs. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Our management has
carefully considered these factors and during 2004 made the strategic decision
to move our company away from our historical complete reliance on
subcontractors. At the beginning of 2005 we did not own any of our own factories
and used as our suppliers of materials and labor approximately 100 factories in
China, mostly in Shanghai or the surrounding area. Since 2005 we have acquired
an electronics factory, a die-casting and machining factory through leasing an
existing facility from a former vendor and initially invested approximately
$500,000 to upgrade the equipment and manufacturing buildings, a recently
announced power supply company with designing and R &amp; D capabilities and a
solar module factory on November 10, 2008. &nbsp;In these transactions we
acquired assets, the expertise of the employees, the managers of the factories,
and a portion of the existing customers of those factories with the exception of
the solar module factory which we established on our own. As a result, as of
November 10, 2008, we own and operate four factories that we now use for the
manufacture of certain product lines that we historically had to subcontract,
and we are using the services of approximately 40 subcontractors to manufacture
those product lines for which we do not have our own manufacturing
capabilities.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The establishment of
these factories, including asset purchases and factory upgrades, was funded by
three separate sources. The earlier acquisitions of the die cast and electronic
factory primarily was financed by loans from Jimmy and Mindy Wang, our principal
stockholders and executive officers, as well as increased lines of credit. Our
credit line increased to $3,025,000 with Bank of the West from a $2,250,000 line
with Wells Fargo. &nbsp;The power supply company and the establishment of the
new solar module factory were funded by two equity transactions dated June 23
and July 24, 2008 where the company raised approximately $5 million dollars and
netted approximately $4,600,000 after fees and costs. In the future, we expect
to continue to acquire or newly-establish factories that will give us the
capability to manufacture those product lines our management believes are the
most profitable. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 22 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">With the continuing
transition into direct manufacturing and the renewable energy field, we expect
to continue to increase sales outside the United States, and in particular,
increase the number of customers in PRC, other Asian markets and Europe. Our
costs to establish and improve these factories will increase along with sales
and profits.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Through the
development of our product mix, which consists of solar modules, foundry,
machining and stamping, electronics and fiber optics products lines, our
business has become more diverse. In the past, foundry and machining and
stamping accounted for more than 90% of our business. This percentage has
decreased since forming our own factories along with our new energy division
which now represents approximately 62% of our business and we expect this
percentage to continue to increase in the foreseeable future.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><FONT
style="BACKGROUND-COLOR: #ffffff">Generally, our operating results have been,
and will continue to be, affected by a number of factors, including the
following: </FONT></P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=64></TD>
<TD width=25></TD>
<TD width=524></TD></TR>
<TR>
<TD vAlign=top width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=25>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&#149;&nbsp;</P></TD>
<TD vAlign=top width=524>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">our customers
may cancel or delay orders or change production quantities;</P></TD></TR>
<TR>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD width=25>
<P>&nbsp;</P></TD>
<TD width=524>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=25>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&#149;&nbsp;</P></TD>
<TD vAlign=top width=524>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">our operating
results vary significantly from period to period due to the mix of the
manufacturing services we are providing, the number and size of new
manufacturing programs, the degree to which we utilize our manufacturing
capacity, seasonal demand, shortages of components and other
factors;</P></TD></TR>
<TR>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD width=25>
<P>&nbsp;</P></TD>
<TD width=524>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=25>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&#149;&nbsp;</P></TD>
<TD vAlign=top width=524>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">integration of
acquired businesses and facilities;&nbsp;and</P></TD></TR>
<TR>
<TD width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD width=25>
<P>&nbsp;</P></TD>
<TD width=524>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=64>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=top width=25>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&#149;&nbsp;</P></TD>
<TD vAlign=top width=524>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">managing growth
and changes in our operations.</P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 7px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"><FONT
style="BACKGROUND-COLOR: #ffffff">We also are subject to other risks, including
risks associated with operating in foreign countries, changes in our tax rates,
and fluctuations in currency exchange rates. </FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Results of
Operations</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net sales for the
three months ending March 31, 2009 were $10,281,867 compared to net sales of
$5,404,083 for the same period in 2008. This increase of $4,877,784 or
approximately 90.3% was the result of an increase in orders in our energy
division and the recent acquisition of Detron. Solar orders for quarter ending
March 31, 2009 were $6,412,210 compared to $2,505,977 in the same period in
2008. This represents an increase of $3,906,233 or approximately 155.9%.
Additionally, the recent acquisition of Detron resulted in an increase in
revenues of approximately $1,087,000. The Company will continue to focus on the
expansion of its energy division by the continued development of its newly
established solar factory in Ningbo, China as well as the continued quality
enhancements of its solar module brand, "Amerisolar".</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Gross profit
increased by $734,542, or approximately 63.0% from $1,165,050 in the quarter
ending March 31, 2008 to $1,899,592 for the three months ending March 31, 2009,
&nbsp;primarily reflecting &nbsp;solar module sales in the energy division </P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><BR>Cost of goods
sold for the three months ended March 31, 2009 was $8,382,275 compared to
$4,239,033 for the same period in 2008. &nbsp;The increase of $4,143,242 or
approximately 97.7% was the result of greater revenues in the energy division.
</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The gross margin was
18.5% for the three months ending March 31, 2009 compared to 21.6% in the same
period in 2008. The declined of 3.1% in gross margin was the result of the
Company utilizing more sub-contractors for production of our solar modules along
with softness in the price of solar modules. &nbsp;&nbsp;It is expected that
gross margins will improve as the Company continues its transition of becoming a
direct </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 23 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">manufacturer for its
solar module products as the newly established factory becomes operational.
Further, the outlook for solar modules margins look to improve as raw material
necessary for production of modules are expected to decline and margins to
increase.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">In the period ending
March 31, 2009 there was stock based compensation of $32,120 compared to the
non-cash deduction of $110,000 for stock based compensation in 2008. Further the
Company had depreciation expense of $73,176 in the period ending March 31, 2009
compared to $3,972 in the same period of 2008, due to the greater amount of
depreciable assets owned by the Company. </P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net income before
taxes for the three months ending March 31, 2009 was $506,857 compared to a net
income before taxes of $218,923 in the same quarter of 2008. The increase of
$287,934 or approximately 131.5% was largely the result of the increased sales
of our solar modules. Net income after tax was $443,154 for the three months
ending March 31, 2009 compared to a net income after tax of $230,327 in the same
quarter of 2008. The increase of $212,827 or approximately 92.4% was also due to
the increased sales of our solar modules.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">General and
administration expenses for the three months ended March 31, 2009, totaled
$1,213,383 compared to $701,085 in the same quarter in 2008. The increase of
$512,298 or approximately 73.1% was due to the establishment of our solar module
factory and recent expenses associated with the acquisition of Detron.</P>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; LINE-HEIGHT: 13pt">LIQUIDITY</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
following is a summary of Worldwide&#146;s cash flows from operating, investing, and
financing activities during the periods indicated: </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=337></TD>
<TD width=120></TD>
<TD width=113></TD></TR>
<TR>
<TD vAlign=top width=337>
<P style="MARGIN: 0px" align=justify><BR></P></TD>
<TD vAlign=top width=233 colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>Three months ended March 31,</P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=120>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2009</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=113>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2008</P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P>&nbsp;</P></TD>
<TD vAlign=top width=120>
<P>&nbsp;</P></TD>
<TD vAlign=top width=113>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash at
Beginning of Period</P></TD>
<TD vAlign=top width=120>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$5,092,476 </P></TD>
<TD vAlign=top width=113>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$2,111,825 </P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Operating
activities (used)</P></TD>
<TD vAlign=top width=120>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$(1,888,174) </P></TD>
<TD vAlign=top width=113>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(1,059,897) </P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Investing
activities(Used)</P></TD>
<TD vAlign=top width=120>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$(885,708)</P></TD>
<TD vAlign=top width=113>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$(93,237)</P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Financing
activities</P></TD>
<TD vAlign=top width=120>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$1,180,770 </P></TD>
<TD vAlign=top width=113>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$1,489,108 </P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net effect on
cash</P></TD>
<TD vAlign=top width=120>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$21,035 </P></TD>
<TD vAlign=top width=113>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$55,331 </P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash at End of
Period</P></TD>
<TD vAlign=top width=120>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$3,520,399 </P></TD>
<TD vAlign=top width=113>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$2,503,130 </P></TD></TR>
<TR>
<TD vAlign=top width=337>
<P>&nbsp;</P></TD>
<TD vAlign=top width=120>
<P>&nbsp;</P></TD>
<TD vAlign=top width=113>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company funded its growth largely from its proceeds of $4,747,970 from the sale
on June 23, 2008 of 1,055,103 shares of its common stock, and from additional
sale of $252,027 or 56,007 shares of common stock later in 2008. &nbsp;This was
used to help fund these new acquisitions and to provide additional working
capital for the Company. The Company netted $4,608,036 from the sales of these
securities.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In 2008
our credit line was increased&nbsp;by approximately $775,000&nbsp;from a line of
credit in the amount of $2.25 million with Golden Gate Bank to $3.025 million,
as a result of securing two new credit lines with Bank of the West, one for
$1,025,000 and the other for $2,000,000. The credit line with Golden Gate Bank
was subsequently closed. These revolving lines of credit are secured by the
assets of the Company and guaranteed by its officers. The maturity date of these
two credit lines is May 20, 2010 and June 1, 2011, respectively. The balance
outstanding as of March 31, 2009 is $1,300,000, and $700,000 is still available
for use on the line of credit. Additionally, the second line of credit has a
balance of $877,869 as of March 31, 2009, with $147,131 still available for use
of equipment and facility purchases.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 24 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">In addition the
increase in net profits of $212,827 or 92.4% over the quarter ending March 31,
2009 provided the Company with greater liquidity and financial resources. The
Company feels that it has sufficient capital to continue to fund its operations.
</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>For the
quarter ending March 31, 2009, net cash used in operations was $1,888,174
compared to net cash used in March of 2008 of $1,059,897. The major factors for
this increase in net cash used in operations were the increase in accounts
receivables and inventory due to the Company's growth in sales. Net cash used in
investing was $885,708 in the March 31, 2009 quarter, compared to net cash used
of $93,237 in the same period of 2008. This increase was the result of our
acquisition of Detron and the establishment of our new solar module factory. The
Company anticipates further expansion in 2009 and will finance this growth
through Company profitability as well as outside sources of funding if required.
Net cash flows provided by financing activities in the March 31, 2009 quarter
was $1,180,770 compared to $1,489,108 in 2008. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The Company raised
approximately, $4,747,970 on June 23, 2008 and an additional $252,027 on July
24, 2008 for gross proceeds of approximately $5 million, or net proceeds of
$4,586,916 after offering expenses. The Company issued 1,111,109 restricted
common shares along with warrants to purchase an additional 1,111,109 shares
with 722,221 warrants having an exercise price of $7.00 and 388,888 of those
warrants having an excise price of $9.00. These funds were used to expand our
energy division through the establishment of a new solar module factory
announced on November 10, 2008 along the acquisition of a power supply company
with designing and R&amp;D capabilities. &nbsp;Additionally, these funds will be
used to provide additional working capital for the solar module factory to
purchase raw materials and to expand the solar module business segment.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>PLAN OF
OPERATION</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">We plan to continue
our expansion efforts in the solar module industry through expansion of our
solar module factory in Ningbo, China. We will attempt to increase our customer
base in this industry by achieving greater product enhancements and sales
efforts. Further, we feel that our recent acquisition of Detron will bring more
revenues and profits as we continue to streamline our present electronic factory
into the new acquisition as well as improve the operation of Detron and our
other factories in China. Additionally, we intend to begin expansion of our
marketing into the U.S. solar module market in the third quarter of 2009.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Off-Balance Sheet Arrangements </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">We do not have any
off-balance sheet arrangements that are currently material or reasonably likely
to be material to our financial position or results of operations. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Critical
Accounting Policies, Estimates and Judgments </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">This discussion and
analysis of financial condition and results of operations is based on our
consolidated financial statements, which have been prepared in accordance with
U.S. generally accepted accounting principles. The preparation of these
financial statements requires us to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses and related
disclosures. On an on-going basis, we evaluate our estimates, including those
related to property, plant and equipment, inventories, revenue recognition,
inventories, accounts receivable and foreign currency transactions and
translation. We base our estimates on historical experience and on various other
market-specific assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results, however, may differ significantly from these
estimates. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 25 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">We believe the
following critical accounting policies reflect the more significant judgments
and estimates used in the preparation of our consolidated financial statements:
</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><I>Property,
plant and equipment </I></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Property, plant and
equipment are stated at historical cost and are depreciated over the useful
lives of the assets. Leasehold improvements and capitalized leased equipment are
amortized over the life of the lease. Repair and maintenance expenditures that
do not significantly add to the value of the equipment or prolong its life are
charged to expense as incurred. Gains and losses on dispositions of property,
plant and equipment are included in the related period&#146;s statement of
operations. Depreciation is computed primarily using the straight-line method
based on estimated useful lives, which range from 3 to 25 years.&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><I>Inventories
</I></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Inventories consist
of finished goods of manufactured products. Our inventory is based on customer
orders and the duration of those orders. Cost is stated at the lower of cost or
market on a first-in, first-out (FIFO) basis. We have not recorded an allowance
for slow-moving or obsolete inventory. Obsolete inventory at March 31, 2009 was
minimal. &nbsp;&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><I>Revenue
Recognition </I></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">We recognize revenues
in accordance with the guidelines of the Securities and Exchange Commission
(&#147;SEC&#148;) Staff Accounting Bulletin (&#147;SAB&#148;) No. 104 &#147;Revenue Recognition&#148;. We
recognize revenue from product sales when the orders are completed and shipped,
provided that collection of the resulting receivable is reasonably assured.
Amounts billed to customers are recorded as sales while the shipping costs are
included in cost of sales. Returns on defective custom parts may only be
exchanged for replacement parts within 30 days of the invoice date. Returns on
defective parts, which can be resold, may be exchanged for replacement parts or
for a refund. &nbsp;Revenue from non-refundable customer tooling deposits is
recognized when the materials are shipped or when the deposit is forfeited,
whichever is earlier.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><I>Foreign
Currency Transactions and Translation </I></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Transaction gains and
losses result from a change in exchange rates between the functional currencies
in which a foreign currency transaction is denominated and the reporting
currency. They represent an increase or decrease in (i) the actual functional
current cash flows realized upon settlement of foreign currency transactions and
(ii) the expected functional currency cash flows on unsettled foreign currency
transactions. All transaction gains and losses are included in other income or
expense. For all periods presented, sales to customers were primarily
denominated in U.S. dollars.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Assets and
liabilities of Intech are translated into U.S. dollars at the prevailing
exchange rate in effect at each period end. Revenue and expenses are translated
into U.S. dollars at the average exchange rate during the reporting period.
Contributed capital is translated into U.S. dollars at the historical exchange
rate when capital was injected. Any difference resulting from using the current
rate, historical rate and average rate in determination of retained earnings is
accounted for as a translation adjustment and reported as part of comprehensive
income or loss in the equity section. Exchange differences are recognized in the
income statement in the period in which they occur.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Management has
discussed the development and selection of these critical accounting policies
with the Board of Directors and the Board has reviewed the disclosures presented
above relating to them.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px"><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 26 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Interest rate risk</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
interest rates and terms of repayment of bank and other borrowings from
stockholders are disclosed in Note 5 and Note 8. Other financial assets and
liabilities do not have material interest rate risk. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Credit risk</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company is exposed to credit risk from its cash in bank and bills and accounts
receivable. &nbsp;The credit risk on cash in bank is limited because the
counterparties are recognized financial institutions. &nbsp;Bills and accounts
receivable are subjected to credit evaluations. &nbsp;An allowance has been made
for estimated irrecoverable amounts which have been determined by reference to
past default experience and the current economic environment. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Foreign currency risk</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">We transact business
in foreign currencies and may be exposed to risk resulting from fluctuations in
foreign currency exchange rates, particularly the Renminbi, ("RMB"), and the
Euro ("EUR"), which may result in gains or losses reported in our earnings. The
volatilities in RMB and EUR are monitored by us throughout the year. We face two
risks related to foreign currency exchange rates: translation risk and
transaction risk. Amounts invested in our foreign operations are translated into
U.S. Dollars using period-end exchange rates. The resulting translation
adjustments are recorded as a component of accumulated other comprehensive
income (loss) in stockholders' equity. Revenues and expenses in foreign
currencies translate into higher or lower revenues and expenses in U.S. Dollars
as the U.S. Dollar weakens or strengthens against other currencies.
Substantially all of the revenues of our foreign subsidiaries are received, and
substantially all expenses are incurred, in currencies other than the U.S.
Dollar, which increases or decreases the related U.S. Dollar reported revenues
and expenses depending on the trend in currencies. Therefore, changes in foreign
currency exchange rates may negatively affect our consolidated revenues and
expenses. Net foreign currency transaction gains or losses arising from
transactions in our foreign operations denominated in currencies other than the
local functional currency are included in other income (expense), net in the
consolidated statements of operations. While we have not engaged in foreign
currency hedging to date, we may in the future use hedging programs, including
currency forward contracts, currency options and/or other derivative financial
instruments commonly utilized if it is determined that such hedging activities
are appropriate to reduce risk. In addition substantially all of the Company&#146;s
products are manufactured in China. The Company&#146;s operations are subject to
various political, economic, and other risks and uncertainties inherent in
China. Among other risks, the Company&#146;s operations are subject to the risks of
restrictions on transfer of funds; export duties, quotas, and embargoes;
domestic and international customs and tariffs; changing taxation policies;
foreign exchange restrictions; and political conditions and governmental
regulations.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Inflation</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Inflationary factors
such as increases in the cost of our product and overhead costs may adversely
affect our operating results. Although we do not believe that inflation has had
a material impact on our financial position or results of operations to date, a
high rate of inflation in the future may have an adverse effect on our ability
to maintain current levels of gross margin and selling, general and
administrative expenses as a percentage of net revenues if the selling prices of
our products do not increase with these increased costs</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 27 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>ITEM
4.</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 76px; LINE-HEIGHT: 13pt"><B>CONTROLS
AND PROCEDURES</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13.85pt">The Securities and
Exchange Commission defines the term disclosure controls and procedures to mean
a company&#146;s controls and other procedures that are designed to ensure that
information required to be disclosed in the reports that it files or submits
under the Securities Exchange Act of 1934 is recorded, processed, summarized and
reported, within the time periods specified in the Securities and Exchange
Commission&#146;s rules and forms. &nbsp;&nbsp;The Company maintains such a system of
controls and procedures in an effort to ensure that all information which it is
required to disclose in the reports it files under the Securities Exchange Act
of 1934 is recorded, processed, summarized and reported within the time periods
specified under the SEC's rules and forms. </P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13.85pt">Based on an
evaluation performed, the Company's certifying officers have concluded that the
disclosure controls and procedures were effective as of&nbsp;March 31, 2009, to
provide reasonable assurance of the achievement of these objectives.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">There was no change
in the Company's internal control over financial reporting during the period
ended&nbsp;March 31, 2009, that has materially affected, or is reasonably likely
to materially affect, the Company's internal control over financial
reporting</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 28 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>PART
II. &nbsp;OTHER INFORMATION</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt">Item
1A. </P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt">Risk
Factors (herein incorporated by reference from Annual Report on Form 10-K filed
with the Securities and Exchange Commission on April 14, 2009).</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt">Item
2.</P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt">Unregistered
Sales of Equity Securities and Use of Proceeds</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"
align=justify>On March 6, 2009, the Company issued 120,000 shares of its common
stock to consultants, valued at $187,200, as part of their compensation for the
consulting services. The Company amortized the consultancy fee of $187,200 over
the 12-month term of the agreement from January 1, 2009 to December 31, 2009.
The expense is $15,600 for each month and total stock-based compensation expense
would have been $46,800 for the quarter ended March 31, 2009. However, on
January 2, 2009, one of the consultants returned 4,000 shares to the Company for
the work that he did not perform, valued at $14,680 or $3.67 per share, so the
total for the quarter was $32,120.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt" align=justify><BR></P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"
align=justify>On March 20, 2009, the Company issued 8,000 shares of its common
stock in exchange for one unit investment of JK Advisors Fund LLC, of which
1,000 shares were paid to the broker arranging the sale and the remainder was
distributed to the members of the fund.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt">Item
3.</P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt">Defaults
upon Senior Securities</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt">None
</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt">Item
4.</P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt">Submission
of Matters to a Vote of Security Holders</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt">None</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt">Item
5.</P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt">Other
Information</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt">None</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 29 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt">Item
6.</P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt">Exhibits</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt">The
following exhibits are filed herewith:</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">3.1
</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Articles
of Incorporation (incorporated by reference from Registration Statement on Form
10-SB filed with the Securities and Exchange Commission on October 11,
2000).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">3.2</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Bylaws
(incorporated by reference from Registration Statement on Form 10-SB filed with
the Securities and Exchange Commission on October 11, 2000).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">3.3</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Amendment
to the Articles of Incorporation to change the name of the Company from Tabatha
III, Inc. to Worldwide Manufacturing USA, Inc., filed with the Colorado
Secretary of State on November 4, 2003 (herein incorporated by reference from
Annual Report on Form 10-K filed with the Securities and Exchange Commission on
April 14, 2009). </P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">3.4</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Amendment
to the Articles of Incorporation to change the name of the Company from
Worldwide Manufacturing USA, Inc. to Worldwide Energy and Manufacturing USA,
Inc., filed with the Colorado Secretary of State on February 4, 2008 (herein
incorporated by reference from Annual Report on Form 10-K filed with the
Securities and Exchange Commission on April 14, 2009). </P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">4.1
</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Specimen
Common Stock Certificate (incorporated by reference from Registration Statement
on Form 10-SB filed with the Securities and Exchange Commission on October 11,
2000).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">4.2
</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Specimen
Class A Convertible Preferred Stock Certificate (incorporated by reference from
Registration Statement on Form 10-SB/A filed with the Securities and Exchange
Commission on October 11, 2000).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">10.1</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Common
Stock Purchase Warrant (incorporated by reference from Form 10-KSB filed with
the Securities and Exchange Commission on September 27, 2001).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">14.1</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Code
of Ethics (incorporated by reference from Form 10-KSB filed with the Securities
and Exchange Commission on March 31, 2005). </P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">21.1</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Subsidiaries
of Worldwide Energy and Manufacturing USA, Inc. (herein incorporated by
reference from Annual Report on Form 10-K filed with the Securities and Exchange
Commission on April 14, 2009).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">31.1
</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -9px; LINE-HEIGHT: 13pt">&nbsp;Certification
pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of
1934, as amended.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">31.2
</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -9px; LINE-HEIGHT: 13pt">&nbsp;&nbsp;Certification
pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of
1934, as amended.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">32.1
</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -9px; LINE-HEIGHT: 13pt">&nbsp;&nbsp;Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px"><FONT
style="FONT-SIZE: 11pt">32.2&nbsp;&nbsp;&nbsp;&nbsp; Certification pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 11pt" align=center><BR><BR></P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 30 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 626px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px">&nbsp;</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -48px; LINE-HEIGHT: 11pt"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be singed on its behalf by the undersigned thereunto duly
authorized.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>WORLDWIDE ENERGY
AND MANUFACTURING USA, INC.</B></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">By<U>: /S/ JIMMY
WANG</U></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;Jimmy Wang, CEO
and Director (duly authorized officer)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Date: &nbsp;May 14,
2009</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">By<U>: /S/ JOHN
BALLARD</U></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;John Ballard,
Chief Financial Officer (principal financial and accounting officer)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Date: &nbsp;May 14,
2009</P>
<P style="MARGIN: 0px"><BR>&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px"><BR>&nbsp;</P></DIV>
<DIV style="WIDTH: 627px">
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 31 -</P>
<P style="MARGIN: 0px"><BR></P></DIV></BODY>
<!-- EDGAR Validation Code: 0DCB0BFE -->
</HTML>
[{"type": "10-Q", "sequence": "1", "filename": "wemumar09.htm", "secsgml_size_bytes": 256650}]
{"company-data": {"conformed-name": "WORLDWIDE ENERGY & MANUFACTURING USA INC", "cik": "0001111816", "assigned-sic": "3990", "irs-number": "841536519", "state-of-incorporation": "CO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "000-31761", "film-number": "09824360"}, "business-address": {"street1": "408 N. CANAL STREET", "street2": "UNIT A & B", "city": "SAN FRANCISCO", "state": "CA", "zip": "94080", "phone": "(650) 794-9865"}, "mail-address": {"street1": "408 N. CANAL STREET", "street2": "UNIT A & B", "city": "SAN FRANCISCO", "state": "CA", "zip": "94080"}, "former-company": [{"former-conformed-name": "WORLDWIDE MANUFACTURING USA INC", "date-changed": "20031114"}, {"former-conformed-name": "TABATHA III INC", "date-changed": "20000413"}]}
wemumar09
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
X
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For
the quarterly period ended March 31, 2009
___
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period
from ____ to ____
WORLDWIDE ENERGY AND MANUFACTURING USA, INC.
(Exact
name of registrant as specified in its charter)
Colorado
0-31761
84-1536519
(State or other jurisdiction of incorporation or
organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
408 N. Canal Street
South San Francisco,  CA  94080
(Address of principal executive
offices)
Registrant's telephone number, including area code: (650) 794-9888
Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer, or a smaller reporting company.  See the
definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large Accelerated
Filer   [
 ]                                                               Accelerated
Filer   [  ]
Non-Accelerated
Filer     [  ]
                                                 Smaller
reporting company
X
Indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).      Yes__   No
X
Indicate the number
of shares outstanding of each of the issuer's classes of stock, as of the latest
practicable date.
Class of Securities
Shares Outstanding at May 14, 2009
Common Stock, no par value
3,617,512
- 1 -
PART 1 - FINANCIAL
INFORMATION
ITEM
1.
FINANCIAL
STATEMENTS
(a)
The
unaudited financial statements of registrant for the three months ended March
31, 2009, follow.  The financial statements reflect all adjustments which
are, in the opinion of management, necessary to a fair statement of the results
for the interim period presented.
- 2 -
INDEX
Page
ITEM 1.
 FINANCIAL STATEMENTS
CONDENSED
CONSOLIDATED BALANCE SHEETS
4
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
5
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
6
NOTES TO THE
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
7
ITEM
2.
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
21
ITEM
3.
CONTROLS
AND PROCEDURES
28
PART
II.  OTHER INFORMATION
29
EXHIBITS
30
SIGNATURES
31
- 3 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2009
December 31, 2008
(Unaudited)
ASSETS
Current
assets:
Cash
and cash equivalents
$
3,520,399
$
5,092,476
Accounts
receivables, net of allowances of $272,430 and $45,634,
respectively
8,600,995
4,790,506
Notes
receivables
149,937
269,507
Inventories
4,665,481
3,754,765
Tax
receivable
240,001
-
Advances
to suppliers
745,603
99,824
Related
parties receivables
439,100
446,373
Prepaid
and other current assets
405,069
451,770
Total current
assets
18,766,585
14,905,221
Property, plant
and equipment, net
2,029,878
1,353,539
Intangible
assets
1,101,000
1,101,000
Goodwill
293,279
-
Deposits paid
for investment
1,551,890
1,724,976
Investment
16,000
-
Other
assets
-
7,559
Total
assets
$
23,758,632
$
19,092,295
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
liabilities:
Accounts
payable
$
7,563,166
$
3,400,253
Accrued
expenses
524,468
867,291
Bank
loan
1,300,000
-
Tax
payable
120,903
147,165
Due
to related parties
1,242,248
1,243,024
Customer
deposits
133,599
964,998
Total current
liabilities
10,884.384
6,622,731
Non-current
liabilities
Bank
loan-long term portion
877,869
937,075
Loan
payable to stockholders
-
60,024
Total
non-current liabilities
877,869
997,099
Total
liabilities
11,762,253
7,619,830
Worldwide's
Stockholders' equity
Common
stock (No Par Value : 100,000,000 shares authorized;
3,617,512
shares issued and outstanding)
6,296,899
6,108,379
Retained
earnings
4,702,687
4,259,533
Deferred
stock based compensation
(140,400)
-
Accumulated
other comprehensive income
512,949
491,914
Total
Worldwide's stockholders' equity
11,372,135
10,859,826
Non-controlling
interest
624,244
612,639
Total
equity
11,996,379
11,472,465
Total
liabilities and stockholders' equity
$
23,758,632
$
19,092,295
See accompanying notes to unaudited
condensed consolidated financial statements.
- 4 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
(UNAUDITED)
For The
Three Months Ended
March 31.
2009
2008
Revenue
Sales, net of returns of $0 in 2009 and $0 in 2008
$
10,281,867
$
5,404,083
Cost of goods sold
8,382,275
4,239,033
Gross
profit
1,899,592
1,165,050
Operating Expenses
Other
selling, general and administrative expenses
1,205,781
701,085
Management
and professional fees paid to shareholders (Note 10)
90,000
80,320
Stock
based compensation
32,120
110,000
Depreciation
73,176
3,972
Total operating expenses
1,401,077
895,377
Operating income
498,515
269,673
Other Income (expenses)
Interest
income
11,113
1,137
Interest
expenses
(7,602)
(34,441)
Interest
expense paid to shareholders (Note 10)
-
(17,446)
Other
income
903
-
Exchange
gain
3,928
-
Total other expenses
8,342
(50,750)
Net income before income taxes
506,857
218,923
Income
taxes (expense)/benefit
(38,546)
11,404
Net income
before non-controlling interest
468,311
230,327
Non-controlling
interest
(25,157)
-
Net income attributable to the Company
443,154
230,327
Other comprehensive income
Foreign currency
translation
21,035
98,423
Comprehensive income
attributable to the non-controlling interest
(13,552)
-
Comprehensive income attributable to the Company
$
450,637
$
328,750
Earnings per share
$
0.13
$
0.11
Weighted average shares outstanding
3,527,956
2,069,863
See accompanying notes to unaudited
condensed consolidated financial statements.
- 5 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For The
Three Months Ended
March 31,
2009
2008
Cash flows from
operating activities
Net
income
$
443,154
$
230,327
Income
attributable to non-controlling interest
11,605
-
Adjustments
to reconcile net income to net cash used in operating activities:
Depreciation
73,176
27,830
Allowance
for bad debts
226,796
(20,000)
Stock
issued for services
48,120
110,000
Changes in
operating assets and liabilities:
Accounts
receivable
(4,037,285)
(2,543,985)
Inventories
(910,716)
240,934
Income
tax receivable
(240,001)
(10,974)
Loan
receivable-affiliate
126,067
-
Notes
receivable
(519,712)
(987,203)
Prepaid
and other current assets
54,260
98,312
Accounts
payable
4,162,913
1,826,234
Accrued
expense
(342,823)
(12,028)
Income
tax payable
(26,262)
(19,344)
Customer
deposits
(831,399)
-
Net cash used
in operating activities
(1,888,174)
(1,059,897)
Cash flows from
investing activities
Loan
to related parties
-
(25,987)
Purchase
of property and equipment
(749,515)
(26,570)
Purchase
of investment
(136,193)
(40,680)
Net cash used
in investing activities
(885,708)
(93,237)
Cash flows from
financing activities
Proceeds
from  shareholders loan
-
1,606,954
Repayment
of shareholders loan
(60,024)
-
Principal
payments on loan term debt
-
(884)
Proceeds
from line of credit
1,300,000
-
Repayment
 of bank loans
(59,206)
(116,962)
Net cash flows
provided by financing activities:
1,180,770
1,489,108
Effect of
exchange rate changes in cash
21,035
55,331
Net (decrease)/
increase in cash
(1,572,077)
391,305
Cash- beginning
of period
5,092,476
2,111,825
Cash- end of
period
$
3,520,399
$
2,503,130
Supplemental
disclosure of non cash investing and financing activities:
Interest
paid in cash
$
-
$
51,887
Income
taxed paid in cash
$
39,564
$
-
See accompanying notes to unaudited
condensed consolidated financial statements.
- 6 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
1.
MANAGEMENT'S
REPRESENTATION OF INTERIM FINANCIAL INFORMATION
The
accompanying unaudited financial statements have been prepared by Worldwide
Energy and Manufacturing USA, Inc. without audit pursuant to the rules and
regulations of the Securities and Exchange Commission.  Certain information
and disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted as
allowed by such rules and regulations, and management believes that the
disclosures are adequate to make the information presented not misleading.
 These financial statements include all of the adjustments, which in the
opinion of management are necessary to a fair presentation of financial position
and results of operations.  All such adjustments are of a normal and
recurring nature. Interim results are not necessarily indicative of results for
a full year. These financial statements should be read in conjunction with
the audited financial statements at December 31, 2008 as filed in the Company
Form 10-K filed with the Commission on April 14, 2009.
2.
SIGNIFICANT
ACCOUNTING POLICIES
This
summary of significant accounting policies of the Company is presented to assist
in understanding the Company's financial statements.  The financial
statements and notes are representations of the Company's management, which is
responsible for their integrity and objectivity. These accounting policies
conform to generally accepted accounting principles and have been consistently
applied in the preparation of the financial statements.
Description
of Business
Worldwide Energy and Manufacturing USA, Inc. ("Worldwide" or "the
Company") is a manufacturing engineering firm and international contract
manufacturer, using factories in China, primarily servicing customers in Europe,
South Korea for our solar modules and United States-based companies that
outsource their smaller scale production orders for offshore production in
China. From our inception in 1993 until 2005, we were strictly an intermediary
or "middle man," working with our customers and our subcontractors to assure
that our customers received high quality components on a timely basis that
fulfilled their specific needs. While we still subcontract a significant portion
of our business, since 2005, we have begun the transition to becoming a direct
contract manufacturer, operating several of our own factories.  Recently,
we announced two additional factories allowing us to become a direct
manufacturer for solar modules and for power supply units as described
below:
In
February of 2008, Worldwide established a solar division that focuses on
photovoltaic module technology under the brand name of "AmeriSolar."  On
February 25, 2008, the Company changed its name from Worldwide Manufacturing
USA, Inc. to Worldwide Energy and Manufacturing USA, Inc. in order to reflect
its expansion into the solar energy industry. The Company issued 300,000
restricted shares for the AmeriSolar brand name. Worldwide leased a 129,167
square foot facility in Ningbo, China. The lease term is from July 18, 2008 to
July 17, 2013.This facility houses the production operations and R&D center
for the Company's solar division. This factory has the capability of producing
80MW which translates into approximately $224 million in revenues at full
capacity based on current prices. By opening this factory we hope to increase
gross margins and net margins in our solar division.
- 7 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited ("De Hong") through acquiring 55% of the
outstanding capital stock of De Hong, a China corporation, through Worldwide's
wholly owned subsidiary Intech Electro- Mechanical Products Co., Ltd., a Chinese
corporation ("Intech"). The Company funded the acquisition with the sale of
1,055,103 shares of its common stock, or $4,747,970. The sale of stock took
place on June 23, 2008.  Shanghai De Hong Electric and Electronic Company
is the holding company for the operating subsidiary Shanghai Intech -Detron
Electronic Co. ("Detron"). Therefore, Worldwide received 55% control of the
operating subsidiary Shanghai Intech-Detron Electric and Electronic Company
Limited ("Detron"). Detron is a power supply factory in Shanghai, China with
designing and R & D. The terms of Agreement dated February 3, 2008 was that
Worldwide USA paid cash consideration of approximately 1 million dollars for 55%
interest in DeHong. Intech paid the first installment of $714,286 on behalf of
Worldwide in September, 2008. During the three months ended March 31, 2009,
Worldwide paid back $714,286 to Intech and further paid $308,414 for the second
installment and the total consideration of the investment is $1,022,700.
On
August 15, 2008, the Company formed a new company called Nantong Ningbo Solar
factory ("Ningbo Solar"), which is the solar energy research and development
manufacturer. The Company established a factory to provide installation services
to different solar project. The Company also acts as agent to import or export
the products and services overseas.
On
November 14, 2005, we established a die-casting and machining factory through
leasing an existing facility from a former supplier, and initially investing
approximately $500,000 to upgrade the equipment and manufacturing buildings. In
these transactions we acquired assets, the expertise of the employees, the
managers of the factories, and a portion of the existing customers of those
factories. In the third quarter of 2005, we also established an electronics
manufacturing factory. As a result, of these two continued factory operations
and the recently announced new factories described above, as of December 31,
2008 we own and operate four factories that we now use for the manufacture of
certain product lines that we historically had to subcontract, and we are using
the services of approximately 40 subcontractors to manufacture those product
lines for which we do not have our own manufacturing capabilities.
Principles
of Consolidation
The
accompanying financial statements include Worldwide Energy and Manufacturing
USA, Inc., a Colorado corporation and a public company, its operating
subsidiary, Worldwide USA, a California corporation, and six subsidiary
companies, Shanghai Intech Electro-Mechanical Products Co., Ltd., Shanghai
Intech Precision Mechanical Products Ltd., Shanghai Intech-Detron Electric and
Electronic Company Limited, Ningbo Solar Factory, and Shanghai De Hong Electric
and Electronic Company Limited, owned by Worldwide USA.  Intercompany
transactions have been eliminated in consolidation.
Property and equipment
Property and equipment are stated at historical cost and are
depreciated over the useful lives of the assets. Depreciation is computed
primarily using the straight-line method based on estimated useful lives, which
range from 3 to 25 years.
- 8 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impairment of Long-lived Assets
Long-lived tangible assets and definite-lived intangible assets
are reviewed for possible impairment whenever events or changes in circumstances
indicate that the carrying amount of such assets may not be recoverable. The
Company uses an estimate of undiscounted future net cash flows of the assets
over the remaining useful lives in determining whether the carrying value of the
assets is recoverable. If the carrying values of the assets exceed the expected
future cash flows of the assets, the Company recognizes an impairment loss equal
to the difference between the carrying values of the assets and their estimated
fair values. Impairment of long-lived assets is assessed at the lowest levels
for which there are identifiable cash flows that are independent from other
groups of assets. The evaluation of long-lived assets requires the Company to
use estimates of future cash flows. However, actual cash flows may differ from
the estimated future cash flows used in these impairment tests.
Inventories
Inventories consist of finished goods of manufactured products.
 Cost is stated at the lower of cost or market on a first-in, first-out
(FIFO) basis.  The Company has not recorded an allowance for slow-moving or
obsolete inventory.  Obsolete inventory at March 31, 2009 and December 31,
2008 was minimal.
Revenue
Recognition
The
Company recognizes revenues in accordance with the guidelines of the Securities
and Exchange Commission ("SEC") Staff Accounting Bulletin ("SAB") No. 104
"Revenue Recognition".  The Company recognizes revenue from product sales
when the orders are completed and shipped, provided that collection of the
resulting receivable is reasonably assured.  Amounts billed to customers
are recorded as sales while the shipping costs are included in cost of sales.
Returns on defective custom parts may only be exchanged for replacement parts
within 30 days of the invoice date.  Returns on defective catalogue parts,
which can be resold, may be exchanged for replacement parts or for a refund.
 Revenue from non-refundable customer tooling deposits is recognized when
the materials are shipped or when the deposit is forfeited, whichever is
earlier.
Repairs
and Maintenance
Repairs
and maintenance of a routine nature are charged as incurred to operations, while
those that extend or improve the life of existing assets are capitalized.
Cash
and Cash Equivalents
For
purposes of the statement of cash flows, the Company considers all highly liquid
debt instruments purchased with a maturity of three months or less to be cash
equivalents.
Income
Taxes
The Company uses the
liability approach to financial accounting and reporting for income taxes.
 The differences between the financial statement and tax bases of assets
and liabilities are determined annually.  Deferred income tax assets and
liabilities are computed for those differences that have future
- 9 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
tax
consequences using the currently enacted tax laws and rates that apply to the
period in which they are
expected to affect taxable income.  Valuation allowances are
established, if necessary, to reduce deferred tax asset accounts to the amounts
that will more likely than not be realized.  Income tax expense is the
current tax payable or refundable for the period, plus or minus the net change
in the deferred tax asset and liability accounts.
Intangibles
Brand
name has an indefinite useful life and it is carried at cost and is not being
amortized. The Company reviews its intangible assets annually for impairment, or
sooner, if events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable.
Research
and Development
The
Company expenses the cost of research and development as incurred.  No
research and development costs were charged to operations during 2009 or 2008.
Goodwill
Goodwill represents the excess of the purchase price over the net
of the fair value of the identifiable tangible and intangible assets acquired
and the fair value of liabilities assumed in business acquisitions. In
accordance with Statement of Financial Accounting Standards ("SFAS")
No. 142, Goodwill and Other Intangible Assets, management of the Company
evaluates the carrying value of goodwill annually or when a possible impairment
is indicated. The Company performs its impairment annually during the fourth
quarter of the fiscal year.
Non-Cash
Equity Transactions
Shares
of other equity instruments issued for non-cash consideration are recorded at
the fair value of the consideration received, or at the value of the stock
given, considered in reference to contemporaneous cash sale of stock.
Estimates
The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the amounts of assets and liabilities, as
well as footnote disclosures included in the financial statements and
accompanying notes.  Actual results may differ from those estimates and
such differences may be material to the financial statements.  The more
significant estimates include:  useful lives and residual values of fixed
assets, fair market values of inventory, goodwill and intangible impairment
tests, reserves for warranty, returns, and product liability losses, and credits
losses.
Accounting
Method
The
Company's financial statements are prepared using the accrual method of
accounting.
- 10 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Foreign
Currency Transactions and Translation
Transaction gains and losses result from a change in exchange
rates between the functional currencies in which a foreign currency transaction
is denominated.  They represent an increase or decrease in (a) the actual
functional current cash flows realized upon settlement of foreign currency
transactions and (b) the expected functional currency cash flows on unsettled
foreign currency transactions.  All transaction gains and losses are
included in other income or expense.  For all years presented, sales to
customers were primarily denominated in U.S. dollars.
Assets
and liabilities of Intech are translated into U.S. dollars at the prevailing
exchange rate in effect at each period end.  Revenue and expenses are
translated into U.S. dollars at the average exchange rate during the reporting
period.  Contributed capital is translated into U.S. dollars at the
historical exchange rate when capital was injected.  Any difference
resulting from using the current rate, historical rate, and average rate in
determination of retained earnings is accounted for as a translation adjustment
and reported as part of comprehensive income or loss in the equity section.
 Exchange differences are recognized in the income statement in the period
in which they occur.
Fair
Value of Financial Instruments
Unless
otherwise indicated, the fair value of all reported assets and liabilities,
which represent financial instruments (none of which are held for trading
purposes), approximate the carrying values of such instruments.  At March
31, 2009 and December 31, 2008, accounts receivable in the amounts of $8,600,995
and $4,790,506 respectively, were pledged as collateral in connection with bank
loans.
Compensated
Absences
Employees of the Company are entitled to be compensated for
absences depending on job classification, length of service, and other factors.
 At March 31, 2009 and 2008, the minimal amounts unused by employees could
not be estimated, and accordingly, no provision is recorded.
Concentrations,
Risks, and Uncertainties
The
Company did not have concentration of business with suppliers constituting
greater than 10% of the Company's gross sales during 2009 and 2008.
In the
first quarter of 2009 and 2008, 62% and 0% of the company's business was in the
renewable energy industry.
As part
of the production process, the Company may be required by its suppliers to
advance funds under short-term agreements for tooling and other pre-production
costs.  The loans are generally unsecured and may carry interest at the
prevailing market rate for short-term instruments.  Such tooling is in most
cases owned by the suppliers, and is a value primarily for the specific needs of
the Company's customers.  The Company in turn requires its customers to
provide a non-refundable down payment to cover such startup costs.  In the
event that a supplier is unable to fulfill its production agreements with the
Company, management believes that other suppliers can be found for the Company's
products.  However, a change in suppliers would cause a delay in the
production process, and could result in loss of tooling deposits and
- 11 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
other
supplier advances, which could negatively affect the Company's operating
results.  At March 31, 2009, the balance of advances owed to the Company is
$745,603.
The
Company sells its goods and services internationally, although the majority of
its revenue is derived from customers in the United States and Europe.  As
such, the Company is susceptible to credit risk on accounts and notes receivable
from customers in that region.  Additionally, a significant portion of the
Company's U.S. customers consists of entities in the solar industry, which has
proven to be sensitive to swings in the economic cycle.  Generally, the
Company does not obtain security from its customers in support of accounts
receivable.
Stock
Based Compensation
The
Company will account for employee stock option plans under the intrinsic value
method prescribed by Accounting Principles Board Opinion No. 25,
"Accounting
for Stock Issued to Employees"
, and has adopted the disclosure only
provisions of Statement of Financial Accounting Standards No. 123,
"Accounting for Stock-Based Compensation"
("SFAS 123").  The Company
accounts for equity instruments issued to non-employees in accordance with the
provisions of SFAS No. 123 and Emerging Issues Task Force No. 96-18,
"Accounting
for Equity Instruments that are Issued to Other than Employees
for Acquiring, or in Conjunction with Selling Goods and Services".
Earnings
Per Share
The
Company adopted Statement of Financial Accounting Standard No. 128, "Earnings
per Share" ("SFAS No. 128"), which is effective for annual periods ending after
December 15, 1997.  Earnings per share (EPS) are computed based on the
weighted average number of shares actually outstanding.
For the Three
months Ended
March 31, 2009
March 31, 2008
Weighted
average number of common shares used
3,527,956
2,069,863
Recent Accounting Pronouncements
In
March 2008, the FASB issued SFAS No. 161 "Disclosures about Derivative
Instruments and Hedging Activities amendment of FASB Statement No. 133" ("SFAS
161").  This statement changes the disclosure requirements for derivative
instruments and hedging activities.  Entities are required to provide
enhanced disclosures stating how and why an entity uses derivative instruments;
how derivatives and related hedged items are accounted for under SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133") and
its related interpretations; and how derivative instruments and related hedge
items affect an entity's financial position, financial performance and cash
flows.  SFAS 161 is effective in fiscal years beginning after November 15,
2008 and is required to be adopted by the Company in the first quarter of fiscal
year 2009.  The Company does not expect the adoption of SFAS 161 will have
a material impact on the Company's disclosures.
In May
2008, the FASB issued Statement of Financial Accounting Standards No. 162,
The Hierarchy
of
Generally Accepted Accounting Principles
("FAS
162"). This Standard identifies the sources of accounting principles and the
framework for selecting the principles to be used in the preparation of
financial statements of nongovernmental entities that are presented in
conformity with generally accepted
- 12 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
accounting principles. FAS 162 directs the
hierarchy to the
entity, rather than the independent auditors, as the entity is responsible for
selecting accounting principles for financial statements that are presented in
conformity with generally accepted accounting principles. The Standard is
effective 60 days following SEC approval of the Public Company Accounting
Oversight Board amendments to remove the hierarchy of generally accepted
accounting principles from the auditing standards. FAS 162 is not expected to
have an impact on the financial statements.
Recent Accounting Pronouncements (Continued)
In May 2008, the FASB
issued SFAS No. 163, Accounting for Financial Guarantee Insurance Contracts, an
interpretation of FASB Statement No. 60 (SFAS 163).  This statement
clarifies accounting for financial guarantee insurance contracts by insurance
enterprises under FASB Statement No. 60, Accounting and Reporting by Insurance
Enterprises.  SFAS 163 is effective beginning this interim period ended
March 31, 2009. Because the Company does not issue financial guarantee insurance
contracts, the adoption of this standard did not have an effect on its financial
position or results of operations.
On
January 1, 2009, the Company adopted FASB Staff Position (FSP) FAS 142-3,
Determination of the Useful Life of Intangible Assets, which amends the factors
that should be considered in developing renewal or extension assumptions used to
determine the useful life of a recognized intangible asset under FASB Statement
No. 142, Goodwill and Other Intangible Assets. Application of this FSP is not
expected to have a significant impact on the financial statements
On
January 1, 2009, the Company adopted FSP EITF 03-6-1, Determining Whether
Instruments Granted Share-Based Payment Transactions are Participating
Securities. This FSP provides that unvested share-based payment awards that
contain nonforfeitable rights to dividends or dividend equivalents (whether paid
or unpaid) are participating securities and shall be included in the computation
of earnings per share pursuant to the two-class method.
All
prior-period EPS data presented shall be adjusted retrospectively (including
interim financial statements, summaries of earnings, and selected financial
data) to conform with the provisions of this FSP.  The adoption of EITP
03-6-1 did not have an impact on the Company as the Company does not currently
have any share-based awards that would qualify as participating securities.
Therefore, application of this FSP is not expected to have an effect on the
Company's financial reporting.
In
April 2008, the FASB issued EITF 07-05, Determining whether an Instrument (or
Embedded Feature) Is Indexed to an Entity's Own Stock, (EITF 07-05).  EITF
07-05 provides guidance on determining what types of instruments or embedded
features in an instrument held by a reporting entity can be considered indexed
to its own stock for the purpose of evaluating the first criteria of the scope
exception in paragraph 11(a) of FAS 133. The Company adopted EITF 07-05 on
January 1, 2009, the adoption of EITF 070-05 is not expected to have an effect
on the Company's financial reporting.
3.
COMMITMENTS AND CONTINGENCIES
The
Company leases its office spaces and certain vehicles under non-cancelable
operating leases.  The Worldwide office lease requires increasing annual
payments plus a share of operating costs.  Minimum future rental payments
under non-cancelable operating leases with remaining terms in excess of one year
as of March 31, 2009, in the aggregate and for each of the five succeeding
fiscal years are as follows:
- 13 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
Year ended
December 31
2009
$
201,096
2010
188,851
2011
152,512
2012
152,512
2013
150,120
Total minimum
future rental payment
$
845,091
Total
rent and lease expense was $103,874 and $42,274 for the three months ended March
31, 2009 and 2008, respectively.
4.
ACCOUNTS RECEIVABLE
Accounts receivable by major categories are summarized as
follows:
March 31, 2009
Accounts
Receivable – pledged to banks
$
3,424,576
Accounts
Receivable – others
5,448,849
8,873,425
Less:
allowances for doubtful accounts
272,430
Total
$
8,600,995
Under
the terms of a revolving line of credit agreement with Bank of the West
indicated in note 11, the revolving line of credit is secured by 70% of accounts
receivable and all business assets of the company and guaranteed by its
officers.
Concentrations in Accounts Receivable - At March 31, 2009, three
customers accounted for more than 10% of the company's accounts receivables with
total amounts of $4,909,491 representing 45.5% of the total accounts receivables
in aggregate. At March 31, 2008, one customer accounted for more than 10% of the
Company's accounts receivable, with a total amount of $2,497,855, representing
52% of total accounts receivable in the aggregate.
5.
INVENTORIES
Inventories by major categories are summarized as follows:
March 31, 2009
Raw
materials
$
922,888
Work in
progress
490,492
Finished
goods
2,336,054
Finished goods
– Pledge to the bank (refer to note 11)
916,047
4,665,481
Less:
allowances for slowing moving items
-
Total
$
4,665,481
- 14 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
6.
PROPERTY AND EQUIPMENT
Property and equipment, which is located in the USA and PRC,
consisted of the following at March 31, 2009:
March 31, 2009
Vehicles
$
381,404
Furniture & fixtures
196,152
Equipment
1,701,081
Software
37,252
Others
38,429
Leasehold improvements
229,126
Less: accumulated depreciation
(985,546)
Construction in progress
431,980
Total
$
2,029,878
7.
INTANGIBLE ASSET
The  1,101,000 or $3.67 per share. The "AMERISOLAR" modules
are backed by ISO 9001:2000 and ISO 14000 environmental quality
The intangible asset of $1,101,000 represents the brand name of
"Amerisolar" and the Company acquired this brand name by the issuance of 300,000
restricted shares at $3.67 per share. The "AMERISOLAR" modules are backed by ISO
9001:2000 and ISO 14000 environmental quality certifications.
The brand name is carried at cost and is not being amortized. If
an intangible asset has an indefinite useful life it is not amortized. The
useful life of an intangible asset is the period over which the asset is
expected to contribute directly or indirectly to the future cash flows of the
Company. If no legal, regulatory, contractual, competitive, economic or other
factors limit the useful life of the asset it shall be considered to be
indefinite.  In recording of the brand name is was determined that the
expected useful life is indefinite and cash flows from the brand name are
expected to contribute to the Company over an indefinite period of time.
8.
DEPOSITS PAID FOR INVESTMENT
On June
24, 2008, the Company paid $51,876 for an investment in Tomii International. The
$51,876 gave Worldwide a 21% interest in Tomii International, which is
developing a pocket translation device for Chinese and English.
On
February 1, 2009, the Company paid $1,500,000 as deposits for the incorporation
of the subsidiaries of Nantong Ningbo Solar factory located in China for the
purpose of registered capital and working capital.  The money will be used
to purchase the land and to build a new facility.
9.
INVESTMENT
On March 20, 2009 the
Company exchanged 8,000 shares at $2.00 for one investment unit in JK Advisors
Fund, LLC ("JK") which is a partnership with approximately $1,250,000 in assets.
Management of the Company has reviewed the investment in JK for impairment and
determined there is no indication that the carrying amount of JK may not be
recoverable.
- 15 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
10.
GOODWILL
On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited ("De Hong") through acquiring 55% of the
outstanding capital stock of De Hong, a China corporation, through Worldwide's
wholly owned subsidiary Intech Electro- Mechanical Products Co., Ltd., a Chinese
corporation ("Intech"). The Company funded the acquisition with the sale of
1,055,103 shares of its common stock, or $4,747,970. The sale of stock took
place on June 23, 2008.  Shanghai De Hong Electric and Electronic Company
is the holding company for the operating subsidiary Shanghai Intech -Detron
Electronic Co. ("Detron"). Therefore, Worldwide received 55% control of the
operating subsidiary Shanghai Intech-Detron Electric and Electronic Company
Limited ("Detron"). Detron is a power supply factory in Shanghai, China with
designing and R & D. The terms of Agreement dated February 3, 2008 was that
Worldwide USA paid cash consideration of approximately 1 million dollars for 55%
interest in DeHong. Intech paid the first installment of $714,286 on behalf of
Worldwide in September, 2008. During the three months ended March 31, 2009,
Worldwide paid back $714,286 to Intech and further paid $308,414 for the second
installment and the total consideration of the investment is $1,022,700.
The
Company recorded the difference between the net tangible assets of Detron
$729,421 less the purchase price of $1,022,700 of $293,279 as goodwill.
Cash
$
411,316
Accounts Receivable
1,929,314
Note receivable
226,877
Inventories
774,295
Advances to suppliers
21,703
Prepaid and other current assets
231,967
Property, plant and equipment, net
158,520
Other assets
3,494
Goodwill
293,279
Trade payables
(962,839)
Accrued expenses
(422,943)
Income taxes payable
(29,717)
Related parties payable
(1,015,773)
45% Minority Interest
(596,793)
55% Net assets acquired
$
1,022,700
- 16 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
11.
BANK LOANS
As of
March 31, 2009, the Company has the following lines of credit:
Banker
Amount of the credit line
Loan period
Interest rate
Secured by
Balance as of
March 31, 2009
Bank of the
West
$
$1,300,000
5/20/2009-
5/20/2010
WallStreet Journal prime + 0.5%
70% Accounts receivable + 50%
inventory
$
1,300,000
Bank of the
West
$
$1,025,000
5/20/2008
-6/1/2011
WallStreet Journal prime + 0.5%
70% Accounts receivable + 50%
inventory
$
877,869
Total
loans
$
2,177,868
Less : long term portion
(877,869)
$
1,300,000
For maturities of
long-term loans are as follows as of March 31, 2009:
June 1, 2011
877,869
$
877,869
On May 20, 2008 the
Company paid off its line of credit with Well Fargo in the amount of $960,000
and established a new credit facility with Bank of the West. Under the terms of
the revolving line of credit agreement with Bank of the West dated May 20, 2008,
the Company could borrow up to $3,025,000 at a rate of 5%. This rate is subject
to change based on the prime rate for both credit lines. The revolving line of
credit is secured by the assets of the Company and guaranteed by its
officers.
The Company can borrow up
to $2,000,000 and $1,025,000 under the two credit lines. The maturity dates of
these two credit lines are May 20, 2010 and June 1, 2011, respectively. The
balance outstanding on the first line as of March 31, 2009 is $1,300,000 and
$700,000 is still available for used on the line of credit. The second line of
credit has a balance of $877,869 as of March 31, 2009 resulting in $147,131
available for use of equipment and facility purchases.
12.
STOCK
TRANSACTIONS
On March 6, 2009, the Company issued 120,000 shares of its common
stock to consultants, valued at $187,200, as part of their compensation for the
consulting services. The Company amortized the consultancy fee of $187,200 over
the 12-month term of the agreement from January 1, 2009 to December 31, 2009.
The expense is $15,600 for each month and total stock-based compensation expense
would have been $46,800 for the quarter ended March 31, 2009. However, on
January 2, 2009, one of the consultants returned 4,000 shares to the Company for
the work that he did not perform, valued at $14,680 or $3.67 per share, so the
total for the quarter was $32,120.
On March 20, 2009, the Company issued 8,000 shares of its common
stock in exchange for one unit investment of JK Advisors Fund LLC, of which
1,000 shares were paid to the broker arranging the sale and the remainder was
distributed to the members of the fund.
The total number of shares of common stock outstanding as of March
31, 2009 was 3,617,512.
- 17 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
13.
PENSION
PLAN AND STOCK OPTION PLAN
The
Company established a SEP plan for the benefit of all full-time employees.
 Contributions to the plan are limited to a statutory amount per employee.
 No contributions were made for 2005 or 2006.  The Company also
established a stock option plan for its employees on April 1, 2004.  The
Company approved the plan to issue up to 300,000 shares of common stock.
 The stock option plan provides employees, consultants and directors the
opportunity to purchase shares.  The exercise price of an incentive stock
option granted under this plan must be equal to or greater than the fair market
value of the shares of the Company's common stock on the date the option is
granted.  The exercise price of a non-qualified option granted under this
plan must be equal to or greater than 85% of the fair market value of the shares
of the common stock on the date the option is granted.  An incentive stock
option granted to an optionee owning more than 10% of the voting stock must have
an exercise price equal to or greater than 110% of the fair market value of our
common stock on the date the option is granted. On April 1, 2004, the Board
granted options to purchase 109,213 shares at an exercise price of $6.00 per
share.
14.
RELATED PARTY TRANSACTIONS
The Company paid
wages in the amount of $90,000 and $80,320 to certain stockholders, who are also
members of the Board of Directors, as of March 31, 2009 and 2008 respectively.
As of
March 31, 2009 the Company has no outstanding loan balance or accrued interest
between Jimmy and Mindy Wang, who are principal stockholders, executive officers
and members of the Board of Directors of the Company.  At March 31, 2008,
the Company owed Jimmy and Mindy Wang $ 1,195,766 which consisted of funds
provided for working capital for the Company.  The advances are interest
bearing at 8% per annum, with a default interest rate of 10%.  The Company
paid cash in the amount of $17,446 for interest expense to Mr. and Mrs. Wang for
the three months ended March 31, 2008 and no cash to such persons in the quarter
ending March 31, 2009.
15.
OPERATING RISK
Interest rate risk
The
interest rates and terms of repayment to the bank are disclosed in Note 11.
Other financial assets and liabilities do not have material interest rate risk.
Credit risk
The
Company is exposed to credit risk from its cash in bank and bills and accounts
receivable.  The credit risk on cash in bank is limited because the
counterparties are recognized financial institutions.  Bills and accounts
receivable are subjected to credit evaluations.  An allowance has been made
for estimated irrecoverable amounts which have been determined by reference to
past default experience and the current economic environment.
- 18 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
15.
OPERATING RISK (CONTINUED)
Foreign
currency risk
Most of
the transactions of the Company were settled in Euros, Renminbi, and U.S.
dollars.  Thus, the company has significant foreign currency risk exposure.
Substantially all of the Company's products are manufactured in
China. The Company's operations are subject to various political, economic, and
other risks and uncertainties inherent in China. Among other risks, the
Company's operations are subject to the risks of restrictions on transfer of
funds; export duties, quotas, and embargoes; domestic and international customs
and tariffs; changing taxation policies; foreign exchange restrictions; and
political conditions and governmental regulations
16.
SEGMENT
INFORMATION
The
Company's operations are classified into seven principal reportable segments
that provide different products or services.  Worldwide USA purchases and
sells manufactured goods from China procured by its subsidiary, Shanghai Intech
Electro-Mechanical Products Co., Ltd. ("Intech Electro").  Intech Electro
provides technical advisory, design, delivery, material procurement, and
manufacturing quality control services.  Separate management of each
segment is required because each business unit is subject to different
marketing, production, and technology strategies, and because of the geographic
location of each entity.
Shutai Precision
sells die cast parts. Intech Detron is a power supply factory in Shanghai, China
with designing and R & D capabilities.  Worldwide's Ningbo ("WM
Ningbo") manufactures and sells solar modules.
Segmental
Data – 2009
Reportable Segments
(Amounts
in thousands)
WWMUSA
Manufacturing
WWMUSA
Solar
Intech
Electro
Intech
Precision
Shutai
Precision
Intech
Detron
WM
Ningbo
Total
External
revenue
1,781
6,412
47
260
218
1,087
477
10,282
Intersegment
revenue
-
-
1,215
-
170
-
1,385
Interest
income
8
-
-
-
-
-
3
11
Interest
expense
-
-
-
-
-
-
-
-
Depreciation
(2)
-
(21)
(8)
(1)
(13)
(28)
(73)
Net (loss)
profit after tax
338
-
166
(35)
(33)
31
(24)
443
(1)
Expenditures
for long-lived assets
-
-
12
2
1
11
733
760
(1)
No inter-company profit was eliminated in consolidation.
- 19 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
Segmental
Data – 2008
Reportable Segments
(Amounts
in thousands)
WWMUSA
Intech
Electro
Intech
Precision
Shutai
Precision
Discontinued Operations
Total
External
revenue
4,391
114
872
14
13
5,404
Intersegment
revenue
-
1,152
-
-
-
1,152
Interest
income
1
-
-
-
-
1
Interest
expense
(30)
-
-
(5)
-
(35)
Depreciation
(4)
-
-
-
-
(4)
Net profit
after tax
175
34
19
(7)
9
230
(1
)
Expenditures
for long-lived assets
6
12
-
9
-
27
(1)
$(16,555) in inter-company profit was eliminated in consolidation.
- 20 -
ITEM
 2.
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
DISCLAIMER REGARDING
FORWARD LOOKING STATEMENTS
Certain statements in
this Form 10-Q, which are not statements of historical fact, are what are known
as "forward-looking statements," which are basically statements about the
future. For that reason, these statements involve risk and uncertainty since no
one can accurately predict the future. Words such as "plans," "intends,"
"hopes," "seeks," "anticipates," "expects," and the like, often identify such
forward looking statements, but are not the only indication that a statement is
a forward-looking statement. Such forward-looking statements include statements
concerning our plans and objectives with respect to our present and future
operations, and statements which express or imply that such present and future
operations will or may produce revenues, income or profits. These and other
factors may cause our actual results to differ materially from any
forward-looking statement.  We caution you not to place undue reliance on
these forward-looking statements.  Although we base these forward-looking
statements on our expectations, assumptions, and projections about future
events, actual events and results may differ materially, and our expectations,
assumptions, and projections may prove to be inaccurate. The forward-looking
statements speak only as of the date hereof, and we expressly disclaim any
obligation to publicly release the results of any revisions to these
forward-looking statements to reflect events or circumstances after the date of
this filing.
Overview
Worldwide Energy and Manufacturing USA, Inc. ("Worldwide" or "the
Company") is a manufacturing engineering firm and international contract
manufacturer, using factories in China, primarily supplying customers in Europe
and South Korea with respect to our solar modules and United States-based
companies that outsource their smaller scale production orders for offshore
production in China. From our inception in 1993 until 2005, we were strictly an
intermediary or "middle man," working with our customers and our subcontractors
to assure that our customers received high quality components on a timely basis
that fulfilled their specific needs. While we still subcontract a significant
portion of our business, since 2005, we have begun the transition to becoming a
direct contract manufacturer, operating several of our own factories.
 Recently, we announced two additional factories allowing us to become a
direct manufacturer for solar modules and for power supply units as described
below:
On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited ("De Hong") through acquiring 55% of the
outstanding capital stock of De Hong, a China corporation, through Worldwide's
wholly owned subsidiary Intech Electro- Mechanical Products Co., Ltd., a Chinese
corporation ("Intech"). The Company funded the acquisition with the sale of
1,055,103 shares of its common stock, or $4,747,970. The sale of stock took
place on June 23, 2008.  Shanghai De Hong Electric and Electronic Company
is the holding company for the operating subsidiary Shanghai Intech -Detron
Electronic Co. ("Detron"). Therefore, Worldwide received 55% control of the
operating subsidiary Shanghai Intech-Detron Electric and Electronic Company
Limited ("Detron"). Detron is a power supply factory in Shanghai, China with
designing and R & D. The terms of Agreement dated February 3, 2008 was that
Worldwide USA paid cash consideration of approximately 1 million dollars for 55%
interest in DeHong. Intech paid the first installment of $714,286 on behalf of
Worldwide in September, 2008. During the three months ended March 31, 2009,
Worldwide paid back $714,286 to Intech and further paid $308,414 for the second
installment and the total consideration of the investment is $1,022,700.
On
August 15, 2008, the Company formed a new company called Nantong Ningbo Solar
factory ("Ningbo Solar"), which is the solar energy research and development
manufacturer. The Company established a
- 21 -
factory
to provide installation services to different solar projects. The Company also
acts as agent to import or export the products and services overseas.
On November 10, 2008
the Company announced the establishment of a new solar module production and
R&D facility. We leased a 128,000-square-foot facility in Ningbo, China.
This facility will house the Company's research center and part of its
photovoltaic (PV) manufacturing operations.
The
city of Ningbo is about two hours and 15 minutes away from downtown Shanghai.
The capacity of the factory is 60 to 80 megawatts per year. Based on current
market prices for solar modules 60 to 80 megawatts equates to approximately
US$225 million to $300 million in potential revenues per year.
Despite these
additions and enlarging our capability as a direct manufacturer for several
products lines we are still constrained in our growth for a number of reasons.
Many Fortune 500 and other large companies either cannot, or choose not, to work
with contract manufacturers preferring to go directly to the source that can
manufacture the product and thereby avoid the additional expense of the
middleman. This is particularly true for very large orders, where the added cost
of the middleman can have a material impact on the customers' bottom line. As a
result, our revenues have for the most part, but not entirely, been limited to
smaller scale production orders primarily (but not entirely) placed by companies
that are not among the largest companies in the United States or elsewhere.
Additionally, as a middleman we must share any potential gross profit with the
subcontracting factory. Therefore, our customers are generally smaller, the
orders they place are generally smaller and the income and profit we can
generate from those orders is of necessity limited because we are not directly
manufacturing the products. On the other hand, when we subcontract the actual
manufacturing of our customers' products and components, we do not need to hire
factory employees, purchase materials, purchase and maintain manufacturing
equipment or incur the costs of the manufacturing facilities. To some extent,
these costs are built into the price charged by our subcontractors, but if we do
not place orders, we do not incur those costs.
Our management has
carefully considered these factors and during 2004 made the strategic decision
to move our company away from our historical complete reliance on
subcontractors. At the beginning of 2005 we did not own any of our own factories
and used as our suppliers of materials and labor approximately 100 factories in
China, mostly in Shanghai or the surrounding area. Since 2005 we have acquired
an electronics factory, a die-casting and machining factory through leasing an
existing facility from a former vendor and initially invested approximately
$500,000 to upgrade the equipment and manufacturing buildings, a recently
announced power supply company with designing and R & D capabilities and a
solar module factory on November 10, 2008.  In these transactions we
acquired assets, the expertise of the employees, the managers of the factories,
and a portion of the existing customers of those factories with the exception of
the solar module factory which we established on our own. As a result, as of
November 10, 2008, we own and operate four factories that we now use for the
manufacture of certain product lines that we historically had to subcontract,
and we are using the services of approximately 40 subcontractors to manufacture
those product lines for which we do not have our own manufacturing
capabilities.
The establishment of
these factories, including asset purchases and factory upgrades, was funded by
three separate sources. The earlier acquisitions of the die cast and electronic
factory primarily was financed by loans from Jimmy and Mindy Wang, our principal
stockholders and executive officers, as well as increased lines of credit. Our
credit line increased to $3,025,000 with Bank of the West from a $2,250,000 line
with Wells Fargo.  The power supply company and the establishment of the
new solar module factory were funded by two equity transactions dated June 23
and July 24, 2008 where the company raised approximately $5 million dollars and
netted approximately $4,600,000 after fees and costs. In the future, we expect
to continue to acquire or newly-establish factories that will give us the
capability to manufacture those product lines our management believes are the
most profitable.
- 22 -
With the continuing
transition into direct manufacturing and the renewable energy field, we expect
to continue to increase sales outside the United States, and in particular,
increase the number of customers in PRC, other Asian markets and Europe. Our
costs to establish and improve these factories will increase along with sales
and profits.
Through the
development of our product mix, which consists of solar modules, foundry,
machining and stamping, electronics and fiber optics products lines, our
business has become more diverse. In the past, foundry and machining and
stamping accounted for more than 90% of our business. This percentage has
decreased since forming our own factories along with our new energy division
which now represents approximately 62% of our business and we expect this
percentage to continue to increase in the foreseeable future.
Generally, our operating results have been,
and will continue to be, affected by a number of factors, including the
following:
•
our customers
may cancel or delay orders or change production quantities;
•
our operating
results vary significantly from period to period due to the mix of the
manufacturing services we are providing, the number and size of new
manufacturing programs, the degree to which we utilize our manufacturing
capacity, seasonal demand, shortages of components and other
factors;
•
integration of
acquired businesses and facilities; and
•
managing growth
and changes in our operations.
We also are subject to other risks, including
risks associated with operating in foreign countries, changes in our tax rates,
and fluctuations in currency exchange rates.
Results of
Operations
Net sales for the
three months ending March 31, 2009 were $10,281,867 compared to net sales of
$5,404,083 for the same period in 2008. This increase of $4,877,784 or
approximately 90.3% was the result of an increase in orders in our energy
division and the recent acquisition of Detron. Solar orders for quarter ending
March 31, 2009 were $6,412,210 compared to $2,505,977 in the same period in
2008. This represents an increase of $3,906,233 or approximately 155.9%.
Additionally, the recent acquisition of Detron resulted in an increase in
revenues of approximately $1,087,000. The Company will continue to focus on the
expansion of its energy division by the continued development of its newly
established solar factory in Ningbo, China as well as the continued quality
enhancements of its solar module brand, "Amerisolar".
Gross profit
increased by $734,542, or approximately 63.0% from $1,165,050 in the quarter
ending March 31, 2008 to $1,899,592 for the three months ending March 31, 2009,
 primarily reflecting  solar module sales in the energy division
Cost of goods
sold for the three months ended March 31, 2009 was $8,382,275 compared to
$4,239,033 for the same period in 2008.  The increase of $4,143,242 or
approximately 97.7% was the result of greater revenues in the energy division.
The gross margin was
18.5% for the three months ending March 31, 2009 compared to 21.6% in the same
period in 2008. The declined of 3.1% in gross margin was the result of the
Company utilizing more sub-contractors for production of our solar modules along
with softness in the price of solar modules.   It is expected that
gross margins will improve as the Company continues its transition of becoming a
direct
- 23 -
manufacturer for its
solar module products as the newly established factory becomes operational.
Further, the outlook for solar modules margins look to improve as raw material
necessary for production of modules are expected to decline and margins to
increase.
In the period ending
March 31, 2009 there was stock based compensation of $32,120 compared to the
non-cash deduction of $110,000 for stock based compensation in 2008. Further the
Company had depreciation expense of $73,176 in the period ending March 31, 2009
compared to $3,972 in the same period of 2008, due to the greater amount of
depreciable assets owned by the Company.
Net income before
taxes for the three months ending March 31, 2009 was $506,857 compared to a net
income before taxes of $218,923 in the same quarter of 2008. The increase of
$287,934 or approximately 131.5% was largely the result of the increased sales
of our solar modules. Net income after tax was $443,154 for the three months
ending March 31, 2009 compared to a net income after tax of $230,327 in the same
quarter of 2008. The increase of $212,827 or approximately 92.4% was also due to
the increased sales of our solar modules.
General and
administration expenses for the three months ended March 31, 2009, totaled
$1,213,383 compared to $701,085 in the same quarter in 2008. The increase of
$512,298 or approximately 73.1% was due to the establishment of our solar module
factory and recent expenses associated with the acquisition of Detron.
LIQUIDITY
The
following is a summary of Worldwide's cash flows from operating, investing, and
financing activities during the periods indicated:
Three months ended March 31,
2009
2008
Cash at
Beginning of Period
$5,092,476
$2,111,825
Operating
activities (used)
$(1,888,174)
(1,059,897)
Investing
activities(Used)
$(885,708)
$(93,237)
Financing
activities
$1,180,770
$1,489,108
Net effect on
cash
$21,035
$55,331
Cash at End of
Period
$3,520,399
$2,503,130
The
Company funded its growth largely from its proceeds of $4,747,970 from the sale
on June 23, 2008 of 1,055,103 shares of its common stock, and from additional
sale of $252,027 or 56,007 shares of common stock later in 2008.  This was
used to help fund these new acquisitions and to provide additional working
capital for the Company. The Company netted $4,608,036 from the sales of these
securities.
In 2008
our credit line was increased by approximately $775,000 from a line of
credit in the amount of $2.25 million with Golden Gate Bank to $3.025 million,
as a result of securing two new credit lines with Bank of the West, one for
$1,025,000 and the other for $2,000,000. The credit line with Golden Gate Bank
was subsequently closed. These revolving lines of credit are secured by the
assets of the Company and guaranteed by its officers. The maturity date of these
two credit lines is May 20, 2010 and June 1, 2011, respectively. The balance
outstanding as of March 31, 2009 is $1,300,000, and $700,000 is still available
for use on the line of credit. Additionally, the second line of credit has a
balance of $877,869 as of March 31, 2009, with $147,131 still available for use
of equipment and facility purchases.
- 24 -
In addition the
increase in net profits of $212,827 or 92.4% over the quarter ending March 31,
2009 provided the Company with greater liquidity and financial resources. The
Company feels that it has sufficient capital to continue to fund its operations.
For the
quarter ending March 31, 2009, net cash used in operations was $1,888,174
compared to net cash used in March of 2008 of $1,059,897. The major factors for
this increase in net cash used in operations were the increase in accounts
receivables and inventory due to the Company's growth in sales. Net cash used in
investing was $885,708 in the March 31, 2009 quarter, compared to net cash used
of $93,237 in the same period of 2008. This increase was the result of our
acquisition of Detron and the establishment of our new solar module factory. The
Company anticipates further expansion in 2009 and will finance this growth
through Company profitability as well as outside sources of funding if required.
Net cash flows provided by financing activities in the March 31, 2009 quarter
was $1,180,770 compared to $1,489,108 in 2008.
The Company raised
approximately, $4,747,970 on June 23, 2008 and an additional $252,027 on July
24, 2008 for gross proceeds of approximately $5 million, or net proceeds of
$4,586,916 after offering expenses. The Company issued 1,111,109 restricted
common shares along with warrants to purchase an additional 1,111,109 shares
with 722,221 warrants having an exercise price of $7.00 and 388,888 of those
warrants having an excise price of $9.00. These funds were used to expand our
energy division through the establishment of a new solar module factory
announced on November 10, 2008 along the acquisition of a power supply company
with designing and R&D capabilities.  Additionally, these funds will be
used to provide additional working capital for the solar module factory to
purchase raw materials and to expand the solar module business segment.
PLAN OF
OPERATION
We plan to continue
our expansion efforts in the solar module industry through expansion of our
solar module factory in Ningbo, China. We will attempt to increase our customer
base in this industry by achieving greater product enhancements and sales
efforts. Further, we feel that our recent acquisition of Detron will bring more
revenues and profits as we continue to streamline our present electronic factory
into the new acquisition as well as improve the operation of Detron and our
other factories in China. Additionally, we intend to begin expansion of our
marketing into the U.S. solar module market in the third quarter of 2009.
Off-Balance Sheet Arrangements
We do not have any
off-balance sheet arrangements that are currently material or reasonably likely
to be material to our financial position or results of operations.
Critical
Accounting Policies, Estimates and Judgments
This discussion and
analysis of financial condition and results of operations is based on our
consolidated financial statements, which have been prepared in accordance with
U.S. generally accepted accounting principles. The preparation of these
financial statements requires us to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses and related
disclosures. On an on-going basis, we evaluate our estimates, including those
related to property, plant and equipment, inventories, revenue recognition,
inventories, accounts receivable and foreign currency transactions and
translation. We base our estimates on historical experience and on various other
market-specific assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results, however, may differ significantly from these
estimates.
- 25 -
We believe the
following critical accounting policies reflect the more significant judgments
and estimates used in the preparation of our consolidated financial statements:
Property,
plant and equipment
Property, plant and
equipment are stated at historical cost and are depreciated over the useful
lives of the assets. Leasehold improvements and capitalized leased equipment are
amortized over the life of the lease. Repair and maintenance expenditures that
do not significantly add to the value of the equipment or prolong its life are
charged to expense as incurred. Gains and losses on dispositions of property,
plant and equipment are included in the related period's statement of
operations. Depreciation is computed primarily using the straight-line method
based on estimated useful lives, which range from 3 to 25 years.
Inventories
Inventories consist
of finished goods of manufactured products. Our inventory is based on customer
orders and the duration of those orders. Cost is stated at the lower of cost or
market on a first-in, first-out (FIFO) basis. We have not recorded an allowance
for slow-moving or obsolete inventory. Obsolete inventory at March 31, 2009 was
minimal.
Revenue
Recognition
We recognize revenues
in accordance with the guidelines of the Securities and Exchange Commission
("SEC") Staff Accounting Bulletin ("SAB") No. 104 "Revenue Recognition". We
recognize revenue from product sales when the orders are completed and shipped,
provided that collection of the resulting receivable is reasonably assured.
Amounts billed to customers are recorded as sales while the shipping costs are
included in cost of sales. Returns on defective custom parts may only be
exchanged for replacement parts within 30 days of the invoice date. Returns on
defective parts, which can be resold, may be exchanged for replacement parts or
for a refund.  Revenue from non-refundable customer tooling deposits is
recognized when the materials are shipped or when the deposit is forfeited,
whichever is earlier.
Foreign
Currency Transactions and Translation
Transaction gains and
losses result from a change in exchange rates between the functional currencies
in which a foreign currency transaction is denominated and the reporting
currency. They represent an increase or decrease in (i) the actual functional
current cash flows realized upon settlement of foreign currency transactions and
(ii) the expected functional currency cash flows on unsettled foreign currency
transactions. All transaction gains and losses are included in other income or
expense. For all periods presented, sales to customers were primarily
denominated in U.S. dollars.
Assets and
liabilities of Intech are translated into U.S. dollars at the prevailing
exchange rate in effect at each period end. Revenue and expenses are translated
into U.S. dollars at the average exchange rate during the reporting period.
Contributed capital is translated into U.S. dollars at the historical exchange
rate when capital was injected. Any difference resulting from using the current
rate, historical rate and average rate in determination of retained earnings is
accounted for as a translation adjustment and reported as part of comprehensive
income or loss in the equity section. Exchange differences are recognized in the
income statement in the period in which they occur.
Management has
discussed the development and selection of these critical accounting policies
with the Board of Directors and the Board has reviewed the disclosures presented
above relating to them.
- 26 -
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest rate risk
The
interest rates and terms of repayment of bank and other borrowings from
stockholders are disclosed in Note 5 and Note 8. Other financial assets and
liabilities do not have material interest rate risk.
Credit risk
The
Company is exposed to credit risk from its cash in bank and bills and accounts
receivable.  The credit risk on cash in bank is limited because the
counterparties are recognized financial institutions.  Bills and accounts
receivable are subjected to credit evaluations.  An allowance has been made
for estimated irrecoverable amounts which have been determined by reference to
past default experience and the current economic environment.
Foreign currency risk
We transact business
in foreign currencies and may be exposed to risk resulting from fluctuations in
foreign currency exchange rates, particularly the Renminbi, ("RMB"), and the
Euro ("EUR"), which may result in gains or losses reported in our earnings. The
volatilities in RMB and EUR are monitored by us throughout the year. We face two
risks related to foreign currency exchange rates: translation risk and
transaction risk. Amounts invested in our foreign operations are translated into
U.S. Dollars using period-end exchange rates. The resulting translation
adjustments are recorded as a component of accumulated other comprehensive
income (loss) in stockholders' equity. Revenues and expenses in foreign
currencies translate into higher or lower revenues and expenses in U.S. Dollars
as the U.S. Dollar weakens or strengthens against other currencies.
Substantially all of the revenues of our foreign subsidiaries are received, and
substantially all expenses are incurred, in currencies other than the U.S.
Dollar, which increases or decreases the related U.S. Dollar reported revenues
and expenses depending on the trend in currencies. Therefore, changes in foreign
currency exchange rates may negatively affect our consolidated revenues and
expenses. Net foreign currency transaction gains or losses arising from
transactions in our foreign operations denominated in currencies other than the
local functional currency are included in other income (expense), net in the
consolidated statements of operations. While we have not engaged in foreign
currency hedging to date, we may in the future use hedging programs, including
currency forward contracts, currency options and/or other derivative financial
instruments commonly utilized if it is determined that such hedging activities
are appropriate to reduce risk. In addition substantially all of the Company's
products are manufactured in China. The Company's operations are subject to
various political, economic, and other risks and uncertainties inherent in
China. Among other risks, the Company's operations are subject to the risks of
restrictions on transfer of funds; export duties, quotas, and embargoes;
domestic and international customs and tariffs; changing taxation policies;
foreign exchange restrictions; and political conditions and governmental
regulations.
Inflation
Inflationary factors
such as increases in the cost of our product and overhead costs may adversely
affect our operating results. Although we do not believe that inflation has had
a material impact on our financial position or results of operations to date, a
high rate of inflation in the future may have an adverse effect on our ability
to maintain current levels of gross margin and selling, general and
administrative expenses as a percentage of net revenues if the selling prices of
our products do not increase with these increased costs
- 27 -
ITEM
4.
CONTROLS
AND PROCEDURES
The Securities and
Exchange Commission defines the term disclosure controls and procedures to mean
a company's controls and other procedures that are designed to ensure that
information required to be disclosed in the reports that it files or submits
under the Securities Exchange Act of 1934 is recorded, processed, summarized and
reported, within the time periods specified in the Securities and Exchange
Commission's rules and forms.   The Company maintains such a system of
controls and procedures in an effort to ensure that all information which it is
required to disclose in the reports it files under the Securities Exchange Act
of 1934 is recorded, processed, summarized and reported within the time periods
specified under the SEC's rules and forms.
Based on an
evaluation performed, the Company's certifying officers have concluded that the
disclosure controls and procedures were effective as of March 31, 2009, to
provide reasonable assurance of the achievement of these objectives.
There was no change
in the Company's internal control over financial reporting during the period
ended March 31, 2009, that has materially affected, or is reasonably likely
to materially affect, the Company's internal control over financial
reporting
- 28 -
PART
II.  OTHER INFORMATION
Item
1A.
Risk
Factors (herein incorporated by reference from Annual Report on Form 10-K filed
with the Securities and Exchange Commission on April 14, 2009).
Item
2.
Unregistered
Sales of Equity Securities and Use of Proceeds
On March 6, 2009, the Company issued 120,000 shares of its common
stock to consultants, valued at $187,200, as part of their compensation for the
consulting services. The Company amortized the consultancy fee of $187,200 over
the 12-month term of the agreement from January 1, 2009 to December 31, 2009.
The expense is $15,600 for each month and total stock-based compensation expense
would have been $46,800 for the quarter ended March 31, 2009. However, on
January 2, 2009, one of the consultants returned 4,000 shares to the Company for
the work that he did not perform, valued at $14,680 or $3.67 per share, so the
total for the quarter was $32,120.
On March 20, 2009, the Company issued 8,000 shares of its common
stock in exchange for one unit investment of JK Advisors Fund LLC, of which
1,000 shares were paid to the broker arranging the sale and the remainder was
distributed to the members of the fund.
Item
3.
Defaults
upon Senior Securities
None
Item
4.
Submission
of Matters to a Vote of Security Holders
None
Item
5.
Other
Information
None
- 29 -
Item
6.
Exhibits
The
following exhibits are filed herewith:
3.1
Articles
of Incorporation (incorporated by reference from Registration Statement on Form
10-SB filed with the Securities and Exchange Commission on October 11,
2000).
3.2
Bylaws
(incorporated by reference from Registration Statement on Form 10-SB filed with
the Securities and Exchange Commission on October 11, 2000).
3.3
Amendment
to the Articles of Incorporation to change the name of the Company from Tabatha
III, Inc. to Worldwide Manufacturing USA, Inc., filed with the Colorado
Secretary of State on November 4, 2003 (herein incorporated by reference from
Annual Report on Form 10-K filed with the Securities and Exchange Commission on
April 14, 2009).
3.4
Amendment
to the Articles of Incorporation to change the name of the Company from
Worldwide Manufacturing USA, Inc. to Worldwide Energy and Manufacturing USA,
Inc., filed with the Colorado Secretary of State on February 4, 2008 (herein
incorporated by reference from Annual Report on Form 10-K filed with the
Securities and Exchange Commission on April 14, 2009).
4.1
Specimen
Common Stock Certificate (incorporated by reference from Registration Statement
on Form 10-SB filed with the Securities and Exchange Commission on October 11,
2000).
4.2
Specimen
Class A Convertible Preferred Stock Certificate (incorporated by reference from
Registration Statement on Form 10-SB/A filed with the Securities and Exchange
Commission on October 11, 2000).
10.1
Common
Stock Purchase Warrant (incorporated by reference from Form 10-KSB filed with
the Securities and Exchange Commission on September 27, 2001).
14.1
Code
of Ethics (incorporated by reference from Form 10-KSB filed with the Securities
and Exchange Commission on March 31, 2005).
21.1
Subsidiaries
of Worldwide Energy and Manufacturing USA, Inc. (herein incorporated by
reference from Annual Report on Form 10-K filed with the Securities and Exchange
Commission on April 14, 2009).
31.1
Certification
pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of
1934, as amended.
31.2
Certification
pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of
1934, as amended.
32.1
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
32.2     Certification pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
- 30 -
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be singed on its behalf by the undersigned thereunto duly
authorized.
WORLDWIDE ENERGY
AND MANUFACTURING USA, INC.
By
: /S/ JIMMY
WANG
Jimmy Wang, CEO
and Director (duly authorized officer)
Date:  May 14,
2009
By
: /S/ JOHN
BALLARD
John Ballard,
Chief Financial Officer (principal financial and accounting officer)
Date:  May 14,
2009
- 31 -