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, 2011

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Greatmat Technology Corporation

(Exact name of registrant as specified in its charter)

Nevada	000-53481	68-0681042
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

Room 3202-03, 32/F,

148 Electric Road, North Point, Hong Kong

(Address of principal executive offices)

Telephone – 852-2891-2111

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

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

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

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

As of May 14, 2013, the registrant had 1,464,530 shares of common stock outstanding.

Table of Contents

GREATMAT TECHNOLOGY CORPORATION

INDEX

PART I – FINANCIAL INFORMATION

		Page

Item 1.	Financial Statements	3

	Balance Sheets	F-1

	Statements of Income	F-3

	Statements of Stockholders’ Deficit	F-4

	Statements of Cash Flows	F-5

	Notes to Financial Statements	F-6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4

Item 3.	Quantitative And Qualitative Disclosures About Market Risks	12

Item 4.	Controls and Procedures	12

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	13

Item 6.	Exhibits	13

SIGNATURES

Table of Contents

PART I.

FINANCIAL INFORMATION

Item 1. Financial Statements.

GREATMAT TECHNOLOGY CORPORATION AND SUBSIDIARIES

CONTENTS		PAGES


CONSOLIDATED BALANCE SHEETS		F-1

CONSOLIDATED STATEMENTS OF INCOME		F-3

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY		F-4

CONSOLIDATED STATEMENTS OF CASH FLOWS		F-5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		F-6

Table of Contents

GREATMAT TECHNOLOGY CORPORATION

(FORMERLY KNOWN AS AURUM EXPLORATIONS, INC.)

CONSOLIDATED BALANCE SHEETS

AS AT MARCH 31, 2011 AND DECEMBER 31, 2010

(Stated in US Dollars)

	Note		March 31, 2011		December 31, 2010
			(Unaudited)		(Audited)
ASSETS
Current assets
Cash and cash equivalents			$	482,205	$	963,498
Account receivables				2,337,566		3,258,072
Deposits, prepayments and other receivables		3		64,119		17,757
Receivables from related parties		5		1,410,542		1,201,871

Total current assets			$	4,294,432	$	5,441,198
Property, plant and equipment, net		4		1,078,058		1,176,126

TOTAL ASSETS			$	5,372,490	$	6,617,324
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities

Accounts payable and accrued charges		6		1,535,954		2,875,167
Amount due to related party		8		211,092		—
Other payable				85,194		1,651
Secured bank loan-current portion		7		69,820		69,820
Income tax payable				167,881		156,631

Total current liabilities			$	2,069,941	$	3,103,269
Provision of compensation				5,152,593		4,740,738
Secured bank loan-non-current portion		7		509,159		526,236

TOTAL LIABILITIES			$	7,731,693	$	8,370,243

Commitments and contingencies		11	$	—	$	—

See accompanying notes to consolidated financial statements

Table of Contents

F-1

GREATMAT TECHNOLOGY CORPORATION

(FORMERLY KNOWN AS AURUM EXPLORATIONS, INC.)

CONSOLIDATED BALANCE SHEETS (Continued)

AS AT MARCH 31, 2011 AND DECEMBER 31, 2010

(Stated in US Dollars)

	March 31, 2011			December 31, 2010
	(Unaudited)			(Audited)
STOCKHOLDERS’ DEFICIT
Common stock $0.001 par value, 100,000,000 authorized in March 31, 2011 and December 31, 2010, 9,749,523 shares issued and outstanding at March 31, 2011 and December 31, 2010	$	9,750		$	9,750
Paid in capital		170,641			170,641
Foreign exchange reserve		(570,046	)		(348,412	)
Accumulated deficit		(1,969,548	)		(1,584,899	)
	$	(2,359,203	)	$	(1,752,919	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	5,372,490		$	6,617,324

See accompanying notes to consolidated financial statements

Table of Contents

F-2

GREATMAT TECHNOLOGY CORPORATION

(FORMERLY KNOWN AS AURUM EXPLORATIONS, INC.)

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

	Note		2011			2010
						Restated
Net revenues			$	777,647		$2,327,833
Cost of sales				(596,338	)	(1,370,697)

Gross profit			$	181,309		$957,136
Operating expenses:
General and administrative				(544,926	)	(360,424)

Operating (loss)/income			$	(363,617	)	$596,710
Other income				—		-
Interest expenses				(9,783	)	(8,836)

(Loss)/Income before income taxes			$	(373,399	)	$587,876
Income taxes		10		(11,250	)	(95,004)
Net (loss)/income			$	(384,650	)	$492,872
Dividend paid				—		-

Net (loss)/income after dividends			$	(384,650	)	$492,872

Foreign exchange difference				(221,634	)	(737)

Comprehensive (loss)/income			$	(606,284	)	$492,135

(Loss)/Earnings per share:
-Basic and diluted		9	$	(0.04	)	0.07

Weighted average number of common stock
-Basic and diluted		9		9,749,523		7,312,140

See accompanying notes to consolidated financial statements

Table of Contents

F-3

GREATMAT TECHNOLOGY CORPORATION

(FORMERLY KNOWN AS AURUM EXPLORATIONS, INC.)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND YEARS ENDED DECEMBER 31, 2010

(Stated in US Dollars)

	Common stock
	No. of shares			Amount			Paid in Capital			Foreign exchange reserve			Accumulated earnings		Total
										Restated			Restated		Restated
Balance, January 1, 2010		36,560,700			36,561			(36,560	)		(381,178	)	(2,141,464)			(2,522,641	)
Net income													827,858			827,858
Foreign exchange difference											32,766					32,766
Dividend - before reverse merger													(115,385)			(115,385	)
Effect of reverse merger		12,186,900			12,187			168,203					(155,907)			24,483
Effect of 1 for 5 reverse spilt		(38,998,077	)		(38,998	)		38,998
Balance, December 31, 2010		9,749,523			9,750			170,641			(348,412	)	(1,584,898)			(1,752,919	)

Net income													(384,650)			(384,650	)

Foreign exchange difference											(221,634	)				(221,634	)

Balance, March 31, 2011		9,749,523			9,750			170,641			(570,046	)	(1,969,548	),		(2,359,203	)

See accompanying notes to consolidated financial statements

Table of Contents

F-4

GREATMAT TECHNOLOGY CORPORATION

(FORMERLY KNOWN AS AURUM EXPLORATIONS, INC.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

	2011			2010
				Restated
Cash flows from operating activities
Net income	$	(384,650	)	$	492,872
Depreciation		98,068			104,680
Provision of compensation		190,221			183,303
Accounts receivables		920,506			(1,104,605	)
Amount due from a director		(208,671	)		—
Advances to suppliers		—			—
Bill receivables		—			—
Deposits and prepaid expenses		(46,362	)		11,309
Receivables from related parties		211,092			113,309
Accounts payables		(1,339,367	)		374,435
Advanced to customer		85,194			—
Accruals		(1,497	)		(7,725	)
Income taxes payable		11,249			77,935
Amount due to a director		—			(175,524	)

Net cash provided /used by operating activities	$	(464,217	)	$	69,989

Cash flows from investing activities
Purchase of property, plant and equipment	$	—		$	—
Sales proceeds of property, plant and equipment		—			—

Net cash used in investing activities	$	—		$	—

Cash flows from financing activities
Proceeds from stock issuance
Bank borrowings
Bank repayments		(17,076	)		(126,080	)
Dividend paid					—
Finance lease		—			—

Net cash (used)/provided by financing activities	$	(17,076	)	$	(126,080	)

Net cash and cash equivalents sourced	$	(481,293	)	$	(56,091	)

		2011			2010

Net cash and cash equivalents sourced	$	(481,293	)	$	(56,091	)

Cash and cash equivalents–beginning of year		963,498			147,234

Cash and cash equivalents–end of quarter	$	482,205		$	91,143

SUPPLEMENTARY CASH FLOW INFORMATION
Income tax paid	$	11,249		$	77,935
Interest paid	$	9,783		$	8,836

See accompanying notes to consolidated financial statements

Table of Contents

F-5

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

Greatmat Technology Corporation (formerly Aurum Explorations, Inc. or “Aurum”) (the “Company”) was incorporated in the State of Nevada on April 27, 2007. The Company was formed for the purpose of acquiring exploration and development stage natural resources properties. On October 30 2010, the Company changed the name from Aurum Explorations, Inc. to Greatmat Technology Corporation. On September 21, 2011, the Company was re-domiciled from State of Nevada to the Cayman Islands.

On October 30, 2010, pursuant to the terms of a Share Exchange Agreement (the “Share Exchange Agreement,” such transaction, the “Share Exchange Transaction”) between Aurum and the shareholder of Greatmat Holdings Limited (“Greatmat Holdings” or “Greatmat”) who transferred 100% of Greatmat Holdings common shares to Aurum. Aurum issued 36,560,700 shares of its common stock to the Greatmat Holdings original’s shareholder in exchange of such stock. The transaction was accounted for as a “reverse merger,” since the original stockholders of the Greatmat Holdings own a majority of the outstanding shares of Aurum common stock immediately following the completion of the transaction. Greatmat Holdings was the legal acquiree but deemed to be the accounting acquirer. Aurum was the legal acquirer but deemed to be the accounting acquiree in the reverse merger. The historical financial statements prior to the acquisition are those of the accounting acquirer (Greatmat Holdings). Historical stockholders' equity of the acquirer prior to the merger are retroactively restated (a recapitalization) for the equivalent number of shares received in the merger. Operations prior to the merger are those of the acquirer. As a result of the acquisition, our consolidated subsidiaries include Greatmat Holdings Limited (“Greamat Holdings”), our wholly-owned subsidiary which is incorporated under the laws of the BVI, Greatmat Technology Limited(“Greatmat Limited”), a wholly-owned subsidiary of Greatmat Holdings which is incorporated under the laws of Hong Kong, Greatmat Technology (HK) Limited(“Greatmat Hong Kong”), a wholly-owned subsidiary of Greatmat Holdings which is incorporated under the laws of Hong Kong, and Greatmat Technology (China) Limited(“Greatmat China”), a wholly-owned subsidiary of Greatmat Holdings which is incorporated under the laws of the BVI.

Inherent in the Company’s business are various risks and uncertainties, including a limited history of operations. The Company’s success will depend on the acceptance of the Company’s products and services and its ability to generate related revenue.

On December 30, 2011, the Company approved the disposition of the three subsidiaries including Greatmat Technology Limited, Greatmat Technology (HK) Limited and Greatmat Technology (China) Limited by transferring 100% of the equity capital of each of these three companies being held by Greatmat Holdings Limited to Mr. Chris Yun Sang So in consideration of HK$1, HK$10,000 and US$1, respectively.

On December 30, 2011, Greatmat Holdings Limited agreed with Yunfu City Yuncheng District Changyi Stone Factory (“YCYDCSF”) to bear all the damages to YCYDCSF, which is RMB 5,000,000 per year, under Clause 2.10 of a 5-year Exclusive Manufacturing Agreement dated June 30, 2004 filed as Exhibit 10.1 to Form 8-K filed with Securities and Exchange Commission (“SEC”) on November 3, 2010. On December 30, 2011, Greatmat Holdings Limited and YCYDCSF entered into a Supplementary Agreement and Damages Agreement, filed as Exhibit 10.03 and Exhibit 10.02, respectively, to the Current Report on Form 8-K/A filed with SEC on February 27, 2013. Under these agreements, Greatmat Holdings Limited agreed to extend the term of the Exclusive Manufacturing Agreement for another 5 years, which will expire on June 30, 2014.

On July 30, 2012, the Company approved a share exchange agreement between the Company and Mr. Chris Yun Sang So to transfer all the Company common stock held by him to the Company in consideration of 100% common stock of Greatmat Holdings.

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F-6

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)

Basis of presentation

The Group maintains its general ledger and journals with the accrual method of accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Group conform to generally accepted accounting principles in the United States of America (“US GAAP”) and have been consistently applied in the presentation of these financial statements.

These financial statements have been prepared on a going concern basis. The Company has profits from operation but suffered from accumulated deficit of $1,584,898 and capital deficiency of $1,752,918 as of December 31, 2010. The Company also anticipates further loss in the development of its business which raises substantial doubt about the Company’s ability to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of the Company to have a profitable operation, be acquired in the future and/or to obtain the necessary financing to meet its production level obligations and repay its damage liabilities arising from the current low production level. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. The Company is actively pursuing additional funding which would enhance capital employed and strategic partners which would increase production level or reduce production costs. Management believes that the above actions will allow the Company to continue its operations.

(b)

Principles of consolidation

The consolidated financial statements include the accounts of Greatmat Technology Corporation (the Company) and its four subsidiaries, constituting the group. The consolidated financial statements are presented in US Dollars. All significant inter-company transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with US GAAP.

Subsidiaries

The Company consolidates its four wholly owned subsidiaries, Greatmat Holdings Limited, Greatmat Technology (China) Limited, Greatmat Technology (HK) Limited, and Greatmat Technology Limited, because it controls those entities through its 100% voting interest in them. The following sets forth information about the wholly owned subsidiaries:

Table of Contents

F-7

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(b) Principles of consolidation (continued)

Name of Subsidiary

Place & date of
Incorporation

Equity Interest
Attributable to
the Company
(%)

Issued Capital

Greatmat Holdings Limited

BVI/ July 15, 2010

100

US$

Greatmat Technology (China) Limited

BVI/ December 8, 2008

100

US$

Greatmat Technology (HK) Limited

HK/May 19, 2004

100

HK$

10,000

Greatmat Technology Limited

HK/September 27, 2010

100

HK$

(c)

Use of estimates

The financial statements are prepared in conformity with US GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates.

(d)

Economic and political risks

The Group’s operations are conducted in the PRC and Hong Kong and Macau. Accordingly, the Group’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC and Hong Kong and Macau, and by the general state of the PRC and Hong Kong and Macau economy.

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

(e)

Property, plant and equipment

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

Motor vehicle	3 years
Furniture and office equipment	5 years
Leasehold improvement	5 years
Plant and machinery	5 years

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F-8

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

(f)

Accounting for the impairment of long-lived assets

The Group periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in FASB ASC 360. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose.

During the reporting periods, there was no impairment loss.

(g)

Trade receivables

Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An allowance for doubtful accounts is maintained for all customers based on a variety of factors, including the length of time the receivables are past due, significant one-time events and historical experience. Bad debts are written off as

(h)

Foreign currency translation

The accompanying financial statements are presented in United States dollars. The functional currency of the Group members is the HK$ for the Hong Kong incorporated companies Greatmat Technology (HK) Limited and Greatmat Technology Limited, and the US$ for the BVI incorporated company Greatmat Holdings Limited and Greatmat Technology (China) Limited.

The Hong Kong Monetary Authority has pegged the Hong Kong dollar to the United States dollar at a rate of 7.8 with fluctuation from 7.75 to 7.85. This pegging system has resulted in the HKD and USD exchange rate remaining in a relatively stable range in the current moment. The risk of exchange from HKD to USD is so low that the discrepancy is small and immaterial. So it is reasonable that 1:7.8 is adopted to translate into United States dollars from Hong Kong dollars for all the financial statements.

(i)

Cash and cash equivalents

The Group considers all highly liquid investments purchased with original maturities of twelve months or less to be cash equivalents. The Group maintains bank accounts in Hong Kong. The Group does not maintain any bank accounts in the United States of America. The cash located outside the United States is not restricted as to usage.

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F-9

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(j)

Revenue recognition

The Company recognizes revenue when the significant risks and rewards of ownership have been transferred to the customer pursuant to PRC law, Macau law and Hong Kong law, including factors such as when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, sales and value-added tax laws have been complied with and collectability is probable.

(k)

Leases

The Group did not have leases which met the criteria of a capital lease. Leases which do not qualify as capital leases are classified as operating leases. Operating lease rental payment included in administrative expenses for the three months ended March 31, 2011 and 2010 were $28,167 and $6,395, respectively.

(l)

Advertising

The Group expensed all advertising costs as incurred. Advertising expenses included in the administrative and other operating expenses for the three months ended March 31, 2011 and 2010 were $632 and nil, respectively.

(m)

Income taxes

The Company uses the accrual method of accounting to determine and report its taxable income and tax credits in the year in which they are available. Income tax liabilities are computed according to the Hong Kong SAR tax laws and Macau SAR tax laws which are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due. The deferred taxes are not provided.

The Company did not have any interest and penalties recognized in the income statements for the periods ended March 31, 2011 and December 31, 2010 or balance sheet as of March 31, 2011 and December 31, 2010. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months. The Company’s 2004/05, 2005/06, 2006/07, 2007/08, 2008/09, 2009/10 Hong Kong Income Tax filings are subject to Hong Kong Inland Revenue Department examination. The Company’s 2009/10 Macau Income Tax filling is subject to Macau Financial Services Bureau examination.

(n)

Retirement benefit plans

The employees of the Group are members of the Mandatory Provident Fund Schemes operated by the government of the Hong Kong SAR. The Group is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only funding obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

Retirement benefits in the form of contributions under defined contribution retirement plans to the relevant authorities are charged to the statements of income as incurred. The retirement benefit funding included in the administrative expenses for the three months ended March 31, 2011 and 2010 were $2,671 and $1,474, respectively.

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F-10

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(o)

Cash and concentration of risk

Cash includes cash on hand and demand deposits in accounts maintained within Hong Kong. Total cash in these banks at March 31, 2011 and December 31, 2010 amounted to $482,205 and $963,498 respectively, of which no deposits are covered by the United States Federal Deposit Insurance Corporation. The Group has not experienced any losses in such accounts and believes it is not exposed to any risk on its cash in bank accounts.

(p)

Recent accounting pronouncements

ASC 105, Generally Accepted Accounting Principles (“ASC 105”) (formerly Statement of Financial Accounting Standards No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162) reorganized by topic existing accounting and reporting guidance issued by the Financial Accounting Standards Board (“FASB”) into a single source of authoritative generally accepted accounting principles (“GAAP”) to be applied by nongovernmental entities. All guidance contained in the Accounting Standards Codification (“ASC”) carries an equal level of authority. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. Accordingly, all other accounting literature will be deemed “non-authoritative”. ASC 105 is effective on a prospective basis for financial statements issued for interim and annual periods ending after September 15, 2009. The implementation of this guidance changed the Company’s references to GAAP authoritative guidance but did not impact the Company’s financial position or results of operations.

ASC 805, Business Combinations (“ASC 805”) (formerly included under Statement of Financial Accounting Standards No. 141 (revised 2007), Business Combinations) contains guidance that was issued by the FASB in December 2007. It requires the acquiring entity in a business combination to recognize all assets acquired and liabilities assumed in a transaction at the acquisition-date fair value, with certain exceptions.

Additionally, the guidance requires changes to the accounting treatment of acquisition related items, including, among other items, transaction costs, contingent consideration, restructuring costs, indemnification assets and tax benefits. ASC 805 also provides for a substantial number of new disclosure requirements. ASC 805 also contains guidance that was formerly issued as FSP FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies which was intended to provide additional guidance clarifying application issues regarding initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. ASC 805 was effective for business combinations initiated on or after the first annual reporting period beginning after December 15, 2008. Implementing this guidance did not have an effect on the Company’s financial position or results of operations; however it will likely have an impact on the Company’s accounting for future business combinations, but the effect is dependent upon acquisitions, if any, that are made in the future.

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F-11

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(p)

Recent accounting pronouncements (Continued)

ASC 855, Subsequent Events (“ASC 855”) (formerly Statement of Financial Accounting Standards No. 165, Subsequent Events) includes guidance that was issued by the FASB in May 2009, and is consistent with current auditing standards in defining a subsequent event. Additionally, the guidance provides for disclosure regarding the existence and timing of a company’s evaluation of its subsequent events. ASC 855 defines two types of subsequent events, “recognized” and “non-recognized”. Recognized subsequent events provide additional evidence about conditions that existed at the date of the balance sheet and are required to be reflected in the financial statements. Non-recognized subsequent events provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date and, therefore; are not required to be reflected in the financial statements. However, certain non-recognized subsequent events may require disclosure to prevent the financial statements from being misleading. This guidance was effective prospectively for interim or annual financial periods ending after June 15, 2009. The effect of implementing this guidance was not material to the Company’s financial position or results of operations.

In August 2009, the FASB issued ASC Update No. 2009-05, Fair Value Measurements and Disclosures (Topic 820): Measuring Liabilities at Fair Value (“ASC Update No. 2009-05”). This update amends ASC 820, Fair Value Measurements and Disclosures and provides further guidance on measuring the fair value of a liability. The guidance establishes the types of valuation techniques to be used to value a liability when a quoted market price in an active market for the identical liability is not available, such as the use of an identical or similar liability when traded as an asset. The guidance also further clarifies that a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are both Level 1 fair value measurements. If adjustments are required to be applied to the quoted price, it results in a level 2 or 3 fair value measurement. The guidance provided in the update is effective for the first reporting period (including interim periods) beginning after issuance. The effect of implementing of ASC Update No. 2009-05 was not material to the Company’s financial position or results of operations.

In September 2009, the FASB issued ASC Update No. 2009-12, Fair Value Measurements and Disclosures (Topic 820): Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) (“ASC Update No. 2009-12”). This update sets forth guidance on using the net asset value per share provided by an investee to estimate the fair value of an alternative investment. Specifically, the update permits a reporting entity to measure the fair value of this type of investment on the basis of the net asset value per share of the investment (or its equivalent) if all or substantially all of the underlying investments used in the calculation of the net asset value is consistent with ASC 820. The update also requires additional disclosures by each major category of investment, including, but not limited to, fair value of underlying investments in the major category, significant investment strategies, redemption restrictions, and unfunded commitments related to investments in the major category. The amendments in this update are effective for interim and annual periods ending after December 15, 2009 with early application permitted. The effect of implementing of ASC Update No. 2009-12 was not material to the Company’s financial position or results of operations.

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F-12

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(p)

Recent accounting pronouncements (Continued)

In January 2010, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update, Fair Value Measurements and Disclosures (Topic 820), Improving Disclosures about Fair Value Measurements. The Update would affect all entities that are required to make disclosures about recurring and nonrecurring fair value measurements. The Board concluded that users will benefit from improved disclosures in this Update and that the benefits of the increased transparency in financial reporting will outweigh the costs of complying with the new requirements. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 30, 2010, and for interim periods within those fiscal years.

In January 2010, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update to address implementation issues related to the changes in ownership provisions in the Consolidation—Overall Subtopic (Subtopic 810-10) of the FASB Accounting Standards Codification™, originally issued as FASB Statement No. 160, Non-controlling Interests in Consolidated Financial Statements. Subtopic 810-10 establishes the accounting and reporting guidance for non-controlling interests and changes in ownership interests of a subsidiary. An entity is required to deconsolidate a subsidiary when the entity ceases to have a controlling financial interest in the subsidiary. Upon deconsolidation of a subsidiary, an entity recognizes a gain or loss on the transaction and measures any retained investment in the subsidiary at fair value. The gain or loss includes any gain or loss associated with the difference between the fair value of the retained investment in the subsidiary and its carrying amount at the date the subsidiary is deconsolidated. In contrast, an entity is required to account for a decrease in its ownership interest of a subsidiary that does not result in a change of control of the subsidiary as an equity transaction.

3. DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES

Deposits, prepayments and other receivables are summarized as follow:

	2011		2010
Rent and other deposits	$	53,282	$	6,920
Advance to suppliers		—		—
Prepaid tax		10,735		10,735
Other prepayments		102		102

	$	64,119	$	17,757

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F-13

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

4. PROPERTY, PLANT AND EQUIPMENT, NET

Details of property, plant and equipment are as follows:

	2011			2010
At cost
Motor vehicle	$	142,390		$	142,390
Furniture and office equipment		16,921			16,921
Leasehold improvement		4,057			4,057
Plant and machinery		1,878,678			1,878,678

	$	2,042,046		$	2,042,046
Less: accumulated depreciation		(963,988	)		(865,920	)
	$	1,078,058		$	1,176,126

Depreciation expense included in the general administration expenses for the three months ended March 31, 2011 and years ended December 31, 2010 were $98,068 and $419,866respectively.

5. RECEIVABLES FROM RELATED PARTIES

Details of receivables from related parties are as follows:

Name of party	Common shareholder	2011		2010

Greatmat Engineering Limited (1)	Chris Yun Sang SO	$	333,333	$	333,333

Due from director - Chris Yun Sang SO (2)		$	1,077,209	$	868,538
Receivables from related parties		$	1,410,542	$	1,201,871

(1)

Amount due from a related company is unsecured, interest-free, and repayable on demand.

(2)

Amount due from director is non-interest bearing, repayable on demand and no collateral.

6. ACCOUNTS PAYABLE AND ACCRUED CHARGES

	2011		2010

Trade payables	$	1,457,601	$	2,795,317
Accrued audit fee		60,000		60,000
Other accrued expenses		18,353		19,850

	$	1,535,954	$	2,875,167

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F-14

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

7. BANK LOANS

	2011			2010
Bank loan
$469,231 (a)	$	368,227		$	372,343
-China Construction Bank (Asia) Corporation Limited
-interest rate: 2.75% per annum below the prime rate
-fully repayable in September 2028
$269,231 (b) -Wing Hang Bank (Asia) Corporation Limited -interest rate: 0.5% per annum below the Prime Rate - fully repayable in February 2015		210,752			223,713
Less: Current portion	$	(69,820	)	$	(69,820	)

Non-current portion	$	509,159		$	526,236

	(a):	The bank loan is secured by the director’s property.


	(b):	The bank loan is secured by a floating charge over the director’s property and from the Government of the Hong Kong Special Administrative Region (as represented by the Director of Trade & Industry) for HKD 2,100,000 (US$269,231) under the Special Loan Guarantee Scheme.

8. AMOUNT DUE TO A DIRECTOR

Amount due to a director is unsecured, interest-free, and repayable on demand.

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F-15

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

9. (LOSS)/EARNINGS PER SHARE

The calculation of the basic (loss)/earnings per share attributable to the common stock holders is based on the following data:

	2011			2010
Net income:

Net income for the purpose of basic and dilutive (loss)/earnings per share	$	(384,650	)	$	492,872

Number of shares:

Weighted average number of common stock for the purpose of basic and dilutive (loss)/earnings per share(*)		9,749,523			7,312,140

(*) Note: The basic and dilutive (loss)/earnings per share are the same owing to no dilutive effect. However, the number is first restated to reflect the reverse merger effect of the accounting acquirer, and then retroactively restated to reflect the 1 for 5 reverse-split on October 30, 2010.

10. INCOME TAXES

(a)

The Company and its subsidiaries are subject to income taxes on an entity basis on income arising in, or derived from, the tax jurisdiction in which they operate.

Greatmat Holdings Limited, incorporated under the International Business Companies Act of the British Virgin Islands, is exempted from payment of the British Virgin Islands income taxes.

Greatmat Technology (HK) Limited and Greatmat Technology Limited, the Company’s subsidiaries incorporated in Hong Kong, are subject to Hong Kong profits tax at a rate of 16.5%.

Greatmat Technology (China) Limited, the Company’s subsidiary incorporated in British Virgin Islands, is subject to Macau profits tax at a rate of 12%.

Profits tax has been provided on the estimated assessable profits for the period:

	2011		2010

Hong Kong profits tax provision	$	11,250	$	—
Macau profits tax provision		156,631		156,631

Tax charge	$	167,881	$	156,631

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F-16

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

10. INCOME TAXES (Continued)

(b)

No deferred tax has been provided as there are no material temporary differences arising during the three months ended March 31, 2011 and year ended December 31, 2010.

11. COMMITMENTS AND CONTINGENCIES

At March 31, 2011 and December 31, 2010, the company had total minimum lease commitments under non-cancellable operating lease in respect of office premises which fall due as follow:

	2011		2010

Land and buildings:
- No later than one year	$	112,669	$	112,669
- Later than one year and not later than five years		294,016		322,183

	$	406,685	$	434,852

12. SUBSEQUENT EVENTS

The Company has evaluated all other subsequent events through April 26, 2013, the date these consolidated financial statements were issued and restated, and determined that there were no other subsequent events or transactions that require recognition or disclosures in the financial statements except the following events:

1. On September 21, 2011, the Company was re-domiciled from State of Nevada to the Cayman Islands.

2. On December 30, 2011, the Company approved to dispose the three subsidiaries including Greatmat Technology Limited, Greatmat Technology (HK) Limited and Greatmat Technology (China) Limited by transferring 100% of the outstanding equity capital of these three companies being held by Greatmat Holdings Limited to Mr. Chris Yun Sang So in consideration of HK$1, HK$10,000 and US$1, respectively.

3. On December 30, 2011, Great Holdings Limited entered into a Damages Agreement with Yunfu City Yuncheng District Changyi Stone Factory (“YCYDCSF”) to bear all the damages of RMB 5,000,000 to YCYDCSF according to Clause 2.10 of Exclusive Manufacturing Agreement dated June 30, 2004 filed as Exhibit 10.1, Form 8-K on November 3, 2010. Greatmat Holdings Limited also entered into a Supplementary Agreement on the Exclusive Manufacturing Agreement and the Extension of the Original Agreement with YCYDCSF to extend the expiration date of the Exclusive Manufacturing Agreement from June 30, 2009 to June 30, 2014.

4. On July 30, 2012, the Company approved a share exchange agreement between the Company and Mr. Chris Yun Sang So. According to the Share Exchange Agreement, Mr. So transferred all the Company common stock held by him to the Company in consideration of 100% common stock of Greatmat Holdings Limited.

13. RESTATEMENT

The management has changed their estimation that an annual compensation according to the Exclusive Manufacturing Agreement dated on June 30, 2004, and the following damage compensation and 5 years extension agreements will need to be provided. Therefore, the company prepares provisions to cover this expense according to ASC 450-20-55-10 Loss Contingencies. Under ASC 250 Accounting Change and Error Corrections, the company provided the following restatement.

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F-17

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

13. RESTATEMENT (Continued)

CONSOLIDATED BALANCE SHEETS

ITEMS	Dec 31, 2009		Dec 31, 2009
	Original		Restated

LIABILITIES AND STOCKHOLDERS’ EQUITY

Total current liabilities	$	1,633,547	$	1,633,547
Secured bank loan-non-current portion		545,507		545,507
Provision of compensation		0		4,033,914
TOTAL LIABILITIES	$	2,179,054	$	6,212,968

STOCKHOLDERS’ EQUITY
Paid-in capital	$	1	$	1
Retained earnings		1,511,272		(2,141,464	)
Foreign exchange reserves		0		(381,178	)
Total Stockholders’ Equity	$	1,511,272	$	(2,522,641	)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,690,327	$	3,690,327

As a result of the restatement of the consolidated balance sheet as of December 31, 2009, the provision of compensation increased from $0 to $4,033,914. The total liabilities increased from $2,179,054 to $6,212,968. The retained earnings decreased from $1,511,272 to $(2,141,464), In addition, the foreign exchange reserves increased from 0 to $(381,178), the total stockholders’ equity decreased from $1,511,272 to $(2,522,641). The total assets, total liabilities and stockholders’ equity have no changes.

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F-18

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

13. RESTATEMENT (Continued)

ITEMS	For the year ended Dec 31, 2009 Original			For the year ended Dec 31, 2009 Restated
Operating expenses:
General and administrative		(875,082	)		(1,608,091	)

Operating income/(loss)	$	1,605,280		$	872,271
Other income		—			—
Interest expenses		(24,868	)		(24,868	)

Income before income taxes	$	1,580,412		$	847,403

Income taxes		(193,724	)		(193,724	)

Net income/(loss)	$	1,386,688		$	653,679

Dividend paid		—			—

Net income after dividends		1,386,688			653,679

Earnings per share:
-Basic and diluted	$	1,386,688			653,679

Weighted average number of common stock
-Basic and diluted		1			1

As a result of the restatement of the consolidated statement of income for the year ended December 31, 2009, the general and administrative expenses increased from $875,082 to $1,608,091. Operating income decreased from $1,605,280 to $872,271. Income before income taxes decreased from $1,580,412 to $847,403. Net income decreased from $1,386,688 to $653,679. Net income after dividends decreased from $1,386,688 to $653,679. The Basic and diluted earnings per share decreased from $1,386,688 to $653,679 accordingly.

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F-19

GREATMAT TECHNOLOGY CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010

(Stated in US Dollars)

13. RESTATEMENT (Continued)

CONSOLIDATED STATEMENTS OF CASH FLOW

ITEMS	For the year ended Dec 31, 2009		For the year ended Dec 31, 2009
	Original		Restated
Cash flows from operating activities
Net income	$	1,386,688	$	653,679

Provision of compensation		0		733,009

As a result of the restatement of the consolidated cash flow for the year ended December 31, 2009, the net income decreased from $1,386,688 to $653,679 which was offset by the increase of provision of compensation from $0 to 733,009. The net cash flows from operating activities, investing activities, financing activities and net cash and cash equivalents sourced have no changes.

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F-20

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our unaudited financial statements and notes thereto included in this Quarterly Report on Form 10-Q and our audited financial statements and notes thereto included in our Annual Report on Form 10-K filed with the SEC on April 10, 2013.

Note Regarding Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of the U.S. federal securities laws. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “likely,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms or other comparable terminology. These forward-looking statements are subject to a number of risks that could cause them to differ from our expectations. These include, but are not limited to, risks relating to:

the impact that a downturn or negative changes in the market for building materials may have on sales.

our ability to obtain additional capital in future years to fund our planned expansion.

economic, political, regulatory, legal and foreign exchange risks associated with our operations.

the loss of key members of our senior management and our qualified sales personnel.

our continued relationship with our single third-party manufacturer of our goods.

You should not place undue reliance on these forward-looking statements, which are based on our current views and assumptions. In evaluating these statements, you should specifically consider various factors, including the foregoing risks and those outlined under “Risk Factors” in our Current Report on Form 8-K as filed with the SEC on November 3, 2010. Many of these factors are beyond our control. Our forward-looking statements represent estimates and assumptions only as of the date of this quarterly report on Form 10-Q. Except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this quarterly report on Form 10-Q.

General Introduction

Greatmat Technology Corporation, formerly Aurum Explorations, Inc., was incorporated in the State of Nevada on April 27, 2007. The Company was originally formed for the purpose of acquiring exploration and development stage natural resources properties. On October 30, 2010, the Company completed an acquisition of Greatmat Holdings pursuant to the Share Exchange Agreement. Immediately after the Share Exchange Transaction, the Company incorporate the business of Greatmat Holdings. Greatmat Holdings is a leading innovative building material company that provides customers with customized designs, manufacturing solutions and technical advice for building projects. In particular, Greatmat Holdings is a supplier of high-quality engineered stone floor and wall surfaces to commercial construction projects in China, Hong Kong and elsewhere in Asia. Our principal business consists of the design, research and development and production of engineered stone for installation in construction projects.

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Results of Operations

For three months ended March 31, 2011 and 2010

The following table sets forth key components of our results of operations during the three month periods ended March 31, 2011 and 2010, both in dollars and as a percentage of our net sales.

	Three Months Ended						Three Months Ended
	March 31, 2011						March 31, 2010
				% of Net					% of Net
	Amount			Sales			Amount		Sales
Net revenues	$	777,647			100	%	$	2,327,833		100	%
Cost of sales		596,338			77	%		1,370,697		59	%
Gross profit		181,309			23	%		957,136		41	%
General and administrative expenses		544,926			70	%		360,424		15	%
Operating (loss)/income		(363,617	)		47	%		596,710		26	%
Other income		—			0	%		—		0	%
Interest expenses		9,783			1	%		8,836		0	%
(Loss)/Income before income taxes		(373,399	)		48	%		587,876		25	%
Income taxes		11,250			1	%		95,004		4	%
Net (loss)/income	$	(384,650	)		49	%	$	492,872		21	%

Net Sales. Our net sales decreased to $777,647 in the three months ended March 31, 2011 from $2,327,833 in the same period in 2010, representing a 299% decrease quarter-on quarter. This decrease was mainly due to the slight reduction in operation of Greatmat China due to competition in China from 2010 onwards.

Cost of Sales. Our cost of sales decreased to $596,338 in the three months ended March 31, 2011 from $1,370,697 in the same period in 2010. The cost of goods sold per sales ratio increased from 59% to 77% from 2010 to 2011, mainly due to cost went up in a short period of time such as raw material, labor cost, etc.

Gross Profit and Gross Margin. Our gross profit decreased to $181,309 in the three months ended March 31, 2011 from $957,136 in the same period in 2010. Gross profit as a percentage of net revenue was 23% and 41% for the three months ended March 31, 2011 and 2010, respectively. The large decrease in gross margins from 2010 to 2011 was primarily due to the reduction of sales and rising up in cost of production.

General and Administrative Expenses. Our general and administration expenses grew to $544,926 in the three months ended March 31, 2011 from $360,424 in the same period in 2010. This increase was mainly due to our rapid growth in rent and other fixed expenses.

Other Income. There was no other income in the three months ended March 31, 2011 and 2010.

Interest Expenses. Interest expenses increased to $9,783 in the three months ended March 31, 2011 from $8,836 in the same period in 2010. This increase was mainly due to an increase in our bank borrowings.

Income Before Income Taxes. Our income before income taxes decreased to $(373,399) in the three months ended March 31, 2011 from $492,872 in the same period in 2010. This decrease was mainly due to the decrease in net revenues.

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Income Taxes. The Greatmat operating companies were currently operating in Hong Kong SAR and Macau SAR. The current corporate income tax rate for Hong Kong SAR was 16.5% while Macau SAR’s corporate income tax rate was 12%. Income taxes decreased as a result of decreased income.

Liquidity and Capital Resources

As of March 31, 2011, we had cash and cash equivalents of $482,205, primarily consisting of cash on hand and demand deposits. The following table provides detailed information about our net cash flow for all financial statement periods presented in this report. To date, we have financed our operations primarily through cash flows from operations and equity contributions by our shareholders.

The following table sets forth a summary of our cash flows for the periods indicated:

Cash Flow

(Amounts in U.S. dollars)

	Three Months Ended March 31,
	2011			2010
Net cash provided by (used in) operating activities	$	(464,217	)	$	69,989
Net cash provided by (used in) investing activities		0			0
Net cash provided by (used in) financing activities		(17,076	)		(126,080	)
Net (Decrease) Increase in Cash and Cash Equivalents		(481,293	)		(56,091	)

Cash and Cash Equivalent at Beginning of the Period		963,498			147,234
Cash and Cash Equivalent at End of the Period		482,205			91,143

Operating activities

Net cash used in operating activities was $464,217 for the three months ended March 31, 2011, as compared to $69,989 provided by operating activities for the same period in 2010. The change is attributable to the $877,522 decrease in net income for the current period, the decrease of $920,506 in accounts receivables, the decrease of $208,671 in amount due from director, the increase of $190,221 in provision of compensation, increases of $211,092 in receivable from related parties; decreases of $1,339,367 in accounts payable, increases of $85,194 in advanced to customers and decrease of $47,827 in income tax payable, and was offset by decreases in deposits and prepaid expenses $46,362.

Investing activities

There was no cash used or provided in investing activities for the three months ended March 31, 2011 and 2010.

Financing activities

Net cash used by financing activities for the three months ended March 31, 20101was $17,076, as compared to net cash provided by financing activities of $126,080 in the same period of 2010. The change is attributable to the net decrease in bank borrowings.

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We believe that our cash on hand and cash flow from operations will meet our present cash needs unless we expand our current scale of production to another level in a short period of time, in which case we may require additional cash resources to fund our additional capital expenditures and working capital requirements related to such growth. We may, however, in the future, require additional cash resources due to changed business conditions, implementation of our strategy to ramp up our production facilities and increase machinery and equipment, or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

Bank Loans

As of March 31, 2011, the Company had two bank loans outstanding totaling $578,979 in outstanding principal amount. Of such principal amount, $69,820 was repayable within one year from March 31, 2011 and $509,159 was repayable in more than one year.

The Company’s first bank loan is with China Construction Bank (Asia) Corporation Limited, which is comprised of a term loan with an original principal amount of $469,231 and a principal balance of $368,227 as of March 31, 2011 The rate of interest for the term loan is 2.75% per annum minus the bank’s prime rate, and principal must be repaid in 240 equal monthly installments over the term of the loan ending in September 2028.

The Company’s second bank loan is a term loan from Wing Hang Bank Limited with an original principal amount of $269,231 and a principal balance of $210,752 as of March 31, 2011. The rate of interest for this bank loan is 0.50% per annum below the bank’s prime lending rate, and principal must be repaid in 59 equal monthly installments of $5,126 over the term of the loan ending in February 2015. The loan is guaranteed by, and secured by a charge on certain property of, Chris Yun Sang SO and is guaranteed under a Special Loan Guarantee Scheme of the Hong Kong Special Administrative Region.

Inflation

Inflation and changing prices have not had a material effect on our business and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future. However, our management closely monitors any price changes in our industry and continually strives to maintain effective cost controls in our operations. The Chinese government is currently trying to curb the rate of inflation. However, it is quite possible that prices for our products may increase faster than our expenses, resulting in a net benefit to our earnings from the impact of inflation.

Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operation. Critical accounting policies are those that are most important to the portrayal of our financial conditions and results of operations and require management’s difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements:

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Business Combination

The Company records mergers and acquisitions in according to ASC 805 “Business Combinations”. Under the acquisition method of accounting, the legal entity, acquiring entity, acquirer and acquiree are properly identified. The acquisition date is determined. The identifiable assets acquired, the liabilities assumed and the noncontrolling interest are identified. The goodwill or a gain from a bargain purchase is recognized.

In the reverse acquisition, the acquiring entity was the entity with a controlling financial interest which was the acquirer; the legal entity issued the equity securities was determined to be the acquired entity, which was the acquiree. According to ASC 805, the Company is the legal entity issuing the equity securities and it is the accounting acquiree, The Greatmat group is the acquiring entity with a controlling financial interest and is the accounting acquirer.

Revenue Recognition

Earnings per Share

The Company reports earnings per share in accordance with ASC 260-10 (formerly SFAS No. 128 – “Earnings per Share”). Basic earnings per share are computed using the weighted average number of common stock outstanding during the year/period. Diluted earnings per share are computed using the weighted average number of common and potentially dilutive common stock outstanding during the year/period. At December 31, 2010 and 2009, the Company had no common stock equivalents that were anti-dilutive and excluded from the earnings per share computation.

Foreign Currency Translation and Other Comprehensive Income

The Company has adopted ASC 830-10 (formerly SFAS No. 52, “Foreign Currency Translation”). Monetary assets and liabilities denominated in foreign currencies are translated into United States dollars at rates of exchange in effect at the balance sheet date. Gains or losses are included in income statement for the year/period. Non-monetary assets, liabilities and items recorded in income arising from transactions denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. As the Company's functional currency is the U.S. dollar, and all translation gains and losses are transactional, and the Company has no assets with values recorded in foreign currency, there is no recognition of other comprehensive income in the financial statements.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Income taxes

The Company utilizes ASC 740-10 (formerly SFAS No. 109, "Accounting for Income Taxes,") which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

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The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain.

The Company records a valuation allowance for deferred tax assets, if any, based on its estimates of its future taxable income as well as its tax planning strategies when it is more likely than not that a portion or all of its deferred tax assets will not be realized. If the Company is able to utilize more of its deferred tax assets than the net amount previously recorded when unanticipated events occur, an adjustment to deferred tax assets would increase the Company’s net income. The Company does not have any significant deferred tax assets or liabilities in the United States of America.

The Company adopted the provisions of ASC 740-10 (formerly FIN 48, “Accounting for Uncertainty in Income Taxes”) and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Based on our evaluation, we have concluded that there are no significant uncertain tax positions requiring recognition in our financial statements. We may from time to time be assessed interest or penalties by major tax jurisdictions. In the event we receive an assessment for interest and/or penalties, it will be classified in the financial statements as tax expense.

Fair values of financial instruments

ASC 825-10 (formerly SFAS No. 107, "Disclosures about Fair Value of Financial Instruments,") requires that the Company disclose estimated fair values of financial instruments. The Company's financial instruments primarily consist of cash, accrued liabilities and amount due to a director.

As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheet. This is attributed to the short maturities of the instruments and to the interest rates on the borrowings approximating those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates.

Recent Accounting Pronouncements

In June 2009, the FASB established the FASB Accounting Standards Codification TM (ASC) as the single source of authoritative U.S generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The ASC superseded all previously existing non-SEC accounting and reporting standards, and any prior sources of U.S. GAAP not included in the ASC or grandfathered are not authoritative. New accounting standards issued subsequent to June 30, 2009 are communicated by the FASB through Accounting Standards Updates (ASUs). The ASC did no change current U.S. GAAP but changes the approach by referencing authoritative literature by topic (each a “Topic”) rather than by type of standard. The ASC has been effective for the Company effective July 1, 2009. Adoption of the ASC did not have a material impact on the Company’s Audited Financial Statements, but references in the Company’s Notes to Audited Financial Statements to former FASB positions, statements, interpretations, opinions, bulletins or other pronouncements are now presented as references to the corresponding Topic in the ASC.

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During 2008, the Company adopted FASB ASC 820-10 (formerly FSP FAS 157-2, "Effective Date of FASB Statement 157"), which deferred the provisions of previously issued fair value guidance for non-financial assets and liabilities to the first fiscal period beginning after November 15, 2008. Deferred nonfinancial assets and liabilities include items such as goodwill and other non-amortizable intangibles. Effective January 1, 2009, the Company adopted the fair value guidance for nonfinancial assets and liabilities. The adoption of FASB ASC 820-10 did not have a material impact on the Company’s Audited Financial Statements.

Effective January 1, 2009, the Company adopted FASB ASC 810-10-65 (formerly SFAS 160, "Non-controlling Interests in Consolidated Financial Statements — an amendment of ARB No. 51"), which amends previously issued guidance to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary, which is sometimes referred to as minority interest, is an ownership interest in the consolidated entity that should be reported as equity. Among other requirements, this Statement requires that the consolidated net income attributable to the parent and the non-controlling interest be clearly identified and presented on the face of the consolidated income statement. The adoption of the provisions in this ASC did not have a material impact on the Company’s Audited Financial Statements.

Effective January 1, 2009, the Company adopted FASB ASC 805-10, (formerly SFAS 141R, "Business Combinations"), which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any non-controlling interest in an acquiree and the goodwill acquired. The Company will apply ASC 805-10 to any business combinations subsequent to adoption.

Effective January 1, 2009, the Company adopted FASB ASC 805-20 (formerly FSP FAS 141R-1, "Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies"), which amends ASC 805-10 to require that an acquirer recognize at fair value, at the acquisition date, an asset acquired or a liability assumed in a business combination that arises from a contingency if the acquisition-date fair value of that asset or liability can be determined during the measurement period. If the acquisition-date fair value of such an asset acquired or liability assumed cannot be determined, the acquirer should apply the provisions of ASC Topic 450, Contingences, to determine whether the contingency should be recognized at the acquisition date or after such date. The adoption of ASC 805-20 did not have a material impact on the Company’s Audited Financial Statements.

Effective July 1, 2009, the Company adopted FASB ASC 825-10-65 (formerly FASB Staff Position (“FSP”) No. FAS 107-1 and Accounting Principles Board 28-1, "Interim Disclosures about Fair Value of Financial Instruments"), which amends previous guidance to require disclosures about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. The adoption of FASB ASC 825-10-65 did not have a material impact on the Company’s Audited Financial Statements.

Effective July 1, 2009, the Company adopted FASB ASC 320-10-65 (formerly FSP FAS 115-2 and FAS 124-2, "Recognition and Presentation of Other-Than-Temporary Impairments"). Under ASC 320-10-65, an other-than-temporary impairment must be recognized if the Company has the intent to sell the debt security or the Company is more likely than not will be required to sell the debt security before its anticipated recovery. In addition, ASC 320-10-65 requires impairments related to credit loss, which is the difference between the present value of the cash flows expected to be collected and the amortized cost basis for each security, to be recognized in earnings while impairments related to all other factors to be recognized in other comprehensive income. The adoption of ASC 320-10-65 did not have a material impact on the Company’s Audited Financial Statements.

Effective July 1, 2009, the Company adopted FASB ASC 820-10-65 (formerly FSP FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly"), which provides guidance on how to determine the fair value of assets and liabilities when the volume and level of activity for the asset or liability has significantly decreased when compared with normal market activity for the asset or liability as well as guidance on identifying circumstances that indicate a transaction is not orderly. The adoption of ASC 820-10-65 did not have a material impact on the Company’s Audited Financial Statements.

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Effective July 1, 2009, the Company adopted FASB ASC 855-10 (formerly SFAS 165, “Subsequent Events”), which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date, but before financial statements are issued or are available to be issued. Adoption of ASC 855-10 did not have a material impact on the Company’s Audited Financial Statements.

In August, 2009, the FASB issued ASC Update No. 2009-05 (“Update 2009-05”) to provide guidance on measuring the fair value of liabilities under FASB ASC 820 (formerly SFAS 157, "Fair Value Measurements"). The Company adopted Update 2009-05 in the first quarter of 2010. It is expected the adoption of this Update will have no material effect on the Company’s Financial Statements.

In October 2009, the FASB concurrently issued the following ASC Updates:

ASU No. 2009-14 - Software (Topic 985): Certain Revenue Arrangements That Include Software Elements (formerly EITF Issue No. 09-3). This standard removes tangible products from the scope of software revenue recognition guidance and also provides guidance on determining whether software deliverables in an arrangement that includes a tangible product, such as embedded software, are within the scope of the software revenue guidance.

ASU No. 2009-13 - Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (formerly EITF Issue No. 08-1). This standard modifies the revenue recognition guidance for arrangements that involve the delivery of multiple elements, such as product, software, services or support, to a customer at different times as part of a single revenue generating transaction. This standard provides principles and application guidance to determine whether multiple deliverables exist, how the individual deliverables should be separated and how to allocate the revenue in the arrangement among those separate deliverables. The standard also expands the disclosure requirements for multiple deliverable revenue arrangements.

These Accounting Standards Updates should be applied on a prospective basis for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, with earlier application permitted. Alternatively, an entity can elect to adopt these standards on a retrospective basis, but both these standards must be adopted in the same period using the same transition method. The Company expects to apply this standard on a prospective basis for revenue arrangements entered into or materially modified beginning January 1, 2011. It is expected the adoption of this Statement will have no material effect on the Company’s Financial Statements.

ASC Update (“ASU”) No. 2010-01, Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash. This update clarifies that the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a potential limitation on the total amount of cash that all shareholders can elect to receive in the aggregate is considered a share issuance that is reflected in earnings per share prospectively and is not a stock dividend. This ASU codified the consensus reached in EITF Issue No. 09-E “Accounting for Stock Dividends, Including Distributions to Shareholders with Components of Stock and Cash”. ASU 2010-01 is effective for interim and annual periods ending on or after December 15, 2009, and should be applied on a retrospective basis. The adoption of this update did not have any material impact on the Company’s financial statements.

ASC Updated (“ASU”) No. 2010-02, Consolidation (Topics 810) – Accounting and Reporting for Decreases in Ownership of a Subsidiary - A Scope Clarification. This update provides guidance for non-controlling interests and changes in ownership interests of a subsidiary. An entity is required to deconsolidate a subsidiary when the entity ceases to have a controlling financial interest in the subsidiary. Upon deconsolidation of a subsidiary, an entity recognizes a gain or loss on the transaction and measures any retained investment in the subsidiary at fair value. The gain or loss includes any gain or loss associated with the difference between the fair value of the retained investment in the subsidiary and its carrying amount at the date the subsidiary is deconsolidated. In contrast, an entity is required to account for a decrease in its ownership interest of a subsidiary that does not result in a change of control of the subsidiary as an equity transaction. The adoption of this update did not have any material impact on the Company’s financial statements.

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ASC Update (“ASU”) No. 2010-13, Compensation – Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades. This update is to codify the consensus reached in EITF Issue No. 09-J, “Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades.” The amendments to the Codification clarify that an employee share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity’s equity shares trades should not be considered to contain a condition that is not a market, performance, or services condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The adoption of this update did not have any material impact on the Company’s financial statements.

ASC Update (“ASU”) No. 2010-21, Accounting for Technical Amendments to Various SEC Rules and Schedules. This update amends various SEC paragraphs in the FASB Accounting Standards Codification pursuant to SEC Final Rule, “Technical Amendments to Rules Forms, Schedules and Codification of Financial Reporting Policies”. The adoption of this update did not have any material impact on the Company’s financial statements.

ASC Update (“ASU”) No. 2010-22, Accounting for Various Topics. This update amends various SEC paragraphs in the FASB Accounting Standards Codification based on external comments received and the issuance of Staff Accounting Bulletin (SAB) No. 112 which amends or rescinds portion of certain SAB topics. SAB 112 was issued to bring existing SEC guidance into conformity with ASC 805 “Business Combination” and ASC 810 “Consolidation”. The adoption of this update did not have any material impact on the Company’s financial statements

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Item 3. Quantitative and Qualitative Disclosures About Market Risks.

Not applicable.

Item 4. Controls and Procedures.

(a)	Evaluation of Disclosure Controls and Procedures.

As required by paragraph (b) of Rules 13a-15 or 15d-15 under the Securities Exchange Act of 1934, the Company's principal executive officer and principal financial officer have evaluated the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of March 31, 2011, due to the material weaknesses resulting from in our internal control over financial reporting. Please refer to our Annual Report on Form 10-K as filed with the SEC on April 10, 2013, for a complete discussion relating to the foregoing evaluation of Disclosures and Procedures.

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(b)	Changes in Internal Control Over Financial Reporting.

During the quarter ended March 31, 2011, there were no changes in our internal control over financial reporting identified in connection with the evaluation performed during the fiscal period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 6. Exhibits.

Exhibits:

31.1	Certification of the CEO pursuant to Section 302 of Sarbanes Oxley Act of 2002.
31.2	Certification of the CFO pursuant to Section 302 of Sarbanes Oxley Act of 2002.
32.1	Certification of the CEO and CFO pursuant to Section 906 of Sarbanes Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: May 14, 2013

	Greatmat Technology Corporation

	By:	/s/ Chris Yun Sang So
		Chris Yun Sang So
		Chief Executive Officer and President

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Greatmat Technology Corp 10-Q