SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended ~~March~~September 3130, 2008

࿶	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: 000-33483

CHINA MOBILE MEDIA TECHNOLOGY ~~Inc~~ INC. ~~(Exact Name of Registrant as Specified in Its Charter)~~

(Exact Name of Registrant as Specified in Its Charter)

Nevada		88-0496645
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

~~9th~~ 10th Floor, Block C, Intell-Center ~~No. 18 Zhongguncun East Road Haidian District Beijing, China 100083 (Address of Principal Executive Offices)~~

+No. 18 86Zhongguancun 10East ~~8260 1927 (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)~~Road

Haidian District

Beijing, China 100083

(Address of Principal Executive Offices)

+ 86 10 8260 1927

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

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 x No o

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 o	Accelerated filer o

Non-accelerated filer o (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). Yes o No x

As of ~~May 15~~ November 18, 2008, there were 60,~~935~~494,~~122~~ 384 shares of the issuer’s common stock, par value $0.001 per share, outstanding.

TABLE OF CONTENTS

	~~Page~~	Page
PART I.	1	1
FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements	1	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	34	23
Item 3. Quantitative and Qualitative Disclosures about Market Risk	37	28
Item 4. Controls and Procedures	37	28
PART II.	37	29
OTHER INFORMATION
Item 1. Legal Proceedings	37
Item 1. Risk Factors		29
Item 1A. Risk Factors	37
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		30
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3. Defaults Upon Senior Securities		30
Item 3. Defaults Upon Senior Securities	40
Item 4. Submission of Matters to a Vote of Security Holders		30
Item 4. Submission of Matters to a Vote of Security Holders	40
Item 5. Other Information		30
Item 5. Other Information	41
Item 6. Exhibits		30
Item 6. Exhibits	41

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH INC.)

AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, 2008 AND ~~2006~~ 2007 (UNAUDITED)

CONTENTS

PAGE 2 CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2008 (UNAUDITED) AND DECEMBER 31, 2007

PAGE	2	CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2008 (UNAUDITED) AND DECEMBER 31, 2007

PAGE	3-4	CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 (UNAUDITED)

PAGES	5	CONDENSED CONSOLIDATED CASH FLOWS STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 (UNAUDITED)

PAGES	6-22	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS ENDED SEPTEMBER 30, 2008 AND 2007 (UNAUDITED)

PAGE 3-4 CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

PAGE 5 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2008 (UNAUDITED)

PAGES 6-8 CONDENSED CONSOLIDATED CASH FLOWS STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

PAGES 9-33 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.)

AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS	September 30, 2008		December 31, 2007
	March 31,2008		December 31, 2007
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	1327,~~209,360~~890	$	300,224
Accounts receivable, net of allowance for doubtful accounts of $5,896,897 and $5,661,556 at March 31, 2008 and December 31, 2007, respectively		14,297,627		11,413,957
Accounts receivable		8,698,765		11,413,957
Notes receivable, net of discount of $218,549 and $237,066 at March 31, 2008 and December 31, 2007, respectively		6,678,947		5,408,806
Notes receivable		5,634,804		5,408,806
Inventories, net of provision of $3,718,893 and $1,084,001 at March 31, 2008 and December 31, 2007, respectively		8,597,230		7,385,441
Inventories		2,172,748		7,385,441
Due from related parties		~~102~~11,~~793~~077,995		146,909
Prepayments for goods		4,509,131		6,012,788
Advance to suppliers		5,792,040		6,012,788
Debt issue costs		~~586,850~~		468,208
Prepaid expenses		1,579,750		160,785
Other receivables, prepaid expenses and other assets		991,150		1,929,898
Other receivables and other assets		1,785,800		1,663,177
Total current assets		34,695,391		33,066,231
Due from employees		175,768		105,936
LONG-TERM ASSETS
Total current assets		39,523,256		33,066,231
Plant and equipment, net		16,328,600		16,085,217
Plant and equipment, net		16,502,682		16,085,217
Land use right and other intangible assets, net		2,660,854		2,285,904
Land use right, net		2,273,297		2,285,904
Long-term investment		4,000		4,000
Goodwill		~~4,240,842~~0		4,240,842
Total long-term assets		2318,~~020~~993,~~821~~454		22,615,963
TOTAL ASSETS	$	6253,~~544~~688,~~077~~845	$	55,682,194

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES AND SHAREHOLDERS’ EQUITY(DEFICIT)
CURRENT LIABILITIES
Accounts payable	$	12,754,405		$	119,~~798~~333,~~323~~376		$	~~9,333,376~~
Other payables and accrued liabilities		4,396,646			23,~~815~~445,~~390~~546			~~3,445,546~~
Short-term bank loans		3,593,170			3,~~132~~144,~~921~~611			~~3,144,611~~
Current portion of long-term loans					1,~~210~~093,~~447~~778			~~1,093,778~~
Secured notes, net of discount of $0 and $1,132,399 at March 31, 2008 and December 31, 2007, respectively					-			8,867,601
Secured notes, net of discount of $1,132,399 at December 31, 2007					8,867,601
Notes payable					2,~~423~~191,~~212~~333			~~2,191,333~~
Customer deposits					3,665,593			3,783,680
Unearned revenue		4,501,235			3,783,680
Due to related parties		6,943,185			~~127~~561,~~013~~275			~~561,275~~
Due to employees					111,870			115,719
Taxes payable		(547,194	)
Liquidated damages payable					1,445,750			1,445,750
Salaries and welfare payable		266,014			115,719
Deferred tax liabilities					-			117,245
Liquidated damages payable		1,765,750			1,445,750
Total current liabilities					26,730,519			34,099,914
Differed tax liabilities					117,245
LONG-TERM LIABILITIES
Total current liabilities		33,673,210			34,099,914
Long-term bank loans					4,799,066			4,744,261
LONG-TERM LIABILITIES
Global notes					20,973,761			-
Long-term bank loans		5,675,902			4,744,261
Deferred tax liabilities					136,149			136,149
Global notes, net of discount of $2,074,225 at September 30, 2008		19,102,651			-
Total long-term liabilities					25,908,976			4,880,410
Warrants		90,000
TOTAL LIABILITIES					52,639,495			38,980,324
Differed tax liabilities					136,149
COMMITMENTS
Total long-term liabilities		24,868,553			4,880,410
SHAREHOLDERS’ EQUITY
TOTAL LIABILITIES		58,541,763			38,980,324
Series B Preferred stock, stated value $50,000 per share; authorized 300 shares, 286.15 and 288.65 shares issued and outstanding at March 31, 2008 and December 31, 2007, respectively					14,307,500			14,432,500
SHAREHOLDERS’ EQUITY(DEFICIT)
Common stock, par value $0.001 per share; authorized 280,000,000 shares, 60,935,122 and 59,394,615 shares issued and outstanding at March 31, 2008 and December 31, 2007, respectively					60,935			59,395
Series B Preferred stock, stated value $50,000 per share; authorized 300 shares, 286.15 and 288.65 shares issued and outstanding at September 30, 2008 and December 31, 2007, respectively		14,307,500			14,432,500
Additional paid-in capital					21,996,809			20,574,138
Common stock, par value $0.001 per share; authorized 280,000,000 shares, 60,494,384 and 59,394,615 shares issued and outstanding at September 30, 2008 and December 31, 2007, respectively		60,935			59,395
Retained deficit (the restricted portion is $1,202,599 at March 31, 2008 and December 31, 2007)					(28,866,581	)		(20,142,287	)
Additional paid-in capital		21,461,971			20,574,138
Accumulated other comprehensive income					2,405,919			1,778,124
Accumulated deficit		(44,057,755	)		(20,142,287	)
TOTAL SHAREHOLDERS’ EQUITY					9,904,582			16,701,870
Accumulated other comprehensive income		3,374,430			1,778,124
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				$	62,544,077		$	55,682,194
TOTAL SHAREHOLDERS’ EQUITY(DEFICIT)		(4,852,919	)		16,701,870
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY(DEFICIT)	$	53,688,845		$	55,682,194

See accompanying notes to the condensed consolidated financial statements.

CHINA MOBILE TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.)

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

AND COMPREHENSIVE (LOSS) INCOME

(UNAUDITED)

	Three months Ended March 31,
	Three Months Ended September 30,						Nine Months Ended September 30,
	2008			2007			2008			2007
REVENUES, NET	$	2(900,~~097,283~~661	)	$	1511,~~057~~600,~~006~~815		$	884,267		$	49,882,145
COST OF GOODS SOLD		2(1,~~054~~451,~~577~~122	)		108,~~374~~401,~~448~~458			(254,500	)		34,286,648
GROSS PROFIT		42550,~~706~~461			43,~~682~~199,~~558~~357			1,138,767			15,595,497
Selling and distribution		~~265~~182,~~925~~988			~~311~~1,~~440~~627,476			539,330			3,144,481
Advertising		6939,~~609~~297			1,~~475~~623,~~922~~716			319,438			5,254,556
Research and development		~~555~~82,~~518~~577			-932,568			339,205			1,721,620
General and administrative		12,~~932~~439,~~695~~018			12,~~314~~453,~~586~~049			7,548,024			5,753,775
Provision for obsolete and slow moving inventories		2,634,892			-
Allowance for obsolete and slow moving inventories		1,266,051						8,617,194
(LOSS) INCOME FROM OPERATIONS		(5,415,933	)		1,580,610
Goodwill Impairment		4,230,509						4,230,509
OTHER INCOME (EXPENSES)
LOSS FROM OPERATIONS		(7,689,979	)		(3,437,452	)		(20,454,933	)		(278,935	)
Interest expense, net		(405,604	)		(2,076,159	)
OTHER INCOME (EXPENSES)
Non cash interest expense from amortization of discount on global and secured notes		(1,147,075	)		(551,394	)
Interest income (expense), net		(156,361	)		(478,120	)		(161,590	)		(1,055,672	)
Amortization of debt issue costs for global and secured notes		(490,458	)		-
Non cash interest expense from amortization of discount on global and secured notes		(515,719	)		(687,338	)		(3,052,942	)		(3,038,780	)
Government grants		30,691			115,758
Amortization of debt issue costs for secured notes
Loss from exchange rate decrease of global notes		(699,670	)		-
Government grants		88,619			95,860			455,507			323,985
Other income, net		48,497			9,725
Value added tax refund					199,201						1,107,211
Total Other (Expenses)		(2,663,619	)		(2,502,070	)
Loss from foreign exchange transactions		(24,085	)					(-24,309	)
(LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTERESTS		(8,079,552	)		(921,460	)
Other income (expense), net		(192,658	)		236,000			(211,221	)		274,684
INCOME TAX BENEFIT (EXPENSE)		119,631			(418,001	)
Total Other income (Expenses)		(800,204	)		(634,397	)		(2,994,555	)		(2,388,572	)
(LOSS) FROM CONTINUING OPERATIONS BEFORE MINORITY INTERESTS		(7,959,921	)		(1,339,461	)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTERESTS		(8,490,183	)		(4,071,849	)		(23,449,488	)		(2,667,507	)
MINORITY INTERESTS’ SHARE OF NET INCOME		-			(99,158	)
INCOME TAXES BENEFIT (EXPENSE)		(3,162	)		1,141,664			(298,393	)		246,445
(LOSS) FROM CONTINUING OPERATIONS		(7,959,921	)		(1,438,619	)
LOSS FROM CONTINUING OPERATIONS BEFORE MINORITY INTERESTS		(8,487,021	)		(2,930,185	)		(23,151,095	)		(2,913,952	)
DISCONTINUED OPERATION
MINORITY INTERESTS SHARE OF LOSS (INCOME)											(99,259	)
Gain from disposition of discontinued operations		-			1,273
LOSS FROM CONTINUING OPERATIONS		(8,487,021	)		(2,930,185	)		(23,151,095	)		(3,013,211	)
Income from discontinued operations		-			1,555,381
DISCONTINUED OPERATIONS
NET GAIN FROM DISCONTINUED OPERATIONS		-			1,556,654
Gain from disposition of discontinued operations		-			59,483			-			122,995
NET (LOSS) INCOME		(7,959,921	)		118,035
Loss from discontinued operations					(162	)					(1,527	)
Dividend to preferred share holders		(764,373	)		-
NET GAIN (LOSS) FROM DISCONTINUED OPERATIONS					59,321						121,468
LOSS INCOME TO COMMON SHAREHOLDERS	$	(8,724,294	)	$	118,035
NET LOSS		(8,487,021	)		(2,870,864	)		(23,151,095	)		(2,891,743	)
OTHER COMPREHENSIVE INCOME
Dividend to preferred share holders								764,373
Foreign currency translation gain	$	627,795		$	168,949
LOSS INCOME TO COMMON SHAREHOLDERS		(8,487,021	)		(2,870,864	)		(23,915,468	)		(2,891,743	)
OTHER COMPREHENSIVE INCOME BEFORE INCOME TAXES		627,795			168,949
OTHER COMPREHENSIVE INCOME
INCOME TAXES RELATED TO OTHER COMPREHENSIVE INCOME		-			(25,342	)
Foreign currency translation gain		134,996			268,583			1,596,306			881,581
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAXES		627,795			143,607
OTHER COMPREHENSIVE INCOME BEFORE INCOME TAXES		134,996			268,583			1,596,306			881,581
COMPREHENSIVE (LOSS) INCOME	$	(7,332,126	)	$	261,642
Income tax related to other comprehensive income					(40,287	)					(132,237	)
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAXES		134,996			228,296			1,596,306			749,344
COMPREHENSIVE LOSS	$	(8,352,025	)	$	(2,642,568	)	$	(22,319,162	)	$	(2,142,399	)

See accompanying notes to the condensed consolidated financial statements.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.)

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

AND COMPREHENSIVE (LOSS) INCOME

(UNAUDITED)

	Three months Ended March 31,
	Three Months Ended September 30,						Nine Months Ended September 30,
	2008			2007			2008			2007
Weighted average shares outstanding
- Basic		5960,~~608~~271,~~066~~594			3759,~~504~~113,~~362~~937			60,494,384			51,956,327
- Diluted		5960,~~608~~271,~~066~~594			4859,~~424~~113,~~655~~937			60,494,384			51,956,327
(Loss) income (to common shareholders per share from continuing operations after giving effect to preferred share dividend)
Income (loss) per share from continuing operations
- Basic	$	(0.14	)	$	(0.0405	)	$	(0.40	)	$	(0.05	)
- Diluted	$	(0.14	)	$	(0.0305	)	$	(0.40	)	$	(0.05	)
(Loss) income per share from gain (loss) from disposition of discontinued operations
Net gain (loss) per share from discontinued operations
- Basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
- Diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
Income per share from gain from discontinued operations
Net income (loss) per share
- Basic	$	(0.0014	)	$	(0.0405	)	$	(0.40	)	$	(0.06	)
- Diluted	$	(0.0014	)	$	(0.0305	)	$	(0.40	)	$	(0.06	)
Net (loss) income per share to common shareholders
- Basic	$	(0.14	)	$	0.00
- Diluted	$	(0.14	)	$	0.00

See accompanying notes to the condensed consolidated financial statements.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

CONDENSED CONSOLIDATED ~~STATEMENTS~~CASH OFFLOWS ~~CHANGES IN SHAREHOLDERS’ EQUITY~~STATEMENTS

~~FOR THE THREE MONTHS ENDED MARCH 31, 2008~~ (UNAUDITED)

	Series B Preferred Stock						Common Stock				Additional Paid-		Retained			Accumulated Other Comprehensive
	Nine Months Ended September 30,
	Shares			Par Value			Shares		Par Value		in Capital		Deficit			Income		Total
	2008			2007
BALANCE, DECEMBER 31, 2007		288.65		$	14,432,500			59,394,615	$	59,395	$	20,574,138	$	(20,142,287	)	$	1,778,124	$	16,701,870
CASH FLOWS FROM OPERATING ACTIVITIES:
Issuance of Warrants with Global Notes		-			-			-		-		401,741		-			-		401,741
Net loss	$	(23,151,095	)	$	(2,891,743	)
Issuance of warrants for financial advisory services		-			-			-		-		133,097		-			-		133,097
Adjustments to reconcile net loss to net cash used by operating activities:
Conversion of Series B preferred stock into Common stock		(2.50	)		(125,000	)		125,000		125		124,875		-			-		-
Depreciation and amortization		716,521			927,790
Issuance of common stock as dividend for preferred stockholders		-			-			1,415,507		1,415		762,958		(764,373	)		-		-
Amortization of discounts to notes		1,132,399			3,038,780
Foreign currency translation gain		-			-			-		-		-		-			627,795		627,795
Amortization of notes receivable discount		(182,883	)
Net loss		-			-			-		-		-		(7,959,921	)		-		(7,959,921	)
Adjustment of FV of warrants		(311,741	)		310,560
BALANCE, MARCH 31, 2008		286.15		$	14,307,500			60,935,122	$	60,935	$	21,996,809	$	(28,866,581	)	$	2,405,919	$	9,904,582
Amortization of debt issue cost		1,920,543
Deferred taxes					40,396
Provision for obsolete and slow moving inventories, doubtful accounts and goodwill		16,405,684			542,438
Minority interests’ share of net income					99,259
Net gain on discontinued operations					(121,467	)
Changes in operating assets and liabilities, net of effects of acquisition:
(Increase) Decrease In:
Accounts receivable		(618,846	)		(16,556,177	)
Inventories		(3,544,779	)		6,797,797
Other receivables, prepaid expenses, and other assets		1,479,207			424,140
Prepayments for goods		220,748			(7,706,875	)
Due from employees					(139,368	)
Discontinued operations					(221,885	)
Increase (Decrease) In:
Accounts payable		3,421,029			6,983,931
Other payables and accrued liabilities		(850,801	)		(127,829	)
Salaries and welfares payable		80,862			69,453
Taxes payable		(761,044	)		(533,265	)
Unearned revenues		717,554			795,731
Discontinued operations					71,801
Net cash used in operating activities		(3,326,641	)		(8,196,533	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of plant and equipment		(13,828	)		(564,954	)
Repayment for notes receivable		(43,115	)		(4,882,098	)
Discontinued operations					7,396
Proceeds from disposal of subsidiaries, net of cash disposed					263,965
Net cash used in investing activities		(56,943	)		(5,190,483	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of short-term bank loans		(64,766	)		(2,148,614	)
Repayments for long-term bank loans		(302,148	)
Proceeds from notes payable					57,785
Repayments for notes payable					(259,078	)
Repayments for secured notes, net		(10,000,000	)
Proceeds from global notes		20,661,157
Advances from related parties		6,381,910			18,618,153
Repayment to related parties		(10,931,085	)		(17,624,092	)
Proceeds from issuance of preferred stock					7,250,000
Issuance cost of Global Notes		(2,609,100	)
Proceeds from issuance of secured notes					9,016,233
Net cash used by financing activities		(3,135,968	)		14,910,387
NET INCREASE IN CASH AND CASH EQUIVALENTS		(247,616	)		1,523,371
Effect of exchange rate changes on cash		275,280			2,471,370
Cash and cash equivalents at beginning of period		300,224			220,909
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	327,890		$	4,215,650
SUPPLEMENTARY CASH FLOW INFORMATION:
Interest paid	$	630,551		$	605,958
Income taxes paid				$	$757,353

See accompanying notes to the condensed consolidated financial statements.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOWS STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

	Three months Ended March 31,
	2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(7,959,921	)	$	118,035
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		382,931			229,584
Amortization of discounts to global notes and secured notes		1,147,075			551,394
Discounts of convertible notes transferred to interest exp		-			1,727,919
Compensation by issuing warrants to financial advisor		133,097			88,731
Amortization of debt issue cost		490,458			-
Deferred taxes		(119,631	)		451,762
Stock provision for obsolete and slow moving inventories		2,634,892			-
Provision for doubtful accounts		235,341			-
Notes receivable discount		80,900			-
Amortization of notes receivable discount		(100,330	)		-
Minority interests’ share of net income		-			99,158
Discontinued operation		-			(124,512	)
Changes in operating assets and liabilities, net of effects of acquisition:
(Increase) Decrease In:
Accounts receivable		(3,119,010	)		(6,873,943	)
Inventories		(3,846,681	)		1,171,760
Other receivables, prepaid expenses, and other assets		460,056			3,203,590
Prepayments for goods		1,506,043			(2,544,344	)
Due from employees		(69,832	)		(114,423	)
Discontinued operations		-			(1,658,280	)
Increase (Decrease) In:
Accounts payable		2,464,947			(155,669	)
Other payables and accrued liabilities		(350,705	)		(1,188,108	)
Due to employees		(3,848	)		-
Taxes payable		(1,644	)		(339,775	)
Customer deposits		(118,088	)		(284,954	)
Discontinued operations		-			(1,090,875	)
Net cash used in operating activities		(6,153,950	)		(6,732,950	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of plant and equipment		(837,820	)		(133,756	)
Disposal of plant and equipment		50,030			-
Proceeds from notes receivable		13,672			125,224
Repayment for notes receivable		(1,264,383	)		(51,673	)
Deposit for long term investment		-			(200,000	)
Discontinued operations		-			(305,082	)
Net cash used in investing activities		(2,038,501	)		(565,287	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of short-term bank loans		(11,690	)		-
Proceeds from long-term bank loans		171,474			-
Proceeds from notes payable		231,879			230,698
Repayments of notes payable		-			(215,833	)
Repayments for secured notes, net		(10,279,452	)		-
Proceeds from global notes, net		18,751,728			-
Proceeds from related parties		257,621			-
repayment to related parties		(647,768	)		-
Proceeds from issuance of preferred stock		-			7,250,000
Cash received (repayment) to/from related parties, net		-			147,668
Discontinued operations		-			275,347
Net cash provided by financing activities		8,473,792			7,687,880
NET INCREASE IN CASH AND CASH EQUIVALENTS		281,341			389,643
Effect of exchange rate changes on cash		627,795			210,063
Cash and cash equivalents at beginning of year		300,224			165,849
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	1,209,360		$	765,555
SUPPLEMENTARY CASH FLOW INFORMATION:
Interest paid	$	514,754		$	346,038
Income taxes paid	$	-		$	182,969

See accompanying notes to the condensed consolidated financial statements.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOWS STATEMENTS

FOR THE PERIODS ENDED MARCG 31, 2007 AND 2007 (UNAUDITED)

SUPPLEMENTAL NON-CASH DISCLOSURES:

1. For the three months ended March 31, 2008, warrants to purchase an aggregate of 12,000,000 shares of common stock of the Company (the “Warrants”) were issued to Abax Lotus Ltd. (the “Purchaser”) at an exercise price of $2 per share, subject to a downward adjustment on the six month anniversary of the issuance thereof and at the expiration of each six month period thereafter if the volume weighted average closing price of the Company’s common stock for the 20-day trading period immediately prior to the reset date is less than the Exercise Price, at such lower volume weighted average closing price (the “Reset Price”), provided that such Reset Price shall not be lower than $0.80 per share.

2. For the three months ended March 31, 2008, the Company issued 6% preferred stock dividends Series B preferred stockholders of $764,373 in form of 1,415,507 shares of common stock.

3. On December 28, 2006, Beihai Hi-Tech Wealth Technology Development Co., Ltd (“HTW”) entered into an agreement to sell its 50% interest in Beijing Mobile Communication Technology Co., Ltd (“BMCT”) to another owner of BMCT for $0. The transaction was approved by the PRC Government and consummated on March 28, 2007. Also see Note 18. The following represents the assets and liabilities sold at the date of the disposal:

	March 28, 2007
Assets	$	2,871
Total assets sold		2,871
Liabilities		(325	)
Total liabilities sold		(325	)
Total net assets		2,546
Share percentage		50	%
Net assets disposed	$	1,273
Consideration		0
Loss on disposal	$	1,273

4. On June 13, 2007, HTW entered into an agreement to sell its 90% interests in Beihai Hi-Tech Wealth Electronic Products Co., Ltd (“HEP”), a 90% subsidiary of HTW, to Beijing Hi-Tech Wealth Investment and Development Company Limited (“BJ HID”) for $237,554. The transaction was approved by PRC Government and consummated on July 3, 2007. Also see Note 18. The following represents the assets and liabilities sold at the date of the disposal:

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOWS STATEMENTS

FOR THE PERIODS ENDED MARCG 31, 2007 AND 2007 (UNAUDITED)

SUPPLEMENTAL NON-CASH DISCLOSURES (CONTINUED):

	July 3, 2007
Plant and equipment, net	$	6,575
Cash and cash equivalents		31,219
Amounts due from related companies		236,596
Total assets sold		274,390
Other payables		(43	)
Amount due to related companies		(74,436	)
Total liabilities sold		(74,479	)
Net assets sold
Share percentage		90	%
Net assets disposed	$	179,920
Consideration		237,554
Gain on disposal	$	57,634

5. On October 29, 2007, MIL disposed of 100% of the equity interest of Euro Asia, a Hong Kong corporation, for HK$100,000, equivalent to $12,838. Prior to the acquisition, Euro Asia was a 100% holding company of BJ HTS. Also see Note 18. The following represents the assets and liabilities sold at the date of the disposal:

	October 29, 2007
Plant and equipment, net	$	49,708
Cash and cash equivalents		14,615
Notes receivable		6,540,115
Other assets		421,155
Total assets sold	$	7,025,593
Notes payable	$	(1,154,857	)
Customers deposits		(1,419,005	)
Other payables		(1,003,756	)
Payroll payables		(364,336	)
Total liabilities sold	$	(3,941,954	)
Total net assets	$	3,083,639
Share percentage		100	%
Net assets disposed	$	3,083,639
Consideration		12,838
Loss on disposal	$	(3,070,801	)

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, 2008 AND 2007 (UNAUDITED)

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

Before acquiring Magical Insight Investments Limited (“MIL”), the principal activity of China Mobile Media Technology Inc. and its subsidiaries (the “Company”) was to provide broadband technology for the “last mile” market. The Company’s products were produced by original equipment manufacturers (“OEM”) and sold under the “General Components” and “Reachhome” brands. The Company also developed plastic optical fiber (“POF”) cable technology and related networking equipment. The Company filed patents in the USA and Asia on its proprietary POF technology, related manufacturing process and production machinery. The POF global market did not develop as rapidly as the Company anticipated and the Company deferred the commercialization and launch of POF products and reduced research and development of POF.

Prior to acquiring MIL, while searching for a new business direction, the Company developed a product line of Voice Over Internet Protocol (“VOIP”) to provide the voice communication services within the internet environment. However, since the Company did not have sufficient financial resources to fully develop its new VOIP business, on September 8, 2006, the Company, via its subsidiary, General Components Inc, (“GCI Cayman”), a Cayman Islands corporation, entered into an Asset Purchase Agreement (“APA”) for the sale of its VOIP business. The agreement provided for the sale of the Company’s VOIP business for consideration of $0.The transaction described by the APA closed on November 6, 2006.

On December 22, 2006, the Company entered into an asset purchase agreement with General Components International Limited, a British Virgin Islands company. Pursuant to the agreement the Company agreed to sell all of its interest in the business operations of and its 100% equity interest (including the first installment received, the second and the third installments to be received along with all the other assets and liabilities) in General Components Inc, (“GCI Cayman”), a Cayman Islands corporation, and its subsidiaries, to a third party for $1. GCI Cayman was the 100% ultimate holding company of General Components, Inc., a New Jersey corporation, General Components Limited, a Hong Kong corporation, and General Components, Inc., a China corporation.

Going forward, the Company intends to carry out the business of MIL and its primary operating subsidiary, Beihai Hi-Tech Wealth Technology Development Co., Ltd. (“HTW”). HTW is a provider of electronic and mobile communication products in the People’s Republic of China (the “PRC”).

On October 27, 2006, MIL acquired 100% equity interest of Euro Asia Arbitrage Investment Limited (“Euro Asia”), a Hong Kong corporation, for HK$100,000, equivalent to US$12,838. Euro Asia is investment holding company, which owns 100% of Beijing Hi-Tech Wealth Software Co., Limited. As a result, Euro Asia and its subsidiary were consolidated into the accompanying consolidated financial statements for 2006.

On November 28, 2006, MIL increased its ownership in HTW through an additional investment of $3,600,000. On February 12, 2007 and March 19, 2007, MIL increased its ownership in HTW through an additional investment of $4,500,000 and $320,513, respectively.

On February 13, 2007, the Company completed a 1 for 10 reverse split of its outstanding common stock. As a result, all the amounts in the accompanying consolidated financial statements for the years ended December 31, 2007 have been restated to give effect to the 1 for 10 reverse split.

On March 27, 2007, MIL acquired the remaining interest from the minority interest holders of HTW for 3,000,000 shares of the Company’s common stock. Thereafter, HTW became a 100% owned subsidiary of MIL. Also see Note 19.

On June 13, 2007, HTW entered into an agreement to sell its 90% interest on Beihai Hi-Tech Wealth Electronic Products Co., Ltd (“HEP”), a 90% subsidiary of HTW, to BJ HID for $237,554. The transaction was approved by the PRC Government and consummated on July 3, 2007.

On October 29, 2007, MIL entered into an agreement to sell its 100% interest on Euro Asia Arbitrage Investment Limited (“Euro Asia”) to a third party for $12,838. Subject to the disposal, the subsidiary of Euro Asia, Beijing Hi-Tech Wealth Software Co., Limited, was also disposed. As a result, Euro Asia and its subsidiary are reported as discontinued operations.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2007~~2008 AND 2007 (UNAUDITED)

2. GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has cash and cash equivalents of $327,890 on September 30, 2008, has a net loss of $723,~~959~~151,~~921~~ 095 and $242,~~733~~891,~~048~~743 and a negative cash flow from operations of $63,~~153~~326,~~950~~641and ~~and~~ $138,~~607~~196,~~191~~ 533 for ~~the~~nine ~~period~~months ended ~~March~~September 3130, 2008 and ~~December 31,~~ 2007, respectively, and has a retained deficit of $2844,~~866~~057,~~581~~755 and $20,142,287 at ~~March~~ 31September 30, 2008 and December 31, 2007, respectively.

On February 8, 2007, the Company raised $13,250,000 in a private placement in the form of a sale of shares of Series A, convertible preferred stock ~~(See Note 16)~~. On January 11, 2008, MIL sold in a private placement of $20,661,157 (~~Rmb150~~RMB150,000,000) principal amount of 9.5% per annum global notes due January 10, 2014 (the “Global Notes”), with common stock purchase warrants, granted by the Company, to purchase 12,000,000 shares of the Company’s common stock at an exercise price of $2.00 per share (the “Exercise Price”), exercisable any time after January 1, 2008 through June 30, 2014. See Note 12.

The Company will need to obtain additional financing in addition to the funds already raised through the sale of equity securities to fund our cash needs and continue our operations beyond March 2009. Additional financing, whether through public or private equity or debt financing, arrangements with stockholders or other sources to fund operations, may not be available, or if available, may be on terms unacceptable to us. Our ability to maintain sufficient liquidity is dependent on our ability to raise additional capital. If we issue additional equity securities to raise funds, the ownership percentage of our existing stockholders would be reduced. New investors may demand rights, preferences or privileges senior to those of existing holders of our common stock. Debt incurred by us would be senior to equity in the ability of debt holders to make claims on our assets. The terms of any debt issued could impose restrictions on our operations. If adequate funds are not available to satisfy either medium or long-term capital requirements, our operations and liquidity could be materially adversely affected and we could be forced to cut back our operations.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") and pursuant to the rules and regulations of the securities and exchange commission (SEC) for annual financial statements.

(a) Principles of Consolidation

The consolidated financial statements include the accounts of China Mobile Media Technology Inc. and the following subsidiaries:

(i)

Magical Insight Investments Limited (“MIL”) (100% subsidiary of the Company).

(ii)

Beihai Hi-Tech Wealth Technology Development Co., Ltd (“HTW”) (100% subsidiary of MIL).

(iii)

Beijing Hi-Tech Wealth Communication Technology Co., Limited (“BJ HCT”) (100% subsidiary of MIL).

(iv)

Beijing Hi-Tech Super Net Technology Co., Litmited (“BJ HST”) (100% subsidiary of MIL).

Inter-company accounts and transactions have been eliminated in consolidation.

107

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, 2008 AND 2007 (UNAUDITED)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) ~~Concentrations~~ Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

(c) Accounts receivable are recorded at the invoiced amounts and do not bear interest. The Company ~~had~~extends ~~various~~unsecured credit to its customers ~~for~~in the ~~three~~ordinary ~~months~~course ~~ended~~of ~~March~~business ~~31,~~but ~~2008~~mitigates the associated risks by performing credit checks and ~~2007 who~~ ~~accounted~~actively pursuing past due accounts. An allowance for doubtful accounts is established and determined based on managements’ assessment of known requirements, aging of receivables, payment history, the ~~following~~customer’s ~~percentage~~current credit worthiness and the economic environment. As of ~~total~~September ~~sales~~30, 2008 and ~~total~~December 31, 2007, the Company had accounts receivable: of $ 8,698,765 and $11,413,957 respectively.

	Sales		Accounts Receivable
Major Customers	March 31, 2008	March 31, 2007	March 31, 2008	December, 2007
Company A	74.3%	-	22.5%	-
Company B	15.6%	-	1.4%	-
Company C	3.6%	-	-	-
Company D	3.5%	-	6.9%	-
Company E	3.1%	11.4%	15.2%	3.3%
Company F	-	7.8%	-	-
Company G	-	5.9%	-	4.2%
Company H	-	4.4%	-	-
Company I	-	3.6%	-	-

Accounts receivable are as follows:

The sole market of the Company is the PRC for the periods ended March 31, 2008 and 2007.

	September 30, 2008			December31, 2007
	(Unaudited)			(Audited)
Accounts receivable:	$	17,694,359		$	17,075,513
Less: allowance for doubtful accounts	$	(8,995,594	)	$	(5,661,556	)
Total accounts receivable, net	$	8,698,765		$	11,413,957

~~The Company~~(d) ~~had~~Inventory ~~various~~is ~~suppliers~~valued ~~for~~at the ~~three~~lower ~~months~~of ~~ended~~cost ~~March~~or 31market. Inventory consists of raw material, ~~2008~~packages, ~~and 2007 who~~consigned ~~accounted~~progress ~~for~~material, ~~the~~semi-finished ~~following~~goods ~~percentage~~cost, finished goods and estimated goods returned. Cost of ~~total~~semi-finished ~~purchases~~and finished goods comprises direct material, direct production cost and ~~total~~an ~~accounts payable:~~allocated portion of production overheads. Valuation method of inventory is FIFO. See note 5 for details.

	Purchases		Accounts Payable
Major Suppliers	March 31, 2008	March 31, 2007	March 31, 2008	December 31, 2007
Company A	37.3%	-	62.2%	-
Company B	30.1%	-	8.0%	-
Company C	8.5%	-	1.4%	-
Company D	5.8%	-	-	-
Company E	3.6%	-	-	-
Company F	-	44.2%	-	-
Company H	-	18.9%	-	-
Company I	-	10.9%	-	11%

(e)

Plant and equipment are stated at net. Expenditures for maintenance and repairs are expensed as incurred; additions, renewals and betterments are capitalized. When Plant and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of plant and equipment is provided using the straight-line method over the estimated lives ranging from five to forty years as follows:

Company H (Beijin Hi-Tech Wealth Electronic Products Co., Ltd) is a related party, which is controlled by the director of MIL. Also see Note 4 and 6.

Building	25-40 years
Machinery	5-10 years
Motor vehicle	5 years
Office Equipment	5-25 years

~~(c)~~Also ~~Use~~ see of note ~~Estimates~~7

(f)

Impairment of long-life assets

In accordance with statement of financial accounting standard (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the Company reviews its long-lived assets, including plant and equipment, machinery, motor vehicle, office equipment, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be fully recoverable. If present value of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. Due to accumulated loss of the Company of US$44,057,755 as of September 30, 2008, the delay in the rolling-out of new products with premium features and uncertainty in future operations, the Company has decided, to recognize a loss of US$4,240,842, corresponding to the carrying amount of the goodwill.

(g) Use of Estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America 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 consolidated 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. Actual results could differ materially from those estimates.

118

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, 2008 AND 2007 (UNAUDITED)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(dh) Fair Value of Financial Instruments

The Company’s financial instruments include cash and cash equivalents, accounts receivable, notes receivable, due to/from related parties, other receivables and prepaid expenses, due from/to employees, prepayments for goods, accounts payable, notes payables, short-term bank loans, other payables and accrued liabilities, taxes payable and ~~customer~~unearned ~~deposits~~revenues. Management has estimated that the carrying amount approximates fair value due to their short-term nature.

(ei) Government Grants

Grants received from the PRC Government for assisting the Company’s improvement and development are recognized as other income when the proceeds are earned and received or collectible.

For the three months ended ~~March~~September 3130, 2008 and 2007, $3088,~~691~~619 and $~~115~~95,~~758~~860 were ~~received~~ received as grants from the PRC Government, and were recognized as other income.

~~(f)~~For ~~Foreign~~ the nine ~~Currency~~months ~~Translation~~ended September 30, 2008 and 2007, $455,507 and $323,985 were received as grants from the PRC Government, and were recognized as other income.

(j)

Foreign Currency Translation

The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). The consolidated financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

	March 31, 2008		December 31, 2007	March 31, 2007
		September 30,2008		December 31,2007		September 30,2007
Period end RMB: US$ exchange rate	~~7.0222~~		76.~~3141~~8183	~~7.7410~~	7.3141		7.5108
Period average RMB: US$ exchange rate	~~7.1682~~		76.~~5658~~9832	~~7.7714~~	7.5658		7.5632

12(k) Revenue Recognition

~~CHINA~~Revenue ~~MOBILE~~ related ~~MEDIA~~to ~~TECHNOLOGY~~smart ~~INC~~phone and electronic products represents the invoiced value of goods sold recognized upon the delivery of goods to customers. According to the contracts, goods delivered by the Company can be returned within 7 days, if there is any defect. The Company estimates a reserve for returns based on the amount of goods actually returned after the reporting period.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(g) Revenue Recognition

Revenue related to smart phone and electronic products represents the invoiced value of goods sold recognized upon the delivery of goods to customers. According to the contracts, goods delivered by the Company can be returned within 7 days, if there is any defect. The Company estimates a reserve for returns based on the amount of goods actually returned after the reporting period. No reserve was netted against revenue for the three months ended March 31, 2008 and 2007, respectively.

Revenue is recognized when all of the following criteria are met:

- Persuasive evidence of an arrangement exists,

- Delivery has occurred or services have been rendered, when no subsequent return is noted,

- The seller’s price to the buyer is fixed or determinable, ~~and~~

- Collectibility is reasonably assured.

Revenue related to software products represents the invoiced value of software sold recognized only when the software is installed into the assembled hardware devices. The Company does not have any further obligation to service the software once it is installed into the hardware devices.

~~(h) Earnings (Loss) Per Share~~9

Basic earnings (loss) per share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. No potentially dilutive securities are included in loss per share in the three months ended March 31, 2008, as their effect would be anti-dilutive.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, 2008 AND 2007 (UNAUDITED)

3. (l) ~~SUMMARY OF~~Earnings ~~SIGNIFICANT ACCOUNTING POLICIES~~ (~~CONTINUED~~Loss) Per Share

~~(h)~~Basic ~~Earnings~~earnings (~~Loss~~loss) ~~Per~~per ~~Share~~share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings (~~Continued~~loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. No potentially dilutive securities are included in loss per share in the nine months ended September 30, 2008, as their effect would be anti-dilutive.

Basic and diluted (loss) income per share are calculated as follows:

	Three Months Ended March 31,
	Three Months Ended September 30						Nine Months Ended September 30
	2008			2007			2008			2007
Basic and diluted	(Unaudited)			(Unaudited)
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
(Loss) income applicable to common shareholders	$	(7,959,921	)	$	118,035
Basic and diluted:
Weighted average shares outstanding during the period		59,608,066			37,504,362
Income(loss) applicable to common shareholders	$	(8,487,021	)	$	(2,870,864	)	$	(23,915,468	)	$	(2,891,743	)
Net (loss) income per share	$	(0.13	)	$	0.00
Weighted average shares outstanding during the period		60,271,594			59,113,937			60,494,384			51,956,327
Diluted:
Net income(loss) per share	$	(0.14	)	$	(0.05	)	$	(0.40	)	$	(0.06	)
(Loss) income applicable to common shareholders	$	(7,959,921	)	$	118,035
Diluted (loss) income applicable to common shareholders		(7,959,921	)		118,035
Weighted average shares outstanding during the period		59,608,066			37,504,362
Effect of dilutive securities:
Warrants		-			923,798
Convertible notes		-			1,643,273
Secured notes		-			8,353,222
Weighted average diluted shares outstanding during the period		59,608,066			48,424,655
Diluted net (loss) income per share	$	(0.13	)	$	0.00

1410

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, 2008 AND 2007 (UNAUDITED)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(im) Adoption of New Accounting Policy

In September 2006, the Financial Accounting Standard Board (“FASB”) issued SFAS No. 157, “Fair Value Measurements,” which provides enhanced guidance for using fair value to measure assets and liabilities. SFAS No. 157 provides a common definition of fair value and establishes a framework to make the measurement of fair value in generally accepted accounting principles more consistent and comparable. SFAS No. 157 also requires expanded disclosures to provide information about the extent to which fair value is used to measure assets and liabilities, the methods and assumptions used to measure fair value, and the effect of fair value measures on earnings. SFAS No. 157 is effective for financial statements issued in fiscal years beginning after November 15, 2007 and to interim periods within those fiscal years. The adoption of SFAS No. 157 did not have an impact on the Company’s financial statements.

In February 2007, the FASB issued SFAS No. 159, The Fair Value for Financial Assets and Financial Liabilities. This Statement permits entities to choose to measure financial assets and liabilities, with certain exceptions, at fair value at specified election dates. A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. This Statement is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. The adoption of SFAS No. 159 did not have an impact on the Company’s financial statements. In December 2007, the FASB issued SFAS No. 160, ~~Noncontrolling~~Non controlling Interests in Consolidated Financial Statements. This Statement establishes accounting and reporting standards that require the ownership interests in subsidiaries’ non-parent owners be clearly presented in the equity section of the balance sheet; requires the amount of consolidated net income attributable to the parent and to the ~~noncontrolling~~non controlling interest be clearly identified and presented on the face of the consolidated statement of income; requires that changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently; requires that when a subsidiary is deconsolidated, any retained ~~noncontrolling~~non controlling equity investment in the former subsidiary be initially measured at fair value and the gain or loss on the deconsolidation of the subsidiary be measured using the fair value of any ~~noncontrolling~~non controlling equity; requires that entities provide disclosures that clearly identify the interests of the parent and the interests of the ~~noncontrolling~~non controlling owners. This Statement is effective as of the beginning of an entity’s first fiscal year that begins after December 15, 2008. The ~~Company~~ Company has not determined the impact, if any, SFAS No. 160 will have on its ~~financial~~ financial statements.

In December 2007, the FASB issued SFAS No. 141 (R), Business Combinations, and SFAS No.160, Non-controlling Interests in Consolidated Financial Statements. SFAS No. 141 (R) requires an acquirer to measure the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquire at their fair values on the acquisition date, with goodwill being the excess value over the net identifiable assets acquired. SFAS No.160 clarifies that a non-controlling interest in a subsidiary should be reported as equity in the consolidated financial statement. The calculation of earnings per share will continue to be based on income amounts attributable to the parent. SFAS No.141 (R) and SFAS No.160 are effective for financial statements issued for fiscal years beginning after December 15, 2008. Early adoption is prohibited. We have not yet determined the effect on our consolidated financial statements, if any, upon adoption of SFAS No.141 (R) or SFAS No. 160. We are aware that our accounting for minority interest will change and we are considering those effects now but believe the effects will only be a reclassification of minority interest from mezzanine equity to our stockholder's equity section in the balance sheet, in any case we do not believe the implementation of SFAS 160 will be material to our financial position, SFAS 141(R) will significantly affect the accounting for future business combinations and we will determine the accounting as new combinations are determined.

1511

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, 2008 AND 2007 (UNAUDITED)

4. NOTES RECEIVABLE

Notes receivable ~~consist~~consisted of the following:

	March 31, 2008			December 31, 2007
	September 30, 2008			December 31, 2007
	(Unaudited)			(Audited)
Notes receivable from unrelated companies:
Beihai University Garden Management Co. Ltd., due December 31, 2008	$	~~369~~380,~~572~~624		$	346,454
Jiangxi Jin Sunpower Technology Co. Ltd., settled in 2008		-			13,672
Beijing yaxingshidai Science and Technology Co. Ltd.	$	8,800		$	13,672
Beijing Hengjiweiye Co. Ltd., due December 31, 2008		142,611			-
Total	$	389,424		$	360,126
Yaxin centry Tech development Co Ltd., due December 31, 2008		61,343			-
Beijing quanwangda communication Co Ltd., due December 31, 2008		28,481			-
Beijing Ziguang Lvxin technology Co Ltd., due December 31, 2008		27,322			-
	$	629,329		$	360,126
Notes receivable from related companies:
Union Perfect Limited., due December 31, 2008		2,571,337			2,826,098
Union Perfect Limited.	$	2,834,643		$	2,826,098
Hong Kong Hi-Tech Wealth Electronic Products Co. Ltd. , due June 25, 2008		2,460,210			2,459,648
Hong Kong Hi-Tech Wealth Electronic Products Co. Ltd.	$	2,467,086		$	2,459,648
Profit Power, due December 31, 2008		1,236,620			-
Total	$	5,301,728		$	5,285,746
		6,268,167			5,285,746
Less: Notes receivable discount	$	(56,348	)	$	(237,066	)
Less: Notes receivable discount	$	(218,549	)	$	(237,066	)
Total notes receivable, net	$	5,634,804		$	5,408,806
Total notes receivable, net	$	6,678,947		$	5,408,806

Notes receivable from unrelated companies are interest-free, unsecured and all current.

Interest-free notes were provided to related parties for their assistance in developing distribution channels and new markets for the Company. The Company recorded ~~selling expense and~~ a discount of $8056,~~900~~348 on notes receivable of $15,~~236~~301,~~620~~728 ~~base~~ based on the present value of notes receivable using a 7% rate. In 2008, $~~100~~477,~~300~~696 of interest income was recognized in the accompanying consolidated statements of income from the amortization of the discount.

Also see Note 6 for related parties disclosures.

1612

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, 2008 AND 2007 (UNAUDITED)

5. INVENTORIES

Inventories consist of the following:

	March 31, 2008			December 31, 2007
	September 30, 2008			December 31, 2007
	(Unaudited)			(Audited)
Raw materials	$	53,~~165~~840,~~243~~637		$	3,562,003
Finished goods		78,~~150~~320,~~880~~535			4,907,439
		12,316,123			8,469,442
		12,161,172			8,469,442
Less: Provision for slow moving inventories		(3,718,893	)		(1,084,001	)
Less: Allowance for slow moving inventories		(9,988,425	)		(1,084,001	)
Inventories, net	$	82,~~597~~172,~~230~~748		$	7,385,441

6. DUE TO/FROM RELATED PARTIES

(I) Due From Related Parties		~~March~~September 3130, 2008		December 31, 2007
		(Unaudited)		(Audited)
Beijing Hi-Tech Wealth Electronic Product Co. Ltd.	(a)	$	-7,493,521	$	139,204
Beihai Hi-Tech Wealth Information Industry Co. Ltd.	(b)		51,~~584~~590,068		4,415
Beijing Hi-Tech Wealth Technology Development Co. Ltd.	(c)		~~6,975~~		3,290
Beijing Hi-tech Investment and development Co.Ltd	(d)		5,072		-
Beijing Mobil XP Technology Co. Ltd	(e)		830,812
Beijing Mobil XP Technology Co. Ltd	(e)		85,162		-
HK HEP	(f)		225,262
Total due from related parties		$	102,793	$	146,909
Profit Power Ltd	(g)		885,597
Beijing HTW Investment and Development Ltd	(d)		5224
Others			47,516
Total due from related parties		$	11,077,999	$	146,909

(II) Due To Related Parties		~~March~~September 3130, 2008		December 31, 2007
		(Unaudited)		(Audited)
Beijing Mobil XP Technology Co. Ltd.	(e)	$	-	$	522,086
Beijing Hi-Tech Wealth Electronic Product Co Ltd	(a)	$	1,295,842	$
Beijing Hi-Tech Wealth Investment and Development Co. Ltd.	(d)		-1,486,734		3,333
Beihai Hi-Tech Wealth Electronic Product Selling Co. Ltd.	(f)		37,876		35,856
Beijing Mobil XP Technology Co. Ltd.	(e)		257,516		522,086
Hi-Tech Wealth Holding Co. Ltd	(g)		22,370		-
Union Perfect	(n)		256,120
Beihai Hi-Tech Wealth Electronic Product Co Ltd	(a)		66,767		-
Beihai Hi-Tech Wealth Electronic Product Selling Co. Ltd.	(h)		1,072,666		35,856
Total due to related parties		$	127,013	$	561,275
Hi-Tech Wealth Holding Co. Ltd	(i)		23,039
HTW (Tongxiang) Electronic Tech. Ltd	(j)		1,260,134
Jiangsu HTW Tech. Dev. Ltd	(k)		4,400
HT Intellectual Property Rights Management Consulting Co. Ltd	(l)		11,733
Beihai Hi-Tech Wealth Electronic Product Co Ltd	(m)		38,555
Beijing HTW Tech and Dev.Ltd	(c)		1,189,513
Beijing HTW Communication and Tech Ltd	(o)		46,931
Total due to related parties		$	6,943,185	$	561,275

(III) Due From Employees			March 31, 2008		December 31, 2007
(a)	Beijing Hi-Tech Wealth Electronic Product Co. Ltd (“BJ HEP”) is controlled by a director of the Company. During nine months ended September 30.2008, HTW purchased raw materials and goods from BJ HEP. The remaining balance of $6,197,679 is interest free, unsecured and has no fixed repayment term. BJ HEP will supply imported raw materials to HTW.
Current			$	175,768	$	105,936
(b)	Beihai Hi-Tech Wealth Information Industry Co. Ltd. (“BH HII”) has a common director with MIL. The amount represents the expenses paid on behalf of BH HII during During nine months ended September 30.2008. The remaining balance of $1,590,068 is interest free, unsecured and has no fixed repayment term.
Total due from employees		(h)	$	175,768	$	105,936

(IV) Due To Employees		March 31, 2008		December 31, 2007
Current		$	118,870	$	115,719
Total due to employees	(h)	$	118,870	$	115,719

17(c) Beijing Hi-Tech Wealth Technology Development Co., Ltd. has a common director with MIL. The remaining balance of $1,189,513 as of September 30, 2007 represents expenses paid on behalf of the company during the period, which are interest free, unsecured and have no fixed repayment term.

(d)

Beijing Hi-Tech Wealth Investment and Development Co. Ltd. (“BJ HID”) was a minority shareholder of HTW, now controlled by the director of MIL. The amount of $1,481,510 represents expenses paid on behalf of the company during the period. The remaining balance is interest free, unsecured and has no fixed repayment term.

(e)

Beijing Mobil XP Technology Co., Ltd (“BMT”) is a company controlled by the director of MIL. The remaining balance of $573,296 at September 30, 2008 and December 31, 2007 represent advance paid to and payable to BMT, respectively. The remaining balance is interest free, unsecured and has no fixed repayment term.

(f)	HK Hi-Tech Wealth Electronic Products Co., Ltd is a company controlled by the director of MIL. The amount of $225,262 represents an advance on behalf of the Company during the period. The remaining balance is interest free, unsecured and has no fixed repayment term.

(g)	Profit Power Ltd is a company controlled by a director of MIL. The amount of $885,597 represents an advance for purchasing in overseas during the period. The remaining balance is interest free, unsecured and has no fixed repayment term.

(h)	Beihai Hi-Tech Wealth Electronic Product Selling Co. Ltd. (“BH HPS”) is a company controlled by a director of MIL. The amount of $1,072,666 represents expenses paid on behalf of the Company during the period. The remaining balance is interest free, unsecured and has no fixed repayment term.

(i)	Hi-Tech Wealth Holding Co. Ltd. is a company controlled by a director of MIL. The remaining balance of $23,039 at September 30, 2008 represents an advance and expenses paid on behalf of the Company. The remaining balance is interest free, unsecured and has no fixed repayment term

(j)	HTW (Tongxiang) Electronic Tech. Ltd is a company controlled by a director of MIL. The remaining balance of $1,260,134 at September 30, 2008 represents an advance and expenses paid on behalf of the Company. The remaining balance is interest free, unsecured and has no fixed repayment term

(k)	Jiangsu HTW Tech. Dev. Ltd is a company controlled by a director of MIL. The remaining balance of $4,400 at September 30, 2008 represents an advance and expenses paid on behalf of the Company. The remaining balance is interest free, unsecured and has no fixed repayment term

(l)	HT Intellectual Property Rights Management Consulting Co. Ltd is a company controlled by a director of MIL. The remaining balance of $11,733 at September 30, 2008 represents an advance and expenses paid on behalf of the Company. The remaining balance is interest free, unsecured and has no fixed repayment term

(m)	Beihai Hi-Tech Wealth Electronic Product Co Ltd is a company controlled by a director of MIL. The remaining balance of $38,555 at September 30, 2008 represents an advance and expenses paid on behalf of the Company. The remaining balance is interest free, unsecured and has no fixed repayment term

(n)	Union Perfect Limited is a company controlled by a director of MIL. The remaining balance of $256,120 at September 30, 2008 represents an expenses paid on behalf of the Company. The remaining balance is interest free, unsecured and has no fixed repayment term.

(o)	Beijing HTW Communication and Tech Ltd is a company controlled by a director of MIL. The balance at September 30, 2008 represents an expenses paid on behalf of the Company. The remaining balance of $46,931 is interest free, unsecured and has no fixed repayment term.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2008~~2007 AND 2007 (UNAUDITED)

6. DUE TO/FROM RELATED PARTIES (CONTINUED)

(a) Beijing Hi-Tech Wealth Electronic Product Co. Ltd (“BJ HEP”) is controlled by a director of the Company. During the three months ended March 31, 2008 and 2007, HTW purchased raw materials and goods from BJ HEP in the amount of $60,822 and $3,102,019, respectively. The remaining balance is interest free, unsecured and has no fixed repayment term. Also see Note 3(b).

(b) Beihai Hi-Tech Wealth Information Industry Co. Ltd. (“BH HII”) has a common director with MIL. The amount represents the expenses paid on behalf of BH HII during the period. The remaining balance is interest free, unsecured and has no fixed repayment term.

(c) Beijing Hi-Tech Wealth Technology Development Co., Ltd. has a common director with MIL. The balance as of March 31, 2008 and December 31, 2007 represents advances, which are interest free, unsecured and have no fixed repayment term.

(d) Beijing Hi-Tech Wealth Investment and Development Co. Ltd. (“BJ HID”) was a minority shareholder of HTW. The amount represents the expenses paid on behalf of BJ HID during the period. The remaining balance is interest free, unsecured and has no fixed repayment term.

(e) Beijing Mobil XP Technology Co., Ltd (“BMT”) is a company controlled by the director of MIL. During the three months ended March 31, 2008, HTW purchased raw materials from BMT in the amount of $62,730. The balances at March 31, 2008 and December 31, 2007 represent advance paid to and payable to BMT, respectively. The remaining balance is interest free, unsecured and has no fixed repayment term.

(f) Beihai Hi-Tech Wealth Electronic Product Selling Co. Ltd. (“BH HPS”) is a company controlled by a director of MIL. The amount represents the balance of sales proceeds collected by BH HPS and not yet transfer to BH HTW at the period end March 31, 2008 and December 31, 2007. The remaining balance is interest free, unsecured and has no fixed repayment term.

(g) Hi-Tech Wealth Holding Co. Ltd. is a company controlled by a director of MIL. The balance at March 31, 2008 represents an advance and expenses paid on behalf of the Company. The remaining balance is interest free, unsecured and has no fixed repayment term.

(h) Due from/to employees are interest-free, unsecured and have no fixed repayment terms. The amounts due from/to employees primarily represent advances to/amount due to sales personnel for business related expenses.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

7. PLANT AND EQUIPMENT

Plant and equipment ~~consist~~consisted of the following:

	March 31, 2008		December 31, 2007
	September 30, 2008		December 31, 2007
At cost:	(Unaudited)
		(Unaudited)		(Audited)
Buildings	$	14,896,666	$	14,302,151
At cost:
Machinery		3,411,758		3,331,587
Buildings	$	15,342,148	$	14,302,151
Motor vehicles		192,512		184,829
Machinery		3,738,770		3,331,587
Office equipment		383,567		367,941
Motor vehicles		198,269		184,829
Other equipment		684,436		651,415
Office equipment		473,879		367,941
		19,568,939		18,837,923
Other equipment		-		651,415
		19,753,066		18,837,923
Less: Accumulated depreciation
Buildings		1,~~333~~492,~~380~~624		1,182,825
Machinery		1,~~265~~554,~~944~~328		1,181,670
Motor vehicles		~~109~~128,~~631~~960		96,121
Office equipment		~~166~~248,~~896~~553		142,139
Other equipment		~~190,406~~-		149,951
		3,066,257		2,752,706
		3,424,465		2,752,706
Plant and equipment, net	$	16,~~502~~328,~~682~~600	$	16,085,217

The net book value of buildings pledged for certain bank loans at ~~March~~September 3130, 2008 and December 31, 2007 is $1413,~~288~~849,~~191~~524 and $10,~~790~~985,~~659~~374, respectively. Also see Note 10 and 11.

Depreciation expense for the three months ended March 31, 2008 and 2007 was $370,325 and $216,442, respectively.

8. LAND USE RIGHT

	March 31, 2008		December 31, 2007
	September 30, 2008		December 31, 2007
	(Unaudited)		(Audited)
Cost	$	2,~~521~~984,~~217~~135	$	2,521,217
Less: Accumulated amortization		~~247~~323,~~920~~281		235,313
Land use right, net	$	2,~~273~~660,~~297~~854	$	2,285,904

Amortization expense for the three months ended March 31, 2008 and 2007 is $12,606 and $13,142, respectively.

Amortization expense for the next five years and thereafter is as follows:

2008	$	3714,~~819~~921
2009		5059,~~425~~683
2010		5059,~~425~~683
2011		5059,~~425~~683
2012		5059,~~425~~683
Thereafter		2,~~033~~407,~~778~~202
Total	$	2,~~273~~660,~~297~~835

The net book value of the land use right pledged for certain bank loans at ~~March 31~~September 30, 2008 and December 31, 2007 is $2,~~273~~660,~~297~~835 and $2,285,904, respectively. Also see Notes 10 and 11.

1915

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2008~~2007 AND 2007 (UNAUDITED)

9. GOODWILL

On March 27, 2007, MIL acquired from Beijing Hi-Tech Wealth Investment and Development Company Limited (“BJ HID”), the minority owners of HTW, their remaining interest in HTW. The acquisition cost was 3,000,000 shares of the Company’s common stock valued at the closing share price of $2.01 on March 27, 2007, when the transaction was approved by the PRC Government and consummated. The total stock value was $6,030,000.

The accompanying consolidated financial statements include the allocation of the acquisition cost to the net assets acquired based on their respective fair values. The fair value of net assets acquired was $1,789,158, and total consideration paid was $6,030,000. The excess of acquisition cost over the consideration paid was recognized as goodwill of $4,240,842.

Due to accumulated loss of the Company of US$44,057,755 as of September 30, 2008, the delay in the rolling-out of new products with premium features and uncertainty in future operations, the Company has decided, to recognize a loss of US$4,240,842, corresponding to the carrying amount of the goodwill.

10. SHORT-TERM DEBT

~~Short-term~~At September 30, 2008 and December 31, 2007, short-term debt ~~consist~~consisted of the following:

	March 31, 2008		December 31, 2007
	September 30, 2008		December 31, 2007
	(Unaudited)		(Audited)
Industrial and Commercial Bank of China, Nanzhu Branch, outstanding principal of Rmb7,000,000, due December 26, 2008, monthly interest only payments at 9.712% per annum, secured by the building and land use right of the Company. Also see Notes 7 and 8.	$	996,838	$	1,093,778
Industrial and Commercial Bank of China, Nanzhu Branch, outstanding principal of RMB7,000,000, due December 26, 2008, monthly interest only payments at 9.712% per annum, secured by the building and land use right of the Company. Also see Notes 7 and 8.	$	879,985	$	1,093,778
Agricultural Bank of China, Beihai Branch, outstanding principal of Rmb15,000,000, due September 11, 2008, monthly interest only payments at 8.424% per annum, secured by a land use right of the Company. Also see Note 7.		2,136,083		2,050,833
Unpaid portion of long term bank loans reclassified as current liabilities.		513,324
Total short-term bank loans	$	3,132,921	$	3,144,611
Agricultural Bank of China, Beihai Branch, outstanding principal of Rmb15,000,000, due September 11, 2008, monthly interest only payments at 8.424% per annum, secured by a land use right of the Company. Also see Note 7.		2,199,861		2,050,833
Notes payable to unrelated companies:
Total short-term bank loans	$	3,593,170	$	3,144,611
Beijing HuayuJicheng Trading Co., Ltd. , due November 30, 2008	$	2,037,838	$	2,011,814
Beijing Bowei Technology Co., Ltd. , due December 31, 2008		-		68,361
Beijing Yuanmingyitong Technology Co., Ltd. , due November 30, 2008		166,034		77,375
Beijing Hengjiweiye Information Technology Co. Ltd., due December 30, 2008		11,392		-
Beijing Quanwangda Communication Co. Ltd., due December 30, 2008		207,948		-
Subtotal		2,423,212		2,157,550
Notes Payable to Related Companies:
Hi-Tech Wealth Holding Co. Ltd., due October 1, 2008		-		21,478
Beijing Hi-Tech Wealth Mobile Communication Technology Co., Ltd., due November 4, 2008		-		12,305
Subtotal		-		33,783
Total notes payable		2,423,212		2,191,333
Total short-term debt	$	5,556,133	$	5,335,944

~~Interest~~ At ~~expense~~the ~~for~~end ~~the~~of ~~three~~September ~~months~~30 ~~ended~~2008, ~~March~~maturity 31principal of US$439,992 ~~2008~~and US$2,199,861 of ICBC and ~~2007~~ABC was ~~$12,440~~not repaid due to lack of working capital. The two banks and ~~$23,152,~~the ~~respectively~~Company are negotiating an agreement to postpone the due date for repayment.

~~Notes payable to related companies were settled in 2008.~~16

Notes payable to unrelated companies are interest-free, unsecured and current.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2008~~2007 AND 2007 (UNAUDITED)

11. LONG-TERM BANK LOANS

At ~~March 31~~ September 30, 2008 and December 31, 2007, the long-term bank loans ~~consist~~ consisted of ~~the~~ the following:

	March 31, 2008			December 31, 2007
	September 30, 2008			December 31, 2007
	(Unaudited)			(Audited)
Industrial and Commercial Bank of China, Nanzhu Branch, outstanding principal of Rmb42,700,000, at an interest rate of 8.093% per annum, secured by the building and a land use right of HTW. The loan is due on December 31, 2010. Also see Notes 7 and 8.	$	6,~~009~~189,~~513~~226		$	5,838,039
Total long-term bank loans	$	6,009,513		$	5,838,039
Less: Current portion		(513,324	)		(1,093,778	)
Less: Current portion		(1,210,447	)		(1,093,778	)
Long-term portion	$	,5,675,902		$	4,744,261
Long-term portion	$	4,799,066		$	4,744,261

~~Interest~~At ~~expense~~ the end ~~for~~of ~~the~~September ~~three~~30 ~~months~~2008, ~~ended~~maturity ~~March~~principal 31of US$513,324 ~~2008~~was not repaid due to lack of working capital . Industrial and ~~2007~~Commercial ~~was~~Bank ~~$23,862~~of China and the ~~$173,170,~~ Company ~~respectively~~are negotiating an agreement to postpone the due date for repayment.

The long-term bank loan is due as follows:

Year Ending December 31,	Amount
2008	$	1,~~210~~173,~~447~~313
2009		1,~~281~~466,~~650~~641
2010		3,~~517~~622,~~416~~604
	$	6,~~009~~262,~~513~~558

2117

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2008~~2007 AND 2007 (UNAUDITED)

12.

GLOBAL NOTES

Global notes outstanding are as follows:

	March 31, 2008
	September 30, 2008
	(Unaudited)
Origination on January 11, 2008, outstanding principal of RMB150,000,000 (US$20,661,157), net discount of $387,066, due on January 10, 2014 at an interest rate of 9.5% per annum.	$	20,973,761
Issued on January 11, 2008, outstanding principal of RMB150,000,000 (US$20,661,157), net of discount of $1,558,506	$	19,102,651
Total Global Notes	$	20,973,761

On January 11, 2008, the Company sold in a private placement of $20,661,157 (Rmb150,000,000) principal amount of 9.5% per annum global notes ~~due January 10, 2014~~ (the “Global Notes”) subject to increase by an additional 5% per annum in the event that the Company’s common stock is not listed on a recognized stock exchange by January 12, 2009, with common stock purchase warrants to purchase 12,000,000 shares of the Company’s common stock at an exercise price of $2.00 per share (the “Exercise Price”), exercisable any time after January 11, 2008 through June 30, 2014.

The ~~Exercise~~arrangement ~~Price~~fee, ~~shall~~issuing becost ~~subject~~and tovalue aof ~~contingent~~warrants ~~downward~~of ~~price~~$3,010,841 ~~adjustment~~was onrecognized ~~the six~~as ~~month~~discount ~~anniversary~~on of the ~~date~~notes ~~hereof~~ and ~~upon~~are ~~the~~amortized ~~expiration~~over ~~of each subsequent six month period (each, a “Reset Date”), such that if~~ the ~~volume weighted~~life ~~average closing price per share~~ of ~~common~~notes ~~stock~~using ~~for~~ the ~~20-trading~~ ~~day period~~effective ~~immediately~~interest ~~prior~~rate tomethod ~~the~~which ~~applicable Reset Date~~ is ~~less~~10.997%. ~~than~~For the ~~then applicable~~three ~~Exercise~~months ~~Price~~and ~~(such lower volume weighted average closing price,~~nine ~~the “Reset~~months ~~Exercise~~ended ~~Price”),~~September ~~the Exercise Price shall automatically be changed to the Reset Exercise Price; provided~~30, ~~however~~2008, ~~that notwithstanding the foregoing~~$515, in719 noand ~~event shall the Reset Exercise Price be less than~~ $~~.80~~1,452,335 ~~per~~of ~~share~~amortization ~~(as~~of ~~adjusted~~discount ~~proportionally~~on ~~for~~notes ~~stock~~was ~~dividends,~~recorded ~~stock~~as ~~splits,~~interest ~~combinations~~expense, ~~recapitalizations~~ ~~and the like)~~respectively.

The Exercise Price of the Company’s common stock warrants shall be subject to a contingent downward price adjustment on the six month anniversary of the issuance date and upon the expiration of each subsequent six month period (each, a “Reset Date”), such that if the volume weighted average closing price per share of common stock for the 20-trading day period immediately prior to the applicable Reset Date is less than the then applicable Exercise Price (such lower volume weighted average closing price, the “Reset Exercise Price”), the Exercise Price shall automatically be changed to the Reset Exercise Price; provided, however, that notwithstanding the foregoing, in no event shall the Reset Exercise Price be less than $0.80 per share (as adjusted proportionally for stock dividends, stock splits, combinations, recapitalizations and the like).

On the first Reset Date, July 11, 2008, the closing price per share of our common stock was$0.10. The volume weighted average for the 20 trading days immediately prior to the Reset Date is $0.076. So the warrant is evaluated with exercise price set at the floor value of $0.80.

The fair value of the Warrants of $401,741 at the issuance date was determined using the Black-Scholes option-pricing model with the following assumptions:

Risk free interest rate	~~3.375%~~	3.375	%
Expected life	~~6.5 years~~	6.5 years
Expected volatility	~~35.57%~~	35.57	%
Expected dividend yield	0%	0	%

~~This~~However, ~~fair value~~the ofstock ~~the~~price ~~warrants~~on ~~was~~September ~~recorded~~30, as2008 awas ~~additional~~significantly ~~paid-in~~lower ~~capital~~than ~~and~~that ~~discount~~on toJanuary ~~the~~11, ~~global~~2008. ~~notes~~The ~~and~~new ~~was~~fair ~~being~~value ~~amortized~~of ~~over~~ the ~~life~~Warrants of ~~the~~$90,000 ~~notes.~~was Atdetermined ~~March 31,~~with ~~2008,~~new ~~the~~volatility ~~unamortized~~at ~~discount~~121% onand ~~the~~expected ~~notes~~life ~~was~~of ~~$387,066~~6. 0 years.

This fair value of the warrants is classified as a liability and the change in values are recorded as charge or credit to interest expense. The reset feature will be capped at $0.80 per share on July 11, 2008.

Holders of the notes are entitled to the protection of certain customary covenants, including limitations on the Company’s ability to incur additional debt or liens on any Company property, limitations on asset sales, payments of dividends, and certain types of restricted payments, a limitation on the Company’s ability to pledge capital stock of any subsidiaries and a limitation on senior management’s ability to transfer shares. The Company must, from the first anniversary of issuance of the Notes, maintain a fixed charge coverage ratio, for the four fiscal quarters, of at least 3.5 to 1.00, a leverage ratio for the four fiscal quarters, not exceeding 4.0 to 1.00. The Notes are mandatorily redeemable in tranches beginning on the third anniversary of the issuance. In addition, the Company is obligated to repurchase the securities in the event of a change of control, sales of significant assets or a delisting of the Company’s common stock at purchase prices of 105%, 100% and 105%, respectively, of the principal amount. Additionally, the Company has agreed to file a resale registration statement for the shares of common stock issuable upon exercise of the Warrants. The principal shareholders of the Company have also entered into arrangements with Abax Lotus Ltd. that grant broad management veto rights in favor of Abax Lotus Ltd. Abax Lotus Ltd. received an arrangement fee of $2,000,000 and a service fee of $150,000 in connection with the financing.

22The principal has a series of partial mandatory redemptions as followings:

Date Amount	Percentage of Principal
January 11, 2011		10	%
July 11, 2011		10	%
January 11, 2012		20	%
July 11, 2012		20	%
January 11, 2013		20	%
July 11, 2013		10	%
January 10, 2014		10	%

The interest will be paid on semi-annual basis from July 11, 2009 based on the principal outstanding.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2008~~2007 AND 2007 (UNAUDITED)

1213. ~~GLOBAL NOTES (CONTINUED)~~ INCOME TAXES

The arrangement fee $2,000,000 paid to Abax Lotus Ltd. was recognized as a prepaid expense and is being amortized over the period from January 11 to December 31, 2008, because the Company was free from interest expense for the first year of issuance of the Global Notes. For the three months ended March 31, 2008 $450,951 of amortization of prepaid expense was recorded as interest expense.

The placement costs of $609,100 relating to the issuance of Global Notes were recorded as debt issue costs and are being amortized over the term of the notes.

For the three months ended March 31, 2008, $14,676 and $22,250 of amortization of discount and debt issue costs, respectively, were recognized as other expense.

At March 31, 2008, the principal of RMB150,000,000 was equal to USD21,360,827, by using exchange rate at March 31, 2008. Exchange loss of $699,670 was recognized as other expense for the three months ended March 31, 2008.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

13. SECURED NOTES

Secured notes outstanding are as follows:

	March 31, 2008		December 31, 2007
	(Unaudited)
Origination on June 15, 2007, outstanding principal of $5,000,000, net of discount of $1,093,454, due on June 14, 2008 at an interest rate of 10% per annum. Both principal and interest have been secured by four patents of intellectual properties.	$	-	$	4,505,699
Origination on August 2, 2007, outstanding principal of $5,000,000, net of discount of $1,093,454 due on June 14, 2008 at an interest rate of 10% per annum. Both principal and interest have been secured by four patents of intellectual properties.		-		4,361,902
Total secured notes	$	-	$	8,867,601

On June 15, 2007 and August 2, 2007, the Company sold in a private placement an aggregate $10,000,000 principal amount of 10% per annum secured notes due June 14, 2008 (the “Secured Notes), with common stock purchase warrants to purchase 1,500,000 shares of the Company’s common stock at an exercise price of $2.50 per share (the “Warrants”), exercisable any time after June 15, 2007 through June 14, 2012.

The Secured Notes were secured by intellectual properties of solar powered mobile (the “Secured Properties”), which are the patents for solar powered mobile. The Secured Properties were owned by BJ HID and they agreed to sell the patents to MIL under the binding term sheet entered on February 8, 2007. A formal agreement is expected to be finalized before June 30, 2008. Also see Note 15.

The fair value of the Warrants of $2,186,908 at the issuance date was determined using the Black-Scholes option-pricing model with the following assumptions:

Risk free interest rate	4.88%
Expected life of options	5 years
Expected volatility	37.28%
Expected dividend yield	0%

The fair value of the Warrants was recorded as a discount to the secured notes and is being amortized over the term of the notes.

The placement cost of $983,676 on issuance of secured notes was recorded as debt issue costs to the notes and is being amortized over the term of the notes.

For the three months ended March 31, 2008, $1,132,399 and $468,208 of amortization of discount to the notes and debt issue cost was recognized as other expense.

Interest expense for the three months ended March 31, 2008 was $27,398.

On January 11, 2008, the principal of $10,000,000 of secured notes and all accrued interests $279,452 were fully repaid and settled. At that same time, all pledged properties have been released accordingly.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

14. INCOME TAXES

(a) Corporation Income Tax (“CIT”)

In 2006, HTW applied to the local tax authority for a favorable corporate income tax rate of 15% for companies registered in the coastal economic zone of PRC, which was approved in December 2006. As a result, the corporate income tax rate applicable to HTW was changed from 24% to 15%.

According to the relevant taxation laws in the PRC, HTW is entitled to a 50% tax reduction from 2005 to 2007 with 7.5%. BJ HCT and BJ HST are subsidiaries of MIL, and their applicable CIT rate is 25% in 2008.

Effective January 1, 2007, the Company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes ("FIN 48"). -- — AN INTERPRETATION OF ~~FASB STATEMENT~~SFAB NO. 109, ACCOUNTING FOR INCOME TAXES. The Interpretation addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under FIN 48, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. FIN 48 also provides guidance on derecognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of ~~March~~September 3130, 2008 and December 31, 2007, the Company does not have a liability for unrecognized tax benefits.

The Company filed certain tax returns in China. As of ~~March~~September 3130, 2008 and ~~December~~ December 31, 2007 the Company was not aware of any pending income tax examinations by China tax authorities. The Company's policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of September ~~March 31~~30, 2008 and December 31, 2007, the Company has no accrued interest or penalty related to uncertain tax positions.

Under the new CIT law, the corporate income tax rate applicable to the Company starting from January 1, 2008 is 25%, replacing the current applicable tax rate of 33%. The ~~company~~Company believes some of the tax concession granted to eligible companies prior to the new CIT law will be grandfathered. The new CIT Law has an impact on the deferred tax assets and liabilities of the Company. The Company expects they will get the approval of 15% favorable rate from 2008 to 2010, because HTW is located in western zero. Effects arising from the enforcement of the new CIT Law are reflected into the accounts by best estimation method.

~~Income~~In ~~tax~~April 2008, ~~expense~~one ~~for~~of the ~~three~~Company’s ~~months~~subsidiaries, ~~ended~~Beijing ~~March~~HCT, 31was verified by the government as a Sino-Foreign Joint Venture. Pursuant to the Chinese income tax law, ~~2008~~Beijing ~~and~~HCT, became fully exempt from income tax for two years from its inception January 2007 ~~are~~to ~~summarized~~December 2008, followed by a reduced tax rate for asthe ~~follows:~~next three years. Concurrent with the exemption, the tax authorities waived approximately $295,231 in taxes due.

	Three months ended March, 31
	2008		2007
Current:	(Unaudited)		(Unaudited)
CIT	$	-	$	33,761
Deferred:
CIT	$	119,631	$	(451,762	)
Income tax benefit (expense)	$	119,631	$	(418,001	)

The effect of the change of tax status has been accounted for in accordance with SFAS No. 109, par. 28, which states that the effect of a change in tax status is computed as of the date of change and is included in the tax provision for continuing operations. Management believes that the local tax authorities would not have waived past taxes had it not been for the change in the Company’s subsidiary’s tax status.

25If Beijing HCT had not been exempt from paying income taxes as described above, income tax expense for the nine months ended September 30, 2008 would have been approximately $295,231 and loss per share would have been instead to ($0.34).

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2008~~2007 AND 2007 (UNAUDITED)

1413. INCOME TAXES (CONTINUED)

~~(a)~~Income ~~Corporation~~tax ~~Income~~expense ~~Tax~~for ~~(Continued)~~the three months ended September 30, 2008 and 2007 is summarized as follows:

The Company’s income tax expense differs from the “expected” tax (expense) benefit for the periods ended March 31, 2008 and 2007 (computed by applying the CIT rates of 15 percent and 24 percent to income before income taxes, respectively) as follows:

	Three months ended September 30
	2008			2007
	(Unaudited)			(Unaudited)
Current:
CIT	$	(3,162	)	$	(234,452	)

Deferred:
CIT	$			$	1,352,395

Income tax benefit (expense)	$	(3,162	)	$	1,117,943

	March 31, 2008			March 31, 2007
	(Unaudited)			(Unaudited)
Computed “expected” benefit (expense)	$	539,329		$	(309,614	)
Permanent differences		-			(108,663	)
Tax rate adjustments		-			(96,188	)
Effect of favorable tax rates		-			96,464
Valuation allowance		(419,698	)		-
Income tax benefit (expense)	$	119,631		$	(418,001	)

Income tax expense for the nine months ended September 30, 2008 and 2007 is summarized as follows:

The tax effects of temporary differences that give rise to the Company’s net deferred tax assets and liabilities at March 31, 2008 and December 31, 2007:

	Nine months ended September 30
	2008			2007
	(Unaudited)			(Unaudited)
Current:
CIT	$	(298,393	)	$	(286,841	)

Deferred:
CIT	$			$	40,396

Income tax benefit (expense)	$	(298,393	)	$	(246,445	)

	March 31, 2008			December 31, 2007
	(Unaudited)
Deferred tax assets:
Current portion:
Sales and returns	$	12,178		$	6,267
Bad debt provision		884,527			849,226
Selling expenses		51,837			51,841
Financial expenses		8,998			9,489
Stock provision		557,834			162,600
Processing expenses		23,122			24,722
Administrative expenses		82,904			102,432
Research and development costs		76,488			13,413
Loss carry forward		82,647			79,348
Loss from disposition of discontinued operations		123,801			10,254
Less: Valuation allowance		(1,322,616	)		(872,076	)
Subtotal		581,720			437,516
Non-current portion:
Depreciation		84,878			76,298
Loss carry forward		2,235,439			2,146,224
Less: Valuation allowance		(2,320,317	)		(2,222,522	)
Subtotal		0			0
Total deferred tax assets	$	581,720		$	437,516

(b) Value Added Tax

26Enterprises or individuals who sell commodities, engage in repair and maintenance or import or export goods in the PRC are subject to a value added tax in accordance with Chinese Laws. The value added tax standard rate is 17% of the gross sales price. A credit is available whereby VAT paid on the purchases of semi-finished products or raw materials used in the production of the Company’s finished products can be used to offset the VAT due on the sales of the finished products.

The VAT payable of ($477,219) and $113,794 at September 30, 2008 and December 31, 2007, respectively, is included in taxes payable in the accompanying condensed consolidated balance sheets.

For the nine months ended September 30, 2008 and 2007, $70,096 and $1,107,211 were received as VAT refund from the PRC Government, which was recognized as subsidy income.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2008~~2007 AND 2007 (UNAUDITED)

14. ~~INCOME~~SHAREHOLDERS’ ~~TAXES (CONTINUED)~~EQUITY

~~(a)~~Conversion ~~Corporation~~of ~~Income~~Series ~~Tax~~B ~~(Continued)~~Preferred Stock into Common Stock

	March 31, 2008			December 31, 2007
	(Unaudited)
Deferred tax liabilities:
Current portion:
Sales	$	(572,339	)	$	(543,230	)
Accrued expenses		(9,381	)		(11,531	)
Subtotal		(581,720	)		(554,761	)
Non-current portion:
Translation reserves		(136,149	)		(136,149	)
Total deferred tax liabilities		(717,869	)		(690,910	)
Net deferred tax assets (liabilities)	$	(136,149	)	$	(253,394	)

During the nine months ended of September 30, 2008, 2.5 shares of Preferred Stock were converted into 125,000 shares of Common Stock of the Company.

~~(b)~~15. ~~Tax Holiday Effect~~WARRANTS

For 2008 the PRC corporate income tax was 25%. Certain subsidiaries of the Company were entitled to tax exemptions or lower tax rates (tax holiday) for 2008.

	Warrants Granted		Weighted Average Exercise Price
Outstanding as of December 31, 2007		5,106,250		1.613
Granted		12,000,000		0.8
Exercised
Cancelled
Outstanding as of September 30, 2008		17,106,250	$	1.043

(Loss) income before income tax expense of $(8,079,552) and $921,460 for the three months ended March 31, 2008 and 2007, January to March respectively, was attributed to subsidiaries with operations in China. Income tax benefit (expense) related to China income for the three months ended of March 31, 2008 and 2007 is $119,631 and $(418,001), respectively.

The combined effects of the income tax expense exemptions available to the Company for the three months ended March 31, 2008 and 2007 are as follows:

	2008		2007
Tax holiday effect	$	0	$	96,464
Basic net income (loss) per share effect		0.00		0.00

Enterprises or individuals who sell commodities, engage in repair and maintenance or import or export goods in the

PRC are subject to a value added tax in accordance with Chinese Laws. The value added tax standard rate is 17% of

the gross sales price. A credit is available whereby VAT paid on the purchases of semi-finished products or raw

materials used in the production of the Company’s finished products can be used to offset the VAT due on the sales of

the finished products.

The VAT payable of $2,005 and $113,794 at March 31, 2008 and December 31, 2007, respectively, is included in

other payables in the accompanying condensed consolidated balance sheets.

For the three months ended March 31, 2008 and 2007, $33,994 and $0 were received as VAT refund from the PRC

Government, which was recognized as other income.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

15. COMMITMENTS

The Company occupies plant and office space leased from third parties. Accordingly, for the three months ended March 31, 2008 and 2007 the Company recognized rental expense for these spaces of $101,812 and $0, respectively.

As of March 31, 2008, the Company has outstanding commitments with respect to non-cancelable operating leases for real estate, which fall due as follows:

Year ending December 31,	Amount
2008	$	244,938
2009		179,077
	$	424,015

On February 8, 2007, MIL and BJ HID entered into a binding term sheet (the “Binding Term Sheet”) whereby BJ HID agreed to sell, and MIL agreed to purchase, the technology, patents and all intellectual property rights related to solar powered mobile phones owned by BJ HID for $10,000,000, which shall be payable in 10 equal installments of $1,000,000. Each such installment shall be due and payable following the sale by the Company of 100,000 solar power phones. The agreement is expected to be finalized before June 30, 2008. Also see Note 13.

16. SHAREHOLDERS’ EQUITY

(a) Conversion of Series B Preferred Stock into Common Stock

During the three months ended of March 31, 2008, 2.5 shares of Preferred Stock were converted into 125,000 shares of Common Stock of the Company.

(b) Liquidated damages to Series B preferred stockholders

In April 2008, the Company is negotiating liquidated damages to the Series B preferred stockholders of $1,445,750 in the form of common stock for the default for not registering the Series B preferred on or before July 2, 2007. The exact number of shares is still under discussion and negotiation with the Series B preferred stockholders.

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

17. WARRANTS

	Warrants Granted		Weighted Average Exercise Price
Outstanding as of December 31, 2007		5,106,250		1.613
Granted		12,000,000		2.000
Exercised		-
Cancelled		-		-
Outstanding as of March 31, 2008		17,106,250	$	1.885

(a) Warrants Granted to Financial Advisors

According to the executed financial advisory agreements signed February 5, 2007, the Company issued 1,250,000 warrants to purchase common stock within 3 years from the date of issuance to financial advisors as compensation for their financial advisory services from February 8, 2007 to February 7, 2010. The warrants are forfeitable and were valued at $1,597,164 using the Black-Scholes option-pricing model with the following assumptions:

Risk free interest rate	~~4.70%~~	4.70	%
Expected life	~~3 years~~	3 years
Expected volatility	~~35.59%~~	35.59	%
Expected dividend yield	0%	0	%

$133,097 and $88221,~~731~~828 of financial advisory fees was recognized as general and administrative expenses and additional paid-in capital in the ~~three~~nine months ended ~~March~~September 3130, 2008 and 2007, respectively.

(b) Warrants Granted to Global notes holders

On January 11, 2008, the Company granted warrants of 12,000,000 to the global notes holders for issuance of global notes. The warrants are non-forfeitable and were valued at $401,741 using the Black-Scholes option-pricing model with the following assumptions:

Risk free interest rate	~~3.375%~~	3.375	%
Expected life	~~6.5 years~~	6.5 years
Expected volatility	~~35.57%~~	35.57	%
Expected dividend yield	0%	0	%

Also see Note 12.

2921

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED ~~MARCH~~SEPTEMBER 3130, ~~2008~~2007 AND 2007 (UNAUDITED)

1816. ~~DISCONTINUED~~SEGMENT ~~OPERATIONS~~INFORMATION

~~(a)~~The ~~Sale~~Company operates two segments for the three months ended September 30, 2008. ofThe two ~~Subsidiary~~segments in 2008 are the development, production and distribution of mobile phone products and mobile application software within China. The software business was started from the end of 2006 after the acquisition of the software company, Beijing Hi-Tech Wealth Software Co., Ltd. and later on carried out by Beijing Hi-Tech Wealth Communication Technology Co., Limited (“BJ HCT”) (100% subsidiary of MIL) since the end of 2007. The Company’s segment information for 2008 is as follows:

On December 28, 2006, HTW entered into an agreement to sell its 50% interest on Beijing Mobile Communication Technology Co., Ltd (“BMCT”), a 50% subsidiary of HTW, to another owner of BMCT at the consideration of $0. The transaction was approved by PRC Government and consummated on March 28, 2007.

	Smart Phone			Software			Corporate			Consolidated
Three Months Ended September 30, 2008 (Unaudited)
Revenue	$	(1,616,665	)	$	716,004		$			$	(900,661	)
Operating expenses		4,320,070			(260,869	)		6,921,294			10,980,495
Operating income (loss)	$	(4,740,073	)	$	976,873		$	(6,921,294	)	$	(10,684,494	)

Three Months Ended September 30, 2007 (Unaudited)
Revenue	$	9,523,922		$	2,011,808		$			$	11,535,730
Advertising		1,362,203			261,513						1,623,716
Other operating expenses		3,025,373			1,666,694			313,071			5,005,138
Operating income (loss)	$	(3,908,208	)	$	665,906		$	(1,130,253	)	$	(4,372,565	)

The following represents the assets and liabilities sold at the date of the disposal:

	Smart Phone		Software		Corporate		Consolidated
September 30, 2008 (Unaudited)
Identifiable assets	$	48,987,110	$	2,807,922	$	1,893,814	$	53,688,845

December 31, 2007
Identifiable assets	$	46,936,438	$	2,690,378	$	1,814,536	$	51,441,352

	March 28, 2007
Assets	$	2,871
Total assets sold		2,871
Liabilities		(325	)
Total liabilities sold		(325	)
Total net assets		2,546
Share percentage		50	%
Net assets disposed	$	1,273
Consideration		-
Loss on disposal	$	1,273

The Company operates two segments for the nine months ended September 30, 2008. The two segments in 2008 are the development, production and distribution of mobile phone products and mobile application software within China. The software business was started from the end of 2006 after the acquisition of the software company, Beijing Hi-Tech Wealth Software Co., Ltd. and later on carried out by Beijing Hi-Tech Wealth Communication Technology Co., Limited (“BJ HCT”) (100% subsidiary of MIL) since the end of 2007. The Company’s segment information for 2008 is as follows:

In connection with the agreements, the business operations of BMCT were no longer operations and subsidiaries of the Company. In accordance with SFAS 144, “Accounting for the Impairment or Disposal of Long−Lived Assets,” the result of operation of BMCT was presented separately as “discontinued operations”. The loss from discontinued operations of $0 for the period ended March 31, 2007 is reflected in the Company’s condensed consolidated statement of income for the period ended March 31, 2007.

	Smart Phone			Software			Corporate			Consolidated
Nine Months Ended September 30, 2008 (Unaudited)
Revenue	$	168,263		$	716,004		$			$	884,267
Operating expenses		15,456,643			1,025,182			7,851,930			24,333,755
Operating income (loss)	$	(15,288,380	)	$	(309,178	)	$	(7,851,930	)	$	(23,449,488	)
Nine Months Ended September 30, 2007 (Unaudited)
Revenue	$	43,859,261		$	6,022,884		$			$	49,882,145
Advertising		4,993,043			261,513						5,254,556
Other operating expenses		6,122,389			3,324,234			1,173,251			10,619,874
Operating income (loss)	$	(2,005,773	)	$	3,918,288		$	(4,580,022	)	$	(2,667,507	)

The following is the unaudited pro forma net income and basic and diluted net income per share of the Company for the periods ended March 31, 2007 assuming the sale of company was completed on January 1, 2007.

	Smart Phone		Software		Corporate		Consolidated
September 30, 2008 (Unaudited)
Identifiable assets	$	48,987,110	$	2,807,922	$	1,893,814	$	53,688,845

December 31, 2007
Identifiable assets	$	46,936,438	$	2,690,378	$	1,814,536	$	51,441,352

	Three months ended March 31, 2007
	(Unaudited)
Net income	$	118,035
Net income per share
- Basic	$	0.00
- Diluted	$	0.00

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

18. DISCONTINUED OPERATIONS (CONTINUED)

(b) Sale of Subsidiary in Beihai

On June 13, 2007, HTW entered into an agreement to sell its 90% interests on Beihai Hi-Tech Wealth Electronic Products Co., Ltd (“HEP”), a 90% subsidiary of HTW, to Beijing Hi-Tech Wealth Investment and Development Company Limited (“BJ HID”) for $237,554. The transaction was approved by PRC Government and consummated on July 3, 2007.

The following represents the assets and liabilities sold at the date of the disposal:

	July 3, 2007
Plant and equipment, net	$	6,575
Cash and cash equivalents		31,219
Amounts due from related companies		236,596
Total assets sold		274,390
Other payables		(43	)
Amount due to related companies		(74,436	)
Total liabilities sold		(74,479	)
Total net assets		199,911
Share percentage		90	%
Net assets disposed		179,920
Consideration		237,554
Gain on disposal	$	57,634

In connection with the agreements, the business operations of HEP were no longer operations and subsidiaries of the Company. In accordance with SFAS 144, “Accounting for the Impairment or Disposal of Long−Lived Assets,” the result of operation of HEP was presented separately as “discontinued operations”. The loss from discontinued operations of $1,006 for the period ended March 31, 2007 is reflected in the Company’s condensed consolidated statement of income for the period ended March 31, 2007.

	Three months ended March 31, 2007
	(Unaudited)
Net income	$	117,029
Net income per share
- Basic	$	0.00
- Diluted	$	0.00

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

18. DISCONTINUED OPERATIONS (CONTINUED)

On October 29, 2007, MIL disposed 100% of the equity interest of Euro Asia, a Hong Kong corporation, for HK$100,000, equivalent to $12,838. Prior to the disposal, Euro Asia was a 100% holding company of BJ HTS. The following represents the assets and liabilities sold at the date of the disposal:

	October 29, 2007
Plant and equipment, net	$	49,708
Cash and cash equivalents		14,615
Notes receivable		6,540,115
Other assets		421,155
Total assets sold		7,025,593
Notes payable		(1,154,857	)
Customers deposits		(1,419,005	)
Other payables		(1,003,756	)
Payroll payables		(364,336	)
Total liabilities sold		(3,941,954	)
Total net assets		3,083,639
Share percentage		100	%
Net assets disposed		3,083,639
Consideration		12,838
Loss on disposal	$	(3,070,801	)

In connection with the agreements, the business operations of Euro Asia and its subsidiaries were no longer operations and subsidiaries of the Company. In accordance with SFAS 144, “Accounting for the Impairment or Disposal of Long−Lived Assets,” the result of operation of Euro Asia and its subsidiary was presented separately as “discontinued operations”. The income from discontinued operations of $1,556,387 for the period ended March 31, 2007 is reflected in the Company’s condensed consolidated statement of income for the period ended March 31, 2007.

The following is the unaudited pro forma net loss and basic and diluted net loss per share of the Company for the periods ended March 31, 2007 assuming the sale of company was completed on January 1, 2007.

	Three months ended March 31, 2007
	(Unaudited)
Net loss	$	(1,438,352	)
Net loss per share
- Basic	$	(0.02	)
- Diluted	$	(0.02	)

CHINA MOBILE MEDIA TECHNOLOGY INC.

(FORMERLY HI-TECH WEALTH, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2008 AND 2007 (UNAUDITED)

19. SEGMENT INFORMATION

The Company operates two segments for the three months ended March 31, 2008. The two segments in 2008 are the development, production and distribution of mobile phone products and mobile application software within China. The software business was started from the end of 2006 after the acquisition of the software company, Beijing Hi-Tech Wealth Software Co., Ltd. and later on carried out by Beijing Hi-Tech Wealth Communication Technology Co., Limited (“BJ HCT”) (100% subsidiary of MIL) since the end of 2007. The Company’s segment information for 2008 is as follows:

	Smart Phone		Software		Corporate			Consolidated
Three Months Ended March 31, 2008 (Unaudited)
Revenue	$	2,097,283	$	-	$	-		$	2,097,283
Operating expenses		4,552,486		525,721		380,432			5,458,639
Operating income (loss)	$	(4,509,780)	$	(525,721)	$	(380,432)		$	(5,415,933)
Three Months Ended March 31, 2007 (Unaudited)
Revenue	$	15,057,006	$	-	$	-		$	15,057,006
Advertising		1,475,923		-		-			1,475,923
Other operating expenses		1,185,747		-		490,278			1,676,025
Operating income (loss)	$	2,070,889	$	-	$	(490,278	)	$	1,580,611

	Smart Phone		Software		Corporate		Consolidated
March 31, 2008 (Unaudited)
Identifiable assets	$	47,523,070	$	698,071	$	10,082,094	$	58,303,235
December 31, 2007
Identifiable assets	$	46,936,438	$	2,690,378	$	1,814,536	$	51,441,352

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

NOTE REGARDING FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, the matters discussed in this “MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS,” and elsewhere in this report are forward-looking statements that involve risks and uncertainties. The factors listed in the section captioned “RISK FACTORS,” as well as any cautionary language in this report, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from those projected. Except as may be required by law, we undertake no obligation to update any forward-looking statement to reflect events after the date of this report. The following discussion should be read in conjunction with our consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.:

You should read the following discussion together with the more detailed business information and consolidated financial statements and related notes that appear elsewhere in this Quarterly Report on Form 10-Q. This Quarterly Report on Form 10-Q may contain certain “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by our use of words such as “may,” “will,” “should,” “could,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative or other variations of these words, or other comparable words or phrases. This information involves risks and uncertainties. Our actual results may differ materially from the results discussed in the forward-looking statements.

Critical Accounting Policies and Estimates

Our significant accounting policies are disclosed in our Annual Report on Form 10-KSB for the year ended December 31, 2007, which was filed with the Securities and Exchange Commission. Our significant accounting policies have not materially changed since December 31, 2007.

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

New Accounting Pronouncements

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements," which provides enhanced guidance for using fair value to measure assets and liabilities. SFAS No. 157 provides a common definition of fair value and establishes a framework to make the measurement of fair value in generally accepted accounting principles more consistent and comparable. SFAS No. 157 also requires expanded disclosures to provide information about the extent to which fair value is used to measure assets and liabilities, the methods and assumptions used to measure fair value, and the effect of fair value measures on earnings. SFAS No. 157 is effective for financial statements issued in fiscal years beginning after November 15, 2007 and to interim periods within those ~~fiscalyears~~fiscal years. The Company is currently in the process of evaluating the effect, if any, the adoption of SFAS No. 157 will have on its consolidated results of operations, financial position, or cash flows.

In February 2007, the FASB issued FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities — including an amendment of FASB Statement No. 115 (“FAS 159”). FAS 159, which becomes effective for the Company on January 1, 2008. This standard permits companies to choose to measure many financial instruments and certain other items at fair value and report unrealized gains and losses in earnings. Such accounting is optional and is generally to be applied instrument by instrument. The Company does not anticipate that election, if any, of this fair-value option will have a material effect on the

consolidated results or operations or financial position.

In December 2007, the FASB issued SFAS No. 141 (R), Business Combinations, and SFAS No.160, Non-controlling Interests in Consolidated Financial Statements. SFAS No. 141 (R) requires an acquirer to measure the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired entity at their fair values on the acquisition date, with goodwill being the excess value over the net identifiable assets acquired. SFAS No.160 clarifies that a non-controlling interest in a subsidiary should be reported as equity in the consolidated financial statement. The calculation of earnings per share will continue to be based on income amounts attributable to the parent. SFAS No.141 (R) and SFAS No.160 are effective for financial statements issued for fiscal years beginning after December 15, 2008. Early adoption is prohibited. We have not yet determined the effect on our consolidated financial statements, if any, upon adoption of SFAS No.141 (R) or SFAS No. 160. We are aware that our accounting for minority interest will change and we are considering those effects now but believe the effects will only be a reclassification of minority interest from mezzanine equity to our stockholder's equity section in the balance sheet; in any case, we do not believe the implementation of SFAS 160 will be material to our financial position. SFAS 141(R) will significantly affect the accounting for future business combinations and we will determine the accounting as new combinations are determined.

3423

Business Overview

The Company operated in the mobile phone market for the third year in 2008. The mobile phone market ishave been very volatile since the end of 2007. While the Company managed to roll out ~~two~~four new products, they ~~didn’t~~ did not meet earnings expectation due to lack of innovative application and premium features.

Total approximately 52,~~135~~607 units security mobile phones and approximately 64,~~115~~561 solar mobile phones with solar jacket were sold in the three months period ended ~~March 31~~September 30, 2008. This represents a very low sales volume. The Company is encountering huge difficulties in rolling-out innovative products with premium functions due to insufficient working capital and this will last until the Company manages to get funding or to roll out an attractive product.

Business Outlook

InThe ~~2008, the~~ Company ~~plans~~is tostrengthening ~~launch~~in ~~several~~solar ~~security~~powered mobile phones. ~~with~~It ~~functions~~is ~~focusing on home~~developing ~~security, car security and family member security. These~~a ~~are the~~second ~~identified~~generation ~~area~~solar ~~where~~powered ~~the Chinese high-end~~ mobile phone ~~users~~with ~~have~~very ~~strong demand~~high ~~and requirement, which are not yet satisfied by the existing~~conversion ~~products~~efficiency.

~~With~~The ~~more and~~Company ~~more~~has ~~rich~~successfully ~~people~~developed indigital ~~China~~TV ~~and~~mobile ~~especially~~phones ~~the~~based ~~gap~~on ~~between~~the ~~rich and poor~~Chinese ~~is becoming~~Standard; ~~more~~however, ~~important.~~it ~~Private~~is ~~security~~waiting isfor ~~identified~~the asnetwork acoverage ~~growing~~which ~~concern~~the Chinese ~~for high-end~~Government ~~mobile~~postponed ~~phone~~compared ~~users~~to inthe ~~China~~initial schedule. ~~But~~So so far, no ~~satisfactory~~clear ~~products are~~time ~~available~~table ~~over Chinese market. The Company~~ has ~~planned~~been acommunicated ~~product~~by ~~line with innovative application in this area to well satisfy~~ the ~~requirements~~Chinese ~~of high-end mobile phone users in China~~Government.

~~Another~~On ~~area~~the marketing strategy, the Company is ~~strengthening~~planning isto ~~solar~~combine ~~powered~~TV-shopping ~~mobile~~and ~~phones~~on-ground distribution ~~and~~channels. isThe TV-shopping landscape in China has dramatically ~~developing~~changed aand ~~second~~many ~~generation~~TV ~~solar~~stations ~~powered~~are ~~mobile~~providing ~~phone~~TV ~~with~~shopping ~~very~~services, ~~high~~so the Company ~~conversion~~plans ~~efficiency.~~to cooperate with diversified TV-shopping services providers.

The Company has successfully developed digital TV mobile phone based on the Chinese Standard and is waiting for the network coverage which the Chinese Government postponed compared to the initial schedule. So far, no clear time table is communicated by the Chinese Government.

On the marketing strategy, the Company is going to combine TV-shopping and on-ground distribution channels. The TV-shopping landscape in China has dramatically changed and many TV stations are providing TV shopping services, so we plan to cooperate with diversified TV-shopping services providers.

Results of Operations

Three months ended ~~March~~September 3130, 2008 Compared to three months ended ~~March~~September 3130, 2007

Revenues. Revenues were ($2900,~~097,283~~661) for the three months ended ~~March~~September 3130, 2008, as compared to $1511,~~057~~600,~~006~~815 for the same period in 2007. This ~~86.04%~~ decrease is mainly due to ~~a delay~~return inback ~~launching~~by ~~new~~customers ~~products~~of ~~with~~the ~~premium~~first ~~features~~solar ~~and~~powered ~~innovative~~mobile ~~applications,~~S116 with a serious quality ~~declining~~deficiency. ~~unit~~It ~~sales~~is ~~and~~difficult ~~selling~~for ~~price~~the ofCompany ~~existing~~to ~~ISM~~estimate ~~models,~~the ~~and~~return ~~very~~back ~~keen~~or ~~competition~~when these inreturned ~~the~~units ~~mobile~~were ~~industry~~sold, ~~during~~given the ~~first~~Company’s ~~quarter~~distributors ofbought this ~~2008~~model over time, not at one specific time.

Gross profit. ~~Our~~Gross ~~gross~~profit ~~margin~~was ~~decreased~~$550,461 ~~to 2.0%~~ in the three months ended ~~March~~September 3130, 2008 ~~from 31.1% in the three months ended March 31~~, ~~2007.~~as ~~This decrease is attributable~~compared to ~~price competition in the mobile phone industry. Gross profit was only~~ $423,~~706 in the three months ended March 31~~199,357 ~~2008, as compared to $4,682,558~~ for the same period in 2007. This decrease was attributable to a decrease in sales volume together with the effect of lower margins.

Operating (loss) income. For the three months ended ~~March~~September 3130, 2008, the operating loss was ($58,~~415~~490,~~933~~ 183) as ~~compared~~ compared to an operating income of ($14,~~580~~071,~~610~~ 849) for the same period in 2007. This decrease in operating income was due to increases in inventory provision for slow moving stock, ~~operating~~and ~~expenses~~impairment ~~due~~for togoodwill, ~~the publicly-reporting status of the Company~~combined ~~combined~~ with significant reductions in sales.

Selling and distribution. Selling and distribution expenses were $~~265~~182,~~925~~988 for the three months ended ~~March 31~~September 30, 2008, as compared to $~~311~~1,~~440~~627,476 for the same period in 2007. This decrease was primarily attributable to a significant low market activity level after the quality deficiency for the first solar powered mobile phone S116 onin 2007.

Advertising. Advertising of $6939,~~609~~297 ~~were~~was incurred for the three months ended ~~March~~September 3130, ~~2008,~~ 2008, as compared to $1,~~475~~623,~~922~~716 for the same period in 2007,. ~~the~~The decrease is ~~caused~~ caused by low level market activities engaged by the Company due to lack of ~~innovative~~ innovative new products after the failure of the first solar mobile phone onS116 in 2007.

Research and development. Research and development costs of $~~555~~82,~~518~~577 were incurred for the three months ended ~~March 31~~September 30, 2008, as compared to $0932,568 for the same period in ~~2007, the increase is caused~~ ~~by new products that the Company is developing after the failure of solar mobile phone on~~ 2007 ~~in order to restore its market positioning as high-end products provider, with premium features and innovative applications~~.

3524

General and administrative. General and administrative expenses were $12,~~932~~439,~~695~~019 for the three months ended ~~March~~September 3130, 2008, as compared to $12,~~314~~453,~~586~~049 for the same period in 2007. ~~This increase was primarily attributable to an increase in stock provision..~~

	Three months Ended March 31, 2008		Three months Ended March 31, 2007		Increase/ (Decrease)			% Change
	Three months Ended September 30, 2008		Three months Ended September 30, 2007		Increase/ (Decrease)			% Change
General and Administrative
Legal and professional fees	$	~~856~~155,~~294~~783	$	~~621~~1,~~451~~138,701	$	~~234~~(982,~~843~~918	)		38(86.3	)%
Entertainment & traveling expenses		~~159~~49,~~881~~966		~~105~~170,~~006~~524		54(120,~~875~~558	)		52(70.7	)%
Depreciation & amortization expense		~~177~~233,~~351~~204		~~128~~179,~~144~~853		4953,~~207~~351			3829.7	%
Salaries		334,906		179,296		155,610			87	%
Allowance for doubtful accounts		211,154		-		211,154
Office expenses		302,433		244,533		57,900			24	%
Salaries		313,257		510,760		(197,503	)		(38.7	)%
Other		~~101~~1,~~830~~475,655		36453,~~155~~211		651,~~674~~022,444			~~182~~225.6	%
Total	$	12,~~932~~439,~~695~~019	$	12,~~314~~453,~~586~~049	$	~~618~~(14,~~109~~030	)		47(0.6	)%

Legal and Professional fees - These fees include audit fees, legal fees, consultancy fees, and financial advisory fees. During the three months ended ~~March~~September 3130, 2008, the significant ~~increase~~decrease was caused by ~~financial~~non ~~advisory~~funding ~~fees and the legal fees paid in connection with the financial structuring and private placement completed during this period~~activities.

Other – The increase in other was mainly caused by mobile phone network permission test fees paid to Government agency.

Other expenses. Other expenses, net was $800,204 for the three months ended September 30, 2008, as compared to other income, net of $634,397 for the same period in 2007.

Allowance for obsolete and slow moving inventories. Allowance for obsolete and slow moving inventories of $1,266,051 were incurred for the three months ended September 30, 2008, as compared to $0 for the same period in 2007. The increase is caused mainly by inventory of solar powered mobile phones and components.

Moreover, there was a decrease in government grants and subsidies, from $295,061 of 2007 to $88,619 in the three months ended September 30, 2008.

Discontinued operations. The net gain/loss from discontinued operations was $0 for the three months ended September 30, 2008.

Income taxes. Income taxes were a benefit of $3,162 for the three months ended September 30, 2008, as compared to expense of $1,141,664 for the same period in 2007. The decrease was due to the decrease of sales volume and loss generated during the period ended September 30, 2008.

Net (loss) income. Net loss was $8,487,021 for the three months ended September 30, 2008, as compared to net income of $2,930,185 for the same period in 2007. This change was attributable to the factors discussed above.

For the three months ended September 30, 2008, basic net loss per share was $0.14.

Nine months ended September 30, 2008 Compared to nine months ended September 30, 2007

Revenues. Revenues were $884,267 for the nine months ended September 30, 2008, as compared to $49,882,145 for the same period in 2007. This 98.2% decrease is due to a delay in launching new products with premium features and innovative applications, declining unit sales and selling price of existing ISM models, call-back of the first solar mobile phone S116 and very keen competition in the mobile industry since the first quarter of 2008.

Gross profit. Gross profit was only $1,138,767 in the nine months ended September 30, 2008, as compared to $15,595,497 for the same period in 2007. This decrease was attributable to a decrease in sales volume.

Operating (loss) income. For the nine months ended September 30, 2008, the operating loss was $23,449,488 as compared to an operating income of $2,667,507 for the same period in 2007. This decrease in operating income was due to increases in inventory provision for slow moving stock and impairment for goodwill, combined with significant reductions in sales.

Selling and distribution. Selling and distribution expenses were $539,330 for the nine months ended September 30, 2008, as compared to $3,144,481 for the same period in 2007. This decrease was primarily attributable to a significant low market activity level after the quality deficiency for the first solar powered mobile phone S116 in 2007.

Advertising. Advertising of $319,438 were incurred for the nine months ended September 30, 2008, as compared to $5,254,556 for the same period in 2007, this decrease is caused by low level market activities engaged by the Company due to lack of innovative new products after the failure of the first solar mobile phone S116 in 2007.

Research and development. Research and development costs of $339,205 were incurred for the nine months ended September 30, 2008, as compared to $1,721,620 for the same period in 2007.

General and administrative. General and administrative expenses were $7,548,025 for the nine months ended September 30, 2008, as compared to $5,753,775 for the same period in 2007.

	Nine months Ended September 30, 2008		Nine months Ended September 30, 2007		Increase/ (Decrease)			% Change
General and Administrative
Legal and professional fees	$	1,242,241	$	1,631,853	$	(389,612	)		(23.88	)%
Entertainment & traveling expenses		262,170		545,556		(283,386	)		(51.94	)%
Depreciation & amortization expense		612,812		437,247		175,565			40.15	%
Allowance for doubtful accounts		2,853,344		-		2,853,344
Salaries		1,004,021		1,292,295		(288,274	)		(22.31	)%
Other		1,573,437		1,846,824		(273,387	)		(14.8	)%
Total	$	7,548,025	$	5,753,775	$	1,794,250			31.18	%

Legal and Professional fees - These fees include audit fees, legal fees, consultancy fees, and financial advisory fees.

Entertainment & traveling expenses - These expenses were incurred for the development of distribution networks throughout China.

~~Salaries~~Other -expenses. Other expenses, ~~Increase~~net ~~in salaries~~ was ~~due~~$2,994,555 tofor the ~~increase~~nine inmonths ~~headcount~~ended ~~from~~September ~~the~~30, ~~acquisition~~2008, ofas compared ~~Beijing~~to ~~Hi-Tech~~other ~~Wealth~~expenses, ~~Software~~net ~~Co.~~of $2,388,572 ~~Limited~~for ~~(“BJ~~the ~~HTS”)~~same onperiod ~~October~~in ~~27, 2006,~~2007. ~~and the~~ This increase inis ~~the~~mainly ~~sales~~caused ~~team~~by toincrease ~~facilitate~~in ~~the~~currency ~~sales~~exchange ~~strategy~~loss inand ~~the~~decrease ~~near~~in ~~future~~Government grant.

~~Other~~Allowance ~~expenses~~for obsolete and slow moving inventories. ~~Other expenses,~~Allowance ~~net~~for ~~was~~obsolete and slow moving inventories of $28,~~663~~617,~~621~~194 were incurred for the ~~three~~nine months ended ~~March~~September 3130, 2008, as compared to ~~other expenses, net of~~ $~~2,502,070~~0 for the same period in 2007. The increase is caused mainly by inventory of solar powered mobile phones and components.

~~Provision~~Moreover, ~~for~~there ~~obsolete~~was ~~and~~a ~~slow~~decrease ~~moving~~in ~~inventories. Provision~~government ~~for~~grants ~~obsolete~~ and ~~slow~~VAT ~~moving~~refunded, ~~inventories~~from of $21,~~634~~135,~~892 were incurred~~788 ~~for~~of 2007 to $70,096 in the ~~three~~nine months ended ~~March~~September 3130, 2008, aswhich ~~compared~~had toan ~~$0 for the same period~~effect inon ~~2007,~~subsidy ~~the increase is caused mainly by inventory of solar powered mobile phones~~income.

~~Moreover,~~Discontinued ~~there was an increase in interest expenses of $405,604 on $9,519,625 in average~~operations. ~~bank~~The ~~borrowings during the period. In addition, a decrease in government grants~~net ~~and~~gain/loss ~~subsidies,~~ from ~~$115,758~~discontinued ofoperations ~~2007~~was to $~~30691~~0 infor the ~~three~~nine months ended ~~March~~ 31September 30, 2008 ~~had an effect on other income~~.

~~Discontinued~~Income ~~operations~~taxes. ~~The net~~Income ~~gain/loss~~taxes ~~from~~were ~~discontinued~~a ~~operations~~benefit ~~was~~of $0298,393 for the ~~three~~nine months ended ~~March~~September 30, 2008, 31as compared to expense of $246,445 for the same period in 2007. The decrease was due to the decrease of sales volume and loss generated for the period ended September 30, 2008.

~~Income~~Net ~~taxes~~(loss) income. ~~Income~~Net loss ~~taxes~~was ~~were a benefit of~~ $~~119~~23,~~631~~151,095 for the ~~three~~nine months ended ~~March~~September 3130, 2008, as compared to asnet ~~compared~~income ~~to expense~~ of $~~418~~2,~~001~~891,743 for the same period in 2007. ~~The~~This ~~decrease~~change was attributable ~~due~~ to the ~~decrease~~factors ofdiscussed ~~sales volume and loss generated for the period ended March 31, 2008~~above.

~~Net~~For ~~(loss) income.~~the ~~Net~~nine ~~loss was $7,959,921 for the three~~ months ended ~~March~~September 3130, 2008, asbasic ~~compared to~~ net ~~income~~ ofloss ~~$118,036~~per ~~for~~share ~~the same period in 2006. This change~~ was ~~attributable~~ ~~to the factors discussed above~~$0.40.

~~For the three months ended March 31, 2008, basic net loss per share was $0.13.~~26

Concentrations

The Company had various customers for the three months ended September 30, 2008 and 2007 who accounted for the following percentage of total sales and total accounts receivable:

	Sales						Accounts Receivable
Major Customers	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007

Company A		38.7	%					2.4	%
Company B		38.0	%					2.1	%
Company C					10.8	%
Company D					6.8	%
Company E					6.6	%
Company F					3.9	%
Company G					3.6	%

The sole market of the Company is the PRC for the periods ended September 30, 2008 and 2007.

The Company had various suppliers for the three months ended September 30, 2008 and 2007 who accounted for the following percentage of total purchases and total accounts payable:

	Purchases						Accounts Payable
Major Suppliers	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007

Company A		36.9	%					0.04	%
Company B		34.7	%					0.06	%
Company C		11.5	%
Company D		6.7	%					0.01	%
Company E		2.5	%					0.02	%
Company F					36.8	%					43.7	%
Company H					16.2	%					30.2	%
Company I					6.9	%					15.8	%
Company J					5.8	%
Company K					5.4	%

Company I(HTW(tongxiang)Electronic technology Co,.Ltd)is a related party,which is controlled by a director of the Company.

The Company had various customers for the nine months ended September 30, 2008 and 2007 who accounted for the following percentage of total sales and total accounts receivable:

	Sales						Accounts Receivable
Major Customers	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007

Company A		36.5	%					16.4	%
Company B		11.8	%
Company C		10.9	%					-
Company D		4.1	%					2.1	%		-
Company E		2.5	%					1.0	%
Company F					6.2	%
Company G					5.0	%					12.7	%
Company H					3.7	%
Company I					3.2	%					13.7	%
Company J					3.1	%					7.8	%

The sole market of the Company is the PRC for the periods ended September 30, 2008 and 2007.

The Company had various suppliers for the nine months ended September 30, 2008 and 2007 who accounted for the following percentage of total purchases and total accounts payable:

	Purchases						Accounts Payable
Major Suppliers	September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007

Company A		33.8	%					62.6	%
Company B		25.5	%					5.6	%
Company C		11.0	%					1.6	%
Company D		6.0	%
Company E		3.3	%					0.3	%
Company F					35.0	%					20.1	%
Company G					13.8	%
Company H					4.9	%					9.3	%
Company I					4.9	%					8.1	%
Company J					1.6	%

Liquidity and Capital Resources

As of ~~March~~September 3130, 2008, we had $1327,~~209,360~~890 of cash and cash equivalents and $121,~~792~~535,~~737~~505 of working capital as compared to $300,224 of cash and cash equivalents and $1,033,683 of working capital deficiency, respectively, at December 31, 2007. Accounts receivable ~~increased~~decreased to $148,~~297~~698,~~627~~765 at ~~March~~September 3130, 2008 from $11,413,957 at December 31, 2007, as we entered into agreements certain preferred customers to extend the settlement period for both GSM and CDMA mobile ~~distributors,~~ distributors, from 90 days to 180 days, offset by an increase in accounts payable to $1112,~~798~~754,~~323~~ 405 at ~~March~~ 31September 30, 2008 from $9,333,376 at December 31, 2007. Prepayment for goods decreased to $45,~~509~~792,~~131~~040 at ~~March~~September 3130, 2008 from $6,012,788 at December 31, 2007, which was mainly caused by lack of new products with premium features and innovative applications.

36There was a net outflow of cash from operations of $3,326,641 in the nine months ended September 30, 2008 in comparison to $8,196,533 for the same period in 2007.

~~There~~The ~~was~~cash aprovided ~~net~~by ~~outflow~~financing ofactivities ~~cash~~was ~~from~~decreased ~~operations~~to of $63,~~153~~135,~~950~~968 in the ~~three~~nine months ~~ended~~ ~~March~~ended 31September 30, 2008 in comparison to $614,~~732~~910,~~950~~387 for the same period in 2007..

The cash provided by financing activities was increased to $8,473,791, in the three months ended March 31, 2008 in comparison to $7,687,878 for the same period in 2007, which were mainly attributable to the placement of Global notes in January 2008.

The Company expects that it will generate sufficient funds from operations and fund raising activities to meet the required funds in the following 12 months’ operations.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not required.

Item 4. Controls and Procedures

WeConclusion ~~maintain~~Regarding ~~“disclosure controls and procedures,” as such term is defined under~~ the ~~Exchange~~ ~~Act~~Effectiveness Rule 13a-15(e), that are designed to ensure that the information required to be disclosed in our Exchange Act reports 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 the required disclosures. We have carried out an evaluation under the supervision and with the participation of ~~our~~Disclosure ~~management,~~Controls ~~including our Chief Executive Officer~~ and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2008. Based upon their evaluation and subject to the foregoing, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to ensure that required material information is included in this quarterly report for the period ended March 31, 2008.Procedures

~~There~~We ~~were~~maintain no“disclosure ~~changes~~controls inand ~~our~~procedures,” ~~internal~~as ~~controls~~such ~~over~~term ~~financial~~is ~~reporting~~defined ~~during~~under the ~~quarter~~Exchange ~~ended~~Act ~~March~~Rule 3113a-15(e), ~~2008~~that are designed to ensure that ~~has~~the ~~materially~~information required ~~affected~~to be disclosed in our Exchange Act reports is recorded, orprocessed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is ~~reasonably~~accumulated and communicated ~~likely~~to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to ~~affect~~allow timely decisions regarding the required disclosures. We have carried out an evaluation under the supervision and with the participation of our management, including our ~~internal~~Chief ~~control~~Executive ~~over~~Officer and Chief ~~financial~~Financial ~~reporting~~Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2008. Based upon their evaluation and subject to the foregoing, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to ensure that required material information is included in this quarterly report for the period ended September 30, 2008.

Management’s 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 Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation, our principal executive officer and principal financial officer have concluded that during the period covered by this report, our internal controls over financial reporting were effective.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can only provide reasonable assurances with respect to financial statement preparation and presentation. In addition, any evaluation of effectiveness for future periods is subject to the risk that controls may become inadequate because of changes in conditions in the future.

Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting identified in connection with the evaluation that occurred during the quarter ended September 30, 2008 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II OTHER INFORMATION

Item 1.

Legal Proceedings

Not applicable.

Item 1A. Risk Factors

ITEM 1A. Risk Factors

In addition to the other information in this quarterly report, our business is subject to numerous risks which should be considered carefully in evaluating our business and prospects.

Risks Related to Our Business

Our operating results fluctuate from quarter to quarter.

Our quarterly revenue, income and other operating results have fluctuated in the past and may fluctuate significantly in the future due to a number of factors, including the following:

· The ability of our suppliers to meet our supply requirements; · Competitive pressures; · The time required for research and development; · Changing design requirements resulting from rapid technology shifts; and · Industry trends impacting the overall end user market.

As a result of these and other factors, our results of operations may vary on a quarterly basis and net revenue may be adversely affected from period to period. Our results of operations for a particular quarter may not be indicative of our future performance. If our operating results in a quarter fall below our expectations or the expectations of market analysts or investors, the price of our common stock is likely to decrease.

Our operating results are substantially dependent on the development of new products.

We may be unable to develop new products in a timely or cost-efficient manner, and these new products may fail to meet the requirements of our customers’ end-markets. If we fail to develop new products that will meet our targeted customers’ needs, our results of operations will be materially and adversely affected.

If our customers do not purchase our newly-launched products, our net revenue will be adversely affected.

While most of our new products have been attractive to our customers, there is no guarantee that our new products will receive positive market response. We dedicate personnel, management and financial resources into developing new products. If a new product is not sold over a certain amount, we will fail to capitalize on the invested resources, time and effort that we expended on the product.

Reliance on our suppliers makes us vulnerable to the loss of one or more key suppliers or the delivery capabilities of our suppliers.

We typically rely on a limited number of key suppliers. Although we have developed good long-term relationships with our suppliers and EMS (Electronics Manufacturing Services) OEM third party alliance, there can be no assurance that we will always be able to obtain components and have our products completed and delivered to the market in a timely base. Such delay could make our products become obsolete or unattractive with our customers and consequently, our results of operations will be materially and adversely affected.

If we fail to attract and retain key personnel, particularly our chief executive officer, our business will be materially impaired and our financial condition and results of operations will suffer.

Our business greatly relies on the continued services of Dr. Zhang Zhengyu, our principal shareholder and chief executive officer and our senior management team. Many new product concepts and technology innovation are generated by Dr. Zhang and our senior management team. Our future success will depend to a significant degree upon the performance and contribution of Dr. Zhang and other members of our senior management team in areas including sales, new product specification, finance and customer services. Therefore, our business and results of operations may be materially and adversely affected if Dr. Zhang or another member of our senior management team leaves us. In addition, we will incur additional expenses to recruit and develop senior management members if one or more of our key employees are unwilling or unable to continue their employment with us. We do not maintain key man life insurance covering our senior management or any of our key employees.

Our future success also depends on our ability to identify, attract, hire, train, retain and motivate highly-skilled personnel. If we cannot attract and retain the personnel we require at a reasonable cost, our cost of revenue will increase and the profitability of our business could be negatively affected. Our business is especially dependent on sales, marketing and new product specification personnel. Competition in China for executive-level and skilled technical and sales and marketing personnel is strong, and recruiting, training, and retaining qualified key personnel are important factors affecting our ability to meet our growth objectives. Should key employees leave our company, we may lose both an important internal asset and net revenue from customer projects in which those employees were involved.

Loss of the current TV direct sales strategic alliance may adversely impact our net revenue.

On April 24, 2006, we entered into a strategic alliance agreement with Acorn International Shopping Network (“Acorn”). Our current ad campaign broadcasts 15 and 30 second commercials to build general awareness and 1, 4 and 5 minute infomercials to educate consumers on the features of our products. These commercials and infomercials are currently broadcasted on 3 nationwide CCTV channels, 19 national satellite TV channels, 5 international satellite channels operating in China and 10 local channels.

In 2006, this TV direct sales platform generated about 30% of our total sales. The agreement with Acorn expired on April 10, 2007; however, we are in negotiations regarding an extension of our commercial arrangement and at the same time are also seeking other appropriate partners to continue our strategy on TV marketing to maintain our market share. If we do not renegotiate such contract on mutually acceptable terms, it may have an adverse impact on our financial results. We still cooperate with TV-shopping companies, but the landscape in this area has been dramatically changed, with media cost significantly increased since the second half of 2007

The end-markets in which we operate are highly competitive and fragmented. We expect competition to intensify in the future, and if we fail to compete effectively, our business will be harmed.

Pressures from current or future competitors could cause our products to lose market acceptance or require us to reduce our sales prices to keep and attract customers. Our competitors often have longer operating histories, stronger customer and supplier relationships, larger technical staffs and sales forces, and/or greater financial, technical and marketing resources than we do. Although we believe that there are no direct competitors of any meaningful size who operate using the same business model as ours, we may still face the risk of fierce competition.

We may not have sufficient funds to pay our accounts payable when due, which could adversely affect our operations and net revenue.

We experience a time lag in our accounts payable and accounts receivable cycles. Consequently, we may experience periods during which our cash from operations is insufficient to fund our working capital requirements. We have historically funded our working capital requirements through cash on hand, operating cash flows, as well as short-term credit facilities. As we grow and our working capital requirements increase, these facilities may not be sufficient to meet our needs. We may be unable to maintain these liquidity sources or obtain additional liquidity sources on commercially reasonable terms to meet our increased funding requirements.

The unauthorized use of our software or other innovative technology, and new product ideas could have a material adverse impact on our net revenue.

Although we typically will apply for patent or intellectual property protection for our software and technology, before the patent or protection come into effect, we may have significant risks with respect to the unauthorized use of our technology. We typically do not have non-disclosure or confidentiality agreements with most of the design houses or other technology partners to keep our new specifications and ideas confidential. Design houses may attempt to circumvent us by providing our new product ideas directly to our competitors.

If the quality of our products does not meet our customers’ expectations, then our sales and operating earnings, and ultimately our reputation, could be adversely affected.

Some of the new products we sell may have quality issues resulting from the design or manufacture of the product, or from the software used in the product. Often these issues are identified prior to the shipment of the products and may cause delays in shipping products to customers, or even the cancellation of orders by customers. Sometimes, we discover quality issues in the products after they have been shipped to our distributors or end-user customers, requiring us to resolve such issues in a timely manner that is the least disruptive to our customers. Such pre-shipment and post-shipment quality issues can have legal and financial ramifications, including: delays in the recognition of revenue, loss of revenue or future orders, customer-imposed penalties on us for failure to meet contractual requirements, increased costs associated with repairing or replacing products, and a negative impact on our goodwill and brand name reputation.

In some cases, if the quality issue affects the product’s safety or regulatory compliance, then such a “defective” product may need to be recalled. Depending on the nature of the defect and the number of products in the field, it can cause us to incur substantial recall costs, in addition to the costs associated with the potential loss of future orders, and the damage to our goodwill or brand/reputation. In addition, we may be required, under certain customer contracts, to pay damages for failed performance that might exceed the revenue that we receive from the contracts. Recalls involving regulatory agencies can also result in fines and additional costs. Finally, recalls can result in third-party litigation, including class action litigation by persons alleging common harm resulting from the purchase of the products.

Going Concern

The accompanying consolidated financial statements have been prepared on the basis that the Company will continue as a going concern which assumes the realization of assets and settlement of liabilities in the normal course of business. Since its inception, the Company has been engaged in organizational and pre-operating activities. The Company has generated insignificant revenues and has incurred accumulated losses and negative operating cash flows of $723,~~826~~151,~~825~~095 and $63,~~153~~326,~~950~~641 , respectively, from December 31, 2007 (Inception) through ~~March~~September 3130, 2008.

On February 8, 2007, the Company raised $13,250,000 in a private placement in the form of a sale of shares of Series A, convertible preferred stock (See Note 16). On January 11, 2008, MIL sold in a private placement of $20,661,157 (Rmb150,000,000) principal amount of 9.5% per annum global notes due January 10, 2014 (the “Global Notes”), with common stock purchase warrants, granted by the Company, to purchase 12,000,000 shares of the Company’s common stock at an exercise price of $2.00 per share (the “Exercise Price”), exercisable any time after January 1, 2008 through June 30, 2014.

Based on our current operating plan, we believe that we ~~have sufficient cash and cash equivalents to last approximately through April 2009. We~~ will need to obtain additional ~~additional~~ financing in addition to the funds already raised through the sale of equity ~~equity~~ securities to fund our cash needs and continue our operations ~~beyond April~~in 2009. Additional financing, whether through public or private equity or debt ~~debt~~ financing, arrangements with stockholders or other sources to fund operations, may not be available, or if available, may be on terms unacceptable to us. Our ability to maintain sufficient liquidity is dependent on our ability to raise additional capital. If we issue additional equity securities to raise funds, the ownership percentage of our existing stockholders would be reduced. New ~~New~~ investors may demand rights, preferences or privileges senior to those of existing holders of our common stock. Debt incurred by us would be senior to equity in the ability of debt holders to make claims on our assets. The terms of any debt issued could impose restrictions on our operations. If adequate funds are not available to satisfy either medium or long-term capital requirements, our operations and liquidity could be materially adversely affected and we could be forced to cut back our operations.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3.

Defaults Upon Senior Securities

Not applicable.

Item 4.

Submission of Matters to a Vote of Security Holders

No matter was submitted to a vote of security holders during the ~~third~~ quarter ended September ~~March 31~~30, 2008.

Item 5.

Other Information

~~Not applicable~~None.

Item 6.

Exhibits

The following exhibits are furnished as part of the Quarterly Report on Form 10-Q:

Exhibit No.		Description
31.1		Certification of the Chief Executive Officer (Principal Executive Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32		Certifications of the Chief Executive Officer (Principal Executive Officer) and the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

4130

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report on Form 10-Q to be signed on its behalf by the ~~undersigned,~~ undersigned, thereunto duly authorized.

	CHINA MOBILE MEDIA TECHNOLOGY INC.
Dated: May 20, 2008	By:	/s/ Zhang Zhengyu
Dated: November 19, 2008	By:	/s/ Zhang Zhengyu
		Name: Zhang Zhengyu Title: Chief Executive Officer and Chairman (Principal Executive Officer)


	CHINA MOBILE MEDIA TECHNOLOGY INC.

	By:	/s/ Ma Qing
		Name: Ma Qing Title: Chief Financial Officer and Treasurer (Principal Accounting and Financial Officer)

Filing Compare · China Mobile Media Technology Inc.