U. S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

þx Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~September~~March 3031, ~~2012~~2013

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ~~For the transition period from_________ to________.~~

For the transition period from ________ to ________.

Commission File Number 000-18731

Forlink Software Corporation, Inc.

(Exact name of small business issuer as specified in its charter)

Nevada	98-0398666
(State or other jurisdiction of	(I.R.S. employer
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification number)
incorporation or organization)	identification number)
Shenzhou Mansion 9F, ZhongGuanCun South Street, No. 31,
Haidian District, Beijing, China 100081
(Address of principal executive offices and zip code)
01186-10 6811 8866
(Registrant’s telephone number, including area code)

~~Shenzhou~~Indicate ~~Mansion~~by ~~9F,~~check ~~ZhongGuanCun~~mark ~~South~~whether the registrant ~~Street,~~(1) ~~No.~~has 31filed 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.

~~Haidian~~YES ~~District,~~x NO ~~Beijing, China 100081~~¨

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

01186-10 6811 8866

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for 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 þ NO ¨

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

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

Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company þx

Indicate by check mark whether the ~~registrant~~ registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨ NO þx

On ~~November~~As 9of May 14, ~~2012~~2013, we had 4,651,173 shares of common stock issued and outstanding.

FORLINK SOFTWARE CORPORATION, INC.

FORM 10-Q

INDEX

		Page Number
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS		ii
PART I. FINANCIAL INFORMATION		1
Item 1.	Financial Statements (unaudited)	1
	Consolidated Balance Sheet as of September 30, 2012	2
	Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012	2
	Consolidated Statements of Operations	3
	Consolidated Statements of Cash Flows	4
	Notes to the Consolidated Financial Statements as of September 30, 2012
	Notes to the Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	2119
Item 4.	Controls and Procedures	3027
PART II. OTHER INFORMATION		28
Item 6.	Exhibits	3128
SIGNATURES		3229

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document contains certain statements of a forward-looking nature. Such forward-looking statements, including but not limited to growth and strategies, future operating and financial results, financial expectations and current business indicators, are based upon current information and expectations and are subject to change based on factors beyond the control of the Company. Forward-looking statements typically are identified by the use of terms such as “look,” “may,” “will,” “should,” “might,” “believe,” “plan,” “expect,” “anticipate,” “estimate” and similar words, although some forward-looking statements are expressed differently. The accuracy of such statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update this forward-looking information. Nonetheless, the Company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this Quarterly Report on Form 10-Q (“Form 10-Q”). No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

The information required by Item 1 begins on the next page.

Forlink Software Corporation, Inc.

Consolidated Balance Sheets

(Expressed in US Dollars)

	September 30,			December 31,
	March 31,			December 31,
	2012			2011
	2013			2012
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	~~223~~4,~~143~~746,979		$	1103,~~692,449~~578
Accounts receivable		~~346~~134,~~751~~424			~~203~~132,~~910~~892
Other receivables, deposits and prepayments (Note 3)		~~453~~721,~~345~~178			~~530~~672,~~018~~475
Loan receivable		0			0
Inventories (Note 4)		1,903,303			1,554,868
Inventories (Note 4)		1,436,689			1,157,934
Deferred taxes assets		124,586			134,119
Deferred taxes assets		101,865			66,001
Total current assets		7,630,470			2,597,933
Total current assets		2,561,793			3,650,312
Property, plant and equipment (Note 6)		205,977			225,757
Property, plant and equipment (Note 6)		211,576			262,340
Long term investments (Note 7)		1,367,668			1,363,623
Long term investments (Note 7)		1,360,931			1,074,531
Total assets	$	9,204,115		$	4,187,313
Total assets	$	4,134,300		$	4,987,183
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Short term borrowings	$	~~317~~319,~~632~~035		$	~~317~~318,~~496~~193
Accounts payable		8265,~~947~~930			5616,~~311~~629
Amounts due to stockholders (Note 5)		375,043			260,470
Amounts due to related party (Note 5)		263,006			383,486
Customer deposits		25,~~194~~600,~~077~~903			12,~~811~~631,~~937~~583
Other payables and accrued expenses (Note 8)		~~523~~749,~~711~~360			~~451~~864,~~464~~052
Income tax payable		0			0
Other tax payable		105,267			-
Other tax payable		0			0
Total current liabilities	$	7,103,501		$	4,213,943
Deferred taxes debt		0			0
Shareholders’ equity
Total current liabilities	$	3,493,410		$	2,897,678
Common stock, par value $0.001 per share;
Stockholders’ equity
200,000,000 and 200,000,000 shares authorized;
Common stock, par value $0.001 per share; 200,000,000 and 200,000,000 shares authorized; 4,966,173 and 4,966,173 shares issued and 4,651,173 and 4,651,173 shares outstanding, respectively	$	99,322		$	99,322
4,966,173 shares issued and 4,651,173 shares outstanding at March 31, 2013 and December 31, 2012	$	99,322		$	99,322
Treasury stock		(163,800	)		(163,800	)
Additional paid-in capital		10,040,675			10,~~195~~040,~~693~~675
Accumulated losses		(109,~~775~~318,~~964~~381	)		(911,~~488~~437,~~659~~544	)
Accumulated other comprehensive income		1,~~440~~442,~~657~~798			1,~~397~~434,~~824~~717
Non-controlling interest		-			~~49,125~~-
Total stockholders’ equity	$	640,890		$	2,089,505
Total shareholders’ equity	$	2,100,614		$	(26,630	)
Total liabilities and stockholders’ equity	$	4,134,300		$	4,987,183
Total liabilities and shareholders’ equity	$	9,204,115		$	4,187,313

See accompanying notes to unaudited consolidated condensed financial statements.

Forlink Software Corporation, Inc.

Consolidated Statements of Operations

(unaudited)

(Expressed in US Dollars)

	Three Months ended						~~Nine Months Ended~~
	September 30,						September 30,
	March 31,
	2012			2011			2012			2011
	2013			2012
Net sales	$	~~669~~1,~~967~~367,276		$	1214,~~228,027~~633			~~2,173,084~~			~~3,022,423~~
Cost of sales		(~~431~~349,~~786~~160	)		(~~344~~232,~~568~~533	)		~~(1,134,486~~	)		~~(1,318,727~~	)
Gross profit		~~238~~1,~~181~~018,116			~~883~~(17,~~459~~900	)		~~1,038,598~~			~~1,703,696~~
Selling expenses		(~~180~~271,~~061~~043	)		(~~197~~184,~~029~~819	)		~~(541,030~~	)		~~(729,484~~	)
Research and development expenses		(222,~~165~~724	)		(~~109~~246,~~794~~732	)		~~(713,984~~	)		~~(507,838~~	)
General and administrative expenses		(~~377~~287,~~566~~404	)		(~~335~~313,~~519~~553	)		~~(1,022,163~~	)		~~(904,917~~	)
Total operating expenses		(779,792	)		(642,342	)		(2,277,177	)		(2,142,239	)
Bad debt recovery		1,793,935			-
Operating profit/(loss)	$	(541,611	)		241,117			(1,238,579	)		(438,543	)
Total operating expenses		1,012,764			(745,104	)
Loss from equity method investee		-			(6,975	)		-			(41,010	)
Operating profit/(loss)	$	2,030,880		$	(763,004	)
Income from cost method investee		-			-			-			-
Gain from cost method investee (Note 14)		79,963			-
Interest income		~~682~~1,266			~~1,219~~933			~~2,024~~			~~4,934~~
Interest expenses		(67,~~562~~831	)		-(6,355	)		~~(16,263~~	)		-
Impairment of assets		142			-			(78,910	)		-
Other income, net		24,759			-
Other income/(loss), net		-			151			8,812			25,423
Profit / (Loss) before tax	$	2,129,037		$	(768,426	)
Profit / (Loss) before tax	$	(547,349	)		235,512			(1,322,916	)		(449,196	)
Income tax		(9,874	)		-
Income tax		26,161			(5,288	)		35,611			(9,049	)
Non-controlling interest		-			-
Non-controlling interest		-			(11,162	)		-			(34,810	)
Net profit/(loss)	$	2,119,163		$	(768,426	)
Net profit/(loss)	$	(521,188	)		241,386			(1,287,305	)		(423,435	)
Profit/(loss) per share		0.46			(0.17	)
Profit/(loss) per share		(0.11	)		0.05			(0.14	)		(0.09	)
Weighted average common shares outstanding -basic and diluted		4,651,173			4,651,173
Weighted average common shares outstanding -basic and diluted		4,651,173			4,651,173			4,651,173			4,651,173

See accompanying notes to unaudited consolidated condensed financial statements.

Forlink Software Corporation, Inc.

Consolidated Statements of Cash Flows

Increase in Cash and Cash Equivalents

(unaudited)

(Expressed in US Dollars)

	Nine Months Ended
	Three Months Ended March 31,
	September 30,
	2013			2012
	2012			2011
Cash flows from operating activities
Net profit/(loss)	$	(12,~~287~~119,~~305~~163	)	$	(~~423~~768,~~435~~426	)
Adjustments to reconcile net profit/(loss) to net cash provided by/(used in) operating activities Non-controlling interest		-			(34,810	)
Adjustments to reconcile net profit/(loss) to
(Gain)/loss from write-off of property, plant and equipment
net cash provided by/(used in) operating activities		-			-
Depreciation of property, plant and equipment		79,861			93,538
Non-controlling interest		-			-
Interest expenses		-			-
(Gain)/loss from write-off of property, plant and equipment		-			-
(Income)/Loss from equity method investee		-			41,010
Depreciation of property, plant and equipment		23,218			27,932
Impairment of assets		78,910			-
Income from equity method investee		-			-
Effect of deferred taxes		(35,836	)		3,920
Gain from cost method investee		(79,963	)		-
Effect of deferred taxes		9,874			(84	)
Change in:
Accounts receivables		(~~142,754~~718	)		(~~404~~109,~~832~~188	)
Other receivables, deposits and prepayments		76(44,~~900~~583	)		~~(160~~149,~~117~~887	)
Inventories		(~~278~~338,~~258~~911	)		(~~364~~249,~~602~~881	)
Accounts payable		2649,~~612~~199			~~(445~~4,~~293~~748	)
Amounts due to stockholders		114,461			(390,197	)
Amounts due to related party		(122,829	)		66,870
Customer deposits		~~381~~2,~~363~~953,200			35104,~~895~~312
Other payables and accrued expenses		72(119,~~053~~985	)		(~~119~~142,~~197~~868	)
Income tax payable		-			~~9,049~~-
Other taxes payable		-105,267			~~(22,301~~-	)
Net cash provided by/(used in) operating activities		~~(913~~4,~~993~~552,932	)		(2916,~~181,372~~698	)
Cash flows from investing activities
Purchase of long term investment		~~(365,276~~-	)		-(364,657	)
Buyout of Non-controlling interest		(204,231	)		-
Acquisition of property, plant and equipment		(6,292	)		(203,884	)
Acquisition of property, plant and equipment		(30,400	)		(32,259	)
Buy-out of non-controlling interest		-			(5,781	)
Proceeds from disposal of long term investment		-			~~14,995~~-
Dividend from investee		-79,963			-
Loan to another company		-			-
Net cash used in investing activities		~~(599~~73,~~907~~671	)		(17574,~~264~~322	)
Cash flows from financing activities
Proceeds from short term borrowings		-			-
(Repayments to)/advances from stockholders		-			-
(Repayments to)/advances from shareholders		-			-
Proceeds from issuances of common stock under Plan 2002		-			-
Net cash provided by financing activities		-			-
Effect of exchange rate changes		4416,~~594~~798			~~112~~13,~~880~~266
Net increase/(decrease) in cash and cash equivalents		(14,~~469~~643,~~306~~401	)		(21,~~085~~477,~~756~~754	)
Cash and cash equivalents at beginning of period		1103,~~692,449~~578			31,~~580~~692,~~269~~449
Cash and cash equivalents at end of period	$	~~223~~4,~~143~~746,979		$	1214,~~494,513~~695
Supplemental disclosure of cash flow information
Income tax paid	$	-		$	~~5,208~~-
Interest paid	$	167,~~263~~831		$	-6,355

See accompanying notes to unaudited consolidated condensed financial statements.

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Forlink Software Corporation, Inc. (the “"Company”" or the “"Registrant”" or “"Forlink”"), is a Nevada corporation which was originally incorporated on January 7, 1986 as “"Why Not?, Inc.” " under the laws of the State of Utah and subsequently reorganized under the laws of Nevada on December 30, 1993. From 1996 until 1999, the Company continued as an unfunded venture in search of a suitable business acquisition or business combination.

On November 3, 1999, we entered into a Plan of Reorganization with Beijing Forlink Software Technology Co., Ltd., (hereinafter “"BFSTC”"), a limited liability company organized under the laws of the PRC, under the terms of which BFSTC gained control of the Company. Pursuant to the Plan of Reorganization, we acquired 100% of the registered and fully paid-up capital of BFSTC in exchange for 20,000,000 shares of the Company's authorized, but unissued, common stock. BFSTC is engaged in the provision of computer software consultancy and engineering services and the development and sale of computer software in the PRC. As a part of its computer consultancy and engineering services, BFSTC is also engaged in the sale of computer hardware. In June 2001, BFSTC changed its name to Forlink Technologies Co. Ltd. (“FTCL”). FTCL is our major operating subsidiary in China.

InOn ~~August~~June ~~2001~~18, we2003, ~~acquired~~Forlink ~~Beijing Slait~~Technologies ~~Science~~(Hong &Kong) ~~Technology Development~~ Limited ~~Co.~~ (“~~SLAIT~~FTHK”) ~~pursuant~~was toincorporated ain ~~Plan~~Hong ofKong ~~Reorganization~~Special ~~dated~~Administrative ~~January~~Region ~~11,~~as ~~2001~~a limited liability company. WeIn ~~issued~~December 592003,~~430,000~~ ~~shares~~FTHK ofbecame ~~our~~a ~~common~~wholly ~~stock~~owned tosubsidiary ~~SLAIT’s~~of ~~original~~Forlink. ~~owners~~FTHK inis ~~exchange~~an ~~for~~investment ~~100%~~holding ~~of the outstanding equity of SLAIT~~company. AsBecause ~~a result~~ of the ~~share~~favorable business ~~exchange,~~environment ~~the~~in ~~former~~Hong ~~owners~~Kong, ofwe ~~SLAIT~~can ~~own~~simplify ~~approximately 70% of the issued~~ and ~~outstanding~~speed ~~shares of~~up ~~the~~investment ~~Company,~~transactions ~~and~~through ~~SLAIT~~this ~~became a wholly owned~~ subsidiary ~~of the Company~~. WeThrough ~~also~~FTHK, on ~~agreed~~December to18, ~~transfer 1~~2003,~~085,000~~ ~~Renminbi~~we ~~(“RMB”) (approximately~~invested US$~~131~~760,~~039)~~870 toin ~~the~~All ~~former~~China ~~owners~~Logistics ofOnline ~~SLAIT~~Co., ALtd. ~~change~~("All inChina ~~control~~Logistics"), ~~occurred~~a ~~in which all but one of the officers and~~privately ~~directors~~held ofPRC ~~the~~company ~~Company resigned~~ and ~~two~~a ~~former~~leading ~~directors~~provider ~~(also former owners)~~ of ~~SLAIT~~logistic ~~became~~services ~~officers and directors of the Company. Prior to its dissolution~~ in ~~2004~~China, ~~SLAIT~~in ~~provided~~exchange ~~application~~for ~~system~~a ~~integration~~17.8% ~~technology~~equity ~~and~~interest. ~~specializes~~Through inthis ~~large~~investment, we ~~volume~~have ~~transaction processing~~become ~~software~~the ~~for~~second ~~networks~~largest ~~such~~shareholder asof ~~mobile~~All ~~phone~~China ~~billing~~Logistics and ~~band~~its ~~operation.~~sole ~~Subsequent~~software tosolution ~~our~~provider. ~~acquisition,~~FTHK ~~the~~is ~~principal~~also responsible ~~activities~~for ofdirectly ~~SLAIT~~importing ~~were~~from ~~gradually~~overseas ~~shifted~~companies tocertain ~~those~~hardware ofneeded ~~FTCL.~~for Onproduct ~~February 13~~integration, ~~2004,~~which ~~SLAIT~~allows ~~was~~us ~~officially~~to ~~dissolved~~improve ~~in accordance~~our ~~with~~hardware ~~relevant~~pass-through ~~PRC~~profit ~~regulations~~margin.

On June 1814, ~~2003~~2004, Forlink Technologies (~~Hong Kong~~Chengdu) Limited (~~“FTHK”~~"FTCD") was ~~incorporated~~established ~~in Hong Kong Special Administrative Region~~ as a limited liability company~~. In~~ ~~December~~in ~~2003~~Chengdu, ~~FTHK~~PRC and subsequently became a wholly owned subsidiary of ~~Forlink.~~ FTHK isin anSeptember ~~investment holding company~~2004. ~~Because~~FTCD ofis in the ~~favorable~~ business ~~environment~~of inproviding ~~Hong~~software ~~Kong,~~outsourcing weservices ~~can simplify~~ and ~~speed~~software ~~up investment transactions through this subsidiary~~development. ~~Through FTHK,~~ onThe ~~December~~registered ~~18,~~capital ~~2003,~~of weFTCD ~~invested~~is $~~760~~5,~~870~~000,000 inand ~~All~~the ~~China~~fully ~~Logistics~~paid ~~Online~~up ~~Co.,~~capital ~~Ltd.~~was ~~("All China Logistics")~~$750,000 aas ~~privately held PRC company and a leading provider~~ of ~~logistic~~December ~~services in China~~31, ~~in exchange for a 17~~2005.8% ~~equity~~In ~~interest.~~April ~~Through this investment~~2006, weFTHK ~~have~~further ~~become~~invested ~~the~~$130,000 ~~second~~in ~~largest~~FTCD. ~~shareholder~~FTCD ofcommenced ~~All~~operations ~~China~~in ~~Logistics~~late ~~and its sole software solution provider~~2005. ~~FTHK~~The isregistered ~~also~~capital ~~responsible for~~of ~~directly~~FTCD ~~importing~~was ~~from~~reduced ~~overseas companies certain hardware needed for product integration, which allows us~~ to ~~improve our~~$200,000 ~~hardware~~in ~~pass-through~~December ~~profit margin~~2007. ~~On August 2008, FTHK transferred all its ownership of All China Logistics to FTHX.~~

OnIn ~~June~~compliance ~~14,~~with ~~2004,~~China’s ~~Forlink Technologies~~foreign ~~(Chengdu)~~investment ~~Limited~~restrictions ~~(“FTCD”)~~on ~~was~~telecom ~~established~~value-added asservices aand ~~limited~~other ~~liability~~laws ~~company~~and ~~in Chengdu~~regulations, ~~PRC~~we ~~and~~conduct ~~subsequently~~our ~~became~~telecom avalue-added services ~~wholly~~and ~~owned~~application ~~subsidiary~~integration ofservices ~~FTHK~~for government organizations in ~~September~~China ~~2004~~via Beijing Forlink Hua Xin Technology Co. ~~FTCD~~Ltd. is("BFHX"). BFHX was established in the ~~business~~PRC ofon ~~providing~~September ~~software~~19, ~~outsourcing~~2003 ~~services~~as ~~and~~a ~~software development~~limited liability company. The registered capital of ~~FTCD~~BFHX is $5120,733 (RMB 1,000,000) and ~~the~~was fully paid up ~~capital~~as ~~was~~of ~~$750~~March 31,~~000~~ 2005. Mr. Yi He and Mr. Wei Li have been entrusted as nominee owners of ~~December~~BFHX to 31hold 70% and 30%, ~~2005~~respectively, of the fully paid up capital of BFHX on behalf of Forlink as the primary beneficiary. InBFHX is ~~April~~considered ~~2006~~a Variable Interest Entity ("VIE"), ~~FTHK~~and ~~further~~because ~~invested~~we ~~$130~~are the primary beneficiary,~~000~~ inour ~~FTCD~~consolidated financial statements include BFHX. ~~FTCD~~Upon ~~commenced~~the ~~operations~~request inof ~~late~~the ~~2005~~Company, Mr. ~~The~~Yi He and Mr. Wei Li are required to transfer their ownership in BFHX to us or our designee at any time for the amount of the fully paid registered capital of ~~FTCD~~BFHX. ~~was reduced~~Mr. toYi ~~$200~~He is the Chief Executive Officer,~~000~~ ina ~~December~~director ~~2007~~and a major stockholder of the Company. Mr. Wei Li is the administration manager of FTCL.

On October 12, 2006, we invested $31,969 (RMB 250,000) in Wuxi Stainless Steel Exchange Co., Ltd. (“Wuxi Exchange”), a PRC limited liability company, for a 12.5% equity interest. In addition, we agreed to deploy a proprietary, integrated software solution, estimated at RMB 1,000,000, to support Wuxi Exchange’s operations. The software was deployed in February 2007. On January 14, 2007, the Company entered into an agreement with a major shareholder of Wuxi Exchange pursuant to which the Company transferred 2.5% of the Company’s interest in Wuxi Exchange to this major shareholder for a cash payment of RMB 500,000. On February 2, 2012, Wuxi Exchange increased its registered capital to RMB 50,000,000, and since we invested additional funds into Wuxi Exchange, the ratio of our holding was still as a 10% equity interest.

In compliance with China’s foreign investment restrictions on telecom value-added services and other laws and regulations, we conduct our telecom value-added services and application integration services for government organizations in China via Beijing Forlink Hua Xin Technology Co. Ltd. ("BFHX"). BFHX was established in the PRC on September 19, 2003 as a limited liability company. The registered capital of BFHX is $120,733 (RMB 1,000,000) and was fully paid up as of March 31, 2005. Mr. Yi He and Mr. Wei Li have been entrusted as nominee owners of BFHX to hold 70% and 30%, respectively, of the fully paid up capital of BFHX on behalf of Forlink as the primary beneficiary. BFHX is considered a Variable Interest Entity ("VIE"), and because we are the primary beneficiary, our consolidated financial statements include BFHX. Upon the request of the Company, Mr. Yi He and Mr. Wei Li are required to transfer their ownership in BFHX to us or our designee at any time for the amount of the fully paid registered capital of BFHX. Mr. Yi He is the Chief Executive Officer, a director and a major stockholder of the Company. Mr. Wei Li is the administration manager of FTCL.5

On ~~October~~January 2425, ~~2005~~2007, weour ~~entered~~board ~~into~~of adirectors ~~definitive~~and ~~agreement~~the tomajority ~~acquire~~holders aof ~~17.5%~~the ~~equity interest from China Liquid Chemical Exchange~~ Company’s ~~Limited~~common ~~(“CLCE”), a~~stock ~~PRC~~jointly ~~limited~~approved ~~liability~~an ~~company.~~amendment ~~Under~~to ~~the~~our ~~terms~~Articles of ~~the~~Incorporation ~~agreement, Forlink deployed the “For-online Electronic Trading System”,~~by awritten ~~proprietary~~consent, ~~integrated software solution,~~ to ~~support~~increase ~~CLCE’s~~the ~~operations,~~number ~~including,~~of ~~but~~authorized ~~not~~shares ~~limited~~of ~~to,~~common ~~online~~stock ~~trading, online~~from ~~billing and payment~~100, ~~user authentication and customer care~~000,000 ~~in exchange for the 17.5% equity interest. In early 2007, CLCE increased its share capital~~ to $1200,~~708,526 (RMB 13,~~000,000). AsThe weCertificate ~~did~~of Amendment ~~not~~to ~~subscribe for the new shares,~~ our ~~shareholding~~Articles of ~~CLCE was~~Incorporation ~~diluted~~to ~~and~~effect asthe increase of ~~December~~the 31number ~~2008~~of ~~was~~our ~~13.46%.~~authorized ~~CLCE~~common ~~commenced~~shares ~~operations~~was ~~fully~~filed ~~in early 2007. CLCE~~with ~~paused~~Nevada’s ~~its~~Secretary ~~operations~~of asState ofon ~~December~~April 314, ~~2011~~2007. ~~The value of the investment was $0 at the end of 2011.~~

On ~~October~~July 312, ~~2006~~2007, we ~~entered~~invested ~~into~~through ~~a Transfer of Right to Invest and Project Cooperation Agreement (“Statelink Agreement”) with Statelink International Group~~FTGX, ~~Ltd.,~~ a British Virgin Islands company (“Statelink”), pursuant to which we acquired 22.73% registered capital in Guangxi Caexpo International Trade and Logistics Co., Ltd. (“Guangxi Caexpo”), a PRC limited liability company in the businesses of real estate development, advertising and computer distribution, for cash consideration of $21,~~557~~063,~~545~~830 (RMB 208,000,000) ~~from~~in ~~BFHX and~~Nanning ~~stock~~Bulk ~~consideration~~Commodities ofExchange ~~13,000,000~~Corporation shares of our restricted common stock. Thereafter, we also won a contract from Guangxi Caexpo to build an “Electronic Trade and Logistics Information Platform and Call Center” (the “Project”). On October 26, 2006, BFHX established Forlink Technologies (Guangxi) Limited (“~~FTGX~~NNBCE”), a ~~PRC~~privately ~~limited~~held ~~liability company and wholly~~PRC ~~owned subsidiary~~company, tofor ~~carry~~an ~~out~~80% ~~this~~equity ~~contract~~interest. AtNNBCE ~~the~~became ~~time~~a subsidiary of ~~incorporation, BFHX injected RMB 20,000,000 (approximately US$2,557,545) as registered capital to~~ FTGX. ~~The~~NNBCE, ~~Project~~established ~~was~~on ~~completed~~April in29, ~~the fourth quarter of~~ 2007, ~~and~~commenced ~~with~~operations on ~~the~~March ~~successful~~28, ~~deployment of the relevant software~~2008, ~~the~~and ~~client~~provides ~~signed~~logistical ~~the~~e-commerce ~~final inspection report in January 2009~~service. On ~~August~~February 202, ~~2010~~2012 , ~~the Company transferred all~~ ~~its~~FTHX ~~ownership~~paid ~~interests~~$203,884 in(RMB ~~Guangxi~~1,285,960) ~~Caexpo~~ to ~~Guangxi~~purchase ~~Sanqi~~all ~~Investment Co., Ltd for~~ the ~~amount~~equity ofinterests ~~Guangxi Caexpo’s 22.73% fully paid capital. The Company received a cash payment~~ of ~~$3,024,355 (RMB 20,000,000)~~NNBCE.

On ~~October~~December 1224, ~~2006~~2007, weour ~~invested~~board ~~$31,969~~of directors ~~(RMB~~and ~~250,000)~~the inmajority ~~Wuxi~~holders ~~Stainless~~of ~~Steel~~the ~~Exchange~~Company’s ~~Co.,~~common ~~Ltd.~~stock ~~(“Wuxi~~jointly ~~Exchange”),~~approved aan ~~PRC~~amendment ~~limited~~to ~~liability~~our ~~company,~~Articles ~~for~~of aIncorporation by ~~12.5%~~written ~~equity interest. In addition~~consent, ~~we agreed~~ to ~~deploy~~effect a ~~proprietary, integrated software solution, estimated at RMB~~ 1~~,000,000, to~~-for-20 ~~support~~reverse ~~Wuxi~~stock ~~Exchange’s operations~~split. The ~~software~~Certificate ~~was~~of ~~deployed~~Amendment into ~~February~~our ~~2007.~~Articles ~~On January 14, 2007, the Company entered into an agreement with a major shareholder~~ of ~~Wuxi~~Incorporation ~~Exchange pursuant~~ to ~~which~~ effect the ~~Company~~reverse ~~transferred~~split ~~2.5%~~was offiled ~~the~~with ~~Company~~Nevada’s ~~interest~~ inSecretary ~~Wuxi Exchange to this major shareholder for a cash payment~~ of ~~RMB~~State ~~500,000.~~on On February 221, ~~2012, Wuxi Exchange increased its registered capital to RMB 50,000,000, and since we invested additional funds into Wuxi Exchange, the ratio of our holding was still as a 10% equity interest~~2008.

6On February 8, 2010, the Company transferred all its ownership interests in FTCL to BFHX for the amount of FTCL’s 100% fully paid capital.

On ~~January~~October 258, ~~2007~~2010, ~~our board of directors and~~ the ~~majority holders of the~~ Company’s ~~common stock jointly approved an amendment to our Articles of Incorporation by~~invested ~~written consent~~$151,213 to(RMB ~~increase the number of authorized shares of common stock from 100~~1,000,000), tothrough ~~200~~BFHX,~~000,000.~~ ~~The~~in ~~Certificate~~Shanghai ~~of Amendment~~Shipping toFreight ~~our~~Exchange ~~Articles~~Co., ofLTD ~~Incorporation~~(“SSFE”), toa ~~effect~~PRC ~~the~~limited ~~increase~~liability company, ofestablished ~~the~~on ~~number~~October of8, ~~our~~2010, ~~authorized~~for ~~common~~a ~~shares~~5% ~~was~~equity ~~filed~~interest. ~~with Nevada’s~~SSFE ~~Secretary~~began ofto ~~State~~commence its operations on ~~April~~March 425, ~~2007~~2011.

~~On April 29~~Forlink, ~~2007,~~its wesubsidiaries ~~invested,~~and ~~through BFHX,~~VIE ~~$138,158~~ (~~RMB~~hereinafter collectively ~~1,050,000)~~referred into ~~Beijing~~as ~~GuoXin~~the ~~Forlink Internet Technologies Limited (~~“~~BGXF~~Company”), aare ~~privately~~all ~~held~~operating ~~PRC company that operates a finance study website, for a 35% equity interest~~companies. ~~The~~Set ~~investment~~forth inbelow ~~BGXF~~ is ~~accounted~~a ~~for~~diagram ~~under the equity~~illustrating ~~method of accounting due to~~ the Company’s ~~significant~~corporate ~~influence~~structure ~~over~~as ~~the operational and financial policies~~ of ~~BGXF. BGXF commenced operations on~~ March ~~9 2008. On October 14~~31, 2008, BGXF increased its registered capital to RMB 4,285,700, and since we did not invest additional funds into BGXF, the ratio of our holding was diluted to a 24.5% equity interest. On March 15, 2011, the Company transferred all its ownership interests in BGXF to Beijing Guo Xin XinChuang Investment Co., Ltd for the amount of BGXF’s 24.5% fully paid capital. The Company received a cash payment of RMB 95,741.2013:

On July 12, 2007, we invested through FTGX, $1,063,830 (RMB 8,000,000) in Nanning Bulk Commodities Exchange Corporation Limited (“NNBCE”), a privately held PRC company, for an 80% equity interest. NNBCE became a subsidiary of FTGX. NNBCE, established on April 29, 2007, commenced operations on March 28, 2008, and provides logistical e-commerce service. On February 2, 2012, FTGX purchased 10% equity interest (RMB 1,000,000) in NNBCE from Guangxi Caexpo; the ratio of FTGX’s holding was changed into a 90% equity interest.6

On September 5, 2007, we invested through NNBCE, $465,425 (RMB 3,500,000) in Guangxi Bulk Sugar & Ethanol Exchange Corporation Limited (“GBSEE”), a PRC limited liability company established on September 12, 2007, for a 35% equity interest. On the same date, All China Logistics was entrusted to hold 20% of the fully paid up capital of GBSEE on behalf of NNBCE as the primary beneficiary. Upon the request of NNBCE, All China Logistics is required to transfer its ownership interests in GBSEE to NNBCE or its designees at any time for the amount of the 20% fully paid up capital. In accordance with Financial Accounting Standards Board (“FASB”) Interpretation No. 46R “Consolidation of Variable Interest Entities - An Interpretation of ARB No. 51” (“FIN 46R”), NNBCE is deemed to hold the primary beneficial interest of the 55% equity interest in GBSEE. GBSEE was established to provide logistical e-commerce service, but it was dissolved on December 16, 2007 before it commenced any operations, and NNBCE received payments back of its investment in GBSEE of $410,397 (RMB 3,000,000) in December 2007; $66,211 (RMB 484,000) in February 2008, and $2,189 (RMB 16,000) in September 2008.7

OnNOTE ~~December~~2 ~~24, 2007, our board of directors and the majority holders of the Company’s common stock jointly approved an amendment to our Articles of Incorporation by written consent, to effect a 1~~-~~for-20~~ ~~reverse~~BASIS ~~stock~~OF ~~split.~~PRESENTATION ~~The~~AND ~~Certificate of Amendment to our Articles of Incorporation to effect~~SUMMARY ~~the~~OF ~~reverse~~SIGNIFICANT ~~split~~ACCOUNTING ~~was filed with Nevada’s Secretary of State on February 21, 2008.~~POLICIES

OnBasis March 20, 2008, Forlink invested $71,124 (RMB 500,000), through BFHX, in Shandong LongDong Internet Technologies Limited (“SDLD”), a PRC limited liability company, established on October 24, 2007, for a 5% equity interest. SDLD, which commenced operations in December 2007, is in the business of ~~providing~~Accounting ofand ~~providing~~Principles ~~primary products e-commerce services. The purpose~~ of ~~the investment is to gain cash dividends from SDLD.~~ Consolidation

OnThe ~~February~~consolidated 8,financial ~~2010,~~statements are prepared in accordance with generally accepted accounting principles in the ~~Company~~United ~~transferred~~States of America that include the financial ~~all~~statements of Forlink and its ~~ownership~~subsidiaries ~~interests~~and inVIE, namely, FTCL, toFTHK, BFHX, ~~for~~FTCD, ~~the~~FTGX, ~~amount~~and ofNNBCE. ~~FTCL’s~~All ~~100%~~inter-entity ~~fully~~transactions and ~~paid~~balances ~~capital~~have been eliminated.

OnNon-controlling ~~October~~interests 8,at ~~2010~~the balance sheet date, being the ~~Company~~portion ~~invested $151,213~~of ~~(RMB~~the ~~1,000,000),~~net ~~through~~assets ~~BFHX,~~of insubsidiaries ~~Shanghai~~attributable ~~Shipping~~to ~~Freight~~equity ~~Exchange~~interests ~~Co.,~~that ~~LTD~~are ~~(“SSFE”)~~not owned by Forlink, whether adirectly ~~PRC~~or ~~limited~~indirectly ~~liability company~~through subsidiaries, ~~established~~are onpresented ~~October~~in 8,the ~~2010,~~consolidated ~~for~~balance asheet 5%separately ~~equity~~from ~~interest~~liabilities and the shareholders’ equity. ~~SSFE~~Non-controlling ~~began~~interests toin ~~commence~~the ~~its~~results ~~operations~~of onthe ~~March~~Company ~~25,~~for ~~2011~~the years are also separately presented in the income statement.

7Use of Estimates

~~Forlink,~~The ~~its~~preparation ~~subsidiaries~~of financial statements in accordance with generally accepted accounting principles requires management to make estimates and ~~VIE~~assumptions ~~(hereinafter~~that affect reported ~~collectively~~amounts ~~referred~~of toassets asand ~~the~~liabilities ~~“Company”),~~and ~~are~~disclosure ~~all~~of ~~operating~~contingent ~~companies.~~assets ~~Set~~and ~~forth~~liabilities ~~below~~at isthe adate ~~diagram~~of ~~illustrating~~ the ~~Company’s~~financial ~~corporate~~statements ~~structure~~and the asreported amounts of ~~September~~revenues ~~30,~~and ~~2012:~~expenses during the reporting period. Actual results could differ from those estimates.

8Foreign Currency Translation and Transactions

9The functional currency of Forlink is the US Dollar (“US$”) and the financial records are maintained and the financial statements prepared in US$. The functional currency of FTHK is the HK Dollar (“HK$”) and its financial records are maintained, and its financial statements prepared, in HK$. The functional currency of FTCL, BFHX, FTCD, FTGX, and NNBCE is the Renminbi (“RMB”) and their financial records are maintained, and their financial statements are prepared, in RMB.

~~NOTE~~Foreign 2currency -transactions ~~BASIS~~during OFthe period ~~PRESENTATION~~are ~~AND~~translated ~~SUMMARY~~into each company’s denominated currency at the exchange rates on the transaction dates. Gain and loss OFresulting ~~SIGNIFICANT~~from ~~ACCOUNTING~~foreign ~~POLICIES~~currency transactions are included in the consolidated statement of operations. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated into each company’s denominated currency at the year-end exchange rates. All exchange differences are dealt with in the consolidated statements of operations.

~~Basis~~The financial statements of the Company’s operations based outside of the United States have been translated into US$ under the guidance of the FASB Accounting Standards Codification (ASC) Topic 830 “Foreign Currency Matters”. Management has determined that the functional currency for each of the Company’s foreign operations is its applicable local currency. When translating functional currency financial statements into US$, year-end exchange rates are applied to the consolidated balance sheets, while average period rates are applied to consolidated statements of operations. Translation gains and ~~Principles~~losses are recorded in a translation reserve as a component of ~~Consolidation~~shareholders’ equity.

The ~~consolidated~~value ~~financial~~of ~~statements~~the ~~are prepared~~RMB is subject to changes in ~~accordance~~China’s ~~with~~central ~~generally~~government ~~accepted~~policies ~~accounting~~and ~~principles~~to international economic and political developments affecting supply and demand in the ~~United~~China ~~States~~Foreign ofExchange ~~America~~Trading ~~that~~System ~~include~~market. Since 1994, the ~~financial statements~~conversion of ~~Forlink~~RMB ~~and~~into ~~its~~foreign ~~subsidiaries~~currencies, ~~and~~including ~~VIE~~US$, has ~~namely,~~been ~~FTCL,~~based ~~FTHK~~on rates set by the People’s Bank of China, ~~BFHX~~which are set daily based on the previous day’s inter-bank foreign exchange market rates and current exchange rates on the world financial markets. Since 1994, ~~FTCD~~the official exchange rate generally has been stable. In July 2005, ~~FTGX~~the Chinese government announced that it would no longer peg its currency exclusively to US$, but would switch to a managed floating exchange rate based on market supply and ~~NNBCE.~~demand ~~All~~with ~~inter-entity~~reference ~~transactions~~to a basket of currencies ~~and~~which ~~balances~~would ~~have~~likely ~~been~~increase ~~eliminated~~the volatility of RMB as compared to US$. The exchange rate of RMB to US$ changed from RMB8.28 to RMB8.11 in late July 2005.

Non-controlling interests at the balance sheet date, being the portion of the net assets of subsidiaries attributable to equity interests that are not owned by Forlink, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet as a separate line in the section of shareholders’ equity. Non-controlling interests in the results of the Company for the years are also separately presented in the income statement.8

~~Use~~The exchange rates used as of ~~Estimates~~March 31, 2013 and December 31, 2012 are US$1:HK$7.76:RMB6.27, and US$1:HK$7.75:RMB6.29, respectively. The weighted average rates ruling for the periods ended March 31, 2013 and March 31, 2012 are US$1:HK$7.76:RMB6.28, and US$1:HK$7.79:RMB6.31, respectively.

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

The RMB is not a freely convertible currency. The State Administration for Foreign ~~Currency~~Exchange, ~~Translation~~under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and ~~Transactions~~to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market.

The ~~functional~~PRC ~~currency~~subsidiaries conduct their business substantially in the PRC, and their financial performance and position are measured in terms of ~~Forlink~~RMB. isAny devaluation of the RMB USagainst ~~Dollar~~the (“US$”) ~~and~~would ~~the~~consequently ~~financial~~have ~~records~~an ~~are~~adverse ~~maintained~~effect ~~and~~on the financial ~~statements~~performance ~~prepared~~and asset values of the Company when measured in terms of US$. The ~~functional currency~~PRC ofsubsidiaries’ ~~FTHK~~products isare ~~the~~primarily HKprocured, ~~Dollar~~sold ~~(“HK$”)~~ and ~~its~~delivered ~~financial~~in ~~records~~the ~~are~~PRC ~~maintained~~for RMB. Thus, their revenues and ~~its~~profits ~~financial~~are ~~statements~~predominantly ~~prepared,~~ denominated in ~~HK$~~RMB. ~~The~~Should ~~functional~~the ~~currency~~RMB ofdevalue ~~FTCL,~~against ~~BFHX~~US$, ~~FTCD,~~such ~~FTGX,~~devaluation ~~and~~could ~~NNBCE~~have isa material adverse effect on the ~~Renminbi~~Company’s ~~(“RMB”)~~profits and ~~their~~the ~~financial~~foreign ~~records are~~currency ~~maintained,~~equivalent ~~and~~of ~~their~~such ~~financial~~profits ~~statements~~repatriated ~~are~~by ~~prepared,~~the inPRC ~~RMB~~entities to the Company.

~~Foreign~~Cash ~~currency transactions during the period are translated into each company’s denominated currency at the exchange rates at the transaction dates. Gain~~ and ~~loss resulting~~Cash from foreign currency transactions are included in the consolidated statement of operations. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated into each company’s denominated currency at the yearend exchange rates. All exchange differences are dealt with in the consolidated statements of operations.Equivalents

~~The~~Cash ~~financial~~and ~~statements~~cash ofequivalents ~~the~~include ~~Company’s~~cash ~~operations~~in ~~based~~hand ~~outside~~and ofall ~~the~~highly ~~United~~liquid ~~States~~investments ~~have~~with ~~been~~an ~~translated~~original ~~into~~maturity ~~US$ under the guidance~~ of ~~the~~three ~~FASB~~months ~~Accounting~~or ~~Standards Codification (ASC) Topic 830 “Foreign Currency Matters~~less.” Management has determined that the functional currency for each of the Company’s foreign operations is its applicable local currency. When translating functional currency financial statements into US$, year-end exchange rates are applied to the consolidated balance sheets, while average period rates are applied to consolidated statements of operations. Translation gains and losses are recorded in translation reserve as a component of stockholders’ equity.

~~The~~Allowance ~~value~~for ofDoubtful the RMB is subject to changes in China’s central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Since 1994, the conversion of RMB into foreign currencies, including US$, has been based on rates set by the People’s Bank of China, which are set daily based on the previous day’s inter-bank foreign exchange market rates and current exchange rates on the world financial markets. Since 1994, the official exchange rate generally has been stable. In July 2005, the Chinese government announced that it will no longer peg its currency exclusively to US$ but will switch to a managed floating exchange rate based on market supply and demand with reference to a basket of currencies which will likely increase the volatility of RMB as compared to US$. The exchange rate of RMB to US$ changed from RMB8.28 to RMB8.11 in late July 2005.Accounts

10We record an allowance for doubtful accounts based on specifically identified amounts that the Company believes to be uncollectible. We have a limited number of customers with individually large amounts due at any given balance sheet date. Any unanticipated change in one of those customers’ credit worthiness or other matters affecting the collectability of amounts due from such customers could have a material effect on the results of operations in the period in which such changes or events occur. After all attempts to collect a receivable have failed, the receivable is written off against the allowance.

The exchange rates used as of September 30, 2012 and December 31, 2011 are US$1:HK$7.79:RMB6.30, and US$1:HK$7.80:RMB6.30, respectively. The weighted average rates ruling for the periods ended September 30, 2012 and September 30, 2011 are US$1:HK$7.79:RMB6.34, and US$1:HK$7.79:RMB6.44, respectively.Inventories

~~Foreign~~Inventories ~~Currency~~are ~~Risk~~stated at the lower of cost or market. For inventory used in system integration services, cost is calculated using the specific identification method. For the sale of computer hardware, cost is calculated using first-in, first-out method. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Market value is determined by reference to the sales proceeds of items sold in the ordinary course of business after the balance sheet date or to management estimates based on prevailing market conditions.

~~The RMB is not a freely convertible currency. The State Administration for Foreign Exchange~~Property, ~~under the authority of the People’s Bank of China~~Plant, ~~controls~~Equipment ~~the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies~~ and ~~to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market.~~Depreciation

~~The PRC subsidiaries conduct their business substantially in the PRC~~Property, ~~and~~plant ~~their financial performance~~ and ~~position~~equipment are ~~measured~~stated at ~~in terms of RMB~~cost. ~~Any~~Depreciation ~~devaluation~~is ofcomputed ~~the~~using ~~RMB against~~ the ~~US$~~straight-line ~~would~~method ~~consequently~~to ~~have~~allocate ~~an adverse effect on~~ the ~~financial~~cost ~~performance and asset values~~ of ~~the~~depreciable ~~Company~~assets ~~when~~over ~~measured in terms of US$. The PRC subsidiaries’ products are primarily procured, sold and delivered in~~ the ~~PRC for RMB. Thus, their~~estimated ~~revenues~~useful ~~and~~lives ~~profits are predominantly denominated in RMB. Should the RMB devalue against US$, such devaluation could have a material adverse effect on the Company’s profits and the foreign currency equivalent~~ of ~~such profits repatriated by~~ the ~~PRC~~assets ~~entities to~~as ~~the Company.~~follows:

Cash and Cash Equivalents

	Estimated useful life (in years)

Building		20
Computer equipment		3
Office equipment		5
Motor vehicle		10

~~Cash and cash equivalents include cash in hand and all highly liquid investments with an original maturity of three months or less.~~9

~~Allowance~~Major improvements of property, plant and equipment are capitalized, while expenditures for ~~Doubtful~~repair ~~Accounts~~and maintenance and minor renewals and betterments are charged directly to the statements of operations as incurred. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the statement of operations.

WeComputer ~~record~~Software anDevelopment allowance for doubtful accounts based on specifically identified amounts that the Company believes to be uncollectible. We have a limited number of customers with individually large amounts due at any given balance sheet date. Any unanticipated change in one of those customers’ credit worthiness or other matters affecting the collectability of amounts due from such customers could have a material effect on the results of operations in the period in which such changes or events occur. After all attempts to collect a receivable have failed, the receivable is written off against the allowance.Costs

~~Inventories~~Software development costs are expensed as incurred until technological feasibility in the form of a working model has been established. Deferred software development costs will be amortized over the estimated economic life of the software once the product is available for general release to customers. For the current software products, the Company determined that technological feasibility was reached at the point in time it was available for general distribution. Therefore, no costs were capitalized.

~~Inventories~~Long ~~are~~term stated at the lower of cost or market. For inventory used in system integration services, cost is calculated using the specific identification method. For the sale of computer hardware, cost is calculated using first-in, first-out method. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Market value is determined by reference to the sales proceeds of items sold in the ordinary course of business after the balance sheet date or to management estimates based on prevailing market conditions.investments

~~Property,~~The ~~Plant,~~Company’s ~~Equipment~~long term investments consist of (1) equity investments which are accounted for in accordance with the equity method and ~~Depreciation~~(2) cost investments which are accounted for under the cost method. Under the equity method, each such investment is reported at cost plus the Company’s proportionate share of the income or loss or other changes in shareholders’ equity of each such investee since its acquisition. The consolidated results of operations include such proportionate share of income or loss. See Note 7.

~~Property,~~Fair ~~plant~~Values ~~and equipment are stated at cost. Depreciation is computed using the straight-line method to allocate the cost~~ of ~~depreciable~~Financial ~~assets over the estimated useful lives of the assets as follows:~~Instruments

	Estimated useful life (in years)
Building		20
Computer equipment		3
Office equipment		5
Motor vehicle		10

The carrying amounts of financial instruments (cash and cash equivalents, investments, accounts receivable and accounts payable) approximate their fair values as of March 31, 2013 and December 31, 2012 because of the relatively short-term maturity of these instruments.

11Revenue Recognition

~~Major~~The ~~improvements~~Company ofgenerally ~~property,~~provides ~~plant and~~services ~~equipment~~under ~~are~~multiple ~~capitalized~~element arrangements, ~~while~~which ~~expenditures~~include ~~for~~software ~~repair~~license ~~and~~fees, ~~maintenance~~hardware and ~~minor~~software ~~renewals~~sales, and ~~betterments~~the ~~are~~provision ~~charged~~of ~~directly~~system tointegration ~~the~~services ~~statements~~including ofconsulting, ~~operations~~implementation, asand ~~incurred~~software maintenance. ~~When~~The ~~assets~~Company ~~are~~evaluates ~~disposed~~revenue ~~of,~~recognition on a contract-by-contract basis as the ~~related~~terms ~~cost~~of ~~and~~each ~~accumulated~~arrangement ~~depreciation~~vary. ~~thereon are~~The ~~removed~~evaluation ~~from~~of the ~~accounts~~contractual arrangements often requires judgments and ~~any~~estimates ~~resulting~~that ~~gain~~affect orthe ~~loss~~timing isof ~~included~~revenue recognized in the ~~statement~~statements of operations. Specifically, the Company may be required to make judgments about:

~~Computer~~· ~~Software~~whether ~~Development~~the ~~Costs~~fees associated with our products and services are fixed or determinable;

~~Software~~· ~~development~~whether ~~costs~~collection ~~are expensed as incurred until technological feasibility in the form~~ of aour ~~working~~fees ~~model has been established. Deferred software development costs will be amortized over the estimated economic life of the software once the product~~ is ~~available~~reasonably for general release to customers. For the current software products, the Company determined that technological feasibility was reached at the point in time it was available for general distribution. Therefore, no costs were capitalized.assured;

~~Long~~· ~~term~~whether ~~investments~~professional services are essential to the functionality of the related software product;

~~The~~· ~~Company’s~~whether ~~long~~we ~~term~~have ~~investments consist~~the ofability ~~(1)~~to ~~equity~~make ~~investments~~reasonably ~~which~~dependable ~~are~~estimates ~~accounted for~~ in ~~accordance with~~ the ~~equity~~application ~~method and (2) cost investments which are accounted for under the cost method. Under the equity method, each such investment is reported at cost plus the Company’s proportionate share~~ of the ~~income or loss or other changes in stockholders’ equity~~ percentage-of-completion ~~each~~method; ~~such investee since its acquisition. The consolidated results of operations include such proportionate share of income or loss. See Note 7.~~and

~~Fair~~· ~~Values~~whether we have verifiable objective evidence of ~~Financial~~fair ~~Instruments~~value for our products and services.

The ~~carrying~~Company ~~amounts~~recognizes ofrevenues ~~financial~~in ~~instruments~~accordance ~~(cash~~with ~~and~~the ~~cash~~provisions ~~equivalents,~~of ~~investments~~ASC 985, ~~accounts~~“Software ~~receivable~~Revenue ~~and~~Recognition.” ~~accounts~~ASC ~~payable)~~985 ~~approximate~~requires ~~their~~among ~~fair~~other ~~values~~matters, asthat ofthere ~~September~~be ~~30,~~a ~~2012~~signed ~~and~~contract ~~December~~evidencing 31an arrangement exists, ~~2011~~delivery ~~because~~has ofoccurred, the ~~relatively~~fee ~~short-term~~is ~~maturity~~fixed ofor ~~these~~determinable, ~~instruments~~and collectability is probable.

~~Revenue Recognition~~10

~~The~~Software ~~Company~~license ~~generally~~revenue ~~provides~~is ~~services~~recognized ~~under~~over ~~multiple~~the ~~element~~accounting ~~arrangements,~~periods ~~which~~contained ~~include~~in ~~software~~the ~~license~~terms ~~fees,~~of ~~hardware~~the ~~and~~relevant ~~software sales~~agreements, ~~and~~commencing upon the ~~provision~~delivery of ~~system integration~~the ~~services including consulting, implementation, and~~ software ~~maintenance. The Company evaluates revenue recognition~~provided onthat a(1) ~~contract-by-contract~~there ~~basis~~is asevidence ~~the terms~~ of ~~each~~an arrangement, ~~vary.~~(2) ~~The evaluation of~~ the ~~contractual~~fee ~~arrangements~~is ~~often~~fixed ~~requires judgments~~or determinable, and ~~estimates~~(3) ~~that~~collection ~~affect the timing~~ of ~~revenue recognized in~~ the ~~statements~~fee ofis ~~operations. Specifically, the Company~~considered ~~may be required to make judgments about:~~probable.

·Revenue ~~whether~~from ~~the~~non-software, ~~fees~~multiple-element arrangements ~~associated~~is recognized in accordance with ~~our~~ASC ~~products~~605-25, ~~and~~“Revenue ~~services~~Arrangements with Multiple Deliverables”. Under ASC 605-25, the Company recognizes revenue from the multiple-deliverables that have value to the customer on a stand-alone basis. Deliverables in an arrangement that do not meet the separation criteria in ASC 605-25 are ~~fixed~~treated oras ~~determinable;~~one unit of accounting for purposes of revenue recognition.

·In ~~whether~~the ~~collection~~case of ~~our~~maintenance ~~fees~~revenues, vendor-specific objective evidence, or VSOE, of fair value is ~~reasonably~~based ~~assured;~~on substantive renewal prices, and the revenues are recognized ratably over the maintenance period.

·In ~~whether~~the ~~professional~~case of consulting and implementation services ~~are~~revenues, ~~essential~~where toVSOE ~~the~~is ~~functionality~~based ofon prices from stand-alone sale transactions, the ~~related~~revenues ~~software~~are ~~product;~~recognized as services that are performed pursuant to ASC 985-605-25.

·For ~~whether~~hardware wetransactions ~~have~~where software is incidental, the ~~ability~~Company does not apply separate accounting guidance to ~~make~~the ~~reasonably~~hardware ~~dependable~~and ~~estimates~~software inelements. The Company applies the ~~application~~provisions of ~~the~~ASC ~~percentage~~985-605-15. Per ASC 985-605-15, if the software is considered not essential to the functionality of the hardware, then the hardware is not considered “software related” and is excluded from the scope of ASC 985-~~completion~~605-15. Such ~~method;~~sale of computer hardware is recognized as revenue on the transfer of risks and rewards of ownership, which generally coincides with the time when the goods are delivered to customers and title has passed.

·Remote ~~whether~~hosting weservices, ~~have~~where ~~verifiable~~VSOE ~~objective~~is based ~~evidence~~upon ofconsistent ~~fair~~pricing ~~value~~charged ~~for~~to ~~our~~customers ~~products~~based on volumes and performance requirements on a stand-alone basis and substantive renewal terms, are recognized ratably over the contract term as the services are performed. The remote hosting arrangements generally require the Company to perform one-time set-up activities and include a one-time set-up fee. This one-time set-up fee is generally paid by the customer at the time of contract execution. The Company has determined that these set-up activities do not constitute a separate unit of accounting, and accordingly, the related set-up fees are recognized protractedly over the term of the contract.

The Company ~~recognizes~~is ~~revenues~~considering ~~in accordance with~~ the ~~provisions~~ applicability of ASC 985-605-55, “Application of AICPA Statement of SOP 97-2 to Arrangements That Include the Right to Use Software ~~Revenue~~Stored on ~~Recognition.~~Another Entity’s Hardware,” ~~ASC~~to ~~985~~the ~~requires~~hosting ~~among~~services ~~other~~arrangements ~~matters,~~on ~~that~~a ~~there~~contract-by-contract bebasis. If the Company adetermines ~~signed~~that ~~contract~~the ~~evidencing~~customer andoes ~~arrangement~~not ~~exists,~~have ~~delivery~~the ~~has~~contractual ~~occurred,~~right to take possession of the ~~fee~~Company’s issoftware ~~fixed~~at orany ~~determinable~~time during the hosting period without significant penalty, ~~and~~ASC ~~collectability is~~985-605 ~~probable~~would not apply to these contracts in accordance with ASC 985-605-55.

12Stock Based Compensation

~~Software~~Effective ~~license~~January ~~revenue~~1, is2006, ~~recognized over~~we ~~the~~adopted ~~accounting~~“Statement of ~~periods~~Financial ~~contained~~Accounting inStandards ~~the~~ASC ~~terms of the relevant agreements~~718, ~~commencing~~Share-Based ~~upon~~Payment” using the ~~delivery~~modified ofprospective ~~the~~application ~~software~~transition ~~provided~~method. ~~that~~Before ~~(1)~~we ~~there~~adopted isASC ~~evidence~~718, ofwe anaccounted ~~arrangement,~~for ~~(2)~~share-based ~~the~~compensation ~~fee~~in isaccordance ~~fixed~~with or“Accounting ~~determinable,~~Principles ~~and~~Board ~~(3)~~Opinion No. ~~collection~~25, ofAccounting ~~the~~for ~~fee~~Stock isIssued ~~considered probable~~to Employees.”

~~Revenue~~ASC ~~from~~718 ~~non-software,~~requires ~~multiple-element~~the Company to record ~~arrangements~~the iscost ~~recognized~~of instock ~~accordance~~options ~~with~~and ~~ASC~~other ~~605~~equity-~~25,~~based ~~“Revenue~~compensation ~~Arrangements~~in ~~with~~its ~~Multiple~~income ~~Deliverables.”~~statement ~~Under ASC~~based ~~605-25,~~upon the estimated fair value of those rewards. The Company ~~recognizes~~elected ~~revenue~~to ~~from~~use the ~~multiple~~modified prospective method for adoption, which requires compensation expense to be recorded for all unvested stock options and other equity-~~deliverables~~based ~~that~~compensation beginning in the first quarter of adoption. Accordingly, prior periods have ~~value~~not been restated to reflect stock based compensation. On January 1, 2006, the ~~customer~~Company onadopted aASC ~~stand-alone~~718 ~~basis.~~using the modified ~~Deliverables~~prospective inmethod, anand ~~arrangement~~the ~~that~~adoption doof this standard did not ~~meet~~have a material impact on the ~~separation~~Company’s ~~criteria~~consolidated infinancial statements ~~ASC~~because ~~605-25~~most ~~are~~of ~~treated~~the asCompany’s ~~one~~outstanding ~~unit~~stock options were vested as of ~~accounting~~December ~~for purposes~~31, 2005 and the unvested portion of ~~revenue~~the ~~recognition~~stock options was considered immaterial.

In the case of maintenance revenues, vendor-specific objective evidence, or VSOE, of fair value is based on substantive renewal prices, and the revenues are recognized ratably over the maintenance period.11

InASC ~~the~~718 ~~case~~also ofrequires ~~consulting~~the ~~and~~Company ~~implementation~~to estimate ~~services~~forfeitures ~~revenues,~~in ~~where~~calculating ~~VSOE~~the isexpense relating to share-based oncompensation ~~prices~~as ~~from~~opposed ~~stand~~to recognizing forfeitures as an expense reduction as they incur. The adjustment to apply estimated forfeitures to previously share-~~alone~~based ~~sale~~compensation ~~transactions,~~was considered immaterial by the ~~revenues~~Company ~~are~~and ~~recognized~~as such was not classified as ~~services~~a ~~that~~cumulative effect of a change in accounting principle. As of January 1, 2006, ~~are~~the ~~performed~~Company ~~pursuant~~had no unrecognized compensation cost remaining associated with existing stock option grants. Also, the Company made no modifications to outstanding stock option grants prior to the adoption of ASC ~~985-605-25~~718, and there were no changes in valuation methodologies or assumptions compared to those used by the Company prior to January 1, 2006.

~~For~~In ~~hardware~~November ~~transactions where software is incidental~~2005, the ~~Company does~~FASB ~~not~~issued ~~apply~~FSP ~~separate~~No. 123(R)-3, “Transition ~~accounting~~Election ~~guidance~~Related to Accounting for the ~~hardware~~Tax ~~and~~Effects ~~software~~of ~~elements~~Share-Based Payment Awards. ” The Company ~~applies~~ adopted the ~~provisions~~alternative oftransition ~~ASC~~method ~~985-605-15.~~provided ~~Per~~in ~~ASC~~the ~~985-605-15,~~FSP iffor calculating the ~~software~~tax iseffects ~~considered~~of ~~not~~share-based ~~essential~~compensation pursuant to ASC 718 in the ~~functionality~~ fourth quarter of ~~the~~fiscal ~~hardware,~~2006. ~~then~~The alternative transition method includes simplified methods to establish the ~~hardware~~beginning balance isof ~~not~~the ~~considered~~Additional ~~“software~~Paid-in ~~related~~Capital (“APIC”) ~~and~~pool isrelated ~~excluded~~to ~~from~~ the ~~scope~~tax effects of ~~ASC~~employee ~~985~~share-~~605-15.~~based compensation, ~~Such~~and ~~sale~~to ofdetermine ~~computer~~the ~~hardware~~subsequent isimpact ~~recognized~~on asthe ~~revenue~~APIC onpool and Consolidated Statements of Cash Flows of the ~~transfer~~tax effects of ~~risks~~employee share-based ~~and~~compensation ~~rewards~~awards that are outstanding upon adoption of ~~ownership,~~ASC ~~which~~718. ~~generally~~The ~~coincides with~~adoption ~~the~~did ~~time~~not ~~when~~have ~~the~~a ~~goods~~material ~~are~~impact ~~delivered~~on tothe Company’s ~~customers~~results ~~and~~of ~~title~~operations ~~has~~and ~~passed~~financial position.

~~Remote~~In ~~hosting~~February ~~services~~2006, ~~where~~the ~~VSOE~~FASB isissued FASB ~~based~~ASC ~~upon~~718-10-35, ~~consistent~~“Classification ~~pricing~~of ~~charged~~Options toand ~~customers~~Similar ~~based~~Instruments onIssued ~~volumes~~as ~~and~~Employee ~~performance~~Compensation ~~requirements~~That onAllow afor ~~stand-alone~~Cash ~~basis and substantive~~Settlement ~~renewal~~upon ~~terms,~~the ~~are~~Occurrence ~~recognized~~of ~~ratably~~a ~~over~~Contingent ~~the~~Event.” ~~contract~~This ~~term~~position asamended ~~the~~ASC ~~services~~718 ~~are~~to ~~performed.~~incorporate ~~The~~that ~~remote~~a ~~hosting~~cash ~~arrangements~~settlement ~~generally~~feature that ~~require~~can ~~the~~be ~~Company~~exercised toonly ~~perform~~upon ~~one-time~~the ~~set-up~~occurrence ~~activities~~of ~~and~~a ~~include~~contingent aevent ~~one-time~~that ~~set-up~~is ~~fee.~~outside ~~This~~the ~~one-time~~employee’s ~~set-up~~control ~~fee~~does isnot ~~generally~~meet certain ~~paid~~conditions byin ~~the~~ASC ~~customer~~718 atuntil ~~the~~it ~~time~~becomes ofprobable ~~contract~~that ~~execution~~the event will occur. The ~~Company~~guidance ~~has~~in ~~determined~~this ~~that~~FASB ~~these~~Staff ~~set-up~~Position ~~activities~~was dorequired to ~~not~~be ~~constitute a~~applied ~~separate~~upon ~~unit~~initial adoption of ~~accounting,~~ASC ~~and~~718. ~~accordingly,~~The ~~the~~Company ~~related~~does ~~set-up~~not ~~fees~~have ~~are~~any ~~recognized~~option ~~protractedly~~grants ~~over~~that ~~the~~allow ~~term~~for ofcash ~~the contract~~settlement.

The Company isdid ~~considering~~not ~~the~~adopt ~~applicability of~~any ~~ASC 985~~new share-~~605-55,~~based ~~“Application~~compensation ofplans ~~AICPA~~in ~~Statement~~2013. ofStock ~~SOP~~options ~~97-2~~issued tounder ~~Arrangements That Include~~ the ~~Right to Use Software Stored on Another Entity~~Company’s ~~Hardware,”~~2002 toStock ~~the~~Plan ~~hosting~~were ~~services~~exercised ~~arrangements on a contract-by-contract basis. If the Company~~for ~~determines that~~ the ~~customer~~purchase ~~does not have the contractual right to take possession~~ of ~~the~~200,000 ~~Company’s~~shares ~~software at any time~~ during the ~~hosting~~year ~~period without significant penalty, ASC 985-605 would not apply to these contracts in accordance with ASC 985-605-55~~2008.

~~Stock~~Advertising ~~Based Compensation~~costs

~~Effective~~All ~~January~~advertising 1,costs ~~2006,~~incurred wein ~~adopted~~the ~~“Statement~~promotion of ~~Financial~~the ~~Accounting~~Company’s ~~Standards~~products ~~ASC~~and ~~718,~~services ~~Share-Based~~are ~~Payment,”~~expensed ~~using~~as ~~the modified prospective application transition method~~incurred. ~~Before~~ weAdvertising ~~adopted~~expenses ~~ASC~~were ~~718,~~insignificant ~~we accounted~~ for ~~share-based~~the ~~compensation~~three ~~in accordance with “Accounting Principles Board Opinion~~months ~~No.~~ended 25March 31, ~~Accounting~~2013 ~~for~~and ~~Stock Issued to Employees~~2012.”

~~ASC~~Income 718 requires the Company to record the cost of stock options and other equity-based compensation in its income statement based upon the estimated fair value of those rewards. The Company elected to use the modified prospective method for adoption, which requires compensation expense to be recorded for all unvested stock options and other equity-based compensation beginning in the first quarter of adoption. Accordingly, prior periods have not been restated to reflect stock based compensation. On January 1, 2006, the Company adopted ASC 718 using the modified prospective method, and the adoption of this standard did not have a material impact on the Company’s consolidated financial statements because most of the Company’s outstanding stock options were vested as of December 31, 2005 and the unvested portion of the stock options was considered immaterial.Taxes

13The Company accounts for income taxes in accordance with ASC 740 “Accounting for Income Taxes.” Under ASC 740, deferred tax liabilities or assets at the end of each period are determined using the tax rate expected to be in effect when taxes are actually paid or recovered. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets not be realized.

~~ASC~~In ~~718~~July, ~~also~~2006, ~~requires~~ the ~~Company~~FASB toASC ~~estimate~~740-10-25, ~~forfeitures~~“Accounting infor ~~calculating~~Uncertainty ~~the~~in ~~expense~~Income ~~relating to share~~Taxes-~~based~~an ~~compensation~~interpretation asof ~~opposed~~FASB toStatement ~~recognizing~~No. 109.” This ~~forfeitures as an expense~~Interpretation ~~reduction~~provides asguidance ~~they~~for ~~incur.~~recognizing ~~The~~and ~~adjustment~~measuring touncertain ~~apply~~tax ~~estimated~~positions, ~~forfeitures~~as todefined ~~previously~~in ~~share-based~~ASC ~~compensation~~740, ~~was~~“Accounting ~~considered~~for ~~immaterial~~Income Taxes.” byASC ~~the~~740-10-25 ~~Company~~prescribes ~~and as such was not classified as~~ a ~~cumulative~~threshold ~~effect~~condition ofthat a ~~change~~tax inposition ~~accounting~~must ~~principle.~~meet Asfor any of ~~January 1, 2006,~~ the ~~Company~~benefit ~~had~~of ~~no unrecognized compensation cost remaining associated with existing stock option grants. Also,~~ the ~~Company~~uncertain ~~made no~~tax ~~modifications~~ position to ~~outstanding~~be ~~stock~~recognized ~~option~~in ~~grants prior to~~ the ~~adoption~~financial ofstatements. ~~ASC~~Guidance ~~718,~~is ~~and~~also ~~there~~provided ~~were~~regarding noderecognition, ~~changes~~classification inand ~~valuation methodologies~~disclosure orof ~~assumptions~~these ~~compared~~uncertain totax ~~those used by the Company prior to January 1, 2006~~positions.

InEarnings ~~November~~Per ~~2005,~~Common ~~the FASB issued FSP No. 123(R)-3, “Transition Election Related to Accounting for the Tax Effects of~~ Share-Based Payment Awards.” The Company adopted the alternative transition method provided in the FSP for calculating the tax effects of share-based compensation pursuant to ASC 718 in the fourth quarter of fiscal 2006. The alternative transition method includes simplified methods to establish the beginning balance of the Additional Paid-in Capital (“APIC”) pool related to the tax effects of employee share-based compensation, and to determine the subsequent impact on the APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee share-based compensation awards that are outstanding upon adoption of ASC 718. The adoption did not have a material impact on the Company’s results of operations and financial position.

InThe ~~February~~Company ~~2006,~~computes ~~the~~net ~~FASB~~earnings ~~issued~~per ~~FASB~~share in accordance with ASC ~~718-10-35~~260, “~~Classification~~Earnings ofper ~~Options~~Share” and ~~Similar~~SEC ~~Instruments~~Staff ~~Issued~~Accounting asBulletin ~~Employee~~No. ~~Compensation~~98 ~~That~~(“SAB ~~Allow~~98”). ~~for Cash Settlement~~Under ~~upon~~ the ~~Occurrence~~provisions of ~~a Contingent Event.” This position amended~~ ASC ~~718~~260 toand ~~incorporate~~SAB ~~that~~98, abasic ~~cash~~net ~~settlement~~earnings ~~feature~~per ~~that can~~share beis ~~exercised~~computed ~~only~~by ~~upon~~dividing the ~~occurrence~~net ofearnings aavailable ~~contingent~~to ~~event~~common shareholders ~~that~~for ~~is outside~~ the ~~employee’s~~period ~~control~~by ~~does~~the ~~not~~weighted ~~meet~~average ~~certain conditions~~number inof ~~ASC~~shares ~~718~~of ~~until~~common itstock ~~becomes~~outstanding ~~probable~~during ~~that~~ the ~~event will occur~~period. The ~~guidance~~calculation of indiluted ~~this~~net ~~FASB~~earnings ~~Staff~~per ~~Position~~share ~~was~~gives ~~required~~ effect to becommon ~~applied~~stock ~~upon~~equivalents, ~~initial~~however, ~~adoption~~potential ofcommon ~~ASC~~stock ~~718.~~in ~~The~~the ~~Company~~diluted ~~does~~EPS computation ~~not~~are ~~have~~excluded ~~any~~in ~~option~~net ~~grants~~loss ~~that~~periods, ~~allow~~as ~~for~~their ~~cash~~effect ~~settlement~~is anti-dilutive.

~~The Company did not adopt any new share-based compensation plans in 2012. 200,000 stock options issued under the Company’s 2002 Stock Plan were exercised during the year 2008.~~12

~~Advertising~~Recent ~~costs~~Issued Accounting Guidance

~~All~~In ~~advertising~~May ~~costs~~2011, ~~incurred~~the inFASB ~~the~~issued ~~promotion~~ASU 2011-04 to provide a consistent definition of fair value (“FV”) and ensure that the ~~Company’s~~FV ~~products~~measurement and ~~services~~disclosure requirements are ~~expensed~~similar asbetween ~~incurred.~~accounting ~~Advertising~~principles ~~expenses~~generally ~~were~~accepted ~~insignificant~~in ~~for~~ the ~~three~~United ~~months~~States of America (“US GAAP”) and IFRS. ~~ended~~ASU ~~September~~2011-04 ~~30,~~changes ~~2012~~certain FV measurement principles and enhances the disclosure requirements particularly for Level 3 FV measurements. The adoption of ASU 2011-04 did not have any significant impact on the Company’s financial statements.

~~Income~~In ~~Taxes~~July 2012, the FASB issued an authoritative pronouncement related to testing indefinite-lived intangible assets, other than goodwill, for impairment. Under the guidance, an entity testing an indefinite-lived intangible asset for impairment has the option of performing a qualitative assessment before calculating the fair value of the asset. If the entity determines, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible asset is not more likely than not (i.e., a likelihood of more than 50 percent) impaired, the entity would not need to calculate the fair value of the asset. The guidance does not revise the requirement to test indefinite-lived intangible assets annually for impairment. In addition, the guidance does not amend the requirement to test these assets for impairment between annual tests if there is a change in events or circumstances; however, it does revise the examples of events and circumstances that an entity should consider in interim periods. The guidance was effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this guidance did not have a significant effect on our consolidated financial statements.

~~The~~In ~~Company~~February, ~~accounts~~2013, ~~for~~the ~~income~~FASB ~~taxes~~issued inASU ~~accordance~~2013-02 ~~with~~that ~~ASC~~addresses ~~740~~the ~~“Accounting~~reporting ~~for~~of ~~Income~~reclassifications ~~Taxes~~out of accumulated other comprehensive income.” ~~Under~~This ~~ASC~~ASU ~~740~~clarifies FASB Codification Topic 220, ~~deferred~~Comprehensive ~~tax~~Income, ~~liabilities~~and orrequires ~~assets~~an atentity to report the ~~end~~effect of significant reclassifications out of ~~each~~accumulated ~~period~~other ~~are~~comprehensive ~~determined~~income ~~using~~on the ~~tax~~net ~~rate~~income ~~expected~~line items affected if the amount is required under US GAAP to be reclassified in ~~effect~~its ~~when~~entirety ~~taxes~~to ~~are~~net ~~actually~~income ~~paid~~in orthe ~~recovered~~same reporting period. ~~Valuation~~Amounts not required to be reclassified in their entirety to net income ~~allowances~~must be cross-referenced to other disclosures that provide additional detail about those amounts. These amendments are ~~established~~effective for ~~when~~reporting itperiods isbeginning ~~more~~after ~~likely~~December ~~than~~15, ~~not~~2013. ~~that~~Because ~~some~~the oronly ~~all~~significant ofamounts in the ~~deferred~~Company’s ~~tax~~accumulated other ~~assets~~comprehensive income relate to foreign exchange translations, the Company does not beexpect ~~realized~~significant impact by this standard in the foreseeable future.

InOther ~~July,~~accounting ~~2006,~~standards ~~the~~that ~~FASB~~have ~~ASC 740-10-25,~~been ~~“Accounting~~issued ~~for~~or ~~Uncertainty~~proposed inby ~~Income~~the ~~Taxes-an interpretation of~~ FASB ~~Statement~~or ~~No. 109.” This~~other ~~Interpretation provides~~standards-setting ~~guidance~~bodies ~~for~~that ~~recognizing~~do ~~and~~not ~~measuring~~require ~~uncertain~~adoption ~~tax~~until ~~positions,~~a asfuture ~~defined~~date inare ~~ASC~~not ~~740, “Accounting for Income Taxes.”~~expected ~~ASC~~to ~~740-10-25~~have ~~prescribes~~ a ~~threshold~~significant ~~condition~~impact ~~that~~on ~~a tax position must meet for any of~~ the ~~benefit~~Company’s ofconsolidated ~~the uncertain tax position to be recognized in the~~ financial statements. ~~Guidance~~upon ~~is also provided regarding derecognition, classification and disclosure of these uncertain tax positions~~adoption.

14NOTE 3 - OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Earnings Per Common Share

	March 31,		December 31,
	2013		2012

Other receivables	$	342,001	$	282,942
Deposits		378,167		267,481
Prepayments		1,010		122,053

	$	721,178	$	672,476

The Company computes net earnings per share in accordance with ASC 260, “Earnings per Share” and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). Under the provisions of ASC 260 and SAB 98, basic net earnings per share is computed by dividing the net earnings available to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net earnings per share gives effect to common stock equivalents, however, potential common stock in the diluted EPS computation are excluded in net loss periods, as their effect is anti-dilutive.13

~~Recent~~Other ~~Issued~~receivables ~~Accounting~~include ~~Guidance~~deposits for operating leases and advances to employee for traveling outlays.

InNOTE ~~May~~4 ~~2011,~~- the FASB issued an authoritative pronouncement on fair value measurement. The guidance is the result of joint efforts by the FASB and the International Accounting Standards Board to develop a single, converged fair value framework. The guidance is largely consistent with existing fair value measurement principles in GAAP. The guidance expands the existing disclosure requirements for fair value measurements and makes other amendments. The guidance is to be applied prospectively and is effective for interim and annual periods beginning after December 15, 2011 for public entities. Early application by public entities is not permitted. The adoption of this guidance to have a significant effect on our consolidated financial statements.INVENTORIES

In June 2011, the FASB issued an authoritative pronouncement to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. The guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The guidance does not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The guidance should be applied retrospectively. For public entities, the guidance is effective for fiscal years and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted. In December 2011, the FASB issued an authoritative pronouncement related to deferral of the effective date for amendments to the presentation of reclassifications of items out of accumulated other comprehensive income. This guidance allows the FASB to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. While the FASB is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments, entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before the pronouncement update was issued in June 2011. We do not expect the adoption of this guidance to have a significant effect on our consolidated financial statements.

	March 31,		December 31,
	2013		2012
Computer hardware and software	$	218,862	$	56,415
Work-in-progress		1,684,441		1,498,453

	$	1,903,303	$	1,554,868

InAll ~~September 2011,~~ the ~~FASB~~inventories ~~issued~~were anpurchased ~~authoritative pronouncement related to testing goodwill~~ for ~~impairment. The guidance is intended to simplify~~ ~~how~~identified ~~entities,~~system ~~both~~integration ~~public and nonpublic, test goodwill for impairment~~contracts. The guidance permits an entity to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011 if a public entity’s financial statements for the most recent annual or interim period have not yet been issued. We do not expect the adoption of this pronouncement to have a significant effect on our consolidated financial statements.

InWork-in-progress ~~December~~includes ~~2011,~~payroll ~~the FASB has issued an authoritative pronouncement related to Disclosures about Offsetting Assets~~ and ~~Liabilities. The guidance requires an entity to~~other ~~disclose~~operating ~~information~~expenses ~~about~~associated ~~offsetting~~with ~~and~~various ~~related~~contracts arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. We are in ~~the process of evaluating the effect of adoption of this guidance on our consolidated financial statements~~progress.

15NOTE 5 – RELATED PARTY TRANSACTIONS

~~NOTE~~The Company, 3from -time ~~OTHER~~to ~~RECEIVABLES~~time, ~~DEPOSITS~~received from or made repayments to major stockholders who are also management of the Company. The ~~AND~~amounts ~~PREPAYMENTS~~due from/to stockholders do not bear any interest and do not have clearly defined terms of repayment.

	September 30,		December 31,
	2012		2011
Other receivables	$	299,966	$	487,330
Deposits		37,276		8,247
Prepayments		116,103		34,441
	$	453,345	$	530,018

As of March 31, 2013, the amounts due to Mr. Yi He, who is a shareholder and CEO of the Company were $89,531 as compared with $146,663 on December 31, 2012; the amounts due to Mr. Wei Li, who is a shareholder and the administration manager of FTCL, were $146,436 as compared with $146,183 on December 31, 2012; the amounts due to Mr. Hongkeung Lam, who is a shareholder and CFO of the Company were $0 as compared with $63,639 on December 31, 2012. The amounts due to the stockholders above do not bear any interest and do not have clearly defined terms of repayment. The change of total amounts balance to Mr. Wei Li was caused totally by exchange rate fluctuation. The changes of total amounts balance to Mr. Yi He and Mr. Hongkeung Lam were caused by both repayment and exchange rate fluctuation.

~~Other~~NOTE ~~receivables~~6 ~~include~~- ~~deposits~~PROPERTY, ~~for operating~~PLANT ~~leases~~AND ~~and~~EQUIPMENT, NET ~~advances to employee for traveling outlays.~~

NOTE 4 - INVENTORIES

	March 31,			December 31,
	2013			2012

Building	$	180,137		$	180,137
Computer and office equipment		1,110,641			1,107,203
Motor vehicles		149,657			149,657
		1,440,435			1,436,997
Less: Accumulated depreciation		(1,234,458	)		(1,211,240	)

	$	205,977			225,757

	September 30,		December 31,
	2012		2011
Computer hardware and software	$	103,131	$	90,851
Work-in-progress		1,333,558		1,067,083
	$	1,436,689	$	1,157,934

~~All~~The ~~the~~building ~~inventories~~is ~~were~~located in Chengdu, PRC and was purchased ~~for~~on behalf of the Company by Mr. Yi He, one of the shareholders, directors and officers of the Company. By a shareholders’ ~~identified~~resolution ~~system~~passed ~~integration~~on ~~contracts~~March 8, 1999, it was ratified that the title to the building belonged to the Company. In 2005, the title to the building was transferred to Forlink Technologies (Chengdu) Limited.

~~Work-in-progress~~NOTE ~~includes~~7 ~~payroll~~- ~~and~~LONG ~~other operating~~TERM ~~expenses associated with various contracts in progress.~~INVESTMENTS

NOTE 5 – RELATED PARTY TRANSACTIONS

	March 31,		December 31,
	2013		2012

Equity investments	$	-	$	-
Cost investments		1,367,668		1,363,623

	$	1,367,668		1,363,623

~~The~~In ~~Company~~December 2003, ~~from~~the ~~time~~Company ~~to time~~invested $760,870 ~~borrowed money~~in ~~from~~a ~~and~~privately ~~made~~held ~~repayment~~PRC tocompany, ~~one~~All ~~major~~China ~~stockholder~~Logistics ~~who~~Online isCo., ~~also~~Ltd., for a ~~management~~17.8% ~~member~~equity ~~of the Company~~interest. The ~~amounts~~Company ~~due~~has ~~to this~~recorded ~~stockholder~~the doinvestment ~~not~~at ~~bear~~cost ~~any~~because ~~interest~~it ~~and~~does do not have ~~clearly~~the ~~defined~~ability ~~terms~~to ofexercise ~~repayment~~significant influence over the investee.

AsOn October 12, 2006, the Company entered into a definitive agreement to acquire 12.5% of ~~September~~registered 30capital in Wuxi Stainless Steel Exchange Co., ~~2012~~Ltd. ~~and~~(“Wuxi”), a ~~December~~private 31held PRC company. In exchange for the 12.5% registered capital, the Company was to deploy a proprietary, integrated software ~~2011~~solution (“software”), estimated at RMB 1,000,000, by reference to the ~~amounts~~similar ~~due~~products sold to ~~this~~third ~~stockholder~~parties ~~were~~in ~~$375~~2006,~~043~~ to ~~and~~support Wuxi’s operations, plus RMB 250,000 cash payment to Wuxi. In 2006, the Company contributed cash of $~~260~~31,~~470~~969 (RMB 250,000), ~~respectively~~the software been deployed to Wuxi in December 2006. The Company recorded the investment at cost because it does not have the ability to exercise significant influence over Wuxi. On January 14, ~~representing~~2007, ~~advances~~the ~~from~~Company ~~this~~entered ~~stockholder~~into a Share Transfer Agreement with a major shareholder of Wuxi to transfer 2.5% interest in Wuxi held by the Company to the major shareholder for ~~our~~a ~~working~~cash payment of RMB 500,000. After this transfer, the Company continues to hold a 10% equity interest in Wuxi. On February 2, 2012, Wuxi Exchange increased its registered capital to RMB 50,000,000. We invested an additional $364,657 (RMB 2,300,000) into Wuxi Exchange, however, the ratio of our holding remained a 10% equity interest.

~~NOTE~~On 6September -17, ~~PROPERTY~~2007, ~~PLANT~~the ~~AND~~Company ~~EQUIPMENT~~invested $99,734 in a privately held PRC Company, Ningbo Bulk Commodities Exchange Corporation Limited (“NBBCE”), for a 25% ~~NET~~equity interest. The Company’s investment was made through BFHX. The Company recorded the investment at cost as the Company does not have the ability to exercise significant influence over NBBCE because NBBCE’s strategic and business decisions are dominated by another major shareholder. NBBCE terminated its operations as of December 31, 2011. The value of the investment was $0 at the end of March 31, 2013..

	September 30,			December 31,
	2012			2011
Building	$	180,137		$	180,137
Computer and office equipment		1,095,999			1,066,908
Motor vehicles		149,657			149,657
		1,425,793			1,396,702
Less: Accumulated depreciation		(1,214,217	)		(1,134,362	)
	$	211,576			262,340

On October 8, 2010, the Company invested $151,213 (RMB 1,000,000), through BFHX, in Shanghai Shipping Freight Exchange Co., LTD (“SSFE”), a PRC limited liability company, established on October 8, 2010, for a 5% equity interest. The Company has recorded the investment at cost because it does not have the ability to exercise significant influence over the investee.

16NOTE 8 - OTHER PAYABLES AND ACCRUED EXPENSES

The building is located in Chengdu, PRC and was purchased on behalf of the Company by Mr. Yi He, one of the stockholders, directors and officers of the Company. By a stockholders’ resolution passed on March 8, 1999, it was ratified that the title to the building belonged to the Company. In 2005, the title to the building was transferred to Forlink Technologies (Chengdu) Limited.

	March 31,		December 31,
	2013		2012

Other payables	$	545,773	$	672,086
Accrued salaries & wages		203,587		191,966

	$	749,360	$	864,052

~~NOTE 7 - LONG TERM INVESTMENTS~~15

	September 30,		December 31,
	2012		2011
Equity investments	$	-	$	-
Cost investments		1,360,931		1,074,531
	$	1,360,931		1,074,531

Other payables includes rental payable and utilities payable.

InNOTE ~~December~~9 ~~2003,~~- ~~the~~INCOME ~~Company~~TAX invested $760,870 in a privately held PRC company, All China Logistics Online Co., Ltd., for a 17.8% equity interest. The Company has recorded the investment at cost because it does not have the ability to exercise significant influence over the investee.

OnAccording ~~October~~to ~~24, 2005,~~ the ~~Company~~relevant ~~set~~PRC uptax rules ~~China~~and ~~Liquid Chemical Exchange Company Limited~~regulations, ~~a limited liability company in PRC~~FTCL, ~~and~~which ~~shares the risk and rewards up to the equity interest of 13.46%. The consideration~~ is ~~made~~recognized inas ~~form~~a ofNew ~~the~~Technology ~~Company-developed~~Enterprise ~~“For-Online~~operating ~~Electronic~~within ~~Trading~~a ~~System” without~~New ~~any cash outflow. Therefore, the Company recorded the contribution of software at the lower of its carrying amount or fair value,~~ and ~~accounted~~High ~~for~~Technology ~~under the equity method under SOP 78-9. China Liquid Chemical Exchange Company~~Development ~~Limited paused its operations as of December 31~~Zone, ~~2011.~~is ~~The~~entitled ~~value~~to ofan ~~the~~Enterprise ~~investment~~Income ~~was~~Tax $0(“EIT”) asrate of ~~September 30, 2012~~15%.

OnPursuant ~~October 12, 2006, the Company entered into a definitive agreement~~ to ~~acquire~~approval ~~12.5%~~documents ofdated ~~registered capital in Wuxi Stainless Steel Exchange Co., Ltd. (“Wuxi”),~~September ~~a private held PRC company. In exchange for the 12.5% registered capital~~23, ~~the~~1999 ~~Company~~and ~~was~~August ~~to deploy a proprietary~~2, ~~integrated~~2000 ~~software solution~~issued ~~(“software”), estimated at RMB 1,000,000,~~ by ~~reference to~~ the ~~similar~~Beijing ~~products~~Tax ~~sold~~Bureau toand ~~third~~State ~~parties~~Tax inBureau ~~2006~~respectively, to ~~support~~FTCL ~~Wuxi’s~~was ~~operations,~~fully ~~plus~~exempted ~~RMB~~from ~~250,000~~EIT for ~~cash~~fiscal ~~payment~~years ~~to Wuxi. In 2006~~1999, ~~the Company contributed cash of $31~~2000,~~969~~ ~~(RMB 250,000),~~2001 ~~the~~and ~~software been deployed to Wuxi in December 2006~~2002. ~~The~~FTCL ~~Company~~received ~~recorded~~a ~~the~~50% ~~investment~~EIT reduction at ~~cost because it does not have~~ the ~~ability~~rate ~~to exercise significant influence over Wuxi. On January 14, 2007, the Company entered into a Share Transfer Agreement with a major shareholder~~ of ~~Wuxi to transfer 2~~7.5% ~~interest in Wuxi held by the Company to the major shareholder~~ for afiscal ~~cash~~years ~~payment of~~2003, ~~RMB~~2004 ~~500,000~~and 2005. ~~After~~As ~~this~~of ~~transfer,~~December ~~the Company continues to hold a 10% equity interest in Wuxi. On February 2~~31, ~~2012~~2010, ~~Wuxi~~FTCL ~~increased~~was ~~its~~entitled ~~registered capital~~ to ~~RMB~~an ~~50,000,000,~~EIT ~~and~~rate ~~since we invested additional funds into Wuxi, the ratio~~ of ~~our holding was still as a 10~~15% ~~equity interest~~.

OnPursuant ~~September~~to ~~17,~~an ~~2007,~~approval ~~the~~document ~~Company invested~~dated ~~$99,734~~January ~~in a privately held PRC Company~~19, ~~Ningbo~~2004 ~~Bulk~~issued ~~Commodities~~by ~~Exchange~~the ~~Corporation~~State ~~Limited~~Tax ~~(“NBBCE”)~~Bureau, ~~for~~BFHX ~~a 25% equity interest. The Company’s investment~~ was ~~made~~fully ~~through~~exempted ~~BFHX.~~from ~~The~~EIT ~~Company~~for ~~recorded~~fiscal ~~the~~years ~~investment~~2004, at2005 ~~cost as the Company does not have the ability to exercise significant influence over NBBCE because NBBCE’s strategic~~ and ~~business decisions are dominated by another major shareholder~~2006. ~~NBBCE~~As ~~paused its operations as~~ of December 31, ~~2011.~~2010, ~~The~~BFHX ~~value~~was ofentitled ~~the~~to ~~investment~~an ~~was~~EIT ~~$0 from~~rate ~~the end~~ of ~~2011~~25%.

17Hong Kong profits tax is calculated at 16.5% on the estimated assessable profits of FTHK for the period. The EIT rate for FTCD, FTGX and NNBCE is 25%. No provision for EIT and Hong Kong profits tax were made for FTCL, FTCD, FTGX, NNBCE and FTHK as they have not gained taxable income for the periods.

On ~~March~~January 201, ~~2008~~2007, ~~Forlink~~the ~~invested~~Company ~~$71,124~~adopted ~~(500,000~~FASB ~~RMB)~~Interpretation No. 48, ~~through~~Accounting ~~BFHX,~~for Uncertainty in ~~Shandong~~Income ~~LongDong~~Taxes-an ~~Internet~~interpretation ~~Technologies~~of ~~Limited~~FASB Statement No. 109 (“~~SDLD~~FIN 48”),. This aInterpretation ~~PRC~~provides ~~limited~~guidance ~~liability~~for ~~company~~recognizing and measuring uncertain tax positions, ~~established~~as ondefined ~~October~~in ~~24,~~ASC ~~2007~~740, Accounting for Income Taxes. FIN 48 prescribes a 5%threshold ~~equity~~condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. Guidance is also provided regarding derecognition, classification and disclosure of these uncertain tax positions. The Company classified all interest and penalties related to tax uncertainties as income tax expense. ~~SDLD~~The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which ~~commenced~~relate ~~operations~~to tax years still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in ~~December~~an ~~2007,~~adjustment isto our liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the ~~business~~ results of ~~providing~~operations for the given period. As of ~~providing~~September ~~primary~~30, ~~products~~2010, ~~e-commerce~~the ~~services~~Company does not have any liability for uncertain tax positions. The ~~purpose~~ adoption of ~~this~~FIN ~~investment~~48 isdid tonot ~~gain~~have ~~cash~~a ~~dividends~~material ~~from~~impact ~~SDLD~~on the Company’s results operations, financial position or liquidity.

On ~~October~~March 816, ~~2010~~2007, the ~~Company~~5th ~~invested~~Plenary Session ~~$151,213~~of the 10th National People's Congress passed the Corporate Income Tax Law of the PRC (~~RMB~~"the New Corporate Income Tax Law"), which took effect on January 1,~~000~~ 2008. Beginning on that date,~~000),~~ ~~through~~the ~~BFHX~~EIT rate is expected to gradually increase to the standard rate of 25% over a five-year transition period. However, inthe ~~Shanghai~~New ~~Shipping~~Corporate ~~Freight~~Income ~~Exchange~~Tax CoLaw does not specify how the existing preferential tax rate will gradually increase to the standard rate of 25%. Also, ~~LTD~~under ~~(“SSFE”)~~the New Corporate Income Tax Law, certain high technology enterprises will continue to be entitled to a ~~PRC~~reduced ~~limited~~tax ~~liability company~~rate of 15%. However, ~~established~~the implementation rules regarding the preferential tax policies (e.g. the details on ~~October~~how 8,the ~~2010,~~taxpayer ~~for~~can qualify as a 5%high-tech ~~equity~~enterprise ~~interest~~under the New Corporate Income Tax Law) have yet to be made public. ~~SSFE~~Consequently, ~~did~~the Company is not ~~commence~~able to make an estimate of the expected financial effect of the New Corporate Income Tax Law on its ~~operations~~deferred ~~until~~tax ~~March~~assets ~~25,~~and ~~2011~~liabilities. The ~~Company~~ ~~has~~enactment ~~recorded~~of the ~~investment~~New atCorporate ~~cost~~Income ~~because~~Tax itLaw ~~does~~did not have any financial effect on the ~~ability~~provision tofor ~~exercise~~income ~~significant~~tax ~~influence~~for ~~over~~the year ended March 31, 2013 and on the ~~investee~~amounts accrued in the balance sheet in respect of current tax payable.

~~NOTE 8 - OTHER PAYABLES AND ACCRUED EXPENSES~~16

	September 30,		December 31,
	2012		2011
Other payables	$	336,458	$	258,912
Accrued salaries & wages		187,253		192,552
	$	523,711	$	451,464

NOTE 10 - OTHER TAXES RECOVERABLE/(PAYABLE)

Other ~~payables~~taxes ~~include~~payable ~~rental~~comprise ~~payable~~mainly of the Valued-Added Tax (“VAT”) and Business Tax (“BT”). The Company is subject to output VAT levied at the ~~utilities~~rate of 17% of its operating revenue. The input VAT paid on purchases of materials and other direct inputs can be used to offset the output VAT levied on operating revenue to determine the net VAT payable or recoverable. BT is charged at a rate of 5% on the revenue from other services.

~~NOTE~~As 9part –of ~~NON-CONTROLLING~~the ~~INTEREST~~PRC government’s policy of encouraging software development in the PRC, companies that fulfill certain criteria set by the relevant authorities, and which develop their own software products and have the software products registered with the relevant authorities in the PRC, are entitled to a refund of VAT equivalent to the excess over 3% of revenue paid in the month when output VAT exceeds input VAT (excluding export sales). The excess portion of the VAT is refundable and is recorded by the Company on an accrual basis. The VAT rebate included in other income was $22,853 and $0 for the three months ended March 31, 2013 and 2012, respectively.

OnNOTE ~~February~~11– 2,COMPREHENSIVE ~~2012, the Company, through its subsidiary BFHX, acquired the remaining 10% equity interest in NNBCE that it did not previously own, for a total purchase amount of $203,884~~ INCOME/(~~RMB 1,285,960~~LOSS).

~~NOTE~~The 10components -of ~~INCOME~~comprehensive ~~TAX~~income/(loss) were as follows:

According to the relevant PRC tax rules and regulations, FTCL, which is recognized as a New Technology Enterprise operating within a New and High Technology Development Zone, is entitled to an Enterprise Income Tax (“EIT”) rate of 15%.

	Three Months Ended March 31,
	2013		2012

Net profit/(loss)	$	2,119,163	$	(768,426	)
Foreign currency translation adjustment		8,081		15,151
Comprehensive income/(loss)	$	2,127,244	$	(753,275	)

~~Pursuant~~NOTE to12 ~~approval~~- ~~documents~~CONCENTRATION ~~dated~~OF September 23, 1999 and August 2, 2000 issued by the Beijing Tax Bureau and State Tax Bureau respectively, FTCL was fully exempted from EIT for fiscal years 1999, 2000, 2001 and 2002. FTCL received a 50% EIT reduction at the rate of 7.5% for fiscal years 2003, 2004 and 2005. As of December 31, 2010, FTCL was entitled to an EIT rate of 15%.CUSTOMERS

~~Pursuant~~During tothe ~~an approval document dated January 19~~year, ~~2004 issued by~~ the ~~State~~following ~~Tax~~customers accounted ~~Bureau, BFHX was fully exempted from EIT~~ for ~~fiscal~~more ~~years~~than ~~2004,~~10% ~~2005 and 2006. As~~ of ~~December 31,~~total ~~2010, BFHX was entitled to an EIT rate of 25%.~~sales:

Hong Kong profits tax is calculated at 16.5% on the estimated assessable profits of FTHK for the period. The EIT rate for FTCD, FTGX and NNBCE is 25%. No provision for EIT and Hong Kong profits tax were made for FTCL, FTCD, FTGX, NNBCE and FTHK as they have not gained taxable income for the periods.

	Three Months Ended March 31,
	2013			2012
Net sales derived from:
Customer A		653,225			*
Customer B		364,640			*
Customer C		181,940			*
Customer D		*			*
Customer E		*			34,695

% of total net sales from:
Customer A		48	%		*
Customer B		27	%		*
Customer C		13	%		*
Customer D		*			*
Customer E		*			16	%

Account receivable from:
Customer A		51,046			125,296
Customer B		17,866			*
Customer C		15,952			*
Customer D		*			*
Customer E		*			*

% of total accounts receivable from:
Customer A		38	%		40	%
Customer B		13	%		*
Customer C		12	%		*
Customer D		*			*
Customer E		*			*

18* Less than 10%

On January 1, 2007, the Company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109 (“FIN 48”). This Interpretation provides guidance for recognizing and measuring uncertain tax positions, as defined in ASC 740, Accounting for Income Taxes. FIN 48 prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. Guidance is also provided regarding derecognition, classification and disclosure of these uncertain tax positions. The Company classified all interest and penalties related to tax uncertainties as income tax expense. The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to our liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of September 30, 2010, the Company does not have any liability for uncertain tax positions. The adoption of FIN 48 did not have a material impact on the Company’s results operations, financial position or liquidity.17

OnNOTE ~~March~~13 ~~16,~~– ~~2007,~~SUBSEQUENT the 5th Plenary Session of the 10th National People's Congress passed the Corporate Income Tax Law of the PRC ("the New Corporate Income Tax Law"), which took effect on January 1, 2008. Beginning on that date, the EIT rate is expected to gradually increase to the standard rate of 25% over a five-year transition period. However, the New Corporate Income Tax Law does not specify how the existing preferential tax rate will gradually increase to the standard rate of 25%. Also, under the New Corporate Income Tax Law, certain high technology enterprises will continue to be entitled to a reduced tax rate of 15%. However, the implementation rules regarding the preferential tax policies (e.g. the details on how the taxpayer can qualify as a high-tech enterprise under the New Corporate Income Tax Law) have yet to be made public. Consequently, the Company is not able to make an estimate of the expected financial effect of the New Corporate Income Tax Law on its deferred tax assets and liabilities. The enactment of the New Corporate Income Tax Law did not have any financial effect on the provision for income tax for the year ended December 31, 2011 and on the amounts accrued in the balance sheet in respect of current tax payable.EVENTS

~~NOTE~~On April 1126, -2013, ~~OTHER~~Forlink ~~TAXES~~Technologies ~~RECOVERABLE/~~(~~PAYABLE~~BeiHai) Limited ("FTBH") was established as a limited liability company in BeiHai, PRC and subsequently became a wholly owned subsidiary of FTCL in April 2013. FTBH is in the business of providing software outsourcing services and software development. The registered capital of FTBH is $3,215,021 (RMB20,000,000) and the fully paid up capital was $3,215,021(RMB20,000,000) as of April 30, 2013. FTBH did not commence operations as of May 13, 2013.

~~Other taxes payable comprise mainly of the Valued~~NOTE-~~Added~~14- ~~Tax~~GAIN ~~(“VAT”)~~FROM ~~and~~COST ~~Business~~METHOD Tax (“BT”). The Company is subject to output VAT levied at the rate of 17% of its operating revenue. The input VAT paid on purchases of materials and other direct inputs can be used to offset the output VAT levied on operating revenue to determine the net VAT payable or recoverable. BT is charged at a rate of 5% on the revenue from other services.INVESTEE

AsFTHX ~~part~~received ofa ~~the~~cash ~~PRC~~dividend ~~government’s policy~~ of ~~encouraging software development in the PRC~~$79, ~~companies that fulfill certain criteria set by the relevant authorities, and which~~963 ~~develop~~from ~~their~~All ~~own~~China ~~software~~Logistics products and have the software products registered with the relevant authorities in the PRC, are entitled to a refund of VAT equivalent to the excess over 3% of revenue paid in the month when output VAT exceeds input VAT (excluding export sales). The excess portion of the VAT is refundable and is recorded by the Company on anJanuary ~~accrual basis~~2013. ~~The VAT rebate included in other income was zero and $151 for the three months ended September 30, 2012 and 2011, respectively.~~

~~NOTE 12– COMPREHENSIVE INCOME/(LOSS)~~18

~~The~~ITEM ~~components~~2. ofMANAGEMENT’S ~~comprehensive~~DISCUSSION ~~income/(loss) were~~AND asANALYSIS ~~follows:~~OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

	Three Months Ended September 30,
	2012			2011
Net profit/(loss)	$	(1,287,305	)	$	(664,821	)
Foreign currency translation adjustment		42,833			175,964
Comprehensive income/(loss)	$	(1,244,472	)	$	(488,857	)

Statements contained herein that are not historical facts are forward-looking statements as that term is defined by the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in such forward looking statements are reasonable, the forward looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. We caution investors that any forward looking statements made by us are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements. Such risks and uncertainties include, without limitation: well-established competitors who have substantially greater financial resources and longer operating histories, regulatory delays or denials, ability to compete as a company in a highly competitive market, and access to sources of capital.

19The following discussion and analysis should be read in conjunction with our financial statements and notes thereto included elsewhere in this Form 10-Q. Except for the historical information contained herein, the discussion in this Form 10-Q contains certain forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward looking statements wherever they appear in this Form 10-Q. The Company's actual results could differ materially from those discussed here. We undertake no obligation to update publicly any forward-looking statements for any reason even if new information becomes available or other events occur in the future.

~~NOTE 13 - CONCENTRATION OF CUSTOMERS~~Overview

~~During~~We are a provider of software solutions and information technology services in China (the ~~year~~“PRC” or “China”). We focus on providing Enterprise Application Integration (EAI) solutions for large companies in the telecom, finance, and logistics industries. In May 2004, we launched For-online, which delivers enterprise applications and services over the ~~following~~Internet ~~customers~~to small and medium-sized ~~accounted~~enterprises (SMEs) in China. Since its launch, For-Online has become an important channel for delivering and distributing our products and services to more ~~than~~customers. ~~10%~~In August 2007, we launched our integrated e-business application platform For-Online 4.0, and based on this platform, we also released new versions of ~~total~~For-eMarket ~~sales:~~3.0 in September 2007, ForCRM in October 2007 and ForOA in October 2007. We released For-eMarketPlace 3.1 in August 2008. We released For-EAI 5.0 and For-Online 5.0 in June 2009. We released For-eTrade V1.0 and For-WMS V2.0 in January 2011 and SMS Gateway Management Platform V2.0 in November 2011.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net sales derived from:
Customer A		23,673			329,243			863,895			1,048,900
Customer B		*			158,001			*			474,002
Customer C		*			*			*			*
Customer D		18,662			17,881			47,714			83,741
Customer E		*			59,618			108,699			334,527
% of total net sales from:
Customer A		4	%		25	%		40	%		58	%
Customer B		*			12	%		*			26	%
Customer C		*			*			*			*
Customer D		3	%		1	%		2	%		5	%
Customer E		*			4	%		5	%		19	%
Account receivable from:
Customer A								*			51,490
Customer B								*			2,222,851
Customer C								*			269,359
Customer D								*			*
Customer E								*			103,758
% of total accounts receivable from:
Customer A								*			1	%
Customer B								*			51	%
Customer C								*			6	%
Customer D								*			*
Customer E								*			2	%

Revenues

*Our ~~Less~~business ~~than~~includes ~~10%~~Forlink’s “For-series” brand software system sales such as ForOSS, ForRMS, For-Mail and their copyright licensing, and “For-series” related system integration, which consists of hardware sales and other related services rendered to customers. The following table shows our revenue breakdown by business line:

	Three Months Ended March 31,
	2013			2012

Sales of For-series software	$	1,320,121		$	214,633
as a percentage of net sales		97	%		100	%

For-series related system integration	$	47,155		$	0
as a percentage of net sales		3	%		0	%

~~ITEM~~As 2indicated in the foregoing table, sales of For-series software increased by approximately 537% to $1,320,121 in the first quarter of 2013 from $214,633 in the comparable quarter of 2012. ~~MANAGEMENT’S~~For-series ~~DISCUSSION~~related ~~AND~~system ~~ANALYSIS~~integration OFas ~~FINANCIAL~~a ~~CONDITION~~percentage ~~AND~~of ~~RESULTS~~net OFsales ~~OPERATIONS~~increased from $0 or 0% in the comparable quarter of 2012 to $47,155 or 3% in the first quarter of 2013. The gross margins for the three months ended March 31, 2013 and 2012 were 74% and (8%), respectively.

The following discussion and analysis should be read in conjunction with our financial statements and notes thereto included elsewhere in this Form 10-Q. Except for the historical information contained hereinGenerally, ~~the~~we ~~discussion~~offer ~~in this Form 10-Q contains certain forward-looking statements that involve risks and uncertainties, such as statements of~~ our ~~plans,~~products ~~objectives, expectations~~ and ~~intentions. The~~services ~~cautionary statements made in this Form 10-Q should be read as being applicable~~ to ~~all~~our ~~related~~customers ~~forward~~on ~~looking~~a ~~statements wherever they appear in this Form 10~~total-Qsolutions basis. ~~The~~Most ~~Company's~~of ~~actual~~the ~~results~~contracts ~~could~~we ~~differ materially from those discussed here. We~~ undertake ~~no obligation to update publicly any forward-looking statements~~ for ~~any~~our ~~reason~~customers ~~even~~include ifrevenue ~~new~~from ~~information becomes available~~hardware orand ~~other~~software ~~events~~sales ~~occur~~and inprofessional ~~the future~~services.

~~Overview~~Sources of Revenue

WeHardware ~~are~~Revenue: ~~a provider~~Revenues offrom ~~software~~sales ~~solutions~~of ~~and~~products ~~information~~are ~~technology~~mainly ~~services~~derived infrom ~~China~~sales ~~(the~~of ~~“PRC” or “China”)~~hardware. WeAll ~~focus~~hardware ~~on providing~~is ~~Enterprise~~purchased ~~Application~~from ~~Integration (EAI) solutions for large companies in the telecom, finance, and logistics industries. In May 2004, we launched For~~third-~~online,~~party ~~which~~vendors ~~delivers enterprise applications~~ and ~~services over the Internet to small and medium-sized~~ ~~enterprises~~included ~~(SMEs)~~ in ~~China.~~customer ~~Since its launch, For-Online has become an important channel for delivering and distributing our products and services to more customers~~contracts. ~~In August 2007~~Normally, wethe ~~launched~~hardware ~~our~~that ~~integrated e-business application platform For-Online 4.0, and based on this platform,~~ we ~~also~~procure ~~released~~is ~~new versions of For-eMarket 3.0~~ in ~~September~~connection ~~2007,~~with ~~ForCRM in October 2007 and ForOA in October 2007. We released For~~total-~~eMarketPlace~~solutions ~~3.1~~basis ~~in August 2008. We released~~system ~~For-EAI~~integration 5contracts.~~0 and For-Online 5.0 in June 2009. We released For-eTrade V1.0 and For-WMS V2.0 in January 2011 and SMS Gateway Management Platform V2.0 in November 2011.~~

~~Revenues~~Service Revenue: Service revenue consists of revenue for the professional services we provide to our customers for network planning, design and systems integration, software development, modification and installation, and related training services.

~~Our business includes Forlink’s “For-series”~~Software ~~brand~~License ~~software~~Revenue: ~~system~~We ~~sales~~generate ~~such~~revenue asin ~~ForOSS,~~the ~~ForRMS,~~form ~~For-Mail~~of ~~and~~fees ~~their~~received ~~copyright~~from ~~licensing,~~customers ~~and~~to ~~“For-series”~~whom ~~related system~~we ~~integration,~~issue ~~which~~licenses ~~consists~~for the use of ~~hardware~~our ~~sales~~software ~~and~~products ~~other~~over ~~related~~an ~~services~~agreed ~~rendered~~period toof ~~customers~~time. ~~The following table shows our revenue breakdown by business line:~~

	Three Months Ended September 30,
	2012			2011
Sales of For-series software	$	666,649		$	1,224,456
as a percentage of net sales		100	%		100	%
For-series related system integration	$	3,318		$	3,571
as a percentage of net sales		0	%		0	%

Cost of Revenue

21Our cost of revenue includes hardware costs, software-related costs and compensation and travel expenses for the professionals involved in the relevant projects. Hardware costs consist primarily of third party hardware costs. We recognize hardware costs in full upon delivery of the hardware to our customers. Software-related costs consist primarily of packaging and written manual expenses for our proprietary software products and software license fees paid to third-party software providers for the right to sublicense their products to our customers as part of our solutions offerings. The costs associated with designing and modifying our proprietary software are classified as research and development expenses as such costs are incurred.

AsOperating ~~indicated~~Expenses in the foregoing table, sales of For-series software decreased by 45% to $666,649 in the third quarter of 2012 from $1,224,456 in the comparable quarter of 2011. For-series related system integration as a percentage of net sales decreased from $3,571 or 0% in the comparable quarter of 2011 to $3,318 or 0% in the third quarter of 2012. The gross margins for the three months ended September 30, 2012 and 2011 were 64% and 28%, respectively.

~~Generally,~~Operating weexpenses ~~offer~~are ~~our~~comprised ~~products~~of ~~and services~~selling toexpenses, ~~our~~research ~~customers~~and ondevelopment aexpenses ~~total-solutions basis. Most of the contracts we undertake for our customers include revenue from hardware~~ and ~~software~~general ~~sales~~ and ~~professional~~administrative ~~services~~expenses.

~~Sources~~Selling ofexpenses ~~Revenue~~include compensation expenses for employees in our sales and marketing departments, third party advertising expenses, as well as sales commissions and sales agency fees.

~~Hardware~~Research ~~Revenue:~~and ~~Revenues~~development ~~from~~expenses relate ~~sales~~to ofthe ~~products~~development ~~are mainly derived from sales~~ of ~~hardware.~~new ~~Normally,~~software and the ~~hardware~~modification ~~that~~of weexisting ~~procure~~software. isWe inexpense ~~connection~~such ~~with~~costs ~~total-solutions basis~~as ~~system~~they ~~integration~~are ~~contracts~~incurred.

~~Service~~General ~~Revenue:~~and ~~Service~~administrative ~~revenue~~expenses include ~~consists~~salaries ofand ~~revenue~~wages ~~for~~in the ~~professional~~management ~~services we provide to our customers for network planning~~section, ~~design~~office ~~and systems integration~~expenses, ~~software~~ ~~development, modification~~ and ~~installation,~~travel ~~and related training services~~expenses.

~~Software License~~Taxes ~~Revenue: We generate revenue in the form of fees received from customers to whom we issue licenses for the use of our software products over an agreed period of time.~~

~~Cost~~According to the relevant PRC tax rules and regulations, FTCL is recognized as a New Technology Enterprise operating within a New and High Technology Development Zone, and as such is entitled to an Enterprise Income Tax (“EIT”) rate of ~~Revenue~~15%.

~~Our~~Pursuant ~~cost~~to ofapproval ~~revenue~~documents ~~includes~~dated September ~~hardware costs~~23, ~~software-related~~ ~~costs~~1999 and ~~compensation~~August ~~and~~2, ~~travel~~2000 ~~expenses~~issued ~~for~~by the ~~professionals~~Beijing ~~involved~~Tax inBureau and the ~~relevant~~State ~~projects.~~Tax ~~Hardware~~Bureau ~~costs consist~~respectively, ~~primarily~~FTCL ofreceived ~~third~~a full ~~party~~exemption ~~hardware~~from ~~costs.~~EIT Wefor ~~recognize~~fiscal ~~hardware~~years ~~costs~~1999 inthrough ~~full~~2002, ~~upon~~and ~~delivery~~a of50% ~~the~~EIT ~~hardware~~reduction toat ~~our~~the ~~customers. Software-related~~rate ~~costs consist primarily~~ of ~~packaging~~7.5% ~~and written manual expenses~~ for ~~our~~fiscal ~~proprietary~~years ~~software products and software~~2003 ~~license~~through ~~fees~~2005. ~~paid~~As toof ~~third-party~~March ~~software~~31, ~~providers~~2013, ~~for~~FTCL ~~the~~was ~~right~~entitled to ~~sublicense~~an ~~their~~EIT ~~products~~rate ~~to our customers as part~~ of ~~our solutions offerings~~15%. ~~The costs associated with designing and modifying our proprietary software are classified as research and development expenses as such costs are incurred.~~

~~Operating Expenses~~20

~~Operating~~Pursuant ~~expenses~~to ~~are~~an ~~comprised~~approval ofdocument ~~selling~~dated ~~expenses~~January 19, ~~research~~2004 ~~and~~issued ~~development~~by ~~expenses~~the ~~and~~State ~~general~~Tax ~~and~~Bureau, ~~administrative~~BFHX ~~expenses~~received full exemption from EIT for fiscal years 2004 through 2006. As of March 31, 2013, BFHX was entitled to an EIT rate of 25%.

~~Selling~~Hong ~~expenses~~Kong ~~include~~profits ~~compensation~~tax ~~expenses for~~is ~~employees~~calculated inat 16.5% ~~our~~on ~~sales~~the ~~and~~estimated ~~marketing~~assessable ~~departments,~~profits ~~third~~of ~~party~~FTHK ~~advertising~~for ~~expenses,~~the asperiod. ~~well~~The asEIT ~~sales~~rates ~~commissions~~for FTCD and ~~sales agency~~NNBCE ~~fees~~range from 9% to 33%.

~~Research~~Revenue ~~and~~from ~~development~~the ~~expenses~~sale ~~relate~~of hardware procured toin China together with the ~~development~~related ofsystem ~~new~~integration is subject to a 17% value added tax (“VAT”). However, companies that develop their own software and have the ~~modification~~software registered are generally entitled to a VAT refund. If the net amount of ~~existing~~the VAT payable exceeds 3% of software sales, the excess portion of the VAT is refundable upon our application to the tax authority. This Wepolicy ~~expense~~is ~~such~~effective ~~costs~~until as2013. ~~they~~Changes ~~are~~in ~~incurred~~Chinese tax laws may adversely affect our future operations.

~~General~~Foreign ~~and administrative expenses include salaries and wages in the management section, office expenses, and traveling expenses.~~Exchange

~~Taxes~~Our functional currency is the U.S. Dollar (“US$”), and our financial records are maintained and financial statements prepared in US$. The functional currency of FTHK is the Hong Kong Dollar (“HK$”) and the financial records are maintained and the financial statements prepared in HK$. The functional currency of Slait, FTCL, BFHX and FTCD is the Renminbi (“RMB”) and their financial records are maintained and the financial statements are prepared in RMB.

~~According~~Foreign tocurrency transactions during this reporting period are translated into each company’s denominated currency at the ~~relevant~~exchange ~~PRC~~rates ~~tax~~ruling ~~rules~~at the transaction dates. Gains and ~~regulations,~~losses ~~FTCL,~~resulting isfrom ~~recognized~~foreign ascurrency ~~New~~transactions ~~Technology~~are ~~Enterprises~~included ~~operating~~in ~~within~~the aconsolidated statement ~~New~~of operations. Assets and ~~High~~liabilities ~~Technology~~denominated ~~Development~~in ~~Zone,~~ foreign currencies at the balance sheet date are ~~entitled~~translated into toeach ancompany’s ~~Enterprise~~denominated ~~Income~~currency ~~Tax~~at the ~~(“EIT”)~~applicable ~~rate~~period-end exchange rates. All exchange differences are dealt with in the consolidated statements of ~~15%~~operations.

~~Pursuant~~The tofinancial ~~approval~~statements ~~documents~~of ~~dated~~our ~~September~~operations ~~23,~~based ~~1999~~outside ~~and~~of ~~August~~the 2,United ~~2000~~States ~~issued~~have bybeen ~~the~~translated ~~Beijing~~into ~~Tax~~US$ ~~Bureau~~under ~~and~~ the ~~State~~guidance ~~Tax~~of ~~Bureau~~the ~~respectively,~~Foreign ~~FTCL~~Currency ~~received~~Matters ~~full~~Topic ~~exemption~~of the ~~from~~FASB ~~EIT~~Accounting ~~for~~Standards ~~fiscal~~Codification. ~~years~~We ~~1999~~have ~~through~~determined ~~2002,~~that ~~and~~the afunctional ~~50%~~currency ~~EIT~~for ~~reduction~~each atof the ~~rate~~Company’s offoreign operations 7is its applicable local currency.5% ~~for~~When ~~fiscal~~translating ~~years~~functional ~~2003~~currency ~~through~~financial ~~2005.~~statements Asinto US$, period-end exchange ofrates ~~September~~are ~~30,~~applied ~~2012~~to the consolidated balance sheets, ~~FTCL~~while ~~was~~average ~~entitled~~period rates are applied to anconsolidated ~~EIT~~statements ~~rate~~of operations. Translation gains and losses are recorded in translation reserve as a component of ~~15%~~shareholders’ equity.

22Exchange rates among US$, HK$ and RMB had minimal fluctuations during the periods presented. The applicable rates as of March 31, 2013 are US$1: HK$7.762: RMB6.629.The weighted average rates applicable for the three months ended March 31, 2013 are US$1: HK$7.759: RMB6.277.

Pursuant to an approval document dated January 19, 2004 issued by the State Tax Bureau, BFHX received full exemption from EIT for fiscal years 2004 through 2006. As of September 30, 2012, BFHX was entitled to an EIT rate of 25%.

	March 31, 2013
Applicable Rates	$1 US = 7.762 HK	1 US = 6.269 RMB
Weighted Average Rates	$1 US = 7.759 HK	1 US = 6.277 RMB

~~Hong~~Critical ~~Kong~~Accounting ~~profits~~Policies ~~tax is calculated at 16.5% on the estimated assessable profits of FTHK for the period. The EIT rates for FTCD~~ and ~~NNBCE range from 9% to 33%.~~Estimates

~~Revenue~~We ~~from~~prepare ~~the~~our ~~sale~~consolidated offinancial ~~hardware procured~~statements in ~~China~~accordance ~~together~~ with ~~the~~generally ~~related~~accepted ~~system~~accounting ~~integration~~principles isin ~~subject~~the toUnited aStates ~~17%~~of ~~value~~America. ~~added~~The ~~tax~~preparation ~~(“VAT”).~~of ~~However,~~those ~~companies~~financial statements requires us to make estimates and assumptions that ~~develop~~affect ~~their~~the ~~own~~reported ~~software~~amounts of assets and ~~have~~liabilities and the ~~software~~disclosure of ~~registered~~contingent ~~are~~assets ~~generally~~and ~~entitled~~liabilities toat athe ~~VAT~~date ~~refund.~~of Ifthe financial statements and the ~~net~~reported amount of ~~the~~revenues and expenses during ~~VAT~~the ~~payable~~reporting ~~exceeds~~period. 3%On ofan ~~software~~on-going ~~sales~~basis, ~~the~~we ~~excess~~evaluate ~~portion~~our estimates and judgments, including those related to revenues and cost of ~~the~~revenues ~~VAT~~under iscustomer ~~refundable~~contracts, ~~upon~~bad ~~our~~debts, ~~application~~income totaxes, ~~the~~investment ~~tax~~in ~~authority~~affiliate, long-lived assets and goodwill. We base ~~This~~our ~~policy~~estimates isand ~~effective~~judgments ~~until~~on ~~2012.~~historical ~~Changes~~experience inand ~~Chinese~~on ~~tax~~various ~~laws~~other factors that we believe are reasonable. Actual results may ~~adversely~~differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect the more significant judgments and estimates used in the preparation of our ~~future~~consolidated ~~operations~~financial statements.

~~Foreign Exchange~~21

~~Our~~Revenue functional currency is the U.S. Dollar (“US$”), and our financial records are maintained and financial statements prepared in US$. The functional currency of FTHK is the Hong Kong Dollar (“HK$”) and the financial records are maintained and the financial statements prepared in HK$. The functional currency of Slait, FTCL, BFHX and FTCD is the Renminbi (“RMB”) and their financial records are maintained and the financial statements are prepared in RMB.Recognition

~~Foreign~~We ~~currency~~generally ~~transactions~~provide ~~during~~services ~~this~~under multiple ~~reporting~~element ~~period~~arrangements, ~~are~~which ~~translated~~include ~~into~~software ~~each~~license ~~company’s~~fees, ~~denominated~~hardware ~~currency~~and atsoftware ~~the~~sales, ~~exchange~~providing ~~rates~~system ~~ruling~~integration ~~at the transaction~~services, ~~dates.~~including ~~Gains~~consulting, implementation, and ~~losses~~software ~~resulting~~maintenance. ~~from~~We ~~foreign~~evaluate ~~currency~~revenue ~~transactions~~recognition ~~are~~on ~~included~~a incontract-by-contract basis as the ~~consolidated~~terms ~~statement~~ of ~~operations. Assets~~each ~~and~~arrangement ~~liabilities~~vary. ~~denominated~~The inevaluation ~~foreign~~of ~~currencies~~the atcontractual ~~the~~arrangements ~~balance~~often ~~sheet~~requires ~~date~~judgments ~~are~~and ~~translated~~estimates ~~into~~that affect ~~each~~the ~~company’s~~timing ~~denominated currency~~of atrevenue ~~year-end~~recognized ~~exchange~~in ~~rates.~~the ~~All~~statements ~~exchange~~of ~~differences~~operations. ~~are~~Specifically, ~~dealt~~we ~~with~~may inbe ~~the~~required ~~consolidated~~to ~~statements~~make ofjudgments ~~operations.~~about:

~~The~~· ~~financial~~whether ~~statements of our operations based outside of~~ the ~~United~~fees ~~States~~associated ~~have~~with ~~been~~our ~~translated~~products into US$ under the guidance of the Foreign Currency Matters Topic of the FASB Accounting Standards Codification. We have determined that the functional currency for each of the Company’s foreign operations is its applicable local currency. When translating functional currency financial statements into US$, period-end exchange rates are applied to the consolidated balance sheets, while average period rates are applied to consolidated statements of operations. Translation gains and ~~losses~~services are ~~recorded~~fixed inor ~~translation reserve as a component of shareholders’ equity.~~determinable;

~~Exchange~~· ~~rates~~whether ~~among~~collection ~~US$, HK$ and RMB had minimal fluctuations during the periods presented. The applicable rates as~~ of ~~September~~our ~~30,~~fees ~~2012~~is ~~are~~reasonably ~~US$1: HK$7.785: RMB6.297.The weighted average rates applicable for the three months ended September 30, 2012 are US$1: HK$7.788: RMB6.336.~~assured;

	September 30, 2012
Applicable Rates	$1 US = 7.785 HK	1 US = 6.297 RMB
Weighted Average Rates : Three Months Ended September 30, 2012	$1 US = 7.788 HK	1 US = 6.336 RMB

whether professional services are essential to the functionality of the related software product;

~~Critical~~· ~~Accounting~~whether ~~Policies~~we ~~and~~have ~~Estimates~~the ability to make reasonably dependable estimates in the application of the percentage-of-completion method; and

We· ~~prepare~~whether our consolidated financial statements in accordance with generally accepted accounting principles in the United States of America. The preparation of those financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. On an on-going basis, we ~~evaluate~~have ~~our~~verifiable ~~estimates~~objective ~~and~~evidence ~~judgments, including those related to revenues and cost~~ of ~~revenues~~fair ~~under~~value ~~customer~~for ~~contracts, bad debts, income taxes, investment in affiliate, long-lived assets and goodwill. We base~~ our ~~estimates~~products and ~~judgments on historical experience and on various other factors that we believe are reasonable~~services. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect the more significant judgments and estimates used in the preparation of our consolidated financial statements.

23We recognize revenues in accordance with the provisions of ASC 985, “Software Revenue Recognition.” ASC 985 requires among other matters, that there be a signed contract evidencing an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable.

~~Revenue~~Software ~~Recognition~~license revenue is recognized over the accounting periods contained in the terms of the relevant agreements, commencing upon the delivery of the software provided that (1) there is evidence of an arrangement, (2) the fee is fixed or determinable, and (3) collection of the fee is considered probable.

WeRevenue ~~generally~~from ~~provide~~non-software, ~~services under~~ multiple -element arrangements, ~~which~~is ~~include~~recognized ~~software~~in ~~license~~accordance ~~fees,~~with ~~hardware~~ASC ~~and~~605-25, ~~software~~“Revenue ~~sales~~Arrangements ~~and~~with ~~system~~Multiple ~~integration~~Deliverables”. ~~services including~~Under ~~consulting,~~ASC ~~implementation~~605-25, ~~and~~the ~~software~~Company ~~maintenance.~~recognizes ~~We evaluate~~ revenue ~~recognition~~from onthe ~~a contract~~multiple-~~by-contract~~deliverables ~~basis~~that ashave ~~the~~value ~~terms of~~to ~~each~~the ~~arrangement~~customer ~~vary.~~on ~~The~~a ~~evaluation~~stand-alone ofbasis. Deliverables ~~the~~in ~~contractual~~an ~~arrangements~~arrangement ~~often~~that ~~requires~~do ~~judgments~~not ~~and~~meet ~~estimates that affect~~ the ~~timing~~ ofseparation ~~revenue~~criteria ~~recognized~~ in ~~the~~ASC ~~statements~~605-25 ofare ~~operations.~~treated ~~Specifically,~~as weone ~~may~~unit beof ~~required~~accounting tofor purposes ~~make~~of ~~judgments~~revenue ~~about:~~recognition.

·In ~~whether~~ the ~~fees~~case ~~associated~~of ~~with~~maintenance ~~our~~revenues, ~~products~~vendor-specific objective evidence, or VSOE, of fair value is based on substantive renewal prices, and ~~services~~the revenues are ~~fixed~~recognized orratably ~~determinable;~~over the maintenance period.

·In ~~whether~~the ~~collection~~case of ~~our~~consulting ~~fees~~and implementation services revenues, where VSOE is ~~reasonably~~based ~~assured;~~on prices from stand-alone sale transactions, the revenues are recognized as services that are performed pursuant to ASC 985-605-25.

·For ~~whether~~hardware ~~professional~~transactions ~~services~~where ~~are~~software is incidental, the Company does not apply separate accounting guidance to the hardware and software elements. The Company applies the provisions of ASC 985-605-15. Per ASC 985-605-15, if the software is considered not essential to the functionality of the ~~related~~hardware, then the hardware is not considered “software ~~product;~~related” and is excluded from the scope of ASC 985-605-15. Such sale of computer hardware is recognized as revenue on the transfer of risks and rewards of ownership, which generally coincides with the time when the goods are delivered to customers and title has passed.

·Remote ~~whether~~hosting weservices, ~~have~~where ~~the~~VSOE ~~ability~~is based upon consistent pricing charged to ~~make~~customers ~~reasonably~~based ~~dependable~~on ~~estimates~~volumes inand performance requirements on a stand-alone basis and substantive renewal terms, are recognized ratably over the ~~application~~contract ofterm as the ~~percentage~~services are performed. The remote hosting arrangements generally require the Company to perform one-time set-up activities and include a one-time set-up fee. This one-time set-up fee is generally paid by the customer at the time of contract execution. The Company has determined that these set-~~completion~~up ~~method;~~activities do not constitute a separate unit of accounting, and accordingly, the related set-up fees are recognized protractedly over the term of the contract.

~~· whether we have verifiable objective evidence of fair value for our products and services.~~22

WeThe ~~recognize~~Company ~~revenues~~is inconsidering ~~accordance with~~ the ~~provisions~~ applicability of ASC 985-605-55, “~~Software~~Application ~~Revenue~~of ~~Recognition.”~~AICPA ~~ASC~~Statement ~~985~~of ~~requires~~SOP ~~among~~97-2 ~~other~~to ~~matters~~Arrangements That Include the Right to Use Software Stored on Another Entity’s Hardware,” ~~that~~to ~~there~~the behosting services arrangements on a ~~signed~~ contract-by-contract ~~evidencing~~basis. anIf ~~arrangement~~the ~~exists,~~Company determines ~~delivery~~that ~~has~~the ~~occurred,~~customer does not have the ~~fee~~contractual isright ~~fixed~~to ortake ~~determinable~~possession of the Company’s software at any time during the hosting period without significant penalty, ~~and~~ASC ~~collectability~~985-605 iswould ~~probable~~not apply to these contracts in accordance with ASC 985-605-55.

~~Software license revenue is recognized~~Income over the accounting periods contained in the terms of the relevant agreements, commencing upon the delivery of the software provided that (1) there is evidence of an arrangement, (2) the fee is fixed or determinable, and (3) collection of the fee is considered probable.Taxes

~~Revenue~~The ~~from~~Company ~~non-software,~~accounts ~~multiple-element arrangements~~for isincome ~~recognized~~taxes in accordance with ASC ~~605-25,~~740 “~~Revenue~~Accounting ~~Arrangements~~for ~~with~~Income ~~Multiple Deliverables”~~Taxes.” Under ASC ~~605-25~~740, ~~the~~deferred ~~Company~~tax ~~recognizes~~liabilities ~~revenue~~or ~~from~~assets at the ~~multiple-deliverables~~end of ~~that~~each ~~have~~period ~~value~~are todetermined using the ~~customer~~tax onrate aexpected ~~stand-alone~~to ~~basis. Deliverables~~be in aneffect ~~arrangement~~when ~~that~~taxes doare ~~not~~actually ~~meet~~paid ~~the~~or ~~separation~~recovered. ~~criteria~~Valuation allowances inare ~~ASC~~established ~~605-25~~when ~~are~~it ~~treated~~is asmore ~~one~~likely ~~unit~~than ofnot ~~accounting~~that ~~for purposes~~some or all of ~~revenue~~the ~~recognition~~deferred tax assets not be realized.

In ~~the~~July, ~~case~~2006, ofthe ~~maintenance~~FASB ~~revenues~~ASC 740-10-25, “Accounting ~~vendor~~for Uncertainty in Income Taxes-~~specific~~an interpretation of FASB Statement No. 109.” This Interpretation ~~objective~~provides ~~evidence~~guidance for recognizing and measuring uncertain tax positions, oras ~~VSOE~~defined in ASC 740, of“Accounting ~~fair~~for ~~value~~Income isTaxes.” ASC ~~based~~740-10-25 onprescribes ~~substantive~~a ~~renewal~~threshold ~~prices,~~condition ~~and~~that a tax position must meet for any of the ~~revenues~~benefit ~~are~~of ~~recognized~~the ~~ratably~~uncertain ~~over~~tax position to be recognized in the ~~maintenance~~financial ~~period~~statements. Guidance is also provided regarding derecognition, classification and disclosure of these uncertain tax positions.

~~In the case of consulting and implementation~~Allowance ~~services~~for ~~revenues,~~Doubtful ~~where VSOE is based on prices from stand-alone sale transactions, the revenues are recognized as services that are performed pursuant to ASC 985-605-25.~~Accounts

~~For~~We ~~hardware~~record ~~transactions~~an ~~where~~allowance ~~software is~~for ~~incidental, the~~doubtful ~~Company does~~accounts based ~~not~~on ~~apply~~specifically ~~separate~~identified ~~accounting~~amounts ~~guidance~~that to the ~~hardware and software elements. The~~ Company ~~applies~~believes ~~the~~to ~~provisions~~be ofuncollectible. ~~ASC~~We ~~985-605-15.~~have ~~Per~~a ~~ASC~~limited ~~985-605-15,~~number ifof ~~the~~customers ~~software~~with individually islarge ~~considered~~amounts ~~not~~due ~~essential~~at toany ~~the~~given ~~functionality of~~balance ~~the~~sheet ~~hardware,~~date. ~~then~~Any ~~the~~unanticipated ~~hardware~~change isin ~~not~~one ~~considered~~of ~~“software~~those ~~related”~~customers’ ~~and~~credit worthiness isor ~~excluded~~other ~~from~~matters affecting the ~~scope~~collectability of ~~ASC~~amounts ~~985-605-15. Such~~due ~~sale~~from ofsuch ~~computer~~customers ~~hardware~~could ishave ~~recognized~~a asmaterial ~~revenue~~effect on the results ~~transfer~~ of ~~risks~~operations ~~and~~in ~~rewards~~the ofperiod ~~ownership,~~in which ~~generally~~such ~~coincides with~~changes ~~the~~or ~~time~~events ~~when~~occur. ~~the~~After ~~goods~~all ~~are~~attempts ~~delivered~~ to ~~customers~~collect ~~and~~a ~~title~~receivable ~~has~~have ~~passed~~failed, the receivable is written off against the allowance.

~~Remote~~Recent ~~hosting~~Issued ~~services,~~Accounting where VSOE is based upon consistent pricing charged to customers based on volumes and performance requirements on a stand-alone basis and substantive renewal terms, are recognized ratably over the contract term as the services are performed. The remote hosting arrangements generally require the Company to perform one-time set-up activities and include a one-time set-up fee. This one-time set-up fee is generally paid by the customer at the time of contract execution. The Company has determined that these set-up activities do not constitute a separate unit of accounting, and accordingly, the related set-up fees are recognized protractedly over the term of the contract.Guidance

24In July 2012, the FASB issued an authoritative pronouncement related to testing indefinite-lived intangible assets, other than goodwill, for impairment. Under the guidance, an entity testing an indefinite-lived intangible asset for impairment has the option of performing a qualitative assessment before calculating the fair value of the asset. If the entity determines, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible asset is not more likely than not (i.e., a likelihood of more than 50 percent) impaired, the entity would not need to calculate the fair value of the asset. The guidance does not revise the requirement to test indefinite-lived intangible assets annually for impairment. In addition, the guidance does not amend the requirement to test these assets for impairment between annual tests if there is a change in events or circumstances; however, it does revise the examples of events and circumstances that an entity should consider in interim periods. The guidance was effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this guidance did not have a significant effect on our consolidated financial statements.

~~The~~In ~~Company~~February, is2013, ~~considering~~ the ~~applicability of~~FASB ~~ASC~~issued ~~985~~ASU 2013-~~605-55,~~02 ~~“Application~~that ofaddresses ~~AICPA~~the ~~Statement~~reporting of ~~SOP~~reclassifications ~~97-2~~out toof ~~Arrangements~~accumulated ~~That~~other ~~Include~~comprehensive ~~the~~income. ~~Right~~This toASU ~~Use~~clarifies ~~Software Stored~~FASB onCodification ~~Another~~Topic ~~Entity’s~~220, ~~Hardware~~Comprehensive Income,” and requires an entity to report the ~~hosting~~effect ~~services~~of ~~arrangements~~significant reclassifications out of accumulated other comprehensive income on athe ~~contract-by-contract~~net ~~basis.~~income Ifline items affected if the ~~Company~~amount is required under US GAAP to be reclassified ~~determines~~in ~~that~~its entirety to net income in the ~~customer~~same ~~does~~reporting period. Amounts not ~~have~~required ~~the~~to ~~contractual~~be ~~right~~reclassified in their entirety to ~~take~~net ~~possession~~income must ofbe ~~the~~cross-referenced ~~Company’s~~to ~~software~~other atdisclosures ~~any~~that ~~time~~provide additional detail about those amounts. These amendments are effective ~~during~~for ~~the~~reporting ~~hosting~~periods ~~period~~beginning ~~without~~after December 15, 2013. Because the only significant ~~penalty~~amounts in the Company’s accumulated other comprehensive income relate to foreign exchange translations, ~~ASC~~the ~~985-605~~Company ~~would~~does not ~~apply~~expect tosignificant ~~these~~impact ~~contracts~~by this standard in ~~accordance~~the ~~with~~foreseeable ~~ASC 985-605-55~~future.

~~Income Taxes~~23

~~The~~Other ~~Company~~accounting ~~accounts~~standards ~~for~~that ~~income~~have ~~taxes in~~been ~~accordance~~issued ~~with ASC 740 “Accounting for Income Taxes.” Under ASC 740, deferred tax liabilities~~ or ~~assets~~proposed atby the ~~end of~~FASB ~~each~~or ~~period~~other ~~are~~standards-setting ~~determined~~bodies ~~using~~that ~~the~~do ~~tax~~not ~~rate~~require ~~expected~~adoption tountil bea infuture ~~effect~~date ~~when taxes~~ are ~~actually~~not ~~paid or recovered. Valuation~~expected ~~allowances~~to ~~are~~have ~~established~~a ~~when~~significant itimpact ison ~~more likely than not that some or all of~~ the ~~deferred~~Company’s ~~tax~~consolidated ~~assets~~financial ~~not~~statements beupon ~~realized~~adoption.

InConsolidated ~~July,~~Results ~~2006, the FASB ASC 740-10-25, “Accounting for Uncertainty in Income Taxes-an interpretation~~ of ~~FASB~~Operations ~~Statement No. 109.” This Interpretation provides guidance~~ for ~~recognizing and measuring uncertain tax positions, as defined in ASC 740, “Accounting for Income Taxes.”~~ ~~ASC 740-10-25 prescribes a threshold condition that a tax position must meet for any of~~ the ~~benefit~~Three ofMonths ~~the~~Ended ~~uncertain~~March ~~tax position to be recognized in the financial statements. Guidance is also provided regarding derecognition~~31, ~~classification~~2013 and ~~disclosure of these uncertain tax positions~~2012.

~~Allowance~~The following table sets forth the results of our operations for ~~Doubtful~~the ~~Accounts~~periods indicated:

We record an allowance for doubtful accounts based on specifically identified amounts that the Company believes to be uncollectible. We have a limited number of customers with individually large amounts due at any given balance sheet date. Any unanticipated change in one of those customers’ credit worthiness or other matters affecting the collectability of amounts due from such customers could have a material effect on the results of operations in the period in which such changes or events occur. After all attempts to collect a receivable have failed, the receivable is written off against the allowance.

	Three Months Ended			Three Months Ended
	March 31, 2013			March 31, 2012
Net Sales	$	1,367,276		$	214,633
Cost of Sales		(349,160	)		(232,533	)

Gross Profit		1,018,116			(17,900	)

Selling Expenses		(271,043	)		(184,819	)
Research and Development Expenses		(222,724	)		(246,732	)
General and Administrative Expenses		(287,404	)		(313,553	)
Bad debt recovery		1,793,935			-

Operating Profit (Loss)		2,030,880			(763,004	)
Other Income		24,759			-

Net Profit (Loss)	$	2,119,163		$	(768,426	)

Gain/Loss Per Share		0.46			(0.17	)
Basic Weighted Average Shares Outstanding		4,651,173			4,651,173
Diluted Weighted Average Shares Outstanding		4,651,173			4,651,173

~~Recent~~Net ~~Issued Accounting Guidance~~Sales

InFor ~~May 2011,~~ the ~~FASB~~three-month ~~issued~~period ~~an authoritative~~ended ~~pronouncement~~March ~~on fair value measurement. The guidance is the result of joint efforts by the FASB and the International Accounting Standards Board to develop a single~~31, converged fair value framework. The guidance is largely consistent with existing fair value measurement principles in GAAP. The guidance expands the existing disclosure requirements for fair value measurements and makes other amendments. The guidance is to be applied prospectively and is effective for interim and annual periods beginning after December 152013, ~~2011 for public entities. Early application by public entities is not permitted. The adoption of this guidance to have a significant effect on~~ our ~~consolidated~~revenue ~~financial~~was ~~statements. In June 2011~~$1,367,276, ~~the FASB issued~~ an ~~authoritative~~increase ~~pronouncement to~~of ~~require~~approximately an537% ~~entity~~from toour ~~present~~revenue ~~the total~~ of ~~comprehensive income~~$214,633 ~~the~~for ~~components of net income, and~~ the ~~components of other comprehensive~~comparable ~~income~~period ~~either~~ in ~~a single continuous statement of comprehensive income or in two separate but consecutive statements~~2012. InThe ~~both choices,~~Company anrecognizes ~~entity is required to present each component of~~ net ~~income~~sales ~~along~~based ~~with~~on ~~total~~certain ~~net~~revenue ~~income,~~recognition ~~each~~criteria ~~component~~set offorth ~~other~~in ~~comprehensive income~~accordance ~~along~~ with ~~a total for other comprehensive income, and a total amount for comprehensive income. The guidance eliminates~~ the ~~option~~accounting toprinciples ~~present~~generally ~~the~~accepted ~~components~~in ~~of other comprehensive income as part of~~ the ~~statement~~United ~~of changes in stockholders’ equity~~States. The ~~guidance~~significant ~~does~~increase ~~not change the items that must be reported~~ in ~~other comprehensive income or when an item of other comprehensive income must be reclassified to~~ net ~~income.~~sales ~~The~~was ~~guidance~~attributable ~~should be applied retrospectively. For public entities, the guidance is~~to ~~effective~~such ~~for~~criteria ~~fiscal~~being ~~years~~met and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted. In December 2011, the FASB issued an authoritative pronouncement related to deferral of the effective date for ~~amendments~~certain toservice ~~the presentation~~contracts offrom ~~reclassifications~~one of ~~items out of accumulated other comprehensive income. This guidance allows~~ the ~~FASB~~Company’s tomajor ~~redeliberate whether~~customers toduring ~~present on~~ the ~~face of the financial statements the effects of reclassifications out of accumulated other comprehensive~~quarter, ~~income~~which onadded ~~the~~approximately components of net income and other comprehensive income for all periods presented. While the FASB is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments$615,415 ~~entities should continue~~ to ~~report~~net ~~reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before the pronouncement update was issued in June 2011~~sales. ~~We do not expect the adoption of this guidance to have a significant effect on our consolidated financial statements.~~

25Cost of Sales

InOur ~~September 2011, the FASB issued an authoritative~~cost ~~pronouncement~~of ~~related~~sales towas ~~testing~~$349,160 ~~goodwill~~ for ~~impairment.~~the ~~The~~three-month ~~guidance~~period isended ~~intended~~March ~~to simplify how entities~~31, ~~both public and nonpublic~~2013, ~~test~~ ~~goodwill~~which ~~for~~was ~~impairment. The guidance permits~~ an ~~entity~~increase toof ~~first~~approximately ~~assess~~50% ~~qualitative~~from ~~factors~~our ~~to determine whether it is “more~~cost ~~likely~~of ~~than~~sales ~~not” that the fair value~~ of a$232,533 ~~reporting unit is less than its carrying amount as a basis~~ for ~~determining whether it is necessary to perform~~ the ~~two-step~~comparable ~~goodwill~~period ~~impairment~~in ~~test~~2012. The ~~guidance~~increase is ~~effective~~associated ~~for~~with annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011 if a public entity’s financial statements for the ~~most recent annual or interim period have not yet been issued. We do not expect the adoption of this pronouncement to have a~~ significant ~~effect~~increase onin ~~our~~Net ~~consolidated financial statements~~Sales.

InGross December 2011, the FASB has issued an authoritative pronouncement related to Disclosures about Offsetting Assets and Liabilities. The guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. We are in the process of evaluating the effect of adoption of this guidance on our consolidated financial statements.Profit

~~Consolidated~~For ~~Results~~the ofthree-month ~~Operations~~period ~~for~~ended March ~~the~~31, ~~Three~~2013, ~~Months~~gross ~~Ended~~profit ~~September~~was 30$1,018,116, representing an increase of 5788% against ($17,900) for the comparable period in 2012. This increase was primarily attributable to the significant increase in both software sales and ~~2011~~hardware sales for the quarter.

~~The following table sets forth the results of our operations for the periods indicated:~~24

	Three Months Ended			Three Months Ended
	September 30, 2012			September 30, 2011
Net Sales	$	669,967		$	1,228,027
Cost of Sales		(431,786	)		(344,568	)
Gross Profit		238,181			883,459
Selling Expenses		(180,061	)		(197,029	)
Research and Development Expenses		(222,165	)		(109,794	)
General and Administrative Expenses		(377,566	)		(335,519	)
Operating Profit (Loss)		(779,792	)		(642,342	)
Other Income		-			151
Net Profit (Loss)		(521,188	)		241,386
Gain/Loss Per Share		(0.11	)		0.05
Basic Weighted Average Shares Outstanding		4,651,173			4,651,173
Diluted Weighted Average Shares Outstanding		4,651,173			4,651,173

Operating Expenses

26Total operating expenses were ($1,012,764) for the three-month period ended March 31, 2013, as compared to $745,104 for the comparable period in 2012, representing a decrease of 236%. The overall decrease in operating expenses is mainly attributable to the bad debt recovery of $1,793,935 for the three-month period ended March 31, 2013. On February 28, 2013, the Company received $1,793,935 (RMB 11,261,250) from one of its past major customers for a former debt (free of interest and penalties) that was written off as bad debt in 2011, which reduced the Company’s operating expenses. The past customer’s accounts receivable balance had been written off as bad debt in 2011 after the Company evaluated such balance for collectability and determined it was uncollectible for three consecutive years.

~~Net~~Selling ~~Sales~~expenses were $271,043 for the three-month period ended March 31, 2013, representing an increase of 32% against $184,819 for the comparable period in 2012. This increase was primarily due to increased compensation expense for the increased number of employees in our sales department.

~~For~~Research and development expenses were $222,724 for the three-month period ended ~~September~~March 3031, ~~2012 our revenue was $669~~2013,~~967,~~ acompared ~~decrease~~with ~~of approximately 45% from our revenue of~~ $1246,~~228,027~~732 for the ~~comparable~~same period in ~~2011~~2012. The decrease was primarily ~~mainly~~attributable ~~due~~ to a decrease in ~~software sales. In July 2012,~~ the ~~China~~number ~~State~~of ~~Council~~new ~~(the~~research ~~"Council")~~projects ~~issued~~in ~~amendments to~~ the ~~current~~first ~~rules~~quarter ~~and~~of ~~regulations applicable to China's electronic and online trading markets. The amendments restricted the bulk-commodities forward-trade exchange markets~~2013, ~~which~~offset ~~has~~by ~~directly led to~~ an ~~overall decrease~~ increase in ~~the~~expenses ~~demand~~associated ~~for~~with ~~electronic~~ongoing ~~trading~~research ~~software. Although we experienced a decrease in net sales for the three-month period ended September 30, 2012, we have entered into new sales contracts~~ and wedevelopment ~~believe that as a result, our net sales may improve somewhat over the next couple quarters~~projects.

~~Cost~~General and administrative expenses were $287,404 for the three-month period ended March 31, 2013, as compared to $313,553 for the same period in 2012, a decrease of ~~Sales~~8%. The decrease was primarily due to a decrease in the acquisition of office supplies in the first quarter of 2013.

~~Our~~Operating ~~cost of~~Profit sales was $431,786 for the three-month period ended September 30, 2012, compared with $344,568 for the same period in 2011. This increase was in line with increased costs associated with one of our projects. (Loss)

~~Gross~~We ~~Profit~~recorded an operating profit of $236,944 for the three-month period ended March 31, 2013 compared to an operating loss of $763,004 for the three-month period ended March 31, 2012, representing an increase in operating profit of 131%. The increase in operating profit for the first quarter of fiscal 2013 was due to our increased sales from $214,633 in the three-month period ended March 31, 2012 to $1,367,276 for the comparable period in 2013.

~~For~~Other the three-month period ended September 30, 2012, gross profit was $238,181, representing a decrease of 73% against $883,459 for the comparable period in 2011. This decrease was in line with a decrease in software sales for the quarter.Income

~~Operating~~Our ~~Expenses~~other income is mainly derived from a value added tax (“VAT”) refund associated with our software product sales. Software sales in China are subject to a 17% VAT. However, companies that develop their own software and have the software registered are generally entitled to a refund of the VAT. If the net amount of the VAT payable exceeds 3% of software product sales, then the excess portion of the VAT is refundable to us upon our application to tax authority. This policy is effective through 2013. Our other income was $24,759 for the three-month period ended March 31, 2013, as compared to $0 for the same period in 2012. The significant increase was the result of an increase in VAT refunds that we received from software product sales.

~~Total~~Liquidity operating expenses were $779,792 for the three-month period ended September 30, 2012, as compared to $642,342 for the comparable period in 2011, representing an increase of 21%. The overall increase in operating expenses was mainly attributable to increases in research and ~~development~~Capital ~~expenses during the period.~~Resources

~~Selling~~For ~~expenses were $180,061 for~~ the three-month period ended ~~September~~March 31, 302013, ~~2012~~we recorded a net profit of $2,119,163, ~~representing~~or basic and diluted profit of $0.46 per share, compared to a ~~decrease~~net loss of 9%($768,426), or ~~against~~basic and diluted loss of $~~197~~0.17 per share,~~029~~ for the ~~comparable~~same period inof ~~2011~~2012. ~~This~~ ~~decrease~~Our ~~was~~capital requirements are primarily ~~due~~working capital requirements related to ~~the~~costs ~~decreased~~of ~~number~~hardware for network solution projects and costs associated with the expansion of ~~employees~~our inbusiness. In order to minimize our ~~sales~~working ~~department~~capital requirements, we generally obtain from our hardware vendors payment terms that are timed to permit us to receive payment from our customers for the hardware before our payments to our hardware vendors are due. However, we sometimes obtain less favorable payment terms from our customers, thereby increasing our working capital requirements. We have historically financed our working capital and other financing requirements through management of our billing cycle and, to a limited extent, bank loans.

Research and development expenses were $222,165 for the three-month period ended September 30, 2012, compared with $109,794 for the same period in 2011. The approximate 102% increase was attributable to our efforts in new projects in the third quarter of 2012.25

~~General~~Our ~~and~~accounts ~~administrative~~receivable ~~expenses~~balance ~~were~~at March ~~$377~~31,~~566~~ ~~for~~2013 ~~the~~was ~~three-month period ended September 30~~$134, ~~2012~~424, as compared to $~~335~~132,~~519~~892 ~~for~~at ~~the~~December ~~same period in 2011~~31, ~~an increase of 13%. The increase was primarily due to office equipment expenses in the third quarter of~~ 2012.

~~Operating~~Our ~~Profit~~inventory position at the end of the first quarter of fiscal 2013 was $1,903,303, as compared to $1,554,868 at December 31, 2012. This increase was mainly due to an increase in the number of projects that were not completed at the end of the quarter and remain work-in-progress (~~Loss~~WIP).

We ~~recorded~~ended anthe ~~operating~~first ~~loss~~quarter ~~($541,611)~~of fiscal ~~for~~2013 ~~the~~with ~~three-month~~a ~~period~~cash ~~ended~~position ~~September~~of 30$4,746,979. ~~2012~~We ~~compared~~had toa anpositive operating ~~profit~~cash flow of $~~241~~4,~~117~~552,932, ~~for~~primarily ~~the~~due ~~three-month~~to ~~period~~a ~~ended~~net profit ~~September~~of 30$2, ~~2011~~119,163 ~~representing~~and aincreased ~~decrease~~customers indeposits ~~operating profit~~ of ~~325%.~~$2,953,200 ~~The decrease~~ in ~~operating profit for~~ the ~~third~~first quarter of ~~fiscal~~2013. ~~2012~~On ~~was~~April ~~due~~26, to2013, ~~our~~we ~~decreased~~had ~~gross~~a ~~profit~~cash outflow ~~from~~of $~~883~~3,~~459~~215,021 ~~in the three-month period ended September 30~~(RMB20,000,000) ~~2011~~ to ~~$238,181 for~~fund the ~~comparable~~registered ~~period~~capital inof ~~2012~~Forlink ~~and~~Technologies ~~increased~~(BeiHai) ~~operating expenses from $642~~Limited,~~342~~ ~~in the three~~our wholly-~~month~~owned ~~period~~subsidiary ~~ended~~(see ~~September~~Note ~~30, 2011 to 779,792 for the comparable period in 2012~~13).

27Although our revenues and operating results for any period are not necessarily indicative of future periods, we anticipate that our available funds and cash flows generated from operations will be sufficient to meet our anticipated needs for working capital, capital expenditures and business expansion through 2013. In June 2012, we signed a bank loan finance contract with China Mingsheng Bank, Ltd. We received a credit of RMB 2,000,000 to meet our working capital needs. As of March 31, 2013, the balance of our bank loan was RMB 2,000,000. We may need to raise additional funds in the future, however, in order to fund acquisitions, develop new or enhanced services or products, respond to competitive pressures to compete successfully for larger projects involving higher levels of hardware purchases, or if our business otherwise grows more rapidly than we currently predict. If we do need to raise additional funds, we expect to raise those funds through new issuances of shares of our equity securities in one or more public offerings or private placements, or through credit facilities extended by lending institutions.

~~Other~~Off-Balance ~~Income~~Sheet Arrangements

~~Our~~As ~~other~~of ~~income~~March ~~is mainly derived from a value added tax (“VAT”) refund associated with our software product sales. Software sales in China are subject to a 17% VAT. However~~31, ~~companies that develop their own software and have the software registered are generally entitled to a refund of the VAT. If the net amount of the VAT payable exceeds 3% of software product sales~~2013, ~~then~~we ~~the~~had ~~excess~~not ~~portion of the VAT is refundable~~entered tointo usany ~~upon our application to tax authority. This policy is effective through 2012. Our other income was zero for the three~~off-~~month period~~balance ~~ended~~sheet ~~September~~arrangements ~~30,~~with ~~2012,~~any asindividuals ~~compared~~or ~~to $151 for the same period in 2011, representing a decrease of 100% in other income~~entities. ~~The significant decrease was the result of a decrease in VAT refunds that we received from software product sales.~~

~~Consolidated~~Contractual ~~Results of Operations for the Nine Months Ended September 30, 2012 and 2011.~~Obligations

~~The~~As ~~following~~of ~~table~~March ~~sets~~31, ~~forth~~2013, ~~the~~we ~~results~~had commitments ofunder ~~our~~non-cancelable ~~operations~~operating ~~for~~leases ~~the~~requiring ~~periods~~annual ~~indicated~~minimum rental payments as follows:

	Nine Months Ended			Nine Months Ended
Date	Rent Payment Due
	September 30, 2012			September 30, 2011
April 1, 2013 to March 31, 2014	$	69,456
Net Sales	$	2,173,084		$	3,022,423
April 1, 2014 to March 31, 2015	$	0
Cost of Sales		(1,134,486	)		(1,318,727	)
Gross Profit		1,038,598			1,703,696
Selling Expenses		(541,030	)		(729,484	)
Research and Development Expenses		(713,984	)		(507,838	)
General and Administrative Expenses		(1,022,163	)		(904,917	)
Operating Profit (Loss)		(1,238,579	)		(438,543	)
Other Income		8,812			25,423
Net Profit (Loss)		(1,287,305	)		(423,435	)
Gain/Loss Per Share		(0.14	)		(0.09	)
Basic Weighted Average Shares Outstanding		4,651,173			4,651,173
Diluted Weighted Average Shares Outstanding		4,651,173			4,651,173

~~Net~~Related Party ~~Sales~~Transactions

~~For the nine-month period~~The ~~ended September 30~~Company, ~~2012,~~from ~~our~~time ~~revenue~~to ~~was $2~~time,~~173,084,~~ areceived ~~decrease of 28%~~ from ~~our~~or ~~revenue~~made ofrepayments ~~$3,022,423 for the comparable period in 2011. This decrease in revenue for the nine-month period ended September 30, 2012 compared~~ to ~~the~~major ~~same~~shareholders ~~period~~who ~~ended September~~are ~~30,~~also ~~2011~~management ~~was mainly due to a decrease in sales~~ of ~~For-series software. In July 2012,~~ the ~~Council issued amendments to the current rules and regulations applicable to China’s electronic and online trading markets~~Company. The ~~amendments~~ ~~restricted~~amounts ~~the~~due ~~bulk-commodities~~from/to ~~forward-trade~~shareholders ~~exchange~~do ~~markets,~~not ~~which~~bear ~~has~~any ~~directly~~interest ~~led~~and todo annot ~~overall~~have ~~decrease~~clearly indefined ~~the~~terms ~~demand for~~of ~~electronic trading software~~repayment.

~~Cost~~As of ~~Sales~~March 31, 2013, the amounts due to Mr. Yi He, who is a shareholder and CEO of the Company were $89,531 as compared with $146,663 on December 31, 2012; the amounts due to Mr. Wei Li, who is a shareholder and the administration manager of FTCL, were $146,436 as compared with $146,183 on December 31, 2012; the amounts due to Mr. Hongkeung Lam, who is a shareholder and CFO of the Company were $0 as compared with $63,639 on December 31, 2012. The amounts due to the stockholders above do not bear any interest and do not have clearly defined terms of repayment. The change of total amounts balance to Mr. Wei Li was caused totally by exchange rate fluctuation. The changes of total amounts balance to Mr. Yi He and Mr. Hongkeung Lam were caused by both repayment and exchange rate fluctuation.

Our cost of sales was $1,134,486 in the nine-month period ended September 30, 2012, representing a decrease of 14% from $1,318,727 for the comparable period in 2011. The decrease in our cost of sales was in line with our overall net sales.26

~~Gross~~ITEM ~~Profit~~4. CONTROLS AND PROCEDURES

~~For~~Under the ~~nine-month~~direction ~~period~~of ~~ended~~our ~~September~~Chief Executive ~~30,~~Officer ~~2012,~~(“CEO”) ~~gross~~and ~~profit~~Chief ~~was~~Financial $1Officer (“CFO”),~~038,598,~~ ~~representing~~we aevaluated ~~decrease~~our disclosure controls and procedures and internal control over financial reporting. There are inherent limitations to the effectiveness of ~~39%~~any ~~from~~system $1of disclosure controls and procedures,~~703,696~~ ~~for~~including the ~~comparable~~possibility ~~period~~of inhuman ~~2011~~error and the circumvention or overriding of the controls and procedures. Accordingly, ~~This~~even ~~decrease~~effective disclosure controls and procedures can only provide reasonable assurance of achieving their control inobjectives. Based upon our ~~gross~~evaluation, ~~profit~~our ~~was~~CEO inand ~~line~~CFO ~~with~~concluded athat ~~decrease~~as of March 31, 2013, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in ~~both~~the reports that we file or submit under the ~~sales~~Securities Exchange Act of ~~For-series~~1934, ~~software~~as amended, is recorded, processed, summarized and reported within the ~~sales~~time ofperiods specified ~~system~~in ~~integration~~the applicable rules and forms, and that it is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

~~Operating~~There ~~Expenses~~was no change in our internal control over financial reporting during the quarter ended March 31, 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Total operating expenses were $2,277,177 in the nine-month period ended September 30, 2012 compared with $2,142,239 for the nine-month period ended September 30, 2011, representing steady. The steady in operating expenses in the first three quarters, of 2012 was mainly attributable to increase in general and administrative expenses, accompanied with a decrease in selling expenses during the period.27

28PART II. OTHER INFORMATION

Selling expenses were $541,030 in the nine-month period ended September 30, 2012 representing a decrease of 26% from $729,484 for the comparable period in 2011. This decrease was primarily due to a decreased marketing fee during the nine-month period ended September 30, 2011.

Research and development expenses were $713,984 in the nine-month period ended September 30, 2012 compared with $507,838 in the nine month period ended September 30, 2011, representing an increase of 41%. The increase in R&D expenses was due to our increased capital input on research and development for internal projects.

General and administrative expenses were $1,022,163 in the nine-month period ended September 30, 2012 compared with $904,917 for the comparable period ended September 30, 2011, representing an increase of 13%. The increase was primarily due to office equipment expenses in our Chengdu R&D center.

Operating Profit (Loss)

We recorded an operating loss ($1,238,579) for the nine-month period ended September 30, 2012, representing an increased loss of 182% from an operating loss of ($438,543) for the comparable period in 2012. The increase in operating loss for the first nine months of fiscal 2012 was due to our decreased gross profit from $1,703,696 in the nine-month period ended September 30, 2011 to $1,038,598 for the comparable period in 2012 and increased operating expenses from $2,142,239 in the nine-month period ended September 30, 2011 to 2,277,177 for the comparable period in 2012.

Other Income

Our other income was $8,812 for the nine-month period ended September 30, 2012, representing a decrease of 65% as compared to $25,423 for the comparable period in 2011. The decrease was due to a decrease in VAT refunds we received during the nine-month period ended September 30, 2012.

Liquidity and Capital Resources

For the nine-month period ended September 30, 2012, we recorded a net loss of $1,287,305, or basic and diluted loss of $0.14 per share, compared to a net loss of $423,435 or basic and diluted loss of $0.09 per share, for the same period of 2011. Our capital requirements are primarily working capital requirements related to costs of hardware for network solution projects and costs associated with the expansion of our business. In order to minimize our working capital requirements, we generally obtain from our hardware vendors payment terms that are timed to permit us to receive payment from our customers for the hardware before our payments to our hardware vendors are due. However, we sometimes obtain less favorable payment terms from our customers, thereby increasing our working capital requirements. We have historically financed our working capital and other financing requirements through careful management of our billing cycle and, to a limited extent, bank loans.

Our accounts receivable balance at September 30, 2012 was $346,751, as compared to $203,910 at December 31, 2011. The increase of $142,841 was due to the receipt of one accounts receivable from one of our major customers.

Our inventory position at the end of the third quarter of fiscal 2012 was $1,436,689, as compared to $1,157,934 at December 31, 2011. This increase was mainly due to an increase in the number of projects that were not completed at the end of the quarter and remain work-in-progress (WIP).

We ended the third quarter of fiscal 2012 with a cash position of $223,143. We had a negative operating cash flow of $913,993, primarily due to a net loss of ($521,188) in the third quarter of 2012.

Although our revenues and operating results for any period are not necessarily indicative of future periods, we anticipate that our available funds and cash flows generated from operations will be sufficient to meet our anticipated needs for working capital, capital expenditures and business expansion through 2012. In June 2012, we signed a bank loan finance contract with China Mingsheng Bank Ltd. We received a credit of RMB 2,000,000 to meet our working capital. As of the end of September 30, 2012, the balance of our bank loan was RMB 2,000,000. We may need to raise additional funds in the future, however, in order to fund acquisitions, develop new or enhanced services or products, respond to competitive pressures to compete successfully for larger projects involving higher levels of hardware purchases, or if our business otherwise grows more rapidly than we currently predict. If we do need to raise additional funds, we expect to raise those funds through new issuances of shares of our equity securities in one or more public offerings or private placements, or through credit facilities extended by lending institutions.

Off-Balance Sheet Arrangements

As of September 30, 2012, we had not entered into any off-balance sheet arrangements with any individuals or entities.

Contractual Obligations

As of September 30, 2012, we had commitments under non-cancelable operating leases requiring annual minimum rental payments as follows:

Date		Rent Payment Due
	October 1, 2012 to September 30, 2013	$	283,330
	October 1, 2013 to September 30, 2014	$	15,101

Related Party Transactions

The Company, from time to time, received from or made repayments to one major stockholder, Mr. He Yi, who is also a management member of the Company. The amounts due from/to this stockholder do not bear any interest and do not have clearly defined terms of repayment.

As of September 30, 2012 and December 31, 2011, the amounts due to Mr. He Yi were $375,043 and $260,470, respectively, representing advances from this stockholder.

ITEM 4.CONTROLS AND PROCEDURES

Under the direction of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), we evaluated our disclosure controls and procedures and internal control over financial reporting. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon our evaluation, our CEO and CFO concluded that as of September 30, 2012, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

There was no change in our internal control over financial reporting during the quarter ended September 30, 2012 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 6. EXHIBITS

Exhibit No.	Description	~~Description~~
3.1	Articles of Incorporation, as amended and currently in effect. (Incorporated by reference to Exhibit No. 3.1 of the Form 10-QSB for the quarter ended March 31, 2000, and filed on May 15, 2000.)	~~Articles of Incorporation, as amended and currently in effect. (Incorporated by reference to Exhibit No. 3.1 of the Form 10-QSB for the quarter ended March 31, 2000, and filed on May 15, 2000.)~~
3.2	Bylaws dated May 11, 2000. (Incorporated by reference to Exhibit No. 3.2 of the Form 10-QSB for the quarter ended March 31, 2000, and filed on May 15, 2000.)	~~Bylaws dated May 11, 2000. (Incorporated by reference to Exhibit No. 3.2 of the Form 10-QSB for the quarter ended March 31, 2000, and filed on May 15, 2000.)~~
3.3	Text of Amendment to Bylaws of Forlink Software Corporation, Inc. (Incorporated by reference to Exhibit 3.3 of the Current Report on Form 8-K filed on January 18, 2007.)	~~Text of Amendment to Bylaws of Forlink Software Corporation, Inc. (Incorporated by reference to Exhibit 3.3 of the Current Report on Form 8-K filed on January 18, 2007)~~
3.4	Certificate of Amendment to Increase Number of Authorized Shares of Common Stock as filed with the Nevada Secretary of State on April 4, 2007. (Incorporated by reference to Exhibit No. 3.2 of the Form 10-K for the year ended December 31, 2008, and filed on March 30, 2009.)	Certificate of Amendment to Increase Number of Authorized Shares of Common Stock as filed with the Nevada Secretary of State on April 4, 2007 (Incorporated by reference to Exhibit No. 3.2 of the Form 10-K for the year ended December 31, 2008, and filed on March 30, 2009.)
3.5	Certificate of Amendment to Effect a 1-for-20 Reverse Stock Split as filed with the Nevada Secretary of State on February 21, 2008. (Incorporated by reference to Exhibit No. 3.3 of the Form 10-K for the year ended December 31, 2008, and filed on March 30, 2009.)	Certificate of Amendment to Effect a 1-for-20 Reverse Stock Split as filed with the Nevada Secretary of State on February 21, 2008 (Incorporated by reference to Exhibit No. 3.3 of the Form 10-K for the year ended December 31, 2008, and filed on March 30, 2009.)
31.1	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)	~~Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)~~
31.2	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)	~~Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)~~
32.1	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)	~~Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)~~
32.2	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)	~~Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)~~
101.INS*		XBRL Instance Document
101.SCH*		XBRL Taxonomy Extension Schema
101.CAL*		XBRL Taxonomy Extension Calculation
101.DEF*		XBRL Taxonomy Extension Definition Linkbase
101.LAB*		XBRL Taxonomy Extension Label Linkbase
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase

* In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

101.INS*	XBRL Instance Document

101.SCH*	XBRL Taxonomy Extension Schema

101.CAL*	XBRL Taxonomy Extension Calculation

101.DEF*	XBRL Taxonomy Extension Definition Linkbase

101.LAB*	XBRL Taxonomy Extension Label Linkbase

101.PRE*	XBRL Taxonomy Extension Presentation Linkbase

31* XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	~~FORLINK SOFTWARE CORPORATION, INC.~~		FORLINK SOFTWARE CORPORATION, INC.
Date: November 13, 2012	By:	/s/ Yi He
Date:	May 20, 2013		By:	/s/ Yi He
		~~Yi He~~		Yi He
		~~Chief Executive Officer~~		Chief Executive Officer
		~~(Principal Executive Officer)~~		(Principal Executive Officer)
Date: November 13, 2012	By:	/s/ Hongkeung Lam
Date:	May 20, 2013		By:	/s/ Hongkeung Lam
		~~Hongkeung Lam~~		Hongkeung Lam
		~~Chief Financial and Accounting Officer~~		Chief Financial and Accounting Officer
		(Principal Financial and Accounting Officer)
				Principal Financial and Accounting Officer)

3229

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