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 ~~June~~December 3031, 2009

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

For the transition period from ___________ to ______________

Commission File Number: 000-52388

CHINA MULTIMEDIA, INC.

(Exact name of registrant as specified in its charter)


Nevada		98-0507257
(State or other jurisdiction of incorporation)		(IRS Employer Identification Number)

Rm 2213-14, 22^nd Floor, Jardine House, 1 Connaught Place, Central, Hong Kong
(Address of principal executive offices)
(852) 2802-8663
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for 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. [ X ] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Not Applicable.

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 [ ] (Do not check if a smaller reporting company)	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). [X ] Yes [ ] No

As of ~~August~~February 1011, ~~2009~~2010, there were 110,200,000 shares of voting common stock, $0.001 par value, of China Multimedia, Inc. issued and outstanding.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The financial statements of China Multimedia, Inc., a Nevada corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission. Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of China Multimedia, Inc., as included in its Form 10-~~KSB~~K for the fiscal year ended September 30, ~~2008~~2009.

CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED FINANCIAL STATEMENTS

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~JUNE~~DECEMBER 3031, 2009

Index to ~~condensed~~ financial statements

Page


	Page
Condensed balance sheets	4
Condensed statements of operations and comprehensive loss	5
Condensed statements of cash flows	6
Notes to condensed financial statements	7 -12

Condensed balance sheets

Condensed statements of operations and comprehensive loss

Condensed statements of cash flows

Notes to condensed financial statements

6 - 12

CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED BALANCE SHEETS

AS OF ~~JUNE~~DECEMBER 3031, 2009 AND SEPTEMBER 30, ~~2008~~2009

	As of		As of
	June 30,		September 30,
	December 31,		September 30,
	2009		~~2008~~2009
	(Unaudited)		(Audited)
	US$		US$
ASSETS
Current assets
Cash and cash equivalents	~~245~~90		~~47,695~~187
Total assets	~~245~~90		~~47,695~~187
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accrued audit fee	45,~~011~~234		45,~~118~~237
Amount due to a stockholder (Note 9)	9,797		34,809
Amount due to a stockholder (Note 10)	18,500		14,788
Total liabilities	1323,~~808~~734		3820,~~927~~025
Stockholders’ (deficit) equity
Stockholders’ deficit
Common stock - US$0.001 par value (Note 6) :
authorized 50,000,000 shares; 1,200,000 shares issued and
Authorized 50,000,000 shares; 10,200,000 shares issued
outstanding in 2009 and 2008	1,200		1,200
and outstanding in 2009	10,200		10,200
Additional paid-in capital	99117,~~800~~008		99116,~~800~~000
Accumulated deficit during the development stage	(~~114~~150,~~635~~927	)	(92146,~~291~~099	)
Accumulated other comprehensive income	7275		5961
Total stockholders’ (deficit) equity	(13,563	)	8,768
Total stockholders’ deficit	(23,644	)	(19,838	)
Total liabilities and stockholders’ (deficit) equity	245		47,695
Total liabilities and stockholders’ deficit	90		187

See accompanying notes to condensed financial statements.

CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~JUNE~~DECEMBER 3031, 2009 AND 2008

AND FROM INCEPTION ON AUGUST 16, 2006 THROUGH ~~JUNE~~DECEMBER 3031, 2009

	For the three months ended June 30 (Unaudited)				For the nine months ended June 30 (Unaudited)				Cumulative total since inception
	Cumulative		For the three months
	2009		2008		2009		2008		(Unaudited)
	total since		ended December 31,
	US$		US$		US$		US$		US$
	inception		2009		2008
Revenue	-		-		7,737		-		7,737
	(Unaudited)		(Unaudited)		(Unaudited)
Expenses
	US$		US$		US$
Formation expenses	-		-		-		-		778
Revenue	7,737		-		7,737
General and administrative expenses	4,699		26,452		30,081		39,720		121,609
Expenses
Loss from operations	(4,699	)	(26,452	)	(22,344	)	(39,720	)	(114,650	)
Formation expenses	778		-		-
Interest income	-		-		-		2		15
General and administrative expenses	157,901		4,828		11,874
Loss before income taxes	(4,699	)	(26,452	)	(22,344	)	(39,718	)	(114,635	)
Loss from operations	(150,942	)	(4,828	)	(4,137	)
Income taxes (Note 4)	-		-		-		-		-
Interest income	15		-		-
Net loss	(4,699	)	(26,452	)	(22,344	)	(39,718	)	(114,635	)
Loss before income taxes	(150,927	)	(4,828	)	(4,137	)
Other comprehensive income
Income taxes (Note 4)	-		-		-
Foreign currency translation
Net loss	(150,927	)	(4,828	)	(4,137	)
adjustments	-		48		13		60		72
Other comprehensive income
Total comprehensive loss	(4,699	)	(26,404	)	(22,331	)	(39,658	)	(114,563	)
Foreign currency translation adjustment	75		14		21
Net loss per share :
Comprehensive loss	(150,852	)	(4,814)		(4,116	)
Basic and diluted (Note 5)	-		(0.02	)	(0.01	)	(0.04	)	(0.11	)
Net loss per share :
Weighted average number of shares :
Basic and diluted (Note 5)	(0.08	)	(0.00)		(0.00	)
Basic and diluted	1,200,000		1,083,516		1,200,000		1,027,737		1,076,190
Weighted average number of outstanding shares :
Basic and diluted	1,992,382		10,200,000		1,200,000

See accompanying notes to condensed financial statements.

CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE ~~NINE~~THREE MONTHS ENDED ~~JUNE~~DECEMBER 3031, 2009 AND 2008

AND FROM INCEPTION ON AUGUST 16, 2006 THROUGH ~~JUNE~~DECEMBER 3031, 2009

				For the nine months ended June 30 (Unaudited)				Cumulative total since inception
		Cumulative		For the three months
				2009		2008		(Unaudited)
		total since		ended December 31,
				US$		US$		US$
		inception		2009		2008
Cash flows from operating activities :
		(Unaudited)		(Unaudited)		(Unaudited)
Net loss				(22,344	)	(39,718	)	(114,635	)
		US$		US$		US$
Change in liabilities :
Cash flows from operating activities :
Accrued audit fee				(107	)	(1,549	)	4,011
Net loss	(150,927		)	(4,828	)		(4,137	)
Net cash used in operating activities				(22,451	)	(41,267	)	(110,624	)
Adjustment to reconcile net loss to net cash
Cash flows from financing activities :
used in operating activities :
Proceeds from issuance of common stock				-		100,000		101,000
Share-based compensation	26,208			1,008			-
(Repayment to) advances from a stockholder				(25,012	)	21,150		9,797
Change in assets and liabilities :
Net cash (used in) provided by financing activities				(25,012	)	121,150		110,797
Accounts receivable	-			-			(7,741	)
Effect of foreign exchange rate changes on cash and cash equivalents				13		60		72
Accrued audit fee	5,234			(3	)		269
Net change in cash and cash equivalents				(47,450	)	79,943		245
Net cash used in operating activities	(119,485		)	(3,823	)		(11,609	)
Cash and cash equivalents, beginning of period				47,695		865		-
Cash flows from financing activities :
Cash and cash equivalents, end of period				245		80,808		245
Proceeds from issuance of common stock	101,000			-			-
Cash paid for :
Advances from a stockholder	18,500			3,712			11,648
Income taxes				-		-		-
Net cash provided by financing activities	119,500			3,712			11,648
Interest				-		-		-
Effect of exchange rate changes on cash
and cash equivalents	75			14			21
Net change in cash and cash equivalents	90			(97	)		60
Cash and cash equivalents, beginning of period	-			187			47,695
Cash and cash equivalents, end of period	90			90			47,755
Cash paid for :
Income taxes	-			-			-
Interest	-			-			-

See accompanying notes to condensed financial statements.

CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~FOR~~DECEMBER ~~THE THREE AND NINE MONTHS ENDED JUNE 30~~31, 2009 (UNAUDITED)

DESCRIPTION OF BUSINESS

China Multimedia, Inc. (the “Company”) was incorporated in the State of Nevada on August 16, 2006 for the purpose of exploring new business opportunities.

On December 11, 2006, the Company entered into a service agreement with DNA Financial Systems (“DNAF”) which is a regional solution provider for the financial and securities industry throughout the Asia Pacific Region. Pursuant to the agreement, the Company shall refer potential clients who wish to acquire the financial web portal design and hosting service provided toby DNAF.

On September 26, 2008, the Company entered into a service agreement with Century Health Medical Limited (“CHML”) pursuant to which the Company ~~agreed~~shall to provide CHML with an affordable website template that ~~was~~is suitable to its business. The Company completed the services and received the payment for the ~~service~~services ~~during~~before ~~the period ended~~ December 31, 2008.

The Company has not introduced any clients to DNAF and generated limited revenue of US$7,737 from the provision of services to CHML and is a development stage company during the reporting periods.

BASIS OF PRESENTATION

The accompanying condensed financial statements are unaudited. These condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in condensed financial statements prepared in accordance with accounting principles generally accepted in the United ~~State~~States of America (“USU.S. GAAP”) have been omitted pursuant to such SEC rules and regulations. Nevertheless, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements and the notes hereto should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-~~KSB~~K for the year ended September 30, ~~2008~~2009 which was filed with the SEC on December 3029, ~~2008~~2009.

In the opinion of the management of the Company, the condensed financial statements for the interim periods presented include all adjustments, including normal recurring adjustments, necessary to fairly present the results of such interim periods and the financial position as of the end of the said periods. The results of operations for the interim ~~periods~~period are not necessarily indicative of the results for the full year.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Continuance of operations

These condensed financial statements are prepared on a going concern basis, which ~~have~~considers ~~considered~~ the realization of assets and satisfaction of liabilities in the normal course of ~~the Company’s~~ business. As of ~~June~~December 3031, 2009, the Company had an accumulated deficit of US$~~114~~150,~~635~~927, which raises substantial doubt about the Company’s ability to continue as a going concern.

Management plans on the continuation of the Company as a going concern include financing the Company’s existing and future operations through additional issuance of common stock and/or advances from the majority stockholder and seeking for profitable business opportunities including the service agreement with DNAF. However, the Company has no assurance with respect to these plans. The accompanying condensed financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Revenue recognition

The Company recognizes revenue from provision of services when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when persuasive evidence of an arrangement exists, the services have been provided to customers, the sales price is fixed or determinable, no significant unfulfilled obligations exist and collectibility is reasonably assured.

Cash and cash equivalents

Cash equivalents comprise highly liquid investments with original maturity of three months or less. As of ~~June~~December 3031, 2009, cash and cash equivalents consisted of bank balance of US$~~245~~90 denominated in Hong Kong dollars (“HKD”).

Concentration of risk

The Company ~~keeps cash in HKD and~~ maintains a HKD savings account with a commercial bank in Hong Kong, which ~~are~~is financial ~~instruments~~instrument that ~~are~~is potentially subject to concentration of credit risk. During the reporting periods, the Company did not engage in any hedging activities.

Income taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets are reduces by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations and comprehensive loss in the period that includes the enactment date.

Foreign currency transactions and translation

The Company kept cash and cash equivalents and incurred expenses in HKD during the reporting periods and thus HKD is considered to be the functional currency. Transactions denominated in currencies other than HKD are translated into HKD at the applicable rates of exchange prevailing at the dates of the transactions. Monetary assets and liabilities denominated in other currencies are translated into HKD at the rates of exchange prevailing at the balance sheet date. Exchange gains and losses are included in the determination of net loss.

For financial reporting purposes, HKD has been translated into United States dollars (“US$”) as the reporting currency. Assets and liabilities are translated into US$ at the exchange rate in effect at the period end. Income and expenses are translated at average exchange rate prevailing during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency translation are included in other comprehensive income.

Conversion of amounts from HKD into US$ has been made at the exchange rate of US$1.00 = HK$7.75165 for the three months ended December 31, 2009 and US$1.00 = HK$7.7551 as of December 31, 2009.

Use of estimates

The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in these condensed financial statements and the accompanying notes during the reporting periods. Actual results could differ from those estimates.

Share-based compensation

The Company adopted the fair value method of accounting for share-based compensation.

Fair value of common stock granted is determined using cash flow forecasting model. Under this model, certain assumptions, including the discount rate, political and legal conditions, availability of finance, future revenue and expenses and credit risk issue are required to determine the fair value of the common stock. If different assumptions had been used, the fair value of the common stock would have been different from the amount the Company computed and recorded, which would have resulted in either an increase or decrease in the compensation expense.

Fair values of financial instruments

Financial instruments include cash and cash equivalents, accrued audit fee and amount due to a stockholder. Management of the Company does not believe that the Company is subject to significant interest, currency or credit risks arising from these financial instruments. The respective carrying values of financial instruments approximate their fair values. Fair values of these financial instruments approximate the carrying values since they are short-term in nature or they are receivable or payable on demand.

Recently issued accounting pronouncements

~~SFAS~~In ~~No.~~December ~~160~~2007, the FASB issued ASC Topic 810, “~~Noncontrolling~~Consolidation”, ~~Interests~~which establishes accounting and reporting standards for the noncontrolling interest in ~~Consolidated~~a ~~Financial~~subsidiary ~~Statements-an~~and ~~amendment~~for the deconsolidation of ~~ARB~~a Nosubsidiary. ~~51”~~The guidance will apply to the Company’s financial statements starting in its fiscal year beginning on October 1, 2009. The adoption of ASC Topic 810 has no material impact on the Company’s financial statements.

In ~~December~~April ~~2007~~2008, the FASB issued ~~SFAS~~ASC ~~No.~~Topic ~~160~~350, “~~Noncontrolling~~Intangibles-Goodwill ~~Interests~~and Other”, which amends the factors that should be considered in ~~Consolidated~~developing ~~Financial~~renewal ~~Statements-an~~or ~~amendment~~extension assumptions used to determine the useful life of ~~ARB~~a recognized intangible asset under Statement of Financial Accounting Standards No. 51142,” orGoodwill and Other Intangible Assets (“SFAS No. ~~160~~142”). ASC Topic 350 is intended to improve the consistency between the useful life of an intangible asset determined under SFAS No. ~~160~~142 ~~establishes~~and ~~accounting~~the ~~and~~period ~~reporting~~of ~~standards~~expected ~~for~~cash flows used to measure the ~~noncontrolling~~fair ~~interest~~value inof athe ~~subsidiary~~asset under SFAS No. 141(Revised) and other U.S. GAAP. ASC Topic 350 is effective for ~~the~~fiscal ~~deconsolidation~~years ofbeginning aafter ~~subsidiary.~~December ~~The~~15, ~~guidance~~2008 which means that it will ~~apply~~be toeffective for the Company’s ~~financial statements starting in its~~ fiscal year beginning on October 1, 2009. ~~The~~Early ~~Company~~adoption is inprohibited. ~~the~~The ~~process~~adoption of ~~evaluating~~ASC ~~the~~Topic ~~impact~~350 ~~SFAS~~has ~~No.~~no ~~160~~material ~~will~~impact ~~have~~ on ~~its~~the Company’s financial statements ~~upon adoption~~.

In April 2009, the FASB issued ASC Topic 805, “Business Combinations”, which amends the provisions in SFAS No. 141 (Revised) ~~“Business~~for ~~Combinations”~~the initial recognition and measurement, subsequent measurement and accounting, and disclosures for assets and liabilities arising from contingencies in business combinations. ASC Topic 805 eliminates the distinction between contractual and non-contractual contingencies, including the initial recognition and measurement criteria in SFAS No. 141 (Revised) and instead carries forward most of the provisions in SFAS No. 141 for acquired contingencies. ASC Topic 805 is effective for contingent assets and contingent liabilities acquired in evaluating the impact of SFAS No. 141 (Revised). The adoption of ASC Topic 805 has no material impact on the Company’s financial statements.

In ~~December~~April ~~2007~~2009, the FASB issued ~~SFAS~~an ~~No.~~amendment ~~141~~to ~~(Revised)~~ASC Topic 805, “Business Combinations,”, orwhich ~~SFAS No. 141 (Revised). SFAS No. 141 (Revised)~~ establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree. The ~~statement~~topic also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to ~~disclose to enable users of the financial statements to~~

evaluate the nature and financial effects of the business combination. The guidance will apply to the Company starting in its fiscal year beginning October 1, 2009. The Company is in the process of evaluating the impact SFAS No. 141 (Revised) will have on its financial statements upon adoption.

FSP FAS No. 157-1 “Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13”

In February 2008, the FASB issued FASB Staff Position (“FSP”) FAS No. 157-1 “Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13”, or FSP FAS No. 157-1. FSP FAS No. 157-1 provides a scope exception from Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS No. 157”) for the evaluation criteria on lease classification and capital lease measurement under SFAS No. 13, “Accounting for Leases” and other related accounting pronouncements. The Company adopted FSP FAS No. 157-1 effective October 1, 2008. Accordingly, the provisions of SFAS No. 157 will not be applied to lease transactions under SFAS No.13 except when applying SFAS No. 157 to business combinations recorded by the Company.

FSP FAS No. 157-2 “Effective Date of FASB Statement No. 157”

In February 2008, the FASB issued FSP FAS No. 157-2 “Effective Date of FASB Statement No. 157”, or FSP FAS No. 157-2 which delays the effective date of SFAS No. 157 to fiscal years beginning after November 15, 2008 for certain nonfinancial assets and nonfinancial liabilities. FSP FAS No. 157-2 will become effective for the Company on October 1, 2009. The Company is in the process of evaluating the impact of applying FSP FAS No. 157-2 to nonfinancial assets and liabilities measured on a nonrecurring basis. Examples of items to which the deferral would apply include, but are not limited to:

- nonfinancial assets and nonfinancial liabilities that are measured at fair value in a business combination or other new basis event, except those that are remeasured at fair value in subsequent periods;

- reporting units measured at fair value in the first step of a goodwill impairment test as described in SFAS No. 142, “Goodwill and Other Intangible Assets” (“SFAS No.142”), and nonfinancial assets and nonfinancial liabilities measured at fair value in the SFAS No. 142 goodwill impairment test, if applicable; and

- nonfinancial liabilities for exit or disposal activities initially measured at fair value under SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities” (“SFAS No. 146”).

As a result of the issuance of FSP FAS No. 157-2, the Company did not apply the provisions of SFAS No. 157 to the nonfinancial assets and nonfinancial liabilities within the scope of FSP FAS No. 157-2 in the fiscal year ending September 30, 2009.

SFAS No. 161 “Disclosures about Derivative Instruments and Hedging Activities”

In March 2008, the FASB issued SFAS No. 161 “Disclosures about Derivative Instruments and Hedging Activities,” or SFAS No. 161. SFAS No. 161 is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position, financial performance, and cash flows. It is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. SFAS No. 161 is not expected to have a material impact on the Company’s financial statements.

FSP FAS No. 142-3 “Determination of the Useful Life of Intangible Assets”

In April 2008, the FASB issued FSP FAS No. 142-3 “Determination of the Useful Life of Intangible Assets”, or FSP FAS No. 142-3. FSP FAS No. 142-3 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 Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets (“SFAS No. 142”). FSP FAS No. 142-3 is intended to improve the consistency between the useful life of an intangible asset determined under SFAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141(Revised) and other U.S. GAAP. FSP FAS No. 142-3 is effective for fiscal years beginning after December 15, 2008 which means that it will be effective for the Company’s fiscal year beginning October 1, 2009. Early adoption is prohibited. The Company is currently evaluating the impact of the adoption of FSP FAS No. 142-3 on its financial statements.

FSP FAS No. 107-1 and APB No. 28-1 “Interim Disclosures about Fair Value of Financial Instruments.”

In April 2009, the FASB issued FSP FAS No. 107-1 and APB No. 28-1 “Interim Disclosures about Fair Value of Financial Instruments”, or FSP FAS No. 107-1 and APB No. 28-1. FSP FAS No. 107-1 and APB No. 28-1 amends SFAS No. 107, “Disclosures about Fair Value of Financial Instruments,” to require disclosures about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. In addition, the FSP amends APB Opinion No. 28, “Interim Financial Reporting,” to require those disclosures in summarized financial information at interim reporting periods. The FSP is effective for interim periods ending after June 15, 2009, with earlier adoption permitted for periods ending after March 15, 2009. The adoption of FSP FAS No. 107-1 and APB No. 28-1 has no material effect on the Company’s financial statements.

FSP FAS No. 115-2 and FAS 124-2 “Recognition of Other-Than-Temporary Impairments (“FSP FAS 115-2 and FAS 124-2”)

In April 2009, the FASB issued FSP FAS No. 115-2 and FAS No. 124-2 “Recognition of Other-Than-Temporary Impairments, or FSP FAS No.115-2 and FAS No. 124-2. FSP FAS No. 115-2 and FAS No. 124-2 amends the other-than-temporary impairment guidance in SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, for debt securities and the presentation and disclosure requirements of other than-temporary impairments on debt and equity securities in the financial statements. FSP FAS No. 115-2 and FAS No. 124-2 is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. The adoption of FSP FAS No. 115-2 and FAS No. 124-2 has no material effect on the Company’s financial statements.

FSP FAS No. 157-4 “Determining Whether a Market is Not Active and a Transaction Is Not Distressed”

In April 2009, the FASB issued FSP No. 157-4 “Determining Whether a Market is Not Active and a Transaction Is Not Distressed”, or FSP No.157-4. FSP No. 157-4 clarifies when markets are illiquid or that market pricing may not actually reflect the “real” value of an asset. If a market is determined to be inactive and market price is reflective of a distressed price then an alternative method of pricing can be used, such as a present value technique to estimate fair value. FSP No. 157-4 identifies factors to be considered when determining whether or not a market is inactive. FSP No. 157-4 would be effective for interim and annual periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009 and shall be applied prospectively. The adoption of FSP No. 157-4 has no material effect on the Company’s financial statements.

~~FSP~~disclose ~~FAS~~to Noenable users of the financial statements to evaluate the nature and financial effects of the business combination. ~~141R-1~~This ~~“Accounting~~amendment to ASC Topic 805 is effective to be adopted by the Company for ~~Assets~~business ~~Acquired~~acquisitions ~~and~~for ~~Liabilities~~which ~~Assumed~~the inacquisition adate is on or after October 1, 2009. The adoption of the amendment to ASC Topics 805 has no material impact on the Company’s financial statements.

~~Business~~In ~~Combination~~June ~~That~~2009, ~~Arise~~the ~~from~~FASB ~~Contingencies~~issued ASC Topic 860, “Transfers and Servicing”, which improves the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flow; and a transferor’s continuing involvement, if any, in transferred financial assets. ASC Topic 860 is effective as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. The adoption of ASC Topic 860 has no material impact on the Company’s financial statements.

In ~~April~~June 2009, the FASB issued ~~FSP~~an amendment to ASC Topic 810, “Consolidation”, which amends FASB Interpretation No. ~~141R-1~~46 ~~“Accounting~~(revised ~~for~~December ~~Assets~~2003) ~~Acquired~~to ~~and~~address ~~Liabilities~~the ~~Assumed~~elimination inof the concept of a ~~Business~~qualifying ~~Combination~~special ~~That~~purpose ~~Arise~~entity. ~~from~~ASC ~~Contingencies”,~~Topic or810 ~~FSP~~also ~~No.~~replaces ~~141R~~the quantitative-1.based ~~FSP~~risks ~~No.~~and ~~141R-1~~rewards ~~amends~~calculation ~~the~~for ~~provisions~~determining which enterprise has a controlling financial interest in ~~SFAS~~a ~~No.~~variable ~~141~~interest ~~(Revised)~~entity ~~for~~with ~~the~~an ~~initial~~approach ~~recognition~~focused ~~and~~on ~~measurement,~~identifying ~~subsequent~~which ~~measurement~~enterprise ~~and~~has ~~accounting,~~the ~~and~~power ~~disclosures~~to ~~for~~direct ~~assets~~the ~~and~~activities ~~liabilities~~of ~~arising~~a ~~from~~variable ~~contingencies~~interest inentity ~~business~~and ~~combinations.~~the ~~FSP~~obligation ~~No.~~to ~~141R-1~~absorb ~~eliminates~~losses of the ~~distinction~~entity ~~between~~or ~~contractual~~the ~~and~~right ~~non-contractual~~to ~~contingencies,~~receive ~~including~~benefits from the ~~initial~~entity. ~~recognition~~Additionally, ASC Topic 810 provides more timely and ~~measurement~~useful ~~criteria~~information inabout ~~SFAS~~an Noenterprise’s involvement with a variable interest entity. ~~141~~The ~~(Revised)~~amendment ~~and~~to ~~instead~~ASC ~~carries~~Topic ~~forward~~810 ~~most~~shall be effective as of the ~~provisions~~beginning inof ~~SFAS~~each ~~No.~~reporting ~~141~~entity’s ~~for~~first ~~acquired~~annual ~~contingencies.~~reporting ~~FSP~~period ~~No.~~that ~~141R-1~~begins isafter ~~effective~~November 15, 2009, for ~~contingent~~interim ~~assets~~periods ~~and~~within ~~contingent~~that ~~liabilities~~first ~~acquired~~annual inreporting ~~evaluating~~period, ~~the~~and ~~impact~~for ofinterim ~~SFAS~~and ~~No.~~annual ~~141~~reporting ~~(Revised)~~periods thereafter. ~~The~~Earlier ~~Company~~application is ~~currently~~prohibited. ~~evaluating~~The ~~the~~adoption ~~impact~~ of the ~~adoption~~amendment ofto ~~FSP~~ASC ~~No.~~Topic ~~141R-1~~810 has no material impact on ~~its~~the Company’s financial statements.

In August 2009, the FASB issued ASU 2009-05, “Fair Value Measurements and Disclosures (Topic 820) – Measuring Liabilities at Fair Value”, or ASU 2009-05. ASU 2009-05 provides additional guidance for measuring the fair value of liabilities and clarifies that the quoted price for the identical liability, when traded as an asset in an active market, is a level 1 measurement, providing there are no adjustments to the quoted price. Alternatively, when no quoted price is available, ASU 2009-05 affirms the use of other valuation techniques outlined in SFAS No. ~~165~~157. ~~“Subsequent~~ASU ~~Events”~~2009-05 is effective for the first interim or annual reporting period beginning after its issuance. The adoption of ASU 2009-05 has no material impact on the Company’s financial statements.

In ~~May~~September 2009, the FASB issued ~~SFAS~~ASU ~~No.~~2009-12, ~~165~~ “~~Subsequent~~Fair ~~Events~~Value Measurements and Disclosures (Topic 820) – Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)”, or ASU 2009-12. ASU 2009-12 amends SFAS No. ~~165,~~157 ~~which~~to ~~sets~~permit ~~forth~~a ~~general~~reporting ~~standards~~entity to measure the fair value of ~~accounting~~certain ~~for~~investments ~~and~~on ~~disclosure~~the basis of ~~events~~the ~~that~~net ~~occur~~asset ~~after~~value per share of the ~~balance~~investment ~~sheet~~(or ~~date~~its ~~but~~equivalent). ~~before~~ASU ~~financial~~2009-12 ~~statements~~also ~~are~~requires ~~issued~~new ordisclosures, ~~are~~by ~~available~~major category of investments, about the attributes includes of investments within the scope of this amendment to bethe ~~issued~~Codification. ~~SFAS~~ASU ~~No.165~~2009-12 is effective for interim and annual periods ending after ~~June~~December 15, 2009. Early adoption is permitted. The adoption of ~~SFAS~~ASU ~~No.~~2009-12 ~~165~~ has no material ~~effect~~impact on the Company’s financial statements.

~~SFAS~~In ~~No.~~October ~~166~~2009, ~~“Accounting~~the ~~for~~FASB ~~Transfers~~issued ofASU ~~Financial~~2009-13, ~~Assets~~“Revenue Recognition (Topic 605) – Multiple-Deliverable Revenue Arrangements”, or ASU 2009-13. AUS 2009-13 requires companies to allocate revenue in multiple-element arrangements based on an ~~amendment~~element’s estimated selling price if vendor-specific or other third party evidence of ~~FASB~~value ~~Statement~~is Nonot available. ~~140”~~AUS 2009-13 is to 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. The Company is currently evaluating the impact of the adoption of ASU 2009-13 on its financial statements.

In ~~June~~January ~~2009~~2010, the FASB issued ~~SFAS~~ASU ~~No.~~2010-06, ~~166~~ “~~Accounting~~Fair ~~for~~Value ~~Transfers~~Measurements ofand ~~Financial~~Disclosures ~~Assets~~(Topic –820): anImproving ~~amendment~~Disclosures ofabout ~~FASB~~Fair ~~Statement~~Value ~~No. 140~~Measurements”, or ~~SFAS~~ASU No2010-06. ~~166.~~This ~~SFAS~~ASU ~~No.~~requires ~~166~~some ~~improves~~new ~~the~~disclosures ~~relevance, representational faithfulness,~~ and ~~comparability~~clarifies ofsome ~~the~~existing ~~information~~disclosure ~~that~~requirements ~~a reporting entity provides in its financial statements~~ about afair ~~transfer~~value ofmeasurement ~~financial~~as ~~assets;~~set ~~the~~forth ~~effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement, if any,~~ in ~~transferred~~Codification ~~financial~~Subtopic ~~assets~~820-10. ~~SFAS~~The ~~No. 166 is effective as of the beginning of each reporting entity~~FASB’s ~~first~~objective ~~annual~~is ~~reporting~~to ~~period~~improve ~~that~~these ~~begins~~disclosures ~~after~~and ~~November 15~~thus, ~~2009,~~increase ~~for~~the ~~interim~~transparency ~~periods~~in ~~within~~financial ~~that first annual~~ reporting ~~period and for interim and annual reporting periods thereafter~~. ~~The~~Specifically, ~~Company~~ASU is2010-06 ~~currently~~amends ~~evaluating~~Codification ~~the~~Subtopic ~~impact~~820-10 ofto ~~the~~now ~~adoption of SFAS No. 166 on its financial statements.~~require:

SFAS No. 167 “Amendments to FASB Interpretation No. 46(R)”

In June 2009, the FASB issued SFAS No. 167 “Amendments to FASB Interpretation No. 46(R)”, or SFAS No. 167, which amends FASB Interpretation No. 46 (revised December 2003) to address the elimination of the concept of a qualifying special purpose entity. SFAS No. 167 also replaces the quantitative-based risks and rewards calculation for determining which enterprise has a controlling financial interest in a variable interest entity with an approach focused on identifying which enterprise has the power to direct the activities of a variable interest entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Additionally, SFAS No. 167 provides more timely and useful information about an enterprise’s involvement with a variable interest entity. SFAS No. 167 shall be effective as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period, and for interim and annual reporting periods thereafter. Earlier application is prohibited. The Company is currently evaluating the impact of the adoption of SFAS No. 167 on its financial statements.

~~SFAS No. 168 “The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles, a replacement of FASB Statement No. 162”~~·

InA ~~June~~reporting ~~2009,~~entity ~~the~~should ~~FASB~~disclose ~~issued~~separately ~~SFAS No. 168 “The FASB Accounting Standards CodificationTM and~~ the ~~Hierarchy~~amounts of ~~Generally~~significant ~~Accepted~~transfers Accounting Principles, a replacement of FASB Statement No. 162”, or SFAS No. 168, which establishes the FASB Accounting Standards Codification as the source of authoritative accounting principles recognized by the FASB to be applied in ~~the~~and ~~preparation~~out of ~~financial~~Level ~~statements~~1 inand ~~conformity~~Level ~~with~~2 ~~generally~~fair ~~accepted~~value ~~accounting~~measurements ~~principles. SFAS No. 168 explicitly recognizes rules~~ and ~~interpretive~~describe ~~releases of~~ the ~~Securities~~reasons ~~and Exchange Commission (“SEC”) under federal securities laws as authoritative GAAP~~ for ~~SEC~~the ~~registrants.~~transfers; ~~SFAS No. 168 will become effective for financial statements issued for interim~~ and ~~annual periods ending after September 15, 2009. Adoption of SFAS No. 168 is not expected to have a material impact on the Company’s financial statements.~~

In the reconciliation for fair value measurements using significant unobservable inputs, a report entity should present separately information about purchases, sales, issuances, and settlements.

ASU 2010-06 is 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 15, 2010, and for interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of the adoption of ASU 2010-06 on its financial statements.

INCOME TAXES

A reconciliation of income taxes at statutory rate is as follows:-

	For the three months ended June 30				For the nine months ended June 30				Cumulative total since
	Cumulative		For the three months
	(Unaudited)				(Unaudited)				inception
	total since		ended December 31,
	2009		2008		2009		2008		(Unaudited)
	inception		2009		2008
	US$		US$		US$		US$		US$
	(Unaudited)		(Unaudited)		(Unaudited)
Loss before income taxes	(4,699	)	(26,452	)	(22,344	)	(39,718	)	(114,635	)
	US$		US$		US$
Expected benefit at statutory rate of 15%	(705	)	(3,968	)	(3,352	)	(5,958	)	(17,195	)
Loss before income taxes	(150,927	)	(4,828	)	(4,137	)
Valuation allowance	705		3,968		3,352		5,958		17,195
Expected benefit at statutory rate of 15%	(22,639	)	(724	)	(621	)
	-		-		-		-		-
Valuation allowance	22,639		724		621
	-		-		-

Recognized deferred income tax asset is as follows :-

	As of		As of
	June 30,		September 30,
	December 31,		September 30,
	2009		~~2008~~2009
	(Unaudited)		(Audited)
	US$		US$
Operating losses available for future periods	1722,~~195~~639		1321,~~843~~914
Valuation allowance	(1722,~~195~~639	)	(1321,~~843~~914	)
	-		-

As of ~~June~~December 3031, 2009, the Company had incurred operating losses of US$~~114~~150,~~635~~927 which, if unutilized, will expire through to ~~2028~~2029. Future tax benefits arising as a result of these losses have been offset by a valuation allowance.

NET LOSS PER SHARE

During the reporting periods, the Company did not issue any dilutive instruments. Accordingly, the reported basic and diluted loss per share is the same.

COMMON STOCK

The Company was incorporated on August 16, 2006 with authorized capital of 50,000,000 shares of common stock of US$0.001 par value. On August 16, 2006, 1,000,000 shares of common stock of US$0.001 par value totaling US$1,000 were issued for cash.

On May 23, 2008, 200,000 shares of common stock of US$0.001 par value totaling US$~~1,000~~200 ~~was~~were issued to 40 investors for cash of US$100,000.

On ~~May~~August 2331, ~~2008~~2009, ~~200~~9,000,000 shares of common stock of US$0.001 par value totaling US$~~100~~9,000 were issued to 40the ~~investors~~director for ~~cash~~his past services rendered to the Company (Note 7).

7. SHARE-BASED COMPENSATION

On August 31, 2009, the Company issued 9,000,000 shares of restricted common stock to the Company’s director for his past services rendered to the Company. The director vested in his right under the restricted shares on the date of grant.

The fair value of common stock granted was determined using cash flow projection based on financial budgets approved by the management covering a fifteen-year period. The Company assumed the annual growth rate and interest rate to be 5.5% and 5% respectively for the cash flow projection.

The Company estimated the fair value of the Company’s common stock on August 31, 2009 to be US$0.0028 per share. Accordingly, the Company recorded non-cash share-based compensation expense of US$25,200 for the year ended September 30, 2009, which was included in general and administrative expenses.

On November 13, 2009, the Company’s director transferred 360,000 shares to certain third parties for their advisory and administrative services rendered to the Company. The Company estimated the fair value of the Company’s common stock on November 13, 2009 to be US$0.0028 per share by reference to the cash flow projection as stated above. Accordingly, the Company recorded non-cash share-based compensation expense of US$1,008 for the three months ended December 31, 2009, which was included in general and administrative expenses.

STOCK INCENTIVE PLAN

The Company has not established any stock incentive plan since its incorporation.

COMMITMENTS AND CONTINGENCIES

The Company had no commitments or contingent liabilities as of June 30, 2009.

~~RELATED~~ COMMITMENTS ~~PARTY~~AND ~~TRANSACTIONS~~CONTINGENCIES

The ~~majority stockholder, who is also the director, advanced US$9,797 to the~~ Company tohad ~~finance~~no ~~its~~commitments ~~working~~or ~~capital~~contingent ~~during~~liabilities ~~the~~as ~~period~~of ~~from~~December ~~inception on August 16~~31, ~~2006 through June 30,~~ 2009. ~~The advance is interest-free, unsecured and repayable on demand.~~

On April 1, 2008, the Company entered into a sublease agreement with a company in which the director has a beneficial interest, to sublease a portion of the office premises leased by the related company at a monthly rent of HKD20,000. Rental expenses paid during the nine months ended June 30, 2009 and from inception on August 16, 2006 through June 30, 2009 amounted to US$15,474 and US$38,609 respectively. The sublease agreement was terminated on March 31, 2009.

During the nine months ended June 30, 2009, the Company received service income of US$7,737 from CHML, a company in which the director owns a 17% interest. Apart from the foregoing, the Company did not receive any other income from CHML.

10.

RELATED PARTY TRANSACTIONS

The majority stockholder, who is also the director, advanced US$18,500 and US$3,712 to the Company to finance its working capital from inception on August 16, 2006 through December 31, 2009 and for the three months ended December 31, 2009, respectively. The advances are interest-free, unsecured and repayable on demand.

On April 1, 2008, the Company entered into a sublease agreement with a company in which the director has a beneficial interest, to sublease a portion of the office premises leased by the related company at a monthly rent of HK$20,000. Rental expenses paid from inception on August 16, 2006 through December 31, 2009 amounted to US$30,876. The agreement was terminated with effect from April 1, 2009. The Company had no rental expenses during the three months ended December 31, 2009 and 2008.

11.

SUBSEQUENT EVENTS

The Company has evaluated all subsequent events through ~~August~~February 1011, ~~2009~~2010, the date these financial statements were issued, and determined that there were no subsequent events or transactions that ~~required~~require recognition or ~~disclosure~~disclosures in the financial statements.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Special Note of Caution Regarding Forward Looking Statements

CERTAIN STATEMENTS IN THIS QUARTERLY REPORT ON FORM10-Q INCLUDE FORWARD-LOOKING STATEMENTS THAT INCLUDE RISKS AND UNCERTAINTIES. WE USE WORDS SUCH AS "ANTICIPATES," "BELIEVES," "PLANS," "EXPECTS," "FUTURE," "INTENDS" AND SIMILAR EXPRESSIONS TO IDENTIFY SUCH FORWARD-LOOKING STATEMENTS. THIS FORM ALSO CONTAINS FORWARD-LOOKING STATEMENTS ATTRIBUTED TO CERTAIN THIRD PARTIES RELATING TO THEIR ESTIMATES REGARDING THE OPERATION AND GROWTH OF OUR BUSINESS AND SPENDING. YOU SHOULD NOT PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH APPLY ONLY AS OF THE DATE HEREOF. WE HAVE BASED THESE FORWARD-LOOKING STATEMENTS ON OUR CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE DISCUSSED IN THIS QUARTERLY REPORT ON FORM10-Q AS WE ARE A DEVELOPMENT STAGE COMPANY WITH NO SIGNIFICANT OPERATIONS TO DATE. OUR ABILITY TO GENERATE REVENUE IS SUBJECT TO SUBSTANTIAL RISKS.

Overview

China Multimedia, Inc. (the “Company”, a“CMI”, ~~Nevada~~or ~~corporation~~“We”) was incorporated in the State of Nevada on August 16, 2006 ~~(the “Company”, “CMI”, or “We”)~~. We are a development stage company established to: 1) provide web design solutions to companies; and 2) introduce potential business opportunities to business partners. To date, the Company’s ~~only~~business activities have consisted of developing its business plan, raising initial capital, and signing two agreements ~~with~~for ~~DNA~~the ~~Financial~~provision ~~Systems~~of ~~(“DNAF”)~~the ~~and~~Company’s ~~Century~~services. We ~~Health~~have ~~Medical~~earned ~~Limited~~limited ~~(“CHML”)~~revenue ~~and~~from ~~providing~~our ~~web~~business ~~design services to CHML~~operations.

~~CMI’s~~ Web Design ~~Services~~Solutions

CMI ~~plans~~provides ~~to provide~~ cost-effective web design solutions for small and medium-sized business enterprises ~~(“SMEs”)~~ throughout Hong Kong. CMI’s goal is to assist potential clients with establishing or maintaining websites which allow the clients to promote their Internet presence. Websites provide a vehicle for businesses to post information about their company onto the Internet, thereby reaching the global market. In the current market, many companies are attempting to establish an online presence without spending or committing a substantial amount of capital or time. Establishing an Internet presence is particularly challenging for SMEs. Accordingly, CMI intends to identify SMEs that may be in need of web services and provide them with a cost effective means of meeting their website design and operational needs. CMI will focus on locating potential clients (the “T-Clients”) who either do not maintain any form of company website or maintain websites with outdated designs.

ToOn ~~meet~~September ~~the~~26, ~~needs of T-Clients~~2008, ~~CMI~~we ~~maintains~~entered into a ~~list~~Service ofAgreement ~~professional~~with ~~freelance~~Century ~~web~~Health ~~designers~~Medical ~~(the~~Limited (“~~Freelance Designers~~CHML”), ~~who~~a ~~provide~~PRC ~~CMI~~company, ~~with~~pursuant ato ~~full~~which ~~range~~CMI ofagreed ~~website~~to ~~templates~~assist (CHML with the ~~“Templates”)~~development ~~specifically~~of ~~designed~~its ~~for~~website. As ~~different~~consideration ~~business~~for ~~sectors.~~our ~~Once~~services, weCHML ~~have~~paid ~~located~~us a ~~potential~~fee ~~T-Client~~of US$7,700. The weterm ~~will~~of ~~attempt~~the toService ~~provide~~Agreement ~~them~~was ~~with~~from anSeptember ~~affordable~~26, ~~website~~2008 ~~Template~~through ~~that~~December is31, ~~suitable~~2008. toAs ~~their~~of ~~business~~September ~~needs.~~30, ~~Additionally~~2009, ifthe Company had completed rendering the ~~T-Clients~~services ~~request~~to ~~websites~~CHML. ~~with~~As ~~more~~consideration ~~advanced~~for ~~functions~~our ~~than~~services, ~~the~~CHML ~~Templates~~paid ~~currently~~us ~~provide~~a fee of approximately US$7,700. weThe ~~will~~foregoing ~~introduce~~description ~~the~~of ~~T-Clients~~Service toAgreement ~~suitable~~does ~~Freelance~~not ~~Designers~~purport to ~~meet~~be complete and is qualified in its entirety by reference to the ~~T-Clients~~Service ~~specific~~Agreement ~~web~~which ~~design~~was ~~needs~~filed as Exhibit 10. ~~All~~2 ofto the ~~Freelance~~Company’s ~~Designers~~Form we10-KSB ~~work~~filed with ~~possess~~ the ~~relevant~~Securities ~~knowledge~~ and ~~necessary~~Exchange ~~skill~~Commission toon ~~provide~~December ~~such~~30, ~~customized~~2008, ~~services.~~and is hereby incorporated by reference.

CMI is able to provide cost-effective web design solutions to SMEs by maintaining a full range of Templates which are specific to different business sectors. CMI’s prices are not cost prohibitive to SMEs because we are able to operate with a minimum amount of overhead by not employing any full time software developers or web designers. CMI acts only as a bridge between Freelance Designers and T-Clients. The Freelance Designers that we work with have authorized us to use their professional designs while we attempt to locate potential T-Clients.

CMI currently has an arrangement with its Freelance Designers whereby CMI splits the fee charged to the T-Clients. Under the fee arrangement, CMI collects 60% of the fee charged to the T-Clients and distributes the remaining 40% to the Freelance Designers. CMI determines the amount of the fee charged to the T-Clients. CMI and the Freelance Designers agreed orally on the fee arrangement, and we have not signed any written contracts with them.

On September 26, 2008, we entered into a Service Agreement (the “Service Agreement”) with Century Health Medical Limited (“CHML”), a PRC company which is an affiliate of Super Luck, Inc., a company which Wilson Cheung, our president, chief financial officer, director and majority shareholder owns a 17% interest in. Pursuant to the terms of the Service Agreement, CMI agreed to assist CHML with the development of its website. The term of the Service Agreement was from September 26, 2008 through December 31, 2008. As of December 31, 2008, the Company had completed rendering the services to CHML. As consideration for our services, CHML paid us a fee of approximately US$7,700. A copy of the Service Agreement was filed as Exhibit 10.2 to the Company’s Form 10-KSB for fiscal year ended September 30, 2008 filed with the Securities and Exchange Commission on December 30, 2008, and is hereby incorporated by reference.

CMI’s Business Opportunities Program

In addition to our web design service, we ~~will~~ also ~~attempt~~focus toon ~~create~~creating new business opportunities for specific companies. On December 11, 2006, CMI entered into an Agreement (the “DNAF Agreement”) with DNA Financial Systems (“DNAF”), a Hong Kong corporation founded in 2005;, a copy of ~~the~~which ~~Agreement~~ was filed as Exhibit 10.1 to the Company’s Registration Statement on Form 10-SB, filed with the ~~Securities~~SEC ~~and Exchange Commission~~ on January 45, 2007, and is hereby incorporated by reference. DNAF is athe regional solution provider for the financial ~~and securities~~ industry ~~throughout~~in the Asia Pacific Region. It provides integrated solutions by offering online trading systems, Forex dealing room management systems, and corporate treasury risk management systems to banks and financial institutions. It also offers a service named Financial Web Portal Design and Hosting (“FWPDH”). FWPDH is a customized service targeted at stock exchange listed companies. Listed companies can add value to their websites by providing instant stock information to their stockholders. The FWPDH service allows stockholders to receive instant stock price information and delayed chart information on the company website. Professional web designers of DNAF are responsible for designing a tailor-made web portal to suit clients’ needs.

Pursuant to the terms of the Agreement, CMI will attempt to establish new business opportunities for DNAF by identifying, locating, and introducing potential clients (the “D-Clients”) in need of the FWPDH service, to DNAF. In our search for D-Clients, we will focus on the following areas: Hong Kong, Macau, Singapore, Australia, Taiwan and China (collectively referred to as the “Territory”). CMI plans to initially focus on the market in Hong Kong as a starting point for its business opportunities program due to the fact that management has a significant number of business connections in this area. Pursuant to the terms of the Agreement, as compensation for CMI’s efforts, CMI is entitled to 40% of the initial commission that DNAF receives from any D-Client or other business opportunity that CMI establishes for DNAF. DNAF determines the amount of the fees charged to the D-clients.13

~~There~~Pursuant isto nothe ~~assurance~~terms ~~that~~of the DNAF Agreement, we will ~~achieve~~attempt orto ~~sustain~~establish ~~profitability~~new onbusiness anopportunities ~~annual~~for orDNAF ~~quarterly~~by ~~basis~~identifying, locating, and introducing potential clients to DNAF. Pursuant ~~Because~~to the ~~Company~~terms ~~has~~of ~~been~~the aDNAF ~~development~~Agreement, ~~stage~~as ~~company~~compensation ~~since~~for ~~inception~~CMI’s ~~and~~efforts, ~~has~~CMI ~~not~~is ~~generated~~entitled ~~significant~~to ~~revenues,~~40% of the ~~Company~~initial ~~operates~~commission ~~with~~that ~~minimal~~DNAF ~~overhead~~receives from any client or other business opportunity that CMI establishes for DNAF. DNAF determines the amount of the fees charged to any new clients.

14Plan of Operations in the next 12 months

~~Results~~For the fiscal year ending September 30, 2010, the Company expects to continue with its efforts to develop its Web Design Solutions Business and its Business Opportunities Program. The Company has minimal cash and has earned limited revenue from its business operations. The Company recorded a net loss of ~~Operations~~$4,828 for the three months ended December 31, 2009, compared to a net loss of $4,137 for the three months ended December 31, 2008. There is no assurance that we will achieve or sustain profitability on an annual or quarterly basis. Because the Company has been a development stage company since inception and has generated limited revenues; the Company operates with minimal overhead. The Company will need to raise additional funds, either in the form of an advance or an equity investment by the Company's President; or in the form of equity investment by outside investors, or some combination of each.

~~The~~No ~~following~~specific ~~discussion~~commitments to provide additional funds have been made by management or other stockholders, and ~~analysis~~the ~~provides~~Company ~~information~~has ~~that~~no wecurrent ~~believe~~plans, isproposals, ~~relevant~~arrangements or understandings to anraise ~~assessment~~additional ~~and~~capital ~~understanding~~through the sale or issuance of ~~our~~additional ~~results~~securities prior to the location of ~~operation~~a ~~and~~merger ~~financial~~or ~~condition~~acquisition ~~for~~candidate. Accordingly, there can be no assurance that any additional funds will be available to the ~~three~~Company ~~months~~to ~~and~~allow ~~nine~~it ~~months~~to ~~ended~~cover ~~June~~its 30expenses. Notwithstanding the foregoing, ~~2009~~however, to the extent that additional funds are required, the Company anticipates that it will either continue to rely on its majority shareholder to pay expenses on its behalf, or it will seek to raise capital through the private placement of restricted securities. The ~~following~~majority ~~discussion~~shareholders ~~should~~are under no obligation to pay such expenses. If the Company is unable to raise additional funds, it will not be ~~read~~able to pursue its business plan. In addition, in ~~conjunction~~order ~~with~~to minimize the ~~Financial~~amount ~~Statements~~of ~~and~~additional ~~related~~cash ~~Notes~~which ~~appearing~~is ~~elsewhere~~required in ~~this~~order ~~Form~~to ~~10-Q~~carry out its business plan, the Company might seek to compensate certain service providers by issuances of stock in lieu of cash.

Results of Operations for the Three Month Period Ended June 30, 2009 Compared to the Three Month Period Ended June 30, 2008

Revenue

During the three month period ended June 30, 2009, the Company had revenues of $nil, as compared to revenues of $nil during the three month period ended June 30, 2008.

Operating Expenses

During the three month period ended June 30, 2009, the Company had expenses of $4,699, as compared to expenses of $26,452 during the three month period ended June 30, 2008, a decrease of $21,753. The primary reason for the decrease in operating expenses experienced by the Company was due to: i) the fact that we terminated our sublease agreement with Easterly Financial Investment Limited on March 31, 2009, thereby eliminating the operating expenses associated with the sublease; and ii) the fact that we have taken some cost control measures in an effort to reduce expenses relating to business trips and administrative items.

Net Loss

During the three month period ended June 30, 2009, the Company experienced a net loss of $4,699, as compared to a net loss of $26,452 during the three month period ended June 30, 2008, a change of $21,753. The reason for the change in net loss experienced by the Company was due to the fact that the Company experienced a reduction in operating expenses during the three month period ended June 30, 2009, as compared to the three month period ended June 30, 2008.

Results of Operations for the Nine Month Period Ended June 30, 2009 Compared to the Nine Month Period Ended June 30, 2008

Revenue

During the nine month period ended June 30, 2009, the Company had revenues of $7,737, as compared to revenues of $nil during the nine month period ended June 30, 2008, an increase of $7,737. This increase in revenue was directly attributable to the payment that we received pursuant to the Service Agreement that we entered into with CHML.

Operating Expenses

During the nine month period ended June 30, 2009, the Company had expenses of $30,081, as compared to expense of $39,720 during the nine month period ended June 30, 2008, a decrease of $9,639. The primary reason for the decrease in operating expenses experienced by the Company was due to: i) the fact that we terminated our sublease agreement with Easterly Financial Investment Limited on March 31, 2009, thereby eliminating the operating expenses associated with the sublease; and ii) the fact that we have taken some cost control measures in an effort to reduce expenses relating to business trips and administrative items.

Net Loss

During the nine month period ended June 30, 2009, the Company experienced a net loss of $22,344, as compared to a net loss of $39,718 during the nine month period ended June 30, 2008, a decrease of $17,374. The reason for the change in net loss experienced by the Company was due to the fact that the Company experienced a reduction in operating expenses during the nine month period ended June 30, 2009, as compared to the nine month period ended June 30, 2008.

Liquidity and Capital Resources

As of ~~June~~December 3031, 2009, the Company ~~remained~~remains in the development stage. As of ~~June~~December 3031, 2009, the Company's balance sheet ~~reflected~~reflects current and total assets of $~~245~~90 in the form of cash and cash equivalents., Ascurrent ofliabilities ~~June~~and 30stockholders’ deficit of $23,734 ~~2009~~and $23,644 ~~the~~respectively ~~Company’s~~and ~~balance~~accumulated ~~sheet~~deficit ~~reflected~~during ~~current~~the ~~liabilities~~development stage of $13150,~~808,~~927. The Company does not have sufficient assets or capital resources to pay its on-going expenses while it is seeking out business opportunities. The Company has no agreement in place with its stockholders’ ~~deficit~~or ofother ~~$13~~persons to pay expenses on its behalf,~~563~~ ~~and~~but ~~accumulated~~it ~~deficit~~is ~~during~~currently anticipated that the ~~development~~Company ~~stage~~will ofrely ~~$114~~on loans from the director,~~635~~ Mr. Wilson Cheung, to pay any daily operating expenses prior to any fund raising exercise. The Company anticipates that this arrangement will not change until the Company is able to consummate a business transaction.

Currently, the Company does not have sufficient assets or capital resources to pay its on-going expenses while it is seeking out additional business opportunities. The Company has no agreement in place with its shareholders or other persons to pay expenses on its behalf, but the Company has been relying on loans from the majority shareholder, Mr. Wilson Cheung, to pay any daily operating expenses until additional funds were located. Mr. Cheung has no contractual obligation to provide these funds. This arrangement will not change until the Company is able to consummate a business transaction.

Off Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable

ITEM 4T.

CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

We maintain “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable assurance of achieving the desired control objectives, and we necessarily are required to apply our judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. 14

~~Our~~The ~~management,~~Securities ~~including~~and ~~our~~Exchange ~~chief~~Commission ~~executive~~defines ~~officer~~the term “disclosure controls and ~~chief~~procedures” ~~financial~~to ~~officer,~~mean ~~evaluated~~a ~~the~~Company's ~~effectiveness~~controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the ~~design~~reports ~~and~~that ~~operation~~it offiles ~~our~~or ~~disclosure~~submits ~~controls~~under ~~and~~the ~~procedures~~Securities asExchange Act of ~~June~~1934 30is recorded, ~~2009~~processed, summarized and ~~concluded~~reported, ~~that~~within the ~~disclosure~~time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures ~~were~~include, ~~not~~without ~~effective~~limitation, ~~because~~controls ~~certain~~and ~~deficiencies~~procedures ~~involved~~designed ~~internal~~to ~~controls~~ensure ~~constituted~~that ainformation ~~material~~required ~~weakness~~to asbe ~~discussed~~disclosed ~~below.~~by ~~The~~an ~~material~~issuer ~~weakness~~in ~~identified~~the ~~did~~reports ~~not~~that ~~result~~it infiles or submits under the ~~restatement~~Securities Exchange Act of ~~any~~1934 ~~previously~~is ~~reported~~accumulated ~~financial~~and ~~statements~~communicated orto ~~any~~the ~~other~~issuer’s ~~related~~management, including its principal executive and principal financial ~~disclosures~~officers, ~~nor~~or ~~does~~persons ~~management~~performing ~~believe~~similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it ~~had~~is ~~any~~required ~~effect~~to ondisclose in the ~~accuracy~~reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the ~~Company’~~time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial ~~statements~~officers ~~for~~to ~~the~~allow ~~current~~timely ~~reporting~~decisions ~~period~~regarding disclosure.

16As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified. Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.

Management’s Quarterly Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, in accordance with accounting principles generally accepted. Because of inherent limitations, a system of internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management, including our principal executive officer and principal financial officer, conducted an evaluation of the effectiveness of our internal control over financial reporting. Based on its evaluation, our management concluded that there is a material weakness in our internal control over financial reporting. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness relates to the monitoring and review of work performed by our Chief Financial Officer in the preparation of financial statements, footnotes and financial data provided to the Company’s registered public accounting firm in connection with the quarter review. All of the financial reporting is carried out by our Chief Financial Officer, and we do not have an audit committee. This lack of accounting staff results in a lack of segregation of duties and accounting technical expertise necessary for an effective system of internal control.

In order to mitigate this material weakness to the fullest extent possible, at any time, if it appears that any control can be implemented to continue to mitigate such weaknesses, it is immediately implemented. As soon as our finances allow, we will hire sufficient accounting staff and implement appropriate procedures for monitoring and review of work performed by our Chief Financial Officer.

This quarterly report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only management’s report in this quarterly report.

Changes in Internal Control over Financial Reporting

There was no change in the Company's internal control over financial reporting during the quarter ended ~~June~~December 3031, 2009, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated. No director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.

ITEM 1A. RISK FACTORS.

Not Applicable.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

ITEM 5.

OTHER INFORMATION.

None.

ITEM 6.

EXHIBITS.

3.1

Articles of Incorporation (herein incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on January 4, 2007).

3.2

Bylaws (herein incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on January 4, 2007).

10.1

Contract with DNA Financial Systems signed on December 11, 2006 (herein incorporated by reference from Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on January 4, 2007).

10.2

Service Agreement dated September 26, 2008, by and between Century Health Medical Limited and China Multimedia, Inc. (herein incorporated by reference from Form 10-KSB for fiscal year ended September 30, 2008 filed with the Securities and Exchange Commission on December 30, 2008.)

31.1

Certifications pursuant to Rule 13a-15(a) or 15d-15(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

31.2

Certifications pursuant to Rule 13a-15(a) or 15d-15(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

32.1

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

32.2

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

Filed herewith*

SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the registrant caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

CHINA MULTIMEDIA, INC.

By: /s/ Wilson Cheung

Wilson Cheung, President, Chief Financial Officer and Director

Date: ~~August~~February 1412, ~~2009~~2010

~~By: /s/ Wilson Cheung~~17

Wilson Cheung, Chief Financial Officer

Date: August 14, 2009

Filing Compare · CHINA MULTIMEDIA, INC.