UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

~~WASHINGTON~~Washington, D.C. 20549

FORM 10-K

(Mark One)

( X )	ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
	FOR THE FISCAL YEAR ENDED MARCH 31, 2010
( )	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
	For the transition period from _________ to __________

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

~~Commission~~For ~~File~~the ~~Number~~fiscal ~~0-28683~~year ended March 31, 2011

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

For the transition period from ___________ to ___________

Commission file number: 000-28683

VANTONE INTERNATIONAL GROUP, INC.

(Exact ~~Name~~name of ~~Registrant~~registrant as ~~Specified~~specified in ~~Its~~its ~~Charter~~charter)

NEVADA	41-1954595
Nevada		41-1954595
(State or other jurisdiction of	(I.R.S. Employer
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
incorporation or organization)	Identification No.)
No.195 Zhongshan Road, Heping District Shenyang, Liaoning Province People’s Republic of China
(Address of principal executive offices)		(Zip Code)

~~NO. 195 ZHONGSHAN RD, HEPING DISTRICT~~86-24-2286-6686

~~SHENYANG~~(Registrant’s telephone number, ~~LIAONING~~including ~~PROVINCE~~area code)

~~PEOPLE’S~~Securities ~~REPUBLIC~~registered OFpursuant ~~CHINA~~to Section 12(b) of the Act: None. Securities registered under Section 12(g) of the Act: Common Stock, Par Value $0.001 Per Share (Title of class)

~~(Address~~Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of ~~principal~~the ~~executive~~Securities ~~offices)~~Act.

~~86-24-2286-6686~~ Yes ~~(Issuer's telephone number)~~o No x

~~Securities~~Indicate ~~Registered~~by ~~Pursuant~~check mark if the registrant is not required to file reports pursuant to Section 1213 or Section 15(bd) of the Exchange Act~~: NONE~~.

~~Securities~~ Yes ~~Registered Pursuant to Section 12(g) of the Exchange Act:~~o No x

~~COMMON~~Indicate ~~STOCK~~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), ~~$0.001~~and ~~PAR~~(2) ~~VALUE~~has been subject to such filing requirements for the past 90 days.

~~(Title~~ Yes ~~of Class)~~x No o

Indicate by check mark ifwhether the registrant ishas asubmitted ~~well-known~~electronically ~~seasoned~~and ~~issuer~~posted on its corporate Web site, asif ~~defined~~any, inevery Interactive Data File required to be submitted and posted pursuant to Rule ~~406~~405 of ~~the~~Regulation ~~Securities~~S-T ~~Act~~(§232. ~~Yes~~405 __of Nothis √ chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

~~Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.~~ Yes __ o No √ o

Indicate by check mark ~~whether~~if ~~the~~disclosure ~~registrant~~of ~~(1)~~delinquent ~~has~~filers ~~filed~~pursuant ~~all reports required~~ to beItem ~~filed~~405 byof ~~Sections~~Regulation 13S-K ~~or 15~~(d)§232.405 of ~~the~~this ~~Securities~~chapter) ~~Exchange~~is ~~Act~~not ofcontained ~~1934~~herein, ~~during~~and ~~the~~will ~~preceding~~not 12be ~~months~~contained, ~~(or~~to ~~for~~the ~~such~~best ~~shorter~~of ~~period~~registrant's ~~that~~knowledge, ~~the~~in ~~registrant~~definitive ~~was~~proxy ~~required~~or toinformation ~~file~~statements ~~such~~incorporated ~~reports),~~by ~~and~~reference ~~(2)~~in ~~has~~Part ~~been~~III ~~subject~~of tothis ~~such~~Form ~~filing~~10-K ~~requirements~~or ~~for~~any ~~the~~amendment ~~past~~to 90this ~~days.~~Form ~~Yes √ No __~~10-K.o

Indicate by check mark ifwhether ~~disclosure~~the ofregistrant ~~delinquent~~is ~~filers~~a ~~pursuant~~large toaccelerated ~~Item~~filer, ~~405~~an ofaccelerated ~~Regulation~~filer, Sa non-Kaccelerated ~~(§ 229.405) is not contained herein~~filer, ~~and~~or ~~will~~a ~~not~~smaller bereporting ~~contained, to~~company. See the ~~best~~definitions of ~~registrant's knowledge, in~~“large ~~definitive~~accelerated ~~proxy~~filer,” or“accelerated ~~information statements~~filer” ~~incorporated by~~and ~~reference in~~“smaller ~~Part~~reporting ~~III~~company” ofin ~~this~~Rule ~~Form 10~~12b-K2 orof ~~any amendment~~the toExchange ~~this Form 10-K~~Act. ~~[ ]~~

~~Indicate~~Large ~~by check mark whether the registrant is a large~~ accelerated filer, an¨ ~~accelerated~~Accelerated filer, a¨ ~~non~~Non-accelerated filer, or¨ aSmaller ~~smaller~~ reporting company~~. See~~ ~~the~~x ~~definitions~~(Do ofnot ~~“large~~check ~~accelerated~~if ~~filer,”~~a ~~“accelerated filer” and “~~smaller reporting company~~” in Rule 12b-2 of the Exchange Act. (Check One~~)

~~Large~~Indicate ~~accelerated~~by ~~filer Accelerated~~check ~~filer Non-accelerated~~mark ~~filer Small~~whether ~~reporting~~the registrant is a shell company X (as defined in Rule 12b-2 of the Act).

~~Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).~~ Yes __ o No √ x

AsThe ~~of September 30, 2009 the~~ aggregate market value of the voting and non-voting common ~~stock~~equity held by non-affiliates ~~was~~of ~~approximately~~the $6registrant,~~016~~ as of September 30,~~170~~ 2010, the last business day of the registrant’s most recently completed second fiscal quarter, based ~~upon~~on the closing ~~sale~~ price of the common stock on ~~September~~the ~~30,~~OTC ~~2009~~Bulletin ofBoard ~~$.35~~on ~~per~~such ~~share~~date was $8,551,264.

As of ~~July~~June 1227, ~~2010~~2011, there were 30,001,000 shares of common stock issued and outstanding.

~~Documents~~DOCUMENTS ~~incorporated~~INCORPORATED byBY ~~reference: NONE~~REFERENCE

~~PART~~Document IParts Into Which Incorporated None

~~FORWARD-LOOKING~~TABLE ~~STATEMENTS:~~OF ~~NO ASSURANCES INTENDED~~CONTENTS

In addition to historical information, this Annual Report contains forward-looking statements, which are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “estimates,” “projects,” or similar expressions. These forward-looking statements represent Management’s belief as to the future of Vantone International Group, Inc. (f/k/a Senior Optician Services Inc.) and Subsidiaries. Whether those beliefs become reality will depend on many factors that are not under Management’s control. Many risks and uncertainties exist that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the section entitled “Risk Factors.” Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.

Item Number and Caption		Page

PART I

Item 1.	Business.	5

Item 1A.	Risk Factors.	14

Item 2.	Properties.	20

Item 3.	Legal Proceedings.	21

Item 4.	(Removed and Reserved).	21

PART II

Item 5.	Market for Registrant’s Common Equity, and Related Stockholder Matters and Issuer Purchases of Equity Securities.	21

Item 6.	Selected Financial Data.	22

Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	22

Item 7A.	Quantitative and Qualitative Disclosures About Market Risk.	27

Item 8.	Financial Statements and Supplementary Data.	27

Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.	28

Item 9A.	Controls and Procedures.	28

PART III

Item 10.	Directors, Executive Officers, Promoters and Corporate Governance.	29

Item 11.	Executive Compensation.	32

Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	34

Item 13.	Certain Relationships and Related Transactions, and Director Independence.	35

Item 14.	Principal Accountant Fees and Services.	35

PART IV

Item 15.	Exhibits, Financial Statement Schedules.	36

SIGNATURES

ITEM 1. BUSINESS

Vantone International Group, Inc. (f/k/a Senior Optician Services Inc.) and Subsidiaries (the “Company” or “Vantone International”) was organized in Minnesota in 1966, then reorganized as a Nevada corporation in 2007.The Company did not have any significant business operations between 1973 and May 14, 2009. During that period, the Company was a shell company until it acquired all of the outstanding capital stock of Vantone USA Inc. (formerly: Vantone International Group Inc.) (“Vantone USA”) on May 14, 2009.

Vantone International, through its wholly-owned subsidiary, Vantone USA, owns 100% of the registered capital of Shenyang Vantone Healthcare Products Manufacturing Co., Ltd. (“Vantone Manufacturing”), a corporation organized in January 2007 under the laws of the People’s Republic of China (the “PRC”). Vantone Manufacturing is engaged in the manufacture and distribution of health and beauty products, water purifying equipment, and kitchen equipment.

Effective on April 1, 2007, Vantone Manufacturing obtained control over the business of Shenyang Vantone Yuan Trading Co., Ltd. (“Vantone Yuan”), the relationship between them being customarily identified as “entrusted management.” The relationship is defined by three agreements, each of which has a term of ten years. The effect of these agreements is that Vantone Manufacturing acquired the exclusive control over the business of, the right to all revenues obtained by, and responsibility for all of the expenses incurred by Vantone Yuan.

Vantone Yuan is a distribution company that was founded in April 2007 under the laws of the People’s Republic of China with registered capital of 20 million RMB (US$2,930,017). Vantone Yuan’s executive offices and manufacturing facility are located in the City of Shenyang in Liaoning Province, in northeastern China. Vantone Yuan engages in the distribution of approximately70 different products through an online ecommerce platform.

Vantone Yuan carries out most of its distribution business through the operations of wholly-owned subsidiaries organized under the laws of the PRC: Kang Ping Vantone Trading Co., Ltd., Kang Ping Vantone Yuan Trading Co., Ltd. and Shenyang Vantone Liyuan Trading Co., Ltd. Vantone Yuan carries out its insurance business through a subsidiary in which it holds a 88% interest: Liaoning Vantone Insurance Agent Co., Ltd. (“Vantone Insurance”).

Marketing Network

During the past three years, Vantone Yuan and its subsidiaries have developed a sales network across China. Initially Vantone Yuan established a chain of more than 400 franchise stores across the China, as well as branch offices in Jilin and Heilongjiang Provinces. Since April 2008 Vantone Yuan has been gradually eliminating the low performing franchise stores and converting the remainder to dedicated sales agencies. Through the sales network, the Company has distributed a variety of approximately 70 different products, ranging from daily commodities such as vitamins, water filters, bamboo fiber product, and jade mattresses with regulated temperature to appliance, kitchenware and insurance products. Commencing in April 2010, however, Vantone Yuan and its subsidiaries terminated their entire sales network, and have converted the agency business model to E-commerce transactions through their proprietary website.

Vantone Yuan and its subsidiaries offer products directly to consumers through the Company’s website. On the website, customers can search and purchase all the products sold under Vantone’s trademark. In addition, Vantone Yuan’s subsidiaries offer insurance products through the website. The insurance products are sold by licensed insurance agents that are associated with Vantone as “VIP Members.” The VIP members assist their clients to contract for insurance services through the Company’s website. Being a new and fast distribution channel, E-commerce is expected to attract more customers to purchase and new suppliers to provide new products and services under Vantone’s logo.

Product Lines

Currently the Company engages in two segments of business activities: distribution of products (daily commodity, health and beauty products, and appliances) and insurance agency services.

Through its three wholly-owned subsidiaries, Kang Ping, Kang Ping Vantone Yuan, and Liyuan, the Company is engaged in the distribution of a wide variety of products, some of which it manufactures and some of which are manufactured for Vantone Yuan and carry its private label. The products distributed by Vantone Yuan include the following categories.

GS Nano Cigarette Filter. This product is imported from the U.S. Generally a cigarette filter can reduce the amount of smoke, tar and fine particles. The Nano cigarette filter can be more helpful in reducing the intake of hazards into the lungs, alleviating morning cough from smoking, and improving breath and taste. It can also help reduce smoke dependency and cravings while maintaining the cigarette flavor.

Mengxishi---Skin Care Products. We sell two categories of Mengxishi skin care products: high-tech skin care products and conventional skin care products.

· High-Tech Skin Care Product Family:

Dow Corning’s high molecular weight silicone elastomers were used to develop Mengxishi high-tech skin care products, a leading edge anti-aging cosmetics technology. The innovative formula improves the skin’s appearance to achieve a smoother, more youthful looking skin, with prolonged use enhancing the effect. The products also aid in dermal hydration, providing skin with balance to stay soft and smooth. There are five products in this product family: Soft Bio-peptide refinisher, Soft Bio-peptide lotion, Soft Bio-peptide emulsion, Soft Bio-peptide cream, Soft Bio-peptide eye cream.

· Conventional Skin Care Product Family:

Mengxishi also has a conventional skin care product family, including face cream, skin balancing cleanser, skin whitening cleanser, dry skin cleanser, skin balancing lotion, skin balancing gel, skin whitening cream, moisture cream, sun protection cream, skin balancing mask, skin whitening mask, skin moisture mask, skin emulsion, hand cream, nutrition eye cream, revitalizing cream. Compared to the high-tech skin care products, conventional skin care products are less expensive and thus affordable to the ordinary family.

Both series of Mengxishi skin care products were the result of research by PLA General Hospital, a well-known hospital in China. Vantone Yuan sponsored the research, as a result of which our CEO, Honggang Yu, owns the trademark for and formula for Mengxishi.

In June 2007, we entered into a production-distribution contract with the Beijing Daily-Commodity Manufacturing Company. According to the contract, Beijing Daily-Commodity Manufacturing Company is responsible for the production of Mengxishi products according to the product list, amount, and package standards Vantone Yuan requires. Vantone Yuan is responsible for the distribution of the products. Vantone Yuan is also responsible for all product returns as no returns to the factory are permitted according to the contract.

Nutritious Food Products. Chinese herbalism is a 4,000 year old tradition. It is integral to Chinese culture and society as a concept of improving health in a natural way, incorporating dietary therapy as an effective way to prevent and treat diseases. Based on the theory of Chinese traditional medicine, the intake of food and natural ingredients are intricately connected to our health and well-being. Abstracts from natural herbs and foods can enhance the human immune system and improve the function of organs, thus creating beneficial medical effects. Because of this traditional notion, traditional Chinese medicine made of natural herbs and dietary food is very popular in China for the prevention and treatment of diseases. The five food products the Company distributes are central to these types of traditional Chinese practices, including:

1) Kang Xin Tai Liquid. Liquid extracts of herbal ingredients, Danshen and Dilong. The liquid is intended to clean the thrombus, provide nutrition to the nervous system, decrease blood viscosity and the level of cholesterol, improve the function of liver and cardiovascular system, and prevent apoplexy. The liquid is also believed to help prevent the complications of diabetes such as hyperglycaemia.

2) Pan Tea Pellet, tea extracts. This product contains tea polyphenols, flavonoids, zinc, potassium, calcium, multiple amino acids, and polysaccharides. The active ingredient, polyphenols, as one type of antioxidant, may help prevent blood clotting and lower cholesterol levels, and thus reduce the risk of gastric, esophageal and skin cancers. It can also help improve vitality, immunity, natural health and longevity, and protect kidney and spleen. Currently this series has 7 different products in the market.

3) Changbao Huiyuan Liquid. Made of Chinese medicinal ingredients — including aweto and organic herbs together with traditional Chinese white wine -- it can be used to improve the function of both male and female sexual hormones, prevent fatigue and aging, and improve memory system and metabolism. The liquid contains complex zinc, amino acids and other trace elements.

4) Xibao Tablet (Tablet with Selenium). Selenium plays an important role in the body's enzyme function, and may help to stimulate the production of antibodies (disease-fighting organisms) after vaccination. Selenium also aids in male fertility. Selenium is also considered an antioxidant, and it may work with other antioxidants such as vitamins C and E to protect the body's cells against free radicals, which can help inhibit cancerous cells and prevent heart disease.

5) Vantone Longevity Salt. As a substitute for sodium in ordinary salt, the potassium contained in our product can not only avoid the harm resulting from sodium, but can also help improve kidney function. It also plays a key role in cardiac, skeletal, and smooth muscle contraction, making it an important nutrient for normal heart, digestive, and muscular function.

~~Bamboo~~CAUTIONARY ~~Fiber~~STATEMENT ~~and~~REGARDING ~~Yarn~~FORWARD-LOOKING Product Family. The Bamboo Fiber and Yarn Product Family consist of 13 products produced by a Chinese company located in Shenzhen. All the products are made of bamboo fiber and yarn. Bamboo grows widely throughout China and is easy to obtain. Bamboo is a renewable resource. It can be harvested without killing the plant, and it only takes a few months before the plant is ready to be harvested again. That makes it an environmentally friendly choice. Bamboo yarn is strong, flexible, and can be softer than silk when spun into yarn. The Bamboo Fiber and Yarn Product Family include quilts, towels, underwear, pajamas, mats, etc.INFORMATION

~~Household~~This ~~Appliances.~~annual Inreport ~~2009,~~contains ~~the~~forward-looking ~~Chinese~~statements. ~~government~~These ~~established~~statements ainvolve 2known ~~billion~~and ~~RMB~~unknown ~~stimulus package~~risks, ~~consisting~~uncertainties ~~of subsidies to assist low income families in purchasing new electronics~~ and ~~home~~other ~~appliances,~~factors inwhich ~~order~~may tocause ~~stimulate the economy. Because~~ our ~~selling~~actual ~~network~~results, ~~and~~performance ~~distribution~~or ~~team~~achievements ~~enabled us~~ to ~~quickly~~be ~~take~~materially ~~advantage~~different offrom ~~this~~any ~~market~~future ~~opportunity~~results, aperformances ~~number~~or ofachievements ~~famous~~expressed ~~Chinese~~or ~~brand~~implied ~~name~~by ~~manufacturers~~the ~~(Haier,~~forward-looking ~~Lenovo,~~statements. ~~etc)~~These ~~cooperated~~risks ~~with~~and usuncertainties toinclude, ~~form~~but ~~strategic~~are ~~partnerships.~~not Inlimited ~~order~~ to, ~~rapidly enter into~~ the ~~home~~factors ~~appliance~~described ~~market~~under ~~and~~Item ~~enhance~~1 ~~the~~“Description ~~Company's~~of ~~core competitiveness~~Business,” weItem ~~introduced~~1A ~~into~~“Risk ~~our~~Factors” ~~stores~~and ~~the~~Item ~~producers~~7 “Management’s ~~unlisted~~Discussion ~~products~~and orAnalysis ~~new~~of ~~products~~Financial ~~which~~Condition ~~had~~and ~~just~~Results ~~appeared~~of onOperations.” In ~~the~~some ~~market. The~~cases, ~~household~~you ~~appliances~~can ~~that~~identify weforward-looking ~~distribute~~statements ~~consist~~by ofterms ~~televisions,~~such ~~air~~as ~~conditioners~~“anticipates,” ~~refrigerators~~“believes,” ~~cellular~~“could,” ~~phones~~“estimates,” ~~cooking~~“expects,” ~~appliances~~“intends,” ~~etc. The~~“may,” ~~manufacturers~~“plans,” ~~are~~“potential,” ~~responsible~~“predicts,” ~~for~~“projects,” ~~advertising~~“should,” “would” and ~~promotion~~similar ~~and~~expressions ~~they~~intended ~~provide~~to ~~after~~identify forward-~~sale~~looking ~~service~~statements. ~~The~~Forward-looking ~~distribution~~statements ofreflect ~~the appliances is~~ our ~~responsibility. So~~current weviews ~~trained~~with ~~our~~respect ~~sales~~to ~~agents~~future events and ~~service~~are ~~team~~based toon ~~adapt~~assumptions ~~them~~and subject to ~~the~~risks ~~household~~and ~~appliance distribution model~~uncertainties. InGiven ~~the~~these ~~second half of the fiscal year the distribution of household appliances made a significant contribution to our revenues. Now~~uncertainties, ~~that~~you weshould ~~have~~not ~~terminated~~place ~~our~~undue ~~sales~~reliance ~~agent~~on ~~network,~~these weforward-looking ~~sell the appliances through our ecommerce platform~~statements.

~~Jade~~Forward-looking ~~Mattresses~~statements ~~with~~represent ~~regulated~~our ~~temperature. The~~estimates ~~surface of these mattresses is a compound of ground jade~~ and ~~other~~assumptions ~~natural~~only ~~material. The compound is attractive and durable. In addition, the jade functions~~ as aof ~~conductor for~~ the ~~infrared~~date ~~heater~~of ~~located~~this ~~within~~annual ~~the mattress~~report. ~~The~~ ~~heater~~You ~~can~~should beread ~~initiated~~this toannual ~~warm~~report ~~the~~and ~~mattress during~~ the ~~winter. The~~documents ~~temperature~~that ~~can~~we bereference ~~controlled and will rise~~ in athis ~~few~~annual ~~minutes. It will remain warm for a long time. In summer~~report, ~~the~~or ~~jade~~that ~~will~~we ~~become~~filed ~~cool,~~as ~~allowing~~exhibits ~~the~~to ~~sleeper~~this toannual ~~feel~~report ~~comfortable~~completely and ~~relaxed. In~~with ~~addition,~~the ~~since~~understanding ~~jade~~that isour aactual ~~scarce~~future ~~resource,~~results ~~customers~~may ~~are~~be ~~attracted~~materially todifferent ~~the~~from ~~collection~~what ~~value~~we ~~of the mattresses~~expect.

~~Insurance~~Except ~~Agency~~as ~~Services~~required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

~~The~~OTHER ~~insurance~~PERTINENT industry in China is nascent, but growing rapidly. From 2006 to 2007 the market for insurance in China more than doubled in size. As of March 31, 2010, there are approximately 2,600 and 2.93 million professional insurance agencies and agents in China, respectively. Although the current global recession is a limiting factor, we believe that the market will continue to grow at a significant pace. China’s government encourages the development of the insurance industry to satisfy the need for insurance products in China. With a better understand of the benefits of life and property insurance, Chinese citizens are more willing to spend money on insurance products.INFORMATION

InReferences ~~China,~~in athis ~~license~~annual isreport ~~required~~ to ~~become~~“we,” an“us,” ~~insurance agency. The China Insurance Regulatory Commission (~~“~~CIRC~~our”) isand the ~~regulatory~~“Company” ~~authority~~and ~~that~~words ~~is responsible for the issuance~~ of ~~this~~like ~~license.~~import Onrefer ~~December~~to ~~9, 2003, the CIRC granted~~ Vantone ~~Insurance~~International aGroup, ~~license to act as agent in the distribution of all types of insurance product and perform other insurance related services~~Inc. ~~The license expires on December 9~~, ~~2010,~~its ~~but~~subsidiaries weand ~~expect~~variable tointerest ~~be able to renew~~entities.

~~Vantone~~References ~~Insurance~~to ~~primarily represents the insurance products of New~~ China ~~Life~~or ~~Insurance Co., Ltd (“New China”) and Ping An Insurance Corporation in Shenyang in~~ the ~~fiscal~~PRC ~~year~~refer ~~ended~~to ~~March 31, 2009. The Company expanded its involvement in~~ the ~~insurance market and developed relationships with two additional insurance companies in China: Zhong Yi Insurance Company (“Zhong Yi”) and Heng~~People’ans ~~Life~~Republic ~~Insurance~~of ~~Co., Ltd. The major insurance service income was from Zhong Yi and New~~ China. Meanwhile, the Company is also working with its underwriters to develop new insurance products based on feedback from the market. We anticipate a growing business income in this area in the coming years.

Our business is conducted in China, using RMB, the currency of China, and our financial statements are presented in United States dollars. In this annual report, we refer to assets, obligations, commitments and liabilities in our financial statements in United States dollars. These dollar references are based on the exchange rate of RMB to United States dollars, determined as of a specific date. Changes in the exchange rate will affect the amount of our obligations and the value of our assets in terms of United States dollars which may result in an increase or decrease in the amount of our obligations (expressed in dollars) and the value of our assets, including accounts receivable (expressed in dollars).

PART I

ITEM 1. BUSINESS.

We operate as a diversified company in China, headquartered in Shenyang City, China. Our business currently consists of three segments: production and sales of water purification products and other products, insurance agency service, and small financing loans service.

From April 2007 to April 2010 we developed a sales network across China. We established approximately 400 franchise stores across China, as well as branch offices in the Jilin and Heilongjiang Provinces. Through the sales network, we distributed approximately 70 different products, ranging from daily commodities such as health food and products, cosmetics and skincare products, vitamins, water filters, bamboo fiber product, jade mattresses with regulated temperature control, appliances, kitchenware, and insurance products. In April 2010 we closed our 400 franchise stores and mainly operated our business through our website Vantone Online for the fiscal year ended March 31, 2011. Simultaneously, we decided to significantly change our business model to customer online order and e-payment. Starting in April 2011, in order to increase our sales volume, and satisfy more customers’ demands, we plan to open physical store locations all over China. Customers can make orders on our Vantone online website, and then make payment and pick up products in any of our physical store locations. In April 2011, we retained a strategy company to design a VI logo, create a market analysis report, and conduct strategy development of physical stores. The contract requires the strategy company to complete this work in July 2011. Once this report is complete we will commence the opening of new physical store locations.

We invite more stores to franchise with us. All members who have registered as VIP members on Vantone Online can apply to open a merchandise franchise with us, and the members who meet insurance agent qualifications may apply to open up an insurance franchise. We are not only providing small loans for members to support its business, but also providing online order services and fund settlement services on Vantone Online. The members who open a merchandise or insurance franchise receive professional training and instructions before they can run the franchises.

Corporate History and Structure

We were incorporated on April 20, 1966 under the laws of the State of Minnesota as Polar Homes, Inc. In 1968, we changed our name to Polar Campers, Inc. We were originally formed to build, manufacture, sell, lease, own, buy and otherwise deal with mobile homes, campers, trailers and any other business in vehicles; and to own and otherwise deal with real estate. We ceased all business operations in 1973 and disposed of all assets and liabilities.

In August 1991, in anticipation of a business combination with another entity, we changed our name to Access Plus, Inc. This business combination was unsuccessful and was abandoned in January 1992. Concurrent with the abandonment of the proposed business combination, we changed our name to Environmental Protection Corporation.

On August 15, 2000, we changed our name to Senior Optician Service, Inc. We intended to enter the specialty eyewear products business and to focus our efforts on specialty eyewear sales and services for senior citizens who are either home or facility bound. On March 31, 2003, this business plan was suspended by the management.

On August 31, 2007, we re-domiciled from the State of Minnesota to the State of Nevada. The capital structure of the Company remained unchanged. The change of domicile was implemented by merging the Minnesota entity into a Nevada corporation named Senior Optician Service, Inc. which was formed on June 25, 2007. Senior Optician Service, Inc., the Nevada entity, survived following the completion of the merger.

Change of Control and Reverse Merger Transaction

On April 7, 2008, Mr. Honggang Yu, our current president and chief executive officer, purchased 5,175,000 shares of our common stock from Gregory M. Wilson and Kaniksu Financial Service, Inc., which represented 86.9% of the outstanding shares at the time of the transaction.

On May 14, 2009, we newly issued 23,947,000 shares of common stock in exchange for 100% capital shares of Vantone USA, Inc. Mr. Honggang Yu and Mr. Jichun Li, the sole shareholders Vantone USA, Inc. (“Vantone USA”), received a total of 19,157,600 shares and 4,789,400 shares, respectively. After the transaction, Vantone USA became our wholly-owned subsidiary. Effective August 17, 2009, our corporate name was changed from Senior Optician Service Inc. to Vantone International Group, Inc. (“Vantone International”) to better reflect our current business operations.

Our Subsidiaries

Vantone USA was incorporated under the laws of Nevada on December 5, 2007. It is a holding company that has owned 100% of the equity in Shenyang Vantone Healthcare Products Manufacturing Co., Ltd. (“Vantone Manufacturing”) since July 14, 2008. Most of Vantone International’s activities are conducted through its wholly own subsidiaries, Shenyang Heping District Vantone Small Loan Financing Co., Ltd. (“Vantone Small Financing”), Vantone Manufacturing, and Vantone Manufacturing’s variable interest entities in the PRC.

Shenyang Vantone Yuan Trading Co., Ltd. (“Vantone Yuan”) was incorporated under the law of the PRC. It was incorporated under the name Shenyang Tongbida Trading Co., Ltd., but adopted its current name on June 21, 2007. Through contractual agreements, Vantone Manufacturing will enjoy all of the profits and bear all of the losses arising from the business of Vantone Yuan during Vantone Manufacturing’s management period.

Kangping Vantone Trading Co., Ltd. (“Kangping Vantone”) was incorporated under the law of the PRC. Vantone Yuan owns 100% shares of Kangping Vantone.

Liaoning Vantone Insurance Agent Co., Ltd. (“Vantone Insurance”) was incorporated under the law of the PRC. Vantone Yuan owns 88% shares of Vantone Insurance.

Vantone Small Financing was incorporated under the law of the PRC. Vantone Yuan and Vantone International own 29.30% and 70.70% shares of Vantone Small Financing, respectively.

Corporate Structure

The following chart reflects our organizational structure for our active subsidiaries as of the date of this annual report.

Our Industry and Market

Water purifying equipment industry

In recent years, there has been public concern for environmental protection and water hygiene, and consumer capacity for water purifying equipment continues to rise. The water purifying equipment industry in China is growing rapidly and the volume of production is increasing year by year. In 2009, the production volume of water purifiers in China reached more than 20 million units. Concurrently the sales were approximately RMB 30 billion or $458,820,000 in 2009 (http://www.cu-market.com.cn/hgjj/2010-11-16/10520568.html). With increased usage of water appliances in the household, the need for water purifiers is rising.

Furthermore, survey data from the Water Purifying Industry Committee (http://www.cu-market.com.cn/hgjj/2010-11-16/10520568.html) provides that less than 15% of the households in Beijing, Shanghai, and Guangzhou, the largest three cities in China, owns water purifiers. The ownership rate in small and medium-sized cities is below 5% and rural market ownership of water purification systems is nominal, illustrating that the water purifier market has huge potential.

Insurance industry

According to the current insurance operating data in China released by the China Insurance Regulatory Commission, CIRC (http://insurance.jrj.com.cn/2010/09/2615148231742.shtml), during the period from January 2010 to August 2010, the insurance premium income was up to RMB 1,010 billion, or approximately $150 billion, an increase of 32.96% compared to the same period in 2009. The casualty insurance premium income was RMB 263 billion, or approximately $40 billion, an increase of 32.63% compared to the same period in 2009 and the life insurance premium income was RMB 747 billion, or approximately $110 billion, an increase of 33.11% compared to the same period in 2009.

Based on data that has been collected from a daily newspaper in Beijing, from January 2010 to August 2010, the insurance industry’s expenses for insurance compensation was RMB 197 billion, or approximately $30 billion, a decrease of 5.41% compared to the same period in 2009. The amount of assets of the insurance industry were RMB 4,753 billion, or approximately $730 billion, an increase of 29.14% compared to the same period in 2009. The bank deposits were RMB 1,284 billion, or approximately $190 billion, an increase of 30.36% compared to the same period in 2009.

According to the Opinions Concerning the Reform and Improvement of Insurance Salesman Management System (No. 84 of 2010) issued by the CIRC on September 20, 2010 (http://www.circ.gov.cn/tabid/106/InfoID/143917/frtid/3871/Default.aspx), the Chinese government encourages insurance agencies to form a solid insurance marketing team, increase the investment in education and training for salesman, and improve the overall quality of insurance sales market. Insurance agency companies are encouraged to improve the income and benefits for individual salesmen, train the sales team and promote the development of the insurance marketing team. Insurance companies and insurance agency companies are also encouraged to actively explore new insurance marketing models and marketing channels in order to realize the specialization and professionalization of insurance sales system. The government encourages the cooperation between insurance companies and insurance agencies to establish a stable exclusive agency relationship and a sales outsourcing model. We believe that with the rapid development of the Chinese economy and the encouragement from the government, the Chinese insurance market has great potential.

According to the statistics prepared by the Insurance Association of China (http://www.iachina.cn/09/03/content/0013_news.html), by the first half year of 2010, there were over 150,000 companies with insurance brokers in China. The sales team has reached more than 3 million people.

Small loan industry

The small loan industry in China is an emerging market, which is different from Chinese traditional banking lending, with the features of flexible operation, a quick and simple loan procedure, and often being unsecured.

A small loan company is incorporated under the relevant provisions of Guidance on the Small Loan Company Pilot of the China Banking Regulatory Commission and the People's Bank of China (No.23, 2008 of China Banking Regulatory Commission), which is a legal private financial institution and a useful complement to traditional bank lending. A non-financial institution can operate small loans business without taking deposits from the public.

It has an incomparable advantage from the traditional Chinese banking and financing industry. This industry is recognized by the features of flexible, convenient and quick operation and is highly supported and encouraged by the government. Because the speed of China’s economic growth has slowed down and the inflation has heated up, the Chinese government has raised the deposit interest, and the deposit reserve rate in order to tighten the monetary policy. This practice provides an opportunity for the small loan business companies, especially in their active supporting roles in the promoting of the “agriculture, farmer and village” policy and satisfying the capital requirements for small and medium-size enterprises and individual businesses.

Our Products and Services

Water Purifiers

For our water purification business, we conduct research and development, assemble, and sell water purification products (We outsource the water purifier parts to other non-related factories). Commencing from April 2011, we are able to sell water purification equipment in physical stores or through our Vantone Online system. For our water purification products, our UF Water Filter patent has been issued by the Chinese government in March 2011. We also have one patent application currently pending with the related Chinese authorities.

Our current water purification products include Standard Direct Drinking Type, Miniature Standard Direct Drinking Type, Desktop Direct Drinking Type, Luxurious B-5 Band Hanging Direct Drinking Type, Luxurious B-6 Band Hanging Direct Drinking Type, Vantone high efficiency filtration water purifier and NM water glass, etc. With our established online distribution networks, we expect we will expand our market shares steadily.

Our Vantone ultra filtration water purifying equipment with double temperature adjustment function, can promote the national health and psycho-thermal safety standards for drinking water. It has a double prevents dry heating design with heating capacity and a beautiful appearance. Our other series products, miniature, desk-top, standard direct drinking water purifying equipment also adopt modern filtration technology – the hollow fiber ultra-filtration technology. They can perform concentration and the self-acting separation of water’s larger molecule or colloid substances, and intercept bacteria, remove a variety of harmful substances and the purify the water to make it drinkable directly. They also include our innovative backwash device.

Our Luxurious B-5/6 Band Hanging Direct Drinking Type, one of the latest products in water purification equipment, can filter harmful substances and bacteria and release the necessary calcium ion with minerals for human body to absorb. It can increase the cell vitality, accelerate the blood circulation, and purify the ordinary tap water into the oxygen-enriched water.

We plan to open or franchise approximately 110 physical stores in Shenyang, China by the end of 2011. However, we did not open or franchise any physical stores as of June 30, 2011. Our goal is to open or franchise more physical stores nationwide and increase our active online members who will make regular purchases of our products through the Vantone Online system. We generally charge an annual membership service fee of RMB 480 (equivalent to $73) in connection with the registration as a VIP member. In order to better recruit members, we implemented a discount of annual register membership fee of RMB 320 (equivalent to $49) in the three months ended June 30, 2010 and RMB 440 (equivalent to $67) from July 2010 to November 2010, respectively. However, the sales agents of our Vantone Insurance who have paid the deposit to the Company before March 31, 2010 may enjoy free registration as the permanent VIP membership if such sales agent completed a registration in Vantone online before December 1, 2010. In addition, we charge a permanent membership service fee of RMB 300 (equivalent to $46) to register permanent members who qualify as insurance agents from April 1, 2010 to November 30, 2010, otherwise, we charge a permanent membership service fee of RMB 480 (equivalent to $73).

Our water purifying equipment business is expected to be our major revenue driver, while our insurance and small financing loan businesses will complement our water purification business. For the fiscal year ended March 31, 2011, our water purifying equipment series products and water cups constitutes approximately 22% of our total revenues. For the fiscal year ended March 31, 2012, we expect our water purification and other products sales, insurance agency service, and providing small financing business to generate approximately 70%, 10%, and 20%, respectively, of our annual revenues.

Insurance

As an insurance agent, we primarily represent a variety of insurance products, including home, property, life, health and auto insurance, for insurance companies located in China. For the fiscal year ended March 31, 2011, we primarily sold our insurance products through our Vantone Online system. Commencing from April 2011, we can sell our insurance products either in our physical locations or on our Vantone Online system. In addition, we actively recruit our insurance agents as registered members of our Vantone Online store. Our revenue from this segment is derived from commissions upon insurance products sales. At June 2011, we have more than 700 registered online members as our insurance agents.

Currently, our collaborating insurance companies in China are Generali China Life Insurance Company Ltd., Liaoning Province Branch, Ping’An Insurance (Group) Company of China, Ltd. Shengyang Center (“Ping’An”), New China Life Co., Ltd. Liaoning Branch and Heng’An Standard Life Co., Ltd. Liaoning Branch (“Heng’An”).

Heng’An’s products consist of Heng’An Standard Steady Life Endowment Insurance A, Heng’An Standard “Tian Tian Xiang Shang” of University Education Cumulative Type Participating Insurance C, Heng’An Standard “Nian Nian Ji Xiang” Accident Insurance B, Heng’An Standard “Jin Fu Lai” Annuity Insurance, Heng’An Standard “Zhen Ai Xiang Sui” (Participating Type) A, ”Xing Kui You Ni” Lifelong Major Disease Insurance B, “Huan Xiao Man Tang” Endowment Insurance B, Heng’ An Standard Additional Premium Immunity Term Life Insurance, Heng’An Standard Additional Parenting Annuity Insurance A, Heng’An Standard Additional Accident Insurance, Heng’An Standard Additional Junior high school Education Annuity Insurance (Participating Type), Additional Pre-payment Critical Illness Insurance H, Additional Children Accident Injury Insurance, Additional “Jiang Kang Shi Fu” Long Term Medical Insurance, and Additional Hospitalization Allowances Medical Insurance.

Ping’An sells Enterprise Property Insurance, Transportation Insurance, Fabrication work risks, Liability, Insurance Car Insurance, Compulsory Automobile Insurance, Accident and Health Insurance, Individual Property Insurance, and Leisurely Travel Ping’An insurance.

Our insurance agents are required to be licensed and qualified in engaging in the insurance industry in China. Currently, we are restricted to conduct our insurance sales business in the Liaoning province of China only. We are not currently authorized to conduct our insurance sales business outside the Liaoning province.

Small Loans Business

We provide three types of loans to our customers: credit loans, mortgage loans and pledge loans. We target our members of online stores and small and medium-sized enterprises to provide the loans. The majority of the clients of credit loans are members of Vantone online, who are 25 to 65 years old, with a good credit according to the record from our Vantone website and purchase certain amounts products from Vantone. The majority of clients of mortgaged or pledged loans are members of Vantone online, other small and medium-sized enterprise and individuals. As to mortgaged or pledged loans, the borrower mortgages (pledge) or guarantees with its or the third party’s personal property, real estate or rights to get a small loan from us. Generally, as to property and real estate with strong liquidity, we may provide a loan for as much as 50% of the above assets assessed value; as to the different liquidities of treasury bonds, deposit receipts, bank notes and stock, we provide as much as between 60% and 90% of the assessed value. All of the borrowers are required by us to submit an application and are subject to our approval. The terms of the loan will usually be less than six months.

Vantone Small Financing can solve members’ startup capital shortage by providing small financings to our online start-up business members, and support them to open a Vantone Brand franchised shop to distribute and display the products of our company. As a result, more members will join our Vantone Online, and more Vantone Brand franchised stores (either online or physical) will be opened.

Vantone Small Financing also intends to provide capital support for setting up additional insurance franchisees in the future, to improve company’s insurance agency business, to recruit more insurance agents to join us as our members, and to expand the franchised channel in the insurance market.

For the fiscal year ended March 31, 2011, we provided small financing loans to individual customers only. Commencing from April 2011, we started to provide small financing service to individuals and corporate entities, as well. Our loans are not secured by the products that are sold to customers, but are secured by other collateral of the applicants, such as United States public companies outstanding common stock. We may also accept the applicant’s real properties, personal properties, bank funds, and/or future income as collateral in the future. For the fiscal year ended March 31, 2011, all collateral were United States public companies outstanding stocks, and most of them are Vantone International’s outstanding stocks. Since most of the borrowers are our registered members on Vantone Online stores, such borrowers plan to establish the physical stores or expand their business. Therefore, after the physical stores or small business of the borrowers have been set up, we will require the borrowers to use their business operation rights and related assets as additional collateral to cover the full amount of the loans. Furthermore, we request the borrower to purchase casualty insurance to secure those loans, which refer to us as primary beneficiary. For individual and/or corporate applicants, most of borrowers have been approved to obtain the loans between RMB 10,000 to RMB 500,000, or approximately $1,527 to $76,352. In addition, each borrower can apply for multiple loans from us subject to our approval.

E-Commerce Online Products

Additionally, we sell some other products on our Vantone website, such as health care food and related products, skin-care and beauty products, and feminine care products, etc. These sales accounted for approximately 55% of our total revenue for the year ended March 31, 2011. However, we have significantly reduced the sales of these health products since April 2011.

Business Model and Process

We have combined the sales of water purifiers, insurance service, and small business financing service into one sales platform - Vantone Online by the online sales distribution channels, so called “3 + E” business model.

Water purifier manufacturing business

Our water purification business includes research and development of water purifiers under the Vantone Brand, assembly, distribution and delivery of the products, and after sales customer services and support. We have researched and developed a variety of water purifiers for household and corporate use.

We purchase the raw materials for the production of our water purifiers. The raw materials includes the parts or units of the water purifier that we use for assembly. Our raw material quality control staff inspects these raw materials upon delivery. Upon passing the quality inspection, our staff will sign-in and seal the parts in our warehouse where they are placed in storage. We also require suppliers to provide a product quality certificate by a national authoritative inspection agency. For unqualified raw materials, we will contact the suppliers for returns and exchanges.

We implement quality management control on our assembly production line. According to Health Permit Document of Domestic Health and Safety Products in relation to drinking water issued by the Ministry of Public Health of the People’s Republic of China that, by examination and verification, our WTRO-JY type water purifier and WT-UF type UF water purifier comply with the relevant regulations of “Supervision and Management of Drinking Water”. Our measurement of quality objectives and processes were analyzed through planning, process, performance, recognition, execution and supervision, in order to assemble products to meet the requirements of customers and regulators.

We have engaged a third-party logistics transport company for the delivery of the products ordered by our customers. We have entered delivery service agreements with logistics companies. Our products are delivered by trucks through the logistics companies.

We have a strict after-sales customer service management system. The after-sales service department provides a customer hot line telephone service for our customers and performs return and exchange services, as well as process complaints from customers.

We provide a seven day return policy for our products which have quality issues, and a 12 months warranty. During the warranty period, if our products are out of order, we will provide repair service free of charge (excluding the consumable parts such as the filter in the water purifier), or we can exchange the product or provide a refund if the product cannot be repaired due to the quality issue. If the products are impaired due to lack of care or misuse by the customers, the customers will be liable for all the repair service charges.

Insurance agency business

We have entered into insurance agency contracts with various insurance companies in the Liaoning Province, China. The insurance companies are responsible for providing insurance products, pre-sale training of insurance products, sales consultation and after-sales service to our member agents. We are responsible for selling insurance products, recruiting and training insurance agents. Our revenue in this segment is mainly derived from the commissions of sales of insurance products.

Small loan business processes

Our small loan business is composed of sixteen steps, including marketing before the lending, business acceptance, survey before the lending, data acceptance, data input, material review, phone check, approving loans, signing contract, handling guarantee, lending examination, lending operation, file management, the management after the lending, service after the lending, and loan collection.

The stage before the lending includes marketing before the lending, business acceptance, survey before the lending, Our credit department is responsible for completing these items.

The stage during the lending includes data acceptance, data input, material review, phone check, approving loans, signing contract, handling guarantee, lending examination, and lending operation. Our risk control department is responsible for these items.

The stage after the lending includes archiving portfolios, performing after the lending management and service, collecting loans. The risk control department and finance department are responsible for the management after the lending and loan collection. The credit department and comprehensive administration department take charge of service after the lending.

We apply strict controls to make sure there is no conflict of interest in performing the loan and financing services. Our loan approval team must be separated from the guaranty team, while our lending examiner must be independent from our sales persons who reach out to the collaborating business partners.

“E-Commerce”

We purchase and sell our “E-Commerce” merchandises based on the market demands and our customer preferences. Our goal is to meet the demand of our customers to the maximum extent and reduce any possible storages of products.

We sell our assembled products through our online website and our physical stores. We are responsible for the costs and expenses of the product promotions and marketing, quality controls and after-sales and customer services.

As to other products, we generally purchase these products from the manufacturers. If we satisfy certain purchase targets from the product manufacturers, we may serve as the exclusive regional sales agent for the manufacturers. For the fiscal years ended March 31, 2011 and 2010, we were the exclusive regional sales agent for various products. Under the purchase model from the products manufacturers, we make profits margins between the re-sale prices and purchase prices.

Our Suppliers

~~Most~~The offollowing ~~the~~table ~~products~~summarizes ~~sold~~raw bymaterials ~~Vantone Yuan~~ and ~~its~~products ~~subsidiaries~~purchased ~~are~~from ~~manufactured~~major ~~for~~suppliers ~~Vantone~~(each ~~Yuan~~10% onor amore ~~“private~~of ~~label”~~total ~~basis~~raw bymaterial ~~independent~~and ~~factories. Among~~products ~~our principal suppliers are~~purchased):

 Bamboo Fiber and Yarn Products: Shenzhen BaiGu Good Product Co., Ltd.  Jade Mattresses Products XiuYan Manchu Autonomous County Boda Jade Implement Manufactory  Haier PC Shenyang Dinghao Technology Development Co., Ltd  Changhong Commodities Sichuan Changhong ShenYang Sales Branch  Lenovo Notebook computer ShenYang DingHao Technology Development Co., Ltd and ShenYang Helizhisheng Technology Development Co., Ltd

	Purchased from		Number of		Percentage of
For The Fiscal Years Ended March 31,	Major Suppliers		Suppliers		Total Purchased
2011	$	1,200,333		5		94.47%
2010	$	1,204,129		3		43.05%

~~Intellectual Property~~10

~~Our~~Following ~~subsidiary,~~is ~~Vantone~~a ~~Manufacturing,~~list ~~owns~~of ~~the~~our ~~trade~~top ~~mark~~ten ofsuppliers ~~Seaside~~for ~~Naturals.~~our ~~The~~water ~~trademark~~purifier ~~registration~~and ~~number~~online inmerchandizes ~~China~~for isthe ~~ZC7158721SL.~~fiscal year ended March 31, 2011:

Name of Suppliers	Products from Suppliers
Beijing Times Meiye Technology Development Co.Ltd.	Magical treasures EGF gift pack
Beijing Shuainihong Gene Technology Ltd.	Shuainihong gene system biology skincare products
Yongkang Liancheng Trading Ltd.	Water cup series
Wenzhou Jia Tai Latex Ltd.	Natural latex mattresses
Qingdao Juntong Biotechnology Co., Ltd.	Qianzhu series marine biological diet therapy products
Hangzhou Bolaite Electric Ltd.	Water purifier accessories
Shenzhen Shanyue Technology Development Ltd.	Lotus brand silver ions soft cotton for sanitary towel
Tianjin Dinghe Houseware Co., Ltd.	Natural latex mattresses
Shenyang City, Shen He District, Xin zhenfa Electronics trading company.	Water purifier accessories
Kunshan City Jinjiang Electronics Technology Co., Ltd.	Water purifier accessories

Following are the suppliers for our insurance products sales for the fiscal year ended March 31, 2011:

Suppliers	Insurance Policies purchased from this supplier USD ($)
Generali China Life Insurance Company Ltd., Liaoning Province Branch	10,781
Ping An Insurance (Group) Company of China,Ltd. Shengyang Center	9,704
New China Life Co., Ltd. Liaoning Branch	8,273
Heng An Standard Life Co., Ltd. Liaoning Branch	5,563
TOTAL	34,321

Our Customers

Our customers include both individuals and companies. From April 1, 2010 to March 31, 2011, Shengyang City Heping District Jiuyan Health Care Store (store owner: Shouju Fei) and Dongfang Jixiang Store (store owner: Jinyang Yuan) were our top two customers purchasing 20.06% and 14.46% of our total sold products respectively.

Sales and Marketing

Water purifier business

The current rate of use of water purifiers in mainland China is at a1% level. There is a huge potential market in china. According to Chinese office statistics, by the end of 2010, the demand for water purifiers in china is approximately 30,000,000 sets, changing frequent rate is 20%. For the fiscal year ended March 31, 2011, we have sold approximately 2,500 sets of water purifiers.

Insurance business

According to the statistics conducted by the Insurance Association of China, by the first half year of 2010, there were 2,538 insurance professional agency companies in China and 156,000 companies involved in the insurance business. The total salesmen have reached more than 3,020,000 people. In order to better develop our service and management, we established Vantone Online on April 1, 2010 to operate all of our sales businesses including sales of water purifying equipment, small loan financing, “E-Commerce” merchandises, and insurance-related products on the internet platform. Commencing from April 1, 2011, we plan to open physical stores. As a result, we can sell our insurance products either in our physical locations or on Vantone Online system. We also recruit our insurance agents as registered members of Vantone Online Store to better expand our insurance agent business. By June 2011, we have more than 700 registered online members as our insurance agents.

Small loan financing

By the end of June 30, 2010, there were approximately 1,940 small loan financing companies in China. The total registered cost is RMB124.249 billion, the amount of loan is RMB124.48billion (Source: China's small loan company peak BBS http://finance.ce.cn/rolling/201007/23/t20100723_15997795.shtml). Vantone Small Financing was incorporated on September 27, 2010. As of March 31, 2011, we lent the total principal loans of RMB 46.20 million, or approximately $7,053,111, to our customers. We had a total of 1,234 customers. For the fiscal year ended March 31, 2011, we provided small financing loans to individual customers only. Commencing April 2011, we will provide small financing service to individuals and corporate entities to better develop our business.

Competition

~~Currently~~Water ~~Vantone’s~~purifier ~~primary~~industry. ~~Chinese~~The ~~competitor~~water ispurifier aindustry ~~large chain store named “GOME Group,” which~~ is ~~engaged~~an inemerging ~~the~~industry ~~distribution of household electric products~~ in China. ItOur ~~has~~main ~~chain~~competitors ~~stores~~are inMidea ~~Beijing~~Company, ~~Shanghai,~~which ~~Guangzhou~~has ~~and~~very ~~other~~high ~~cities~~brand inrecognition ~~China.~~and ~~The~~an ~~company’s~~advantage ~~operating~~in ~~model~~the isChinese ~~flexible~~electrical ~~and~~appliances ~~efficient~~industry, ~~as the purchase~~ and ~~delivery~~Qinyuan, ~~of products is concentrated in~~ a ~~central~~traditional ~~office. “Suning”~~water ~~and”Yongle”are~~purifier ~~two~~manufacturer, ~~other~~which ~~substantial~~is ~~companies~~an inearly ~~China~~participant ~~that compete with us~~ in ~~the~~water ~~distribution~~purifier ofindustry ~~household electric appliances~~ in China. ~~Although~~ ~~our~~We ~~competitors~~believe ~~have strong financial advantages and entered into the household electric products market earlier than we did, we have two competitive advantages. First, some of the key products~~ that we ~~distribute~~need ~~are unique, at the high-end of the market, and exclusively distributed by us. Second, we have an efficient management team, a group of experts and professionals VIP members who are able~~ to ~~identify~~increase ~~the~~our ~~most~~brand ~~advanced~~recognition ~~new products~~ in ~~the~~China ~~industry,~~to ~~have~~improve ~~professional~~our sales ~~skills,~~ and ~~have a lot of potential client bases~~revenues.

Currently the largest bamboo products company in China is “Olinya,” which is engaged in the manufacture and distribution of bamboo fiber products in China. Olinya first entered into the Chinese bamboo fiber products market in 2006. By the end of 2009, it developed approximate 1000 branded stores throughout China. It has a manufacturing and research center in Changsha to produce bamboo fiber products. In 2006, the total revenue for Olinya in China was RMB 200 million (approx. $30 million). “Dream Fox” and “Shanglinya” are two other companies that control a significant portion of the market for bamboo fiber products in China.11

~~The~~Insurance ~~jade~~agency ~~mattress~~ industry. isDue ~~primarily~~to ~~located~~our inlimited ~~the~~scope ~~Xiuyan District~~ of ~~Liaoning Province in China. Both~~ the ~~manufacturers~~insurance ~~and~~agency ~~distributors are mainly medium-sized and small enterprises~~business, ~~due~~our tomain ~~the~~competitors ~~specialty~~in ~~nature (scarce, high-end) of~~ the ~~jade~~insurance ~~product. So~~agency ~~there~~business are nothe ~~competitors~~insurance ~~that~~company’s ~~have~~and ~~achieved~~the ~~economy~~insurance ofagent ~~scale~~company’s orengaging ain ~~brand name known throughout China. However, jade mattress products are becoming more and more popular among~~ the ~~Chinese~~life ~~population. So~~insurance webusiness ~~expect~~in the ~~market~~Liaoning ~~to become more competitive~~province.

5Small Financing industry. The small loan industry is still in the pilot phase in China. We believe that the competition between small financing companies has not yet formed and we have the advantages due to our “3+E” business model.

Our Competitive Advantages

We believe we have the following competitive advantages:

E-Commerce Business Model.

On Vantone Online, we manage and serve our members through electronic information technology. Our E-commerce is conducted electronically for virtual items (including, merchandise, insurance products and small loan financing service) such as access to premium content on a website, as well as the transportation of physical items and online inquires. Our E-commerce is conducted under the business model of “Business to Customer”. This E-Commerce operation has improved our management ability and our processing efficiency so that we can better and faster provide services for members. Members now can use Vantone Online marketing system to make sales and purchases. Meanwhile, we provide members with the ordering services, fund settlements and small financing and loan services online as well. This combined online business model in northeastern China is rarely adopted by other competitors and we are one of the few leading companies in the local market with the E-commerce business model in insurance, small financing and the health related products sales market. The adoption of the E-commerce business model also reduces substantial capital expenditures and other costs and expenses usually associated with the physical commercial leasing of stores and franchises and employment costs.

Market Position. Currently, our members distribute our water purifier and related products other than insurance products in the following cities or provinces in China: Liaoning, Heilongjiang, Jilin, Beijing, Tianjin, Cangzhou of Hebei, and Shijiazhuang. Red dots illustrated in the chart below represent the provinces where we have established distribution channels, with each city containing several distributors through our members.

Advanced Technology. We have the core technology in water purifying products - the “backwash assembly” technology, which is a key component of our water purifier. We have designed, researched and developed this “backwash assembly” technology to adapt our water processing system and equipment products to different area in various water conditions. With this technology, the use life of our water purifying equipment is substantially prolonged. We consider this technology as our key technology as one of our competitive strengths in the current water purifier market in China.

Solid Customer Base. After years of development, we have established our loyal client networks nationwide and insurance-related products customer base in the Liaoning Province. When an individual insurance agent or agent company becomes one of our members, they would bring us their existing clients. Moreover, through the efforts of our small loan business to support our members opening “Vantone” brand franchised physical store, we will aggressively explore our client base in the near future.

Experienced Management Team. Our key management team has decades of experience in finance, banking, insurance and water-purifying industries. Our chairman, CEO and CFO, Mr. Honggang Yu, our Directors and Vice Presidents Mr. Dongfeng Liu, Mr. JutieHua and Mr. Jichun Li, our senior executive Managers Mr. Xianzhi Liu and Ms. Hong Jia, all have very extensive working experience in the above industries. Our management has an open mind in internal management of the Company and we are recruiting needed staff and officers at various stages of our business development.

Intellectual Property

We own and utilize the trademarks, patents and domain name listed below. We continuously look to increase the number of our trademarks and potential design and utility model patents where necessary to protect valuable intellectual property. We regard our trademarks and other intellectual property as valuable assets and believe that they have significant value in the marketing of our products. We vigorously protect our trademarks against infringement, including through the use of cease and desist letters, administrative proceedings and lawsuits.

We rely on trademark, patent, copyright and trade secret protection, non-disclosure agreements and licensing arrangements to establish, protect and enforce intellectual property rights in our logos, trade names and in the design of our products. In particular, we believe that our future success will largely depend on our ability to maintain and protect the “VANTONE” trademark. Despite our efforts to safeguard and maintain our intellectual property rights, we cannot be certain that we will be successful in this regard. Furthermore, we cannot be certain that our trademarks, products and promotional materials or other intellectual property rights do not or will not violate the intellectual property rights of others, that our intellectual property would be upheld if challenged, or that we would, in such an event, not be prevented from using our trademarks or other intellectual property rights. Such claims, if proven, could materially and adversely affect our business, financial condition and results of operations. In addition, although any such claims may ultimately prove to be without merit, the necessary management attention to and legal costs associated with litigation or other resolution of future claims concerning trademarks and other intellectual property rights could materially and adversely affect our business, financial condition and results of operations.

The laws of certain foreign countries do not protect intellectual property rights to the same extent or in the same manner as do the laws of the PRC. Although we continue to implement protective measures and intend to defend our intellectual property rights vigorously, these efforts may not be successful or the costs associated with protecting our rights in certain jurisdictions may be prohibitive. From time to time we may discover products in the marketplace that are counterfeit reproductions of our products or that otherwise infringe upon intellectual property rights held by us. Actions taken by us to establish and protect our trademarks and other intellectual property rights may not be adequate to prevent imitation of our products by others or to prevent others from seeking to block sales of our products as violating trademarks and intellectual property rights. If we are unsuccessful in challenging a third party’s products on the basis of infringement of our intellectual property rights, continued sales of such products by that or any other third party could adversely impact the “VANTONE” brand, result in the shift of consumer preferences away from our products and generally have a material adverse effect on our business, financial condition and results of operations.

Trademarks

We have registered the following trademarks with the Trademark Office, State Administration for Industry and Commerce in the PRC:

No.	Registration No.	Trademark	Registrant	Item Category	Expiration Date
1	7158721	SEASIDE NATURAL	Vantone Manufacturing	Category No. 11: Apparatus for lighting, heating, steam generating, cooking, refrigerating, drying, ventilating, water supply and sanitary purposes.	October 20, 2020
2	5941954	VANTONE	Vantone Manufacturing	Category No. 30: Coffee, tea, cocoa, sugar, rice, tapioca, sago, artificial coffee; flour and preparations made from cereals, bread, pastry and confectionery, ices; honey, treacle; yeast, baking-powder; salt, mustard; vinegar, sauces ( condiments); spices; ice.	January 27, 2020
3	5941888	VANTONE	Vantone Manufacturing	Category No. 34: Tobacco; smokers’ articles; matches.	January 6, 2020
4	5941956	VANTONE	Vantone Manufacturing	Category No. 35: Advertising; business management; business administration; office functions	July 27, 2020

We plan to file for extension with the Trademark Office of the above trademark before the expiration date.

Patents

We have been granted the following patent by the State Intellectual Property Office, or SIPO, of PRC. We enjoy a ten year protection period starting from the patent application date.

Patent No.

Patent Name

Patent Owner

Application Date

Date of Grant

Type

ZL201020138272.5

UF Water Filter

Vantone Manufacturing

03/23/2010

01/26/2011

Utility model

We have another application for patent currently pending with the State Intellectual Property Office, or SIPO, of PRC:

Patent No.		Patent Name		Patent Owner		Application Date		Date of Grant		Type
------------		Water Filter		Vantone Manufacturing		03/23/2010		--------------		Utility Patent

Domain Names

Vantone International owns the domain names of www.myvantone.com and http://vantoneint.com.

Employees

~~Vantone’s~~As ~~business~~of isJune ~~organized into six operational departments: administration~~2011, ~~marketing,~~we ~~human~~have ~~resources,~~a ~~business~~total ~~data~~of ~~management,~~48 ~~financial data management, and production operations. There are currently 43~~ full-time employees,. ~~including~~The 15breakdown inof ~~administration,~~our 4employees inby ~~marketing, 5 in the human resource~~ department, ~~6 in the business data management center, 9 in the financial data management center, and 4 in production operations.~~is:

ITEM 1A RISK FACTORS

General and Administration Department	11
Financial Department	10
Human Resource Department	8
Production Department	6
Marketing Department	9
Small Loan Financing Department	4

~~Investing~~Our inemployees ~~our~~are ~~common~~not ~~stock~~represented ~~involves~~by ~~risk.~~any ~~You~~collective ~~should~~bargaining ~~carefully~~agreement ~~consider the risks described below together with all of the other information contained in this Report, including the financial statements~~ and ~~the~~we ~~related~~believe ~~notes,~~we ~~before~~have ~~deciding~~never ~~whether~~experienced toa ~~purchase~~work ~~any shares of our common stock~~stoppage. IfWe ~~any~~believe ofwe ~~the~~have ~~following~~good ~~risks~~relations ~~occurs,~~with our ~~business, financial condition or operating results could materially suffer~~employees. ~~In that event, the trading price of our common stock could decline and you may lose all or part of your investment.~~

~~Our~~ITEM ~~ability~~1A. toRISK ~~generate revenues could suffer if the PRC market for health care and insurance products does not develop as anticipated~~FACTORS.

AsYou ~~the~~should ~~economy~~carefully ofconsider the ~~PRC~~risks ~~has~~described ~~expanded~~below intogether ~~recent~~with ~~years,~~all of the ~~market~~other ~~for~~information ~~both~~included ~~our~~in ~~consumer~~this ~~products~~Form ~~and our insurance products has swelled~~10-K. ~~This~~The ~~momentum~~statements ~~has~~contained ~~been~~in ~~abetted~~or byincorporated ~~the~~herein ~~introduction~~that ofare ~~new~~not ~~products,~~historic ~~the~~facts ~~development~~are offorward-looking ~~consumer~~statements ~~preferences~~that byare ~~new~~subject ~~competitors and adaptation of strategies by existing competitors. We expect both markets will continue~~ to ~~grow,~~risks and weuncertainties ~~must~~that ~~continue~~could tocause ~~adapt~~actual ~~our~~results ~~strategy~~ to bediffer ~~competitive~~materially infrom ~~the~~those ~~market.~~set ~~The~~forth ~~current~~in ~~worldwide~~or ~~recession,~~implied ~~however,~~by ~~has~~forward-looking ~~reduced~~statements. ~~the~~See ~~rate~~“Cautionary ofStatement ~~growth,~~Regarding ~~and~~Forward-Looking ~~the long term prognosis for the Chinese economy cannot be predicted~~Statements.” ~~Likewise~~If ~~consumer~~any ~~tastes~~of ~~are~~the ~~difficult~~following torisks ~~accurately~~actually ~~predict.~~occurs, Ifour webusiness, ~~cannot~~financial ~~successfully~~condition ~~identify~~or ~~the~~results ~~suitable~~of ~~products~~operations tocould be ~~distributed~~harmed. inIn ~~the~~that ~~market~~case, ~~our~~you ~~ability~~may tolose ~~increase~~all ~~revenues~~or ~~could~~part ~~suffer~~of your investment.

Risks Relating to Our Business

If the water purifier market, commodities consumer market, insurance product market as well as small financing business fail to develop prospectively in china, our profitability may be reduced.

In recent years, China's economic develop constantly, so our commodities and insurance products market scale expands steadily. The two markets continuously bring in new products, new rivals continuously explore the favor of the client, and current competitors adjusted the strategy to support further promotion and development. We expect the two markets will continue to grow; and we must adjust our strategy to adapt the market development continuously. But now the entire world faces the economic crisis, which made economic growth slowdown, so the long-term trend of China's economy is unpredictable. Meanwhile, consumer’s taste is hard to be predicted accurately. If we are not able to find the suitable products successfully, our profit ability would be affected.

With the enhancement of Chinese consumer spending ability and the quality requirement of daily drinking water, the market of water purifier’s demand expands steadily in China. However, if we cannot develop new products effectively, improve the products quality, reduce the production cost and enhance the brand awareness, we will not have significant competitive advantage, and our profitability would be affected.

Small financing & mortgage company is an emerging non-financial corporation in China, but due to the Chinese economic growth slows down, aggravate of the inflation and influence of the prospective on raising the interest rate, if we can’t expand investment channel effectively for attracting more clients, our profitability is hard to be forecasted. Small financing & mortgage business may incur the risk of which the principal and interest is unable to recover, which might affect our profitability.

We are implementing significant changes in our business plan. If we fail to effectively manage the transition, our business and operating results could be harmed.

During the past fiscal year we began to implement significant changes in our business plan. Initially we began to transition from a franchise marketing model to an agency model. Then ~~in February 2009~~ we added to our product offerings higher priced electronic products in February 2009. Both of these changes have resulted in disruptions in our financial results. In 2010 we cancelled our entire sales network and devoted our business to an ~~ecommerce~~e-commerce platform. We established a 3+E operation model. These changes have ~~placed~~taken place, and will continue to ~~place~~spread, ~~significant~~thus ~~demands~~it onrequires ~~our~~the ~~management,~~better ~~and~~basis on our ~~operational~~management and financial ~~infrastructure~~affairs. ~~If we do not effectively manage these transitions, the quality of our products and services will suffer, which would negatively affect our operating results.~~ In addition, if the necessary funding can be obtained, we will be able to improve our operational, financial and management controls ~~and~~as well as our reporting systems and procedures. The complexity of this ~~undertaking~~business plan means that we are likely to face many challenges, some of which are not foreseeable. Problems may occur with our business relationship with the suppliers, and ~~with~~furthermore some of them cannot be forecasted. It may suffer from some problem that the relationship between supplier and us as well as our ability to sell our products to our customers. If we are not able to obtain the necessary funding and operate efficiently, our business plan may fall short of its goals, and our ability to manage our growth could be hurt.

6An increase in wholesale prices for our distributed products could increase our costs and decrease our profits.

~~The~~Changes ~~capital~~in ~~investments~~wholesale ~~that~~prices wefor ~~plan~~our ~~may~~distributed ~~require~~products ~~that~~could wesignificantly ~~issue~~affect ~~additional~~Vantone’s ~~shares~~business. Since the cost of ~~capital~~the ~~stock~~distributed materials is a substantial part of our product price, the increase in the cost will decrease our gross profit margin. We also rely on several major suppliers to provide such products to distribute. Failure to maintain business relationship with these major suppliers may make the distributed products inaccessible, and thus hurt our operating results.

We ~~intend~~may tohave ~~raise~~difficulty ~~a large portion of the funds necessary to implement our business plan by selling equity~~ in ~~our~~establishing ~~company. At~~adequate ~~present~~management weand ~~have~~financial nocontrols commitment from any source for those funds. We cannot determine, therefore, the terms on which we will be able to raise the necessary funds. It is possible that we will be required to issue capital stock in ~~order to obtain the funds~~China. This would reduce the portion of our equity held by our current shareholders. If, however, we are unable to raise the necessary funds, our growth will be limited, as will our ability to compete effectively.

AnThe ~~increase~~People’s Republic of China has only recently begun to adopt the management and financial reporting concepts and practices that investors in ~~wholesale~~the ~~prices~~United ~~for~~States ~~our~~are ~~distributed~~familiar ~~products~~with. We ~~could~~may ~~increase~~have ~~Vantone’s~~difficulty ~~costs~~in hiring and ~~decrease~~retaining ~~its~~employees ~~profits~~in China who have the experience necessary to implement the kind of management and financial controls that are expected of a United States public company. If we cannot establish such controls, we may be lack of experience in collecting financial data, preparing financial statements, keeping accounts and setting the accounting standard for business according to U.S. standards.

Changes in wholesale prices for our distributed products could significantly affect Vantone’s business. Since the cost of the distributed materials constitute a substantial part of our product price, increase in the cost will decrease our profit margin. We also rely on several major suppliers to provide such products to distribute. Failure to maintain business relationship with these major suppliers may make the distributed products inaccessible, and thus hurt our operating results.

We may have difficulty establishing adequate management and financial controls in China.

The People’s Republic of China has only recently begun to adopt the management and financial reporting concepts and practices that investors in the United States are familiar with. We may have difficulty in hiring and retaining employees in China who have the experience necessary to implement the kind of management and financial controls that are expected of a United States public company. If we cannot establish such controls, we may experience difficulty in collecting financial data and preparing financial statements, books of account and corporate records and instituting business practices that meet U.S. standards.

We may incur significant costs to ensure compliance with U.S. corporate governance and accounting requirements.

WeAccording ~~may~~to ~~incur~~the ~~significant~~Sarbanes-Oxley ~~costs~~Act ~~associated~~of ~~with~~2002, ~~our~~Sarbanes-Oxley, ~~public~~or ~~company~~other ~~reporting~~rules ~~requirements,~~implemented ~~costs~~by ~~associated~~the ~~with~~Securities ~~newly~~and ~~applicable~~Exchange ~~corporate governance requirements~~Commission, ~~including~~we ~~requirements~~may ~~under~~incur the ~~Sarbanes-Oxley~~costs ~~Act~~associated ofwith ~~2002,~~the orrequirement ~~Sarbanes-Oxley,~~for ~~and~~the ~~other~~financial ~~rules~~reports ~~implemented~~of bypublic ~~the~~companies ~~Securities~~reporting requirements and ~~Exchange~~for ~~Commission~~the new corporate governance. We expect all of these applicable rules and regulations to increase our legal and financial compliance costs and to make some activities more time-consuming and costly. We also expect that these applicable rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals to serve on our board of directors, on committees of our board of directors or as executive officers.

As a public company, we are required to comply with rules and regulations of the SEC, including expanded disclosure, accelerated reporting requirements and more complex accounting rules. This will continue to require additional expenditures of cash and management resources. We will need to continue to implement additional finance and accounting systems, procedures and controls as we grow to satisfy these reporting requirements. In addition, we may need to hire additional legal and accounting staff with appropriate experience and technical knowledge, and we cannot assure you that if additional staffing is necessary that we will be able to do so in a timely fashion. If we are unable to complete the required annual assessment as to the adequacy of our internal reporting or if our independent registered public accounting firm is unable to provide us with an unqualified report as to the effectiveness of our internal controls over financial reporting in the future, we could incur significant costs to become compliant.

We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel or hire qualified personnel, we may not be able to grow effectively.

Our performance largely depends on the talents and efforts of highly skilled individuals. Our future success depends on our continuing ability to identify, hire, develop, motivate and retain highly skilled personnel for all areas of our organization.

~~Capital~~The ~~outflow~~elimination ~~policies~~of inmonetary ~~China~~liability ~~may~~against ~~hamper~~ our ~~ability~~directors, toofficers ~~pay~~and ~~dividends~~employees under Nevada law and the existence of indemnification rights to ~~shareholders~~our directors, officers and employees may result in ~~the~~substantial ~~United~~expenditures ~~States~~that could be a drain on our resources by our Company and may discourage lawsuits against our directors, officers and employees.

~~The~~Our ~~People’s~~certificate ~~Republic~~ of ~~China~~incorporation ~~has~~and ~~adopted~~applicable ~~currency~~Nevada ~~and~~law ~~capital~~limit ~~transfer~~monetary ~~regulations.~~liability ~~These~~against ~~regulations~~our ~~require~~directors, ~~that~~officers weand ~~comply~~employees ~~with~~and ~~complex~~provide ~~regulations~~ for the ~~movement~~indemnification of ~~capital.~~our ~~Although~~directors, ~~Chinese~~officers, ~~governmental~~employees, ~~policies~~and ~~were~~agents, ~~introduced~~under certain circumstances, against attorney’s fees and other expenses incurred by them in ~~1996~~any litigation to ~~allow~~which ~~the~~they ~~convertibility~~become ofa ~~RMB~~party ~~into~~arising ~~foreign~~from ~~currency~~their ~~for~~association ~~current~~with ~~account~~or ~~items,~~activities ~~conversion~~on behalf of ~~RMB~~us. ~~into~~Accordingly, ~~foreign~~we ~~exchange~~will ~~for~~have ~~capital~~a ~~items,~~much ~~such~~more aslimited right of action against our directors than otherwise would be the ~~payment~~case. ofWe ~~dividends,~~will ~~requires~~also bear the ~~approval~~expenses of ~~the~~such ~~State~~litigation ~~Administration~~for any of ~~Foreign~~our ~~Exchange~~directors, officers, employees, or agents, upon such person’s promise to repay us if it is ultimately determined that any such person shall not have been entitled to indemnification. This indemnification policy could result in substantial expenditures by us that we would be unable to recoup. ~~Because~~These ~~most~~provisions ofand resultant costs may also discourage our ~~future~~company ~~revenues~~from ~~will~~bringing bea inlawsuit ~~RMB~~against directors and officers for breaches of their fiduciary duties, ~~any~~and ~~inability~~may tosimilarly ~~obtain~~discourage the ~~requisite~~filing ~~approvals~~of orderivative ~~any~~litigation ~~future~~by ~~restrictions~~our onstockholders ~~currency~~against ~~exchanges~~our ~~will~~directors ~~limit~~and ~~our~~officers ~~ability~~even tothough ~~pay~~such ~~dividends~~actions, toif ~~our~~successful, ~~shareholders~~might otherwise benefit us and stockholders.

~~Currency fluctuations may adversely affect our operating results.~~15

~~Vantone~~We ~~generates~~do ~~revenues~~not ~~and~~foresee ~~incurs~~paying ~~expenses~~cash ~~and~~dividends ~~liabilities~~ in ~~Renminbi,~~ the ~~currency~~foreseeable offuture ~~the People’s Republic of China. However~~and, as a ~~subsidiary of the Company, it will report its financial results in the United States in U.S. Dollars. As a~~ result, our ~~financial~~investors’ ~~results~~sole ~~will~~source ~~be subject to the effects~~ of ~~exchange~~gain ~~rate fluctuations between these currencies. From time to time, the government of China may take action to stimulate the Chinese economy that~~ will ~~have~~depend ~~the~~on ~~effect~~capital ~~of reducing the value of Renminbi. In addition~~appreciation, ~~international~~if ~~currency markets may cause significant adjustments to occur in the value of the Renminbi~~any. Any such events that result in a devaluation of the Renminbi versus the U.S. Dollar will have an adverse effect on our reported results. We have not entered into agreements or purchased instruments to hedge our exchange rate risks.

~~The~~We ~~Company~~do is not ~~likely~~plan to ~~hold~~declare ~~annual~~or ~~shareholder~~pay ~~meetings~~any cash dividends on our shares of common stock in the ~~next~~foreseeable ~~few~~future ~~years~~and currently intend to retain any future earnings for funding growth. As a result, investors should not rely on an investment in our securities if they require the investment to produce dividend income. Capital appreciation, if any, of our shares may be investors’ sole source of gain for the foreseeable future. Moreover, investors may not be able to resell their shares of the Company at or above the price they paid for them.

~~Management~~We ~~does~~rely ~~not~~on ~~expect~~key topersonnel ~~hold~~and ~~annual meetings of shareholders in~~ the ~~next~~loss ~~few years, due to the expense involved. The current members~~ of ~~the~~any ~~Board~~key ~~of Directors were appointed to that position by the previous directors. If other directors are added to the Board in the future~~employees, itofficers isand/or ~~likely that the current~~ directors ~~will~~may ~~appoint~~have ~~them. As~~ a ~~result,~~materially ~~the~~adverse ~~shareholders~~effect ofon ~~the~~our ~~Company will have no effective means of exercising control over the~~ operations ~~of the Company~~.

~~ITEM~~Our 1Bsuccess is substantially dependent on the continued services of our executive officers, particularly Honggang Yu, our Chairman, CEO and CFO, and other key personnel who generally have extensive experience in the water purification industry, small financing industry as well as insurance agency industry. ~~UNRESOLVED~~ ~~STAFF~~The ~~COMMENTS~~loss of the services of any key employee, or our failure to attract and retain other qualified and experienced personnel on acceptable terms, could have a material adverse effect on our business and results of operations.

Compliance with changing regulation of corporate governance and public disclosure will result in additional expenses.

Changing laws, regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002 and related SEC regulations, have created uncertainty for public companies and have significantly increased the costs and risks associated with accessing the public markets and public reporting. Our management team will need to invest significant management time and financial resources to comply with both existing and evolving standards for public companies, which will lead to increased general and administrative expenses and a diversion of management time and attention from revenue generating activities to compliance activities.

We may not be able to meet the internal control reporting requirements imposed by the SEC resulting in a possible decline in the price of our common stock and our inability to obtain future financing.

As directed by Section 404 of the Sarbanes-Oxley Act, the SEC adopted rules requiring each public company to include a report of management on the company’s internal controls over financial reporting in its annual reports. Although the Dodd-Frank Wall Street Reform and Consumer Protection Act exempts companies with a public float of less than $75 million from the requirement that our independent registered public accounting firm attest to our financial controls, this exemption does not affect the requirement that we include a report of management on our internal control over financial reporting and does not affect the requirement to include the independent registered public accounting firm’s attestation if our public float exceeds $75 million.

While we expect to expend significant resources in developing the necessary documentation and testing procedures required by Section 404 of the Sarbanes-Oxley Act, there is a risk that we may not be able to comply timely with all of the requirements imposed by this rule. Regardless of whether we are required to receive a positive attestation from our independent registered public accounting firm with respect to our internal controls, if we are unable to do so, investors and others may lose confidence in the reliability of our financial statements and our stock price and ability to obtain equity or debt financing as needed could suffer.

In addition, in the event that our independent registered public accounting firm is unable to rely on our internal controls in connection with its audit of our financial statements, and in the further event that it is unable to devise alternative procedures in order to satisfy itself as to the material accuracy of our financial statements and related disclosures, it is possible that we would be unable to file our Annual Report on Form 10-K with the SEC, which could also adversely affect the market for and the market price of our common stock and our ability to secure additional financing as needed.

Certain provisions of our Certificate of Incorporation may make it more difficult for a third party to effect a change in control.

Specific rights granted to future holders of preferred stock could be used to restrict our ability to merge with, or sell assets to, a third party. The ability of our board of directors to issue preferred stock could make it more difficult to delay, discourage, prevent or make it more costly to acquire or effect a change-in-control, which in turn could prevent the stockholders from recognizing a gain in the event that a favorable offer is extended as well as could materially and negatively affect the market price of our common stock. Our bylaws or certificate of incorporation do not contain any other provisions that would have the effect of delaying or preventing a change in control.

Risks Relating to the People’s Republic of China

Almost all of our assets are located in the PRC and almost all of our revenues are derived from our operations in China, and changes in the political and economic policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and accordingly on the results of our operations and financial condition.

Our business operations may be adversely affected by the current and future political environment in the PRC. The Chinese government exerts substantial influence and control over the manner in which we must conduct our business activities. Our ability to operate in China may be adversely affected by changes in Chinese laws and regulations, including those relating to taxation, import and export tariffs, raw materials, environmental regulations, land use rights, property and other matters. Under the current government leadership, the government of the PRC has been pursuing economic reform policies that encourage private economic activity and greater economic decentralization. There is no assurance, however, that the government of the PRC will continue to pursue these policies, or that it will not significantly alter these policies from time to time without notice.

Our operations are subject to PRC laws and regulations that are sometimes vague and uncertain. Any changes in such PRC laws and regulations, or the interpretations thereof, may have a material and adverse effect on our business.

We conduct our business primarily through Vantone Manufacturing which is a subsidiary company in PRC and its variable interest entities including Vantone Yuan Trading, Vantone Insurance and Vantone Financing. Our operations in China are governed by Chinese laws and regulations. We are generally subject to laws and regulations applicable to foreign investments in China and, in particular, laws applicable to wholly foreign-owned enterprises. Because Chinese laws are all statute laws, prior court decisions may be referred to but they are not legal precedents.

The legal system in China is a system of civil laws, based on provisions and written codes, therefore precedents and cases are not binding on the future decisions of the courts. There are substantial uncertainties regarding the interpretation and application of PRC laws and regulations, including, but not limited to, the laws and regulations governing our business, or the enforcement and performance of our arrangements with customers in the event of the imposition of statutory liens, death, bankruptcy or criminal proceedings. Only after 1979 did the Chinese government begin to promulgate a comprehensive system of laws that regulate economic affairs in general, deal with economic matters such as foreign investment, corporate organization and governance, commerce, taxation and trade, as well as encourage foreign investment in China. Although the influence of the law has been increasing, China has not developed a fully integrated legal system and recently enacted laws and regulations may not sufficiently cover all aspects of economic activities in China. Also, because these laws and regulations are relatively new, and because of the limited volume of published cases and judicial interpretation and their lack of force as precedents, interpretation and enforcement of these laws and regulations involve significant uncertainties. New laws and regulations that affect existing and proposed future businesses may also be applied retroactively. In addition, there have been constant changes and amendments of laws and regulations over the past 30 years in order to keep up with the rapidly changing society and economy in China. Because government agencies and courts provide interpretations of laws and regulations and decide contractual disputes and issues, their inexperience on new business and new polices or regulations in certain less developed areas causes uncertainty and may affect our business. In some provincial areas, the government agencies and the courts are protectionist and may not fully enforce contractual rights against local parties. In certain areas, the intellectual property and trade secret protections are not as effective as those in the other areas in China or in the U.S. in general. Consequently, we cannot clearly foresee the future direction of Chinese legislative activities with respect to either businesses with foreign investment or the effectiveness on enforcement of laws and regulations in the less developed areas in China. The uncertainties, including new laws and regulations and changes of existing laws, as well judicial interpretation by inexperienced officials in the agencies and courts in certain areas, may cause possible problems to foreign investors.

Investors may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing original actions in China based upon U.S. laws, including the federal securities laws or other foreign laws against us or our management.

Most of our current operations, including the manufacturing and distribution of our products, are conducted in China. Moreover, all of our directors and officers are nationals and residents of China. All or substantially all of the assets of these persons are located outside the United States and in the PRC. As a result, it may not be possible to effect service of process within the United States or elsewhere outside China upon these persons. In addition, uncertainty exists as to whether the courts of China would recognize or enforce judgments of U.S. courts obtained against us or such officers and/or directors predicated upon the civil liability provisions of the securities laws of the United States or any state thereof, or be competent to hear original actions brought in China against us or such persons predicated upon the securities laws of the United States or any state thereof.

In insurance supervision, potential legal liabilities may come from market access restrictions of insurance services. Pursuant to the conditions for market access of insurance services under China Insurance Regulatory Commission ‘Provisions on the Supervision and Administration of Specialized Insurance Agencies’ (No.5, 2009 of Order of China Insurance Regulatory Commission), the registered capital of a specialized insurance agency shall be not less than RMB 2 million, while that of a specialized insurance agency whose business area is not limited to the province, autonomous region or municipality directly under the Central Government at the place of registration shall be not less than RMB 10 million. The registered capital of a specialized insurance agency must be paid-in monetary capital. A specialized insurance agency formed with the minimum registered capital allowed by these Provisions is entitled to form three branch offices, and shall increase its registered capital by at least RMB 200,000 each time it applies for forming a new branch office in addition to the three branch offices. In particular, each time when it applies for forming a branch office in a province, autonomous region or municipality directly under the Central Government other than its place of domicile, it shall increase its registered capital by at least RMB 1 million. If the increased registered capital of the specialized insurance agency reaches the requirement of the preceding paragraph when it applies for setting up a branch office, it is not required to increase the registered capital any more. If the registered capital of the specialized insurance agency is RMB 20 million or more, it is not required to increase the registered capital for the purpose of setting up branch offices. Vantone Insurance currently only can provide the insurance service in Liaoning Province, and can’t operate insurance service in other province.

In financial supervision, potential legal liabilities may come from the loan interest rate. Pursuant to the Guidance on the Small Loan Company Pilot of the China Banking Regulatory Commission and the People's Bank of China (No.23, 2008 of China Banking Regulatory Commission), small loan companies operate in accordance with market principles, unloosening the cap of loan interest rate, but not exceeding the upper limitation which set by the judicial departments. The lower limit is 0.9 times of the benchmark rate which published by the people's bank of china, and the specific self-floating rate is determined in accordance with market principles. The repayment of the loan term, loan terms, etc. in the contract, shall be fixed by both lenders and borrowers according to law under the principle of fair and voluntary consultation. In other words, the loan interest rate’s interval will between 0.9 times and 4 times of the People's Bank of China’ s benchmark rate during the same term and the same level of the loan.

Although the above mentioned, but we can't guarantee that we will always abide by the laws and regulations or we needn't spend a lot of money to comply with environmental laws, regulations and permits, or pay off the responsibility which incurred by these regulations.

Our labor costs are likely to increase as a result of changes in Chinese labor laws.

We expect to experience an increase in our cost of labor due to recent changes in Chinese labor laws which are likely to increase costs further and impose restrictions on our relationship with our employees. In June 2007, the National People’s Congress of the PRC enacted new labor legislation called the Labor Contract Law and more strictly enforced existing labor laws. The new legislation, which became effective on January 1, 2008, amends and stipulates workers’ rights concerning overtime hours, pensions, layoffs, employment contracts and the role of trade unions. As a result of the new legislation, the Company has had to reduce the number of hours of overtime its employees can work, substantially increase the salaries of its employees, provide additional benefits to its employees, and revise its certain labor practices. The increase in labor costs has increased the Company’s operating costs, which the Company has not always been able to pass through to its customers. As a result, the Company has incurred certain operating losses as its cost of manufacturing increased. In addition, under the new legislation, employees who either have worked for the Company for 10 years or more or who have had two consecutive fixed-term contracts must be given an “open-ended employment contract” that, in effect, constitutes a lifetime, permanent contract, which is terminable only in the event the employee materially breaches the Company’s rules and regulations or is in serious dereliction of his duty. Such non-cancelable employment contracts will substantially increase its risks related to employment and limit the Company’s ability to downsize its workforce in the event of an economic downturn. No assurance can be given that the Company will not in the future be subject to labor strikes or that it will not have to make other payments to resolve future labor issues caused by the new legislation. Furthermore, there can be no assurance that the labor laws will not be changed further or that their interpretation and implementation will be varied, which may have a negative effect upon our business and results of operations.

The ability of our Chinese operating subsidiaries to pay dividends may be restricted due to foreign exchange control and other regulations of China.

Under applicable PRC regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, a foreign-invested enterprise in China is required to set aside at least 10.0% of its after-tax profits based on PRC accounting standards each year to its general reserves until the accumulative amount of such reserves reach 50.0% of its registered capital. These reserves are not distributable as cash dividends. The board of directors of a foreign-invested enterprise has the discretion to allocate a portion of its after-tax profits to staff welfare and bonus funds except in case of liquidation.

Furthermore, the ability of our Chinese operating subsidiaries to pay dividends may be restricted due to the foreign exchange control policies and availability of cash balance of the Chinese operating subsidiaries. Substantially, all of our operations are conducted in China and all of our revenue and currency received are denominated in Renminbi (RMB). RMB is subject to the exchange control regulation in China, and, as a result, we may unable to distribute any dividends outside of China due to PRC exchange control regulations that restrict our ability to convert RMB into U.S. Dollars.

Our inability to receive dividends or other payments from our Chinese operating subsidiary may limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends or otherwise fund, and conduct our business. Our funds may not be readily available to us to satisfy obligations which have been incurred outside the PRC, which could adversely affect our business and prospects or our ability to meet our cash obligations. Accordingly, if we do not receive dividends from our Chinese operating subsidiary, our liquidity, financial condition and ability to make dividend distributions to our stockholders will be materially and adversely affected.

The foreign currency exchange rate between U.S. Dollars and Renminbi could adversely affect our financial condition.

To the extent that we need to convert U.S. Dollars into Renminbi for our operational needs, our financial position and the price of our common stock may be adversely affected should the Renminbi appreciate against the U.S. Dollar at that time. Conversely, if we decide to convert our Renminbi into U.S. Dollars for the operational needs or paying dividends on our common stock, the dollar equivalent of our earnings from our subsidiaries in China would be reduced should the U.S. Dollar appreciate against the Renminbi at that time.

Until 1994, the Renminbi experienced a gradual but significant devaluation against most major currencies, including U.S. Dollars, and there was a significant devaluation of the Renminbi on January 1, 1994 in connection with the replacement of the dual exchange rate system with a unified managed floating rate foreign exchange system. Since 1994, the value of the Renminbi relative to the U.S. Dollar has remained stable and has appreciated slightly against the U.S. Dollar. Countries, including the United States, have argued that the Renminbi is artificially undervalued due to China’s current monetary policies and have pressured China to allow the Renminbi to float freely in world markets. In July 2005, the PRC government changed its policy of pegging the value of the Renminbi to the U.S. Dollar. Under the new policy the Renminbi is permitted to fluctuate within a narrow and managed band against a basket of designated foreign currencies. While the international reaction to the Renminbi revaluation has generally been positive, there remains significant international pressure on the PRC government to adopt an even more flexible currency policy, which could result in further and more significant appreciation of the Renminbi against the U.S. Dollar.

Inflation in the PRC could negatively affect our profitability and growth.

While the PRC economy has experienced rapid growth, such growth has been uneven among various sectors of the economy and in different geographical areas of the country. Rapid economic growth can lead to growth in the money supply and rising inflation. During the past decade, the rate of inflation in China has been as high as approximately 20% and China has experienced deflation as low as approximately minus 2%. If prices for our products and services rise at a rate that is insufficient to compensate for the rise in the costs of supplies such as raw materials, it may have an adverse effect on our profitability. In order to control inflation in the past, the PRC government has imposed controls on bank credits, such as the limits on loans for fixed assets and the restrictions on state bank lending. The implementation of such policies may impede economic growth. In December 2007, the central bank raised benchmark interest rates for six times successively in response to the excess liquidity and inflation pressures. Starting in December 2008, the central bank lowered lending rates for five times rate and lowered deposit rates for four times in response to the international financial crisis. On October 20, 2010, the central bank raised interest rates, which is the first time during the past three years. The central bank raised interest rate and reserve, which causes a slow economic growth in China to restrain China's inflation, and which also directly affects the development of our small loan business.

Failure to comply with the United States Foreign Corrupt Practices Act could subject us to penalties and other adverse consequences.

As our ultimate holding Company is a Delaware corporation, we are subject to the United States Foreign Corrupt Practices Act, which generally prohibits United States companies from engaging in bribery or other prohibited payments to foreign officials for the purpose of obtaining or retaining business. Foreign companies, including some that may compete with us, are not subject to these prohibitions. Corruption, extortion, bribery, pay-offs, theft and other fraudulent practices may occur from time-to-time in the PRC. We can make no assurance, however, that our employees or other agents will not engage in such conduct for which we might be held responsible. If our employees or other agents are found to have engaged in such practices, we could suffer severe penalties and other consequences that may have a material adverse effect on our business, financial condition and results of operations.

Risks Relating to Our Securities

The application of the “penny stock” rules could adversely affect the market price of our common stock and increase your transaction costs to sell those shares.

The trading price of our common shares is below $1.00 per share, thus we are deemed a “penny stock” company and the open-market trading of our common shares will be subject to the “penny stock” rules. The “penny stock” rules impose additional sales practice requirements on broker-dealers who sell securities to persons other than established customers and accredited investors (generally those with assets in excess of 1,000,000 or annual income exceeding $300,000 together with their spouse). For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchase of securities and have received the purchaser’s written consent to the transaction before the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the broker-dealer must deliver, before the transaction, a disclosure schedule prescribed by the Securities and Exchange Commission relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements must be sent disclosing recent price information on the limited market in penny stocks. These additional burdens imposed on broker-dealers may restrict the ability or decrease the willingness of broker-dealers to sell our common shares, and may result in decreased liquidity for our common shares and increased transaction costs for sales and purchases of our common shares as compared to other securities.

The market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (i) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (iii) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (iv) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses.

Our shares of common stock are thinly traded and you may be unable to sell at or near ask prices or at all if you desire to liquidate your shares.

We cannot predict the extent to which an active public market for our common stock will develop or be sustained. Our common shares have historically been sporadically or “thinly-traded” on Pink OTC Markets, Inc., meaning that the number of persons interested in purchasing our common shares at or near bid prices at any given time may be relatively small. This situation is attributable to a number of factors, including the fact that we are a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that even if we came to the attention of such persons, they tend to be risk-averse and would be reluctant to purchase or recommend the purchase of our shares until such time as we became more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on share price. We cannot give you any assurance that a broader or more active public trading market for our common stock will develop or be sustained, or that current trading levels will be sustained.

Our shares are subject to significant price volatility, which may prevent you from selling your stock at or above your purchase price if at all.

The market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. The volatility in our share price is attributable to a number of factors. First, as noted above, our common shares are sporadically and/or thinly traded. As a consequence of the lack of liquidity, the trading of relatively small quantities of shares by our stockholders may disproportionately influence the price of those shares in either direction. The price for our shares could, for example, decline precipitously in the event that a large number of our common shares are sold on the market without commensurate demand, as compared to a seasoned issuer, which could better absorb those sales without adverse impact on its share price. In addition, actual or anticipated variations in our quarterly or annual operating results, adverse outcomes and additions or departures of our key personnel may also add to the volatility in the price of our common shares. The price at which you purchase our common stock may not be indicative of the price that will prevail in the trading market. You may be unable to sell your common stock at or above your purchase price if at all, which may result in substantial losses to you.

Secondly, we are a speculative or “risky” investment due to our fluctuating level of revenues or profits to date and uncertainty of future market acceptance for our current and potential products. As a consequence of this enhanced risk, more risk-averse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the stock of a seasoned issuer. Many of these factors are beyond our control and may decrease the market price of our common shares, regardless of our operating performance. We cannot make any predictions or projections as to what the prevailing market price for our common shares will be at any time, including as to whether our common shares will sustain their current market prices, or as to what effect that the sale of shares or the availability of common shares for sale at any time will have on the prevailing market price.

Volatility in our common share price may subject us to securities litigation.

The market for our common stock has, when compared to seasoned issuers, price volatility and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a Company following periods of volatility in the market price of its securities. We may, in the future, be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management’s attention and resources.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

Not Applicable.

ITEM 2. ~~DESCRIPTION OF PROPERTY~~ PROPERTIES.

Our executive offices and production facilities are located No.195 Zhongshan Road, Heping District, Shenyang, China. We own the 16th, 17th and 18th floors of the building. As is the rule in China, however, the land on which our facility is located is leased from the government for a term of 50 years. Our land lease expiration date is August 23, 2046, and we will be able to extend the land lease term after paying certain amounts of property taxes upon expiration. The land use right was issued to Vantone by the City of Shenyang.Facilities

~~During~~Our ~~the~~executive ~~past~~offices ~~two~~and ~~years~~production wefacilities ~~also~~are ~~leased~~located ~~certain~~at ~~office~~No.195 ~~space~~Zhongshan inRoad, ~~Harbin~~Heping District, ~~Jilin~~Shenyang, ~~and~~China. ~~Kangping~~We ~~Districts,~~own ~~and~~the ~~one~~16th, ~~warehouse~~17th inand ~~Kangping~~18th ~~District~~floors ~~under~~of anthe ~~operating lease~~building. There ~~The~~is ~~rent~~no ~~fees~~private ~~for~~land ~~our~~ownership ~~leased~~in ~~properties under operating lease were $18~~China,~~227~~ ~~and $30~~however,~~723~~ ~~for~~ the ~~years~~land ~~ended~~on ~~March~~which ~~31,~~our ~~2010~~facility ~~and~~located ~~2009,~~is ~~respectively.~~leased Asfrom ~~our~~the ~~leases~~Shenyang ingovernment ~~Harbin~~for ~~and~~a ~~Jilin~~term ~~have~~of ~~been~~50 ~~cancelled,~~years. Our inland ~~the~~lease ~~next~~expiration ~~few~~date ~~years~~is ~~our~~August ~~rental~~23, ~~costs~~2046, ~~may~~and ~~continue~~we ~~to decrease. We~~ will be able to ~~renew~~extend the ~~other~~land ~~leases~~lease ~~when~~term ~~they~~after ~~expire~~paying certain amounts of property taxes upon expiration.

820

~~ITEM~~We 3have also entered into the lease agreement with Shenyang Xinkang Plastic Co. ~~LEGAL~~, ~~PROCEEDINGS~~Ltd. for a five-year lease starting from July 10, 2011. The leased property is located in the Kangping District. We are leasing this property for our water purifier assembly operations. The leased site is approximately 1,080 square meters and the annual production capacity of our water purifier assembly operations is approximately 30,000 units per year as compared to 15,000 units in our current assembly operation site that is located in No.195 Zhongshan Road, Heping District, Shenyang, China. We plan to use this factory in July 2011.

~~None~~During the past two years we also leased certain office space in Harbin, Jilin, and Kangping Districts, and one warehouse in the Kangping District under an operating lease. The rent fees for our leased properties under operating leases were $21,874 and $18,227 for the fiscal years ended March 31, 2011 and 2010, respectively. We will be able to renew the other leases when they expire.

~~ITEM~~Our 4assets included buildings and facilities owned by us, transportation equipment, office equipment and other equipment, excluding our non-operating property. ~~RESERVED~~ Our net value of property and equipment for the fiscal year ended March 31, 2011 was $1,805,034. During the operational period, all facilities are in good working orders.

	Original Cost	Accumulated Depreciation	Total
Houses and Buildings	$2,063,092	$382,240	$1,680,852
Vehicles	$201,013	$121,227	$79,786
Office Furniture and Equipments	$79,802	$49,194	$30,608
Software	$44,541	$30,753	$13,788
Total	$2,388,448	$583,414	$1,805,034

ITEM 3. LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

ITEM 4. (REMOVED AND RESERVED).

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

~~(a)~~ Market Information

Our common stock is listed for quotation on the Pink OTC ~~Bulletin~~Market ~~Board~~Inc. ~~system~~ under the symbol “VNTI.PK” . The following table sets forth for the respective periods indicated the high and low bid prices for the common stock, as reported by the Pink OTC ~~Bulletin~~Market ~~Board~~Inc. Such prices are based on inter-dealer bid and asked prices, without markup, markdown, commissions, or adjustments and may not represent actual transactions.

	Bid
Quarter Ending	High	Low
June 30, 2008	$ .65	$ .15
June 30, 2009	$ .25	$ .09
September 30, 2008	$ .30	$ .15
December 31, 2008	$ .15	$ .11
March 31, 2009	$ .14	$ .09
June 30, 2009	$ .25	$ .10
September 30, 2009	$ .35	$ .12
December 31, 2009	$ .35	$ .13
March 31, 2010	$ .2130	$ .16
June 30, 2010	$ .26	$ .09
September 30, 2010	$ 1.01	$ .09
December 31, 2010	$ .95	$ .21
March 31, 2011	$ .68	$ .11

~~(b)~~ Shareholders

~~There~~As ~~are~~of ~~332~~May ~~shareholders~~12, of2011, there were 2,408 record onowners of our ~~shareholder~~common ~~list~~stock.

~~(c) Dividends~~Transfer Agent

~~Since~~Our ~~the~~transfer ~~Company’s~~agent ~~incorporation,~~is noSignature ~~dividends~~Stock ~~have~~Transfer, ~~been paid on our Common Stock~~Inc., Weat ~~intend~~the toaddress ~~retain~~of ~~any~~2632 ~~earnings~~Coachlight ~~for~~Court, ~~use~~Plano, inTexas ~~our~~75093. ~~business~~Its ~~activities,~~telephone sonumber it is ~~not~~(972) ~~expected that any dividends on our common stock will be declared and paid in the foreseeable future~~612-4120.

921

~~(d) Securities Authorized for Issuance Under Equity Compensation Plans~~Dividends

~~The~~We ~~information~~currently ~~set~~do ~~forth~~not anticipate paying any cash dividends on our common stock in the ~~table~~foreseeable ~~below~~future. ~~regarding~~Although ~~equity~~we ~~compensation~~intend ~~plans~~to ~~(which~~retain ~~include~~our ~~individual~~earnings, ~~compensation~~if ~~arrangements)~~any, ~~was~~to ~~determined~~finance the growth of our business, our Board of Directors will have the discretion to declare and pay dividends in the future, subject to applicable PRC regulations and restrictions as described below. Payment of ~~March~~dividends 31in the future will depend upon our earnings, ~~2010~~capital requirements, and other factors, which our Board of Directors may deem relevant.

	Number of securities to be issued upon exercise of outstanding options, warrants and rights	Weighted average exercise price of outstanding options, warrants and rights	Number of securities remaining available for future issuance under equity compensation plans
Equity compensation plans approved by security holders	0	N.A.	0
Equity compensation plans not approved by security holders	0	N.A.	0
Total	0	N.A.	0

In addition, due to various restrictions under PRC laws on the distribution of dividends by our PRC operating companies, we may not be able to pay dividends to our stockholders. The Wholly-Foreign Owned Enterprise Law (1986), as amended, and The Wholly-Foreign Owned Enterprise Law Implementing Rules (1990), as amended and the Company Law of the PRC (2006), contain the principal regulations governing dividend distributions by wholly foreign owned enterprises. Under these regulations, wholly foreign owned enterprises may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. Additionally, such companies are required to set aside a certain amount of their accumulated profits each year, if any, to fund certain reserve funds. These reserves are not distributable as cash dividends except in the event of liquidation and cannot be used for working capital purposes. The PRC government also imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency for the payment of dividends from the Company’s profits. Furthermore, if our subsidiaries and affiliates in China incur debt on their own in the future, the instruments governing the debt may restrict its ability to pay dividends or make other payments. If we or our subsidiaries and affiliates are unable to receive all of the revenues from our operations through the current contractual arrangements, we may be unable to pay dividends on our common stock.

~~(e) Sale~~Securities ofAuthorized ~~Unregistered~~for ~~Securities~~Issuance Under Equity Compensation Plans

~~Vantone~~We ~~International~~presently ~~did~~do not ~~effect~~have any ~~unregistered~~equity ~~sales~~based ofor other long-term incentive programs. In the future, we may adopt and establish an equity-based ~~securities~~or ~~during~~other long-term incentive plan, subject to the ~~4th~~approval ~~quarter~~of ~~ended~~our ~~March~~board 31of directors and, ~~2010~~if applicable, our stockholders.

~~(f)~~ITEM ~~Repurchase~~6. ofSELECTED ~~Equity~~FINANCIAL ~~Securities~~DATA.

Vantone International did not repurchase any of its equity securities that were registered under Section 12 of the Securities Act during the 4th quarter ended March 31, 2010.

ITEM 6. SELECTED FINANCIAL DATA

Not applicable.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.

~~Result~~The following analysis of ~~Operations~~our consolidated financial condition and results of operations for the fiscal years ended March 31, 2011 and 2010 should be read in conjunction with the consolidated financial statements, including footnotes.

~~Vantone~~Business Yuan commenced its operations in 2007, and grew to achieve a significant position in the Chinese market for health and beauty aids. During the year ended March 31, 2008, the combined revenues of Vantone Manufacturing and Vantone Yuan totalled $8,820,089. During the fiscal year ended March 31, 2009, however, we implemented a major adjustment of our sales model and business development strategy. Our goal is to take advantage of the distribution network that we have developed for health and beauty products to enter the rapidly growing Chinese market for insurance policies. In order to achieve that goal, it is necessary that we convert our marketing network from a franchise model to an agency model. So for the past two years we have been gradually transforming our franchisees into sales agents, capable of marketing both household supplies and insurance policies.Overview

~~This~~During ~~transformation~~the offiscal ~~our~~year ~~marketing~~ended ~~network~~March ~~caused~~31, ~~disruption~~2010, we were engaged in the sale of a variety of products through sales agents. Commencing from April 2010, we terminated our sales ~~effort~~agency ~~during~~agreements ~~the~~and ~~fiscal~~started ~~year~~to ~~ended~~establish ~~March~~our ~~31,~~Vantone ~~2009~~online shop. ~~During~~We have combined the ~~same~~sales ~~period~~of water purifiers, weinsurance ~~suspended~~service ~~distribution~~and ofsmall ~~the~~business ~~bamboo~~financing ~~products~~service ~~that~~into ~~had~~one ~~accounted~~sales ~~for~~platform ~~nearly~~- ~~40%~~Vantone ofOnline ~~our~~by online sales ~~revenue~~distribution ~~during~~channels. We mainly operated our business through our website Vantone Online for the fiscal year ended March 31, ~~2008~~2011. We ~~determined~~Concurrently, ~~that~~we ~~the~~implemented ~~seasonality~~our new business model of customer online order and e-payment upon the ~~products~~Vantone online system. In order to increase our sales volume, and satisfy more customers’ demands in the ~~limited~~future, ~~geographic~~we ~~area~~plan to open physical stores all over China, commencing in ~~which~~April ~~they~~2011. The customer can bemake ~~successfully~~orders ~~marketed~~through ~~made~~our ~~them~~Vantone aonline ~~disadvantageous~~website, ~~foundation~~and ~~for~~then ~~our~~make ~~marketing~~payment ~~effort. Primarily~~and ascollect aproducts ~~result~~in ofany ~~these~~required ~~two~~physical ~~adjustments~~store. In addition, we provided small finance and mortgage services to consumers through our ~~revenues~~subsidiary, ~~during~~Vantone Small Financing. For the fiscal year ended March 31, ~~2009~~2011, ~~dropped~~we provided small financing loans to $2individual customers only. Commencing April 2011,~~958,731~~ ~~from~~we $8plan to develop actively corporate entities to expand our small financing loans business. Through this effective integration of our resources,~~820,089~~ ~~for~~we have successfully increased our market share in the ~~fiscal~~businesses ~~year~~that ~~ended~~we ~~March~~operate ~~31,~~and ~~2008~~competitiveness.

10Foreign Exchange Considerations

InEven ~~February~~though ~~2009,~~ we ~~began~~are toa ~~supplement~~U.S. ~~our~~company, ~~existing~~because ~~product~~all ~~lines~~of byour ~~entering~~operations ~~the~~are ~~market~~located ~~for~~in the ~~distribution~~PRC, ofwe ~~consumer~~face ~~electronics~~certain ~~and~~risks ~~home~~associated ~~appliances~~with doing business in ~~China: televisions,~~the ~~air~~PRC. ~~conditioners,~~These ~~refrigerators,~~risks ~~cellular~~include ~~phones,~~risks ~~cooking~~associated ~~appliances,~~with ~~etc. In~~the ~~April~~ongoing ~~2009~~transition wefrom ~~began~~state business ownership to ~~sell~~privatization, ~~those~~operating ~~products. We~~in ~~entered~~a ~~this~~cash-based ~~market~~economy, dealing with inconsistent government policies, unexpected changes in ~~part~~regulatory requirements, ~~because~~export ~~early~~restrictions, tariffs and other trade barriers, challenges in ~~2009~~staffing ~~the~~and ~~Chinese~~managing ~~government~~operations ~~established~~in a 2communist ~~billion~~country, ~~RMB~~differences ~~stimulus~~in ~~package~~technology standards, ~~consisting~~employment oflaws ~~subsidies~~and tobusiness ~~assist~~practices, ~~low~~longer ~~income~~payment ~~families~~cycles and problems in ~~purchasing~~collecting ~~new~~accounts ~~electronics~~receivable, and ~~home~~changes ~~appliances.~~in ~~This~~currency ~~stimulus~~exchange ~~package~~rates ~~creates~~and acurrency ~~significant~~exchange ~~business~~controls. ~~opportunity~~We ~~for~~are unable to control the ~~distribution~~vast majority of ~~the~~these ~~targeted~~risks ~~products~~associated ~~through~~both with our ~~sales~~operations ~~network~~and the country in which they are located and these risks could result in a significant decline in our revenue.

~~The~~Because ~~result~~revenues offrom our ~~new~~operations ~~product~~in ~~initiatives~~the ~~was~~PRC aaccounted ~~281~~for 100% ~~increase~~of inour ~~revenue~~consolidated net revenues, how we report net revenues from ~~$2,958,731~~our inPRC-based ~~fiscal~~operations ~~2009~~is of particular importance to ~~$11~~understanding our financial statements. Transactions and balances originally denominated in U.S. dollars are presented in their original amounts. Transactions and balances in other currencies are converted into U.S. dollars in accordance with Statement of Financial Accounting Standards (SFAS) No. 52,~~261~~ "Foreign Currency Translation,~~521~~" and are included in ~~fiscal~~determining ~~2010~~comprehensive net income or loss. ~~Several~~ ~~factors~~For ~~contributed~~foreign tooperations with the ~~increase:~~local currency as the functional currency, assets and liabilities are translated from the local currencies into U.S. dollars. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income or loss.

~~· Our sales of consumer electronics and home appliances in fiscal 2010 totalled $2,774,345. We sold neither consumer electronics nor home appliances in fiscal 2009.~~22

·The ~~During~~functional currency of our Chinese subsidiaries is the ~~second~~Chinese ~~half~~RMB. The financial statements of the ~~fiscal~~subsidiaries are translated into U.S. dollars using year-end rates of exchange for assets and liabilities, ~~China~~and ~~experienced~~average rates of exchange for the ~~coldest~~period ~~winter~~for revenues, costs, and expenses. Net gains and losses resulting from foreign exchange transactions are included in ~~fifty~~the ~~years~~consolidated statements of operations and were not material during the periods presented. ~~Demand~~Until ~~for~~1994, ~~our~~the ~~jade~~RMB ~~mattresses~~experienced ~~with~~a ~~regulated~~gradual ~~temperature~~but ~~spiked~~significant devaluation against most major currencies, ~~yielding~~including $4U.S. dollars,~~785~~ and there was a significant devaluation of the RMB on January 1,~~414~~ 1994 in ~~revenue~~connection ~~for~~with the ~~full~~replacement ~~fiscal~~of ~~year.~~the ~~The~~dual ~~cold~~exchange ~~weather~~rate ~~also~~system ~~contributed~~with to a ~~spike~~unified inmanaged floating rate foreign exchange system. Since 1994, the ~~sale~~value of ~~our~~the ~~bamboo~~RMB ~~fiber~~relative ~~quilts~~to the U.S. Dollar has remained stable and has appreciated slightly against the U.S. dollar. Countries, ~~which~~including ~~yielded~~the $1United States,~~732,462~~ have argued that the RMB is artificially undervalued due to China's current monetary policies and have pressured China to allow the RMB to float freely in ~~revenue~~world markets.

~~Although~~On ~~the~~July 21, ~~reorientation~~2005, ofthe ~~our~~PRC ~~marketing~~reported ~~network~~that ~~from~~it ~~franchises~~would tohave ~~sales~~its ~~agencies~~currency ~~was~~pegged ~~spurred by our desire~~ to ~~utilize~~a ~~the~~basket ~~agencies as conduits for the sale~~ of ~~insurance~~currencies ~~products,~~rather ~~our~~than ~~insurance~~only ~~business~~tying ~~remains~~it ~~insignificant. From fiscal 2009~~ to ~~fiscal~~a ~~2010~~fixed ~~our~~exchange ~~revenue~~rate ~~from~~to the ~~sale~~dollar. ofThe ~~insurance~~PRC ~~policies~~also ~~(identified~~increased asthe ~~“service~~value ~~rendered”~~of onits ~~our~~currency ~~Statements~~2% ofhigher ~~Operations)~~against ~~fell~~the ~~from $396~~dollar,~~721~~ toeffective ~~$284,218 (2~~immediately.5% ofIf ~~total~~any ~~revenue).~~devaluation ~~The~~of ~~primary reason for~~ the ~~lack~~RMB ofwere ~~vitality~~to occur in ~~our~~the ~~insurance~~future, ~~business~~returns ~~was~~on our ~~decision~~operations in ~~fiscal~~China, ~~2010~~which toare ~~focus~~expected onto ~~initiating~~be in the ~~Vantone~~form ~~Insurance~~of ~~B2C~~RMB, ~~Network~~will asbe ~~our~~negatively ~~point~~affected ofupon ~~entry~~conversion ~~into~~to the ~~national~~U.S. ~~insurance market~~dollar. ~~The~~ ~~complexity~~Although ofwe ~~developing~~attempt ~~this~~to ~~mode~~have ofmost ~~insurance~~future ~~marketing,~~payments ~~which~~(mainly isrepayments ~~new~~of toloans ~~China,~~and ~~delayed~~capital ~~the~~contributions) ~~expansion~~denominated ofin ~~our insurance business~~U.S. Atdollars, ~~present~~if wethe ~~are~~value ~~uncertain~~ of the ~~future~~RMB ~~development~~increases ofin ~~our~~the ~~insurance business~~future, ~~although~~our weproduct ~~expect~~sales ~~that~~in ~~over~~China ~~the~~and ~~long~~in ~~term~~other itcountries ~~will~~may ~~grow~~be ~~into~~negatively ~~a significant factor in our overall revenue~~affected.

~~Our~~Critical ~~gross~~Accounting margin during fiscal 2010 was 69.1%, compared to 60.9% in fiscal 2009. The transition from an exclusive focus on health and beauty products (which are relatively low margin goods, due to competition) to a mixture of health and beauty products with higher margin appliances contributed to the improvement in margin, as did the efficiencies that arise from expanded sales volume. Due to the significant recent changes in our business operations, however, it is not possible for us to safely predict the margins that we should expect to realize in the future.Policies

~~Since~~The ~~our~~discussion ~~overhead~~and ~~has~~analysis ~~not~~of ~~changed significantly since 2007,~~ our ~~selling,~~financial ~~general~~condition and ~~administrative~~results ~~expenses~~of ~~remained~~operations ~~relatively~~are ~~stable~~based ~~from~~upon ~~period~~our toconsolidated ~~period~~financial –statements, ~~operating~~which ~~expenses~~have inbeen ~~fiscal~~prepared ~~2010~~in ~~were~~accordance ~~only~~with ~~35%~~accounting ~~higher~~principles ~~than~~generally accepted in ~~fiscal~~the ~~2009,~~United ~~despite~~States. ~~the~~The ~~281%~~preparation ~~increase~~of inthese ~~revenue. The~~consolidated ~~primary~~financial ~~factor~~statements ~~contributing~~requires us to ~~the~~make ~~efficiency~~estimates ofand ~~our~~judgments ~~operations~~that isaffect the ~~fact~~reported ~~that~~amounts ~~our~~of ~~marketing~~assets, ~~network~~liabilities, ~~transfers~~revenues toand ~~our~~expenses, ~~sales~~and ~~agents~~related adisclosure ~~substantial~~of ~~portion~~contingent ofassets ~~the~~and ~~responsibility~~liabilities. ~~for~~On ~~addressing~~an ~~local~~on-going ~~markets~~basis, ~~including~~we ~~expenses~~evaluate ofour ~~market~~estimates ~~research,~~based ~~advertising~~on historical experience and ~~promotion. At~~on ~~the~~various ~~same~~other ~~time,~~assumptions ~~however,~~that ~~since~~are ~~our~~believed ~~operating~~to ~~company~~be ~~was~~reasonable ~~acquired~~under bythe acircumstances, ~~U.S.~~the ~~public~~results ~~shell~~of ~~company~~which inform ~~May~~the ~~2009,~~basis wefor ~~are~~making ~~now~~judgments ~~bearing~~about the ~~ongoing~~carrying ~~expenses~~values ~~attributable~~of toassets ~~being~~and aliabilities Uthat are not readily apparent from other sources.S. ~~public,~~Actual ~~reporting~~results ~~company,~~may ~~which~~differ ~~increases~~from ~~our~~these ~~general~~estimates ~~and~~under ~~administrative~~different ~~expenses~~assumptions or conditions.

AsA asummary ~~result~~ of ~~the~~significant ~~growth~~accounting inpolicies ~~revenue~~is ~~and~~included ~~efficiency of our operations, our income from operations grew to $5,710,914~~ in ~~fiscal~~Note ~~2010,~~3 ~~compared~~ to ~~$259,819~~the inconsolidated ~~fiscal~~financial ~~2009~~statements. ~~Income~~ inManagement ~~fiscal~~believes ~~2010~~that ~~was~~the ~~further~~application ~~aided by a net “other income”~~ of ~~$106,481.~~these ~~This~~policies ~~other~~on ~~income was primarily attributable to~~ a ~~RMB750,~~consistent ~~000~~basis ~~(equivalent~~enables tous ~~$109,819) government grant from the Commission of Finance of the Liaoning Province of China~~ to ~~subsidize~~provide ~~the~~useful ~~expenses~~and ~~that~~reliable ~~the~~financial ~~Company~~information ~~incurred~~about ~~when acquiring overseas high-tech enterprises. As a result,~~ our ~~pre-tax~~operating ~~income~~results ~~for~~and ~~the~~financial ~~year was $5,809,594, compared to $224,715 in fiscal 2009~~condition.

11We record property and equipment at cost. Depreciation is provided using the straight-line method over the estimated economic lives of the assets, which are from 3 to 20 years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. We review the carrying value of long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair market value.

~~The~~Revenue ~~corporate~~includes ~~income~~sales ~~tax~~of ~~rate~~products, ininsurance ~~China~~services ~~is 25%. However~~rendered, ~~several~~small ofamount ~~our~~financing ~~subsidiaries~~and ~~receive~~mortgage ~~tax abatements~~service, ~~some~~VIP asmembership afee ~~result of Chinese tax laws that reward foreign investment in China~~ and ~~some~~network asservice afees ~~result of other tax incentives~~collected. ~~The~~Our ~~net~~revenues ~~effect~~from ofthe ~~these~~products ~~abatements~~revenue ~~was~~represents ~~that~~the ~~during~~invoiced ~~fiscal~~value ~~2010 we incurred income tax at an effective rate~~ of ~~only~~goods ~~6%.~~sold ~~All~~recognized ofupon the ~~abatements~~delivery ~~are temporary, however, which means that in future periods our subsidiaries will most likely incur taxes at a significantly higher effective rate. For fiscal 2010 the result~~ of ~~the~~goods ~~various~~to ~~tax~~customers, ~~incentives was that we realized~~ net ~~income~~ of ~~$5,482,384~~allowance ~~($.18~~for ~~per~~estimated ~~share)~~returns, ~~equal~~when toboth ~~94%~~title ofand ~~our~~risk ~~pre-tax~~of ~~income.~~loss Intransfer ~~fiscal~~to ~~2009~~the ~~our~~customer, ~~net~~provided ~~income~~that ~~was~~no ~~only~~significant ~~$149,823~~obligations ($remain.~~01 per share).~~

~~Our~~Recent ~~business~~Accounting operates primarily in Chinese Renminbi (“RMB”), but we report our results in our SEC filings in U.S. Dollars. The conversion of our accounts from RMB to Dollars will result in translation adjustments. While our net income will be added to the retained earnings on our balance sheet; the translation adjustments will be added to a line item on our balance sheet labelled “accumulated other comprehensive income,” since they will be more reflective of changes in the relative values of U.S. and Chinese currencies than of the success of our business. During the year ended on March 31, 2010, the effect of converting our financial results to Dollars was to add $9,822 to our accumulated other comprehensive income. In fiscal 2009, when the exchange rate had been much more volatile, $188,615 was added to our accumulated other comprehensive income.Pronouncements

In July 2010, the FASB issued Accounting Standards Update (ASU) No. 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.” ASU No. 2010-20 amends the guidance with ASC Topic 310, “Receivables” to facilitate financial statement users’ evaluation of (1) the nature of credit risk inherent in the entity’s portfolio of financing receivables; (2) how that risk is analyzed and assessed in arriving at the allowance for credit losses; and (3) the changes and reasons for those changes in the allowance for credit losses. The amendments in ASU No. 2010-20 also require an entity to provide additional disclosures such as a roll forward schedule of the allowance for credit losses on a portfolio segment basis, credit quality indicators of financing receivables and the aging of past due financing receivables. The Company is required to adopt ASU No. 2010-20 as of December 15, 2010 and is currently evaluating the impact the new disclosure requirements will have on its financial statements and notes

In April 2010, the FASB issued Accounting Standard Update 20-10-17, “Revenue Recognition—Milestone Method (Topic 605): Milestone Method of Revenue Recognition” or ASU 2010-17. This update provides guidance on the recognition of revenue under the milestone method, which allows a vendor to adopt an accounting policy to recognize all of the arrangement consideration that is contingent on the achievement of a substantive milestone (milestone consideration) in the period the milestone is achieved. The pronouncement is effective on a prospective basis for milestones achieved in fiscal years and interim periods within those years, beginning on or after June 15, 2010. The adoption of this ASU does not have a material impact on the Company’s consolidated financial statements.

In April 2010, the FASB issued Accounting Standards Update 2010-13, “Compensation—Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades,” or ASU 2010-13. ASU 2010-13 provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in currency of a market in which a substantial portion of the entity’s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The Company does not expect the adoption of this ASU to have a material impact on the Company’s consolidated financial statements.

Results of Operations

Results of operations for the fiscal year ended March 31, 2011 as compared to the fiscal year ended March 31, 2010

	For The Fiscal Years Ended March 31,						2011 Less 2010
	2011			2010			Increase /(Decrease)
Revenues
Products sold	$	5,956,016		$	10,975,106		$	(5,019,090	)	-46	%
Sales discount for products		(2,409,073	)		-			(2,409,073	)	-
Insurance service rendered		34,321			284,218			(249,897	)	-88	%
Franchise joining fees		-			2,197			(2,197	)	-100	%
VIP membership fees		771,530			-			771,530		100	%
Network service fees		3,078			-			3,078		100	%
Financing interest		272,055			-			272,055		100	%
Total Revenues, Net		4,627,927			11,261,521			(6,633,594	)	-59	%

Cost of Goods Sold
Products sold		1,082,233			3,208,454			(2,126,221	)	-66	%
Insurance service rendered		21,837			277,475			(255,638	)	-92	%
Franchise joining cost		-			120			(120	)	-100	%
VIP membership cost		42,101			-			42,101		100	%
Network service cost		168			-			168		100	%
Financing cost		15,074			-			15,074		100	%
Total Cost of Goods Sold		1,161,413			3,486,049			(2,324,636	)	-67	%

Gross Profit		3,466,514			7,775,472			(4,308,958	)	-55	%

Operating Expenses
Selling expenses		21,099			297,178			(276,079	)	-93	%
Losses on disposal of fixed assets		2,677			6,043			(3,366	)	-56	%
Bad debt (recoveries) expenses		(369,324	)		427,164			(796,488	)	-186	%
Provision for loan losses		68,858			-			68,858		100	%
General and administrative expenses		1,284,155			1,350,694			(66,539	)	-5	%
Total Operating Expenses		1,007,465			2,081,079			(1,073,614	)	-52	%

Income From Operations		2,459,049			5,694,393			(3,235,344	)	-57	%

Other Income
Interest income, net		23,589			8,720			14,869		171	%
Other (expense) income, net		(828	)		106,481			(107,309	)	-101	%
Total Other Income		22,761			115,201			(92,440	)	-80	%

Income Before Taxes		2,481,810			5,809,594			(3,327,784	)	-57	%
Provision for Income Taxes		589,931			344,229			245,702		71	%
Income Before Noncontrolling Interest		1,891,879			5,465,365			(3,573,486	)	-65	%

Less: Net loss attributable to the noncontrolling interest		(15,335	)		(17,019	)		1,684		-10	%

Net Income Attributable to Vantone International
Group, Inc.	$	1,907,214		$	5,482,384		$	(3,575,170	)	-65	%

Revenues

For the fiscal year ended March 31, 2011, our revenues net were $4,627,927 as compared to $11,261,521 for the fiscal year ended March 31, 2010, a decrease of $6,633,594 or 59%. The decrease in revenues were primarily attributable to the fact that the revenues arising from our product sales reduced significantly for the fiscal year ended March 31, 2011 as compared to the same period in 2010. Commencing from April 2010, we changed our operation model from traditional sales agent operation to the establishment of our “Vantone Insurance Online Shop” (“Vantone Shop”). As a result, we generated increased sales from VIP membership and network services, based upon more recruits that occurred for the fiscal year ended March 31, 2011. In addition, we obtained important financing interest income in the current period in connection with Vantone Small Financing, which was established in September 2010. Despite the fact that we realized more profit through the providing service of memberships, network and small financing loans, such increase had been offset fully by the decrease in revenues from our products sales in the current period. As a result, our revenues decreased substantially for the fiscal year ended March 31, 2011.

The following table sets forth information regarding the sales of our principal products during the years ended March 31, 2011 and 2010.

	For The Fiscal Year Ended March 31,
	2011				2010				2011 1ess 2010
Products Name	Amount		%		Amount		%		Amount			%
Water purifying equipment and cup	$	1,010,430	28	%	$	223,926	2	%	$	786,504		351	%
Daily commodities ("E" commodities)		2,536,513	72	%		10,751,180	98	%		(8,214,667	)	-76	%
Total products sold revenue, net	$	3,546,943			$	10,975,106			$	(7,428,163	)	-68	%

The decrease in product revenue, as reflected in the table, is primarily due to the decrease for the daily commodities. For the fiscal year ended March 31, 2011, we were devoted to establishing our Vantone Shop and developing customer online ordering and e-payment through Vantone Shop. In addition, we spent more time to actively expand our market share of water purifying equipment for the fiscal year ended March 31, 2011. This caused the significant decrease in product sales of daily commodities during the current period. Therefore, the products revenues reduced significantly for the fiscal year ended March 31, 2011, compared to the same period in 2010.

Except for product sales, we also sold insurance products on the Vantone Shop. Our insurance business remains insignificant. For the fiscal year ended March 31, 2011, our revenue from the sale of insurance policies (identified as “Insurance service rendered” on our Statements of Operations) fell to $34,321 from $284,218 for the fiscal year ended March 31, 2010. The primary reason for the lack of vitality in our insurance business was that we focused on initiating the Vantone Insurance B2C Network as our point of entry into the national insurance market. The complexity of developing this mode of insurance marketing, which was new to China, delayed the expansion of our insurance business. At present we are uncertain of the future development of our insurance business, although we expect that over the long term it will grow into a significant factor in our overall revenue.

In addition, we recognized $771,530 in VIP membership fees revenue and $3,078 in Network services fees for the fiscal year ended March 31, 2011. We did not have any VIP membership fee revenue or Network services fee revenue in 2010. The VIP and Network Service Memberships fees accounted for nearly 16.74% of our sales revenue net for the year ended March 31, 2011.

Our revenues of financing interest are our new profit point, which are primarily driven by lending to consumers and commercial customers. We generated net interest income of $272,055 for the fiscal year ended March 31, 2011 and $0 for the fiscal year ended March 31, 2010. We had RMB 46,188,000 (equivalent to $7,053,111) in total principal outstanding as of March 31, 2011.

Cost of Goods Sold and Gross Profit

For the fiscal year ended March 31, 2011, cost of goods sold amounted to $1,161, 413 or 25.10% of net revenues as compared to cost of sales of $3,486,049 or 30.96% of net revenues for the fiscal year ended March 31, 2010. The decrease in products cost for the fiscal year ended March 31, 2011 was primarily due to the decrease in product sold for the fiscal year ended 2011. Gross profit for the fiscal year ended March 31, 2011 was $3,466,514 or 74.90% of total revenues, as compared to $7,775,472 or 69.04% of total revenues for the fiscal year ended March 31, 2010. The decrease in gross profit for the year ended March 31, 2011 was primarily due to the reduction in products of gross profit. The gross margin increase was primarily as a result that we realized high gross margins arising from the service rendered of memberships, network and small financing loans for the fiscal year ended March 31, 2011. Despite the fact that the gross margin of products sales decreased slightly due to implement promotion activities in the current fiscal year, this decrease had been offset by the increase of gross margin in service rendered for the fiscal year ended March 31, 2011. As a result, the gross margin rose slightly for the fiscal year ended March 31, 2011 as compared to the same period in 2010.

Operating Expenses

For the fiscal year ended March 31, 2011, total operating expenses were $1,007,465 as compared to $2,081,079 for the fiscal year ended March 31, 2010, a decrease of $1,073,614 or 52%. The decrease in total operating expenses was primarily due to a decrease in selling expenses and reversal of a bad debt expense. Selling expenses were immaterial for the fiscal year ended March 31, 2011. The reason for decrease was primary due to the reduction in adverting costs for the fiscal year ended March 31, 2011 as compared to the same period in 2010. General and administrative expenses were 5% lower than in the fiscal year ended March 31, 2010. Moreover, we reversed a bad debt expense of $369,324 based upon the significant collection in accounts receivable outstanding for the fiscal year ended March 31, 2011 which resulted from the last fiscal year. The provision for loan losses was $68,858 for the year ended March 31, 2011. Pursuant to the management's estimate, we adopted the allowance for loan losses at 1% of outstanding loan principal beginning October 2010.

Other Income

For the year ended March 31, 2011, other income - net, amounted to $22, 761 as compared to $115,201 for the year ended March 31, 2010, a decrease of $92, 440 or 80%. This decrease for other income was primarily attributable to a RMB750,000 (equivalent to $109,819) government grant from the Commission of Finance of the Liaoning Province of China to subsidize the expenses that the Company incurred when acquiring overseas high-tech enterprises for the year ended March 31, 2010. No such income was made in the fiscal year ended March 31, 2011.

Income Tax

Income taxes expense increased by $245,702 to $589,931 for the fiscal year ended March 31, 2011 as compared to $344,229 for the fiscal year ended March 31, 2010. This reason for the increase was mainly attributable to the fact that Vantone manufacturing was entitled to a full exemption from CIT for two years, from January 1, 2008 to December 31, 2009. Since the revenues contributed by Vantone manufacturing was approximately 62% of total revenues for the fiscal year ended March 31, 2010, in addition, the revenues from Vantone Manufacturing were generated mostly in the nine months ended December 31, 2009. As a result, income tax expense significantly reduced for the fiscal year ended March 31, 2010.

Noncontrolling Interest

For the fiscal year ended March 31, 2011 the Company reported a noncontrolling interest in loss of subsidiary of $15,335 as compared to $17,019 for the fiscal year ended March 31, 2010. The noncontrolling interest in loss of subsidiaries increase was attributable to Mr. Jichun Li, who we allocated to the minority stockholders, and increased our net income.

Liquidity and Capital Resources

~~After~~Operating ~~our~~working ~~shareholders~~capital ~~made~~(cash ~~the~~plus ~~initial~~accounts ~~contribution~~receivable ofplus ~~our~~inventory ~~registered~~less ~~capital~~accounts payable and accrued expenses) increased by $2,525,729 ~~the~~from ~~growth~~$10,491,678 as of ~~our~~March ~~business~~31, ~~has~~2010 ~~been~~to ~~funded~~$13,017,407 ~~primarily~~as of March 31, by2011. ~~the~~The ~~revenues~~increase ~~resulted~~was ~~from~~primarily as of result of an increase in loans receivable to develop our business ~~operations.~~of Assmall afinancing ~~result,~~loans atfor the fiscal year ended March 31, ~~2010,~~2011. weThe ~~had~~ratio noof ~~long~~current ~~term~~assets ~~debts~~to current liabilities was 6.25:1.

~~Our~~The ~~working~~following ~~capital~~is ata ~~March~~summary ~~31, 2010 totalled $10,491,678, an increase~~ of ~~$5,524,113 from our $4,967,565 in working capital as of March 31, 2009. The increase was approximately equal to our net income. Our~~ cash ~~flow~~provided ~~from~~by ~~operations~~or ~~trailed~~used ~~net income, however, as operations~~ in ~~fiscal~~each ~~2010~~of ~~produced $4,375,730 in cash. The discrepancy was primarily~~ the ~~result~~indicated oftypes ~~a $3,385,839 increase in our accounts receivable, which occurred primarily because we realized $6,581,866 in sales (58%~~ of ~~annual~~activities ~~sales)~~during in the ~~fourth quarter of the~~ fiscal ~~year. We~~years ~~are~~ended ~~collecting~~March ~~the receivables from those sales in ordinary course~~31, 2011 and ~~do not expect the growth of our accounts receivable to exceed the rate of growth of our sales.~~2010:

Before the reverse merger, Vantone USA paid $ 1,304,209 to a consulting company in USA for all related expenditures of reverse merger transactions. These fees were originally classified as prepayment for reverse merger expenses. Since the shell company finally was acquired by Mr. Honggang Yu, CEO of the Vantone International, we reclassified this prepayment to be an advance to stockholder. In addition, Vantone Manufacturing paid off its loan from shareholder for amount of RMB 4,969,522 (equivalent to $728,041) in the year ended March 31, 2010. As of result, the net amount of advanced to/from stockholders/officers had approximately a $2 million difference between the year ended March 31, 2010 and 2009.

	For The Fiscal Years Ended March 31,
	2011			2010
Cash provided by (Used in):
Operating Activities	$	4,425,641		$	4,375,730
Investing Activities		(8,586,961	)		105,751
Financing Activities		1,527,044			(767,196	)

Our business plans contemplates that we will expand our current VIP members and service system, and expand our e-commerce platform to distribute daily commodities, consumer electronics, home appliances, and insurance products. Implementation of this plan will require significant funds. The funds are needed in order to:26

●Cash ~~Implement~~provided ~~our~~by ~~direct~~operating ~~marketing~~activities ~~program~~was $4,425,641for ~~including~~the ~~development~~fiscal ofyear ~~internet~~ended ~~commerce~~March 31, ~~calling~~2011 ~~center~~as ~~and~~compared anto ~~online~~$4,375,730 ~~presence;~~provided by operating activities for the fiscal year ended March 31, 2010. The increase in cash provided in operating activities was primarily a result of a significant collection in accounts receivable for the fiscal year ended March 31, 2011.

●Net ~~Co-operate~~cash ~~with~~used ~~more~~in ~~insurance~~investing ~~companies~~activities amounted to $8, ~~and~~586, ~~gain~~961 ~~more~~for ~~insurance~~the ~~agency~~fiscal year ended March 31, 2011 from $105,751 provided by for the fiscal year ended March 31, 2010. The increase in use of cash was primarily attributable to the fact that we lent huge principal to individual customers to develop our small financing loans business; for the fiscal year ended March 31, 2011. We provide small financing loans to individual customers in the total amount of RMB 46,188,000 (equivalent to $7,053,111) as of March 31, 2011. In addition, the Company incurred a payment arising from a cash restricted transaction for the fiscal year ended March 31, 2011. Additional information is disclosed in Note 4 of the Company’s financial statements. No such transactions were made for the fiscal year ended March 31, 2010.

●Net ~~Establish~~cash aprovided ~~small~~by ~~funds~~ financing ~~and~~activities ~~mortgage~~amounted ~~company~~to $1,527,044 for the fiscal year ended March 31, 2011 from $767,196 used in ~~China~~for tothe fiscal year ended March 31, 2010. The increase in cash provided in financing ~~car~~activities was mainly due to the fact that Vantone Small Financing obtained a loan of RMB 10 million (equivalent to $1,527,044) ~~property~~from a bank for the fiscal year ended March 31, ~~and~~2011. Additional ~~life~~information ~~insurance~~is ~~products~~disclosed toin ~~expand~~Note ~~our~~4 ~~insurance~~of ~~market~~the ~~possession~~Company’s ~~ratio~~financial ~~and~~statements. ~~expand~~The ~~E-commerce~~use ~~transactions~~of ~~volume;~~cash ~~and~~for the fiscal years ended March 31, 2010 was primarily attributable to repayment of a loan from our stockholders.

●We ~~Implement~~believe anthat ~~advertising~~we ~~and~~have ~~marketing~~sufficient ~~program~~funds ~~adequate~~to operate our existing business for the next twelve months. However, in addition to ~~assure~~funds usavailable from operating and loans from shareholders, we may need external sources of ~~substantial~~capital ~~market~~for ~~presence~~our expansion of our business. There can be no assurance that we will be able to obtain such additional financing at acceptable terms to us, or at all.

Our plan is to sell a portion of our equity in order to obtain the necessary funds, which will reduce the equity share of our existing shareholders. To date, however, we have received no commitment from any source for funds.

Critical Accounting Policies and Estimates

In preparing our financial statements we are required to formulate working policies regarding valuation of our assets and liabilities and to develop estimates of those values. In our preparation of the financial statements for fiscal 2010, there were two estimates made which were (a) subject to a high degree of uncertainty and (b) material to our results. These were:

 Our determination, recited in Note 3(d) to our Financial Statements that a 10% allowance for doubtful accounts was appropriate. We made this determination based on our knowledge of our creditors and their past credit history.

 Our determination, recited in Note 8(a) to our Financial Statements, that we could record a deferred tax asset of $123,101. We made the determination based on our historical profitability, and our expectation of future profitability

We made no material changes to our critical accounting policies in connection with the preparation of financial statements for 2010.

Impact of Accounting Pronouncements

There were no recent accounting pronouncements that have had a material effect on the Company’s financial position or results of operations.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition or results of operations.

~~ITEM~~ Federal ~~7A. QUANTITATIVE~~Income ~~AND~~Tax ~~QUALITATIVE~~Aspects ~~DISCLOSURES~~of ~~ABOUT~~Investment ~~MARKET~~in ~~RISK.~~us

~~Not~~The ~~Applicable~~discussion contained herein has been prepared by us and is based on existing law as contained in the Code, amended United States Treasury Regulations (“Treasury Regulations”), administrative rulings and court decisions as of the date of this Registration Statement. No assurance can be given that future legislative enactments, administrative rulings or court decisions will not modify the legal basis for statements contained in this discussion. Any such development may be applied retroactively to transactions completed prior to the date thereof, and could contain provisions having an adverse effect upon us and the holders of our common stock. In addition, several of the issues dealt with in this summary are the subject of proposed and temporary Treasury Regulations. No assurance can be given that these regulations will be finally adopted in their present form.

State, Local and Foreign Taxes

In addition to the federal income tax consequences described above, prospective investors should consider potential state, local and foreign tax consequences of an investment in the Common Stock.

General Fiduciary Requirements

Title I of ERISA includes provisions governing the responsibility of fiduciaries to their Qualified Plans. Qualified Plans must be administered according to these rules. Keogh plans that cover only partners of a partnership or self-employed owners of a business are not subject to the fiduciary duty rules of ERISA, but are subject to the prohibited transaction rules of the Code.

Under ERISA, any person who exercises any authority or control respecting the management or disposition of the assets of a Qualified Plan is considered to be a fiduciary of such Qualified Plan (subject to certain exceptions not here relevant).

ERISA Section 404(a)(1) requires a fiduciary of a Qualified Plan to “discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries and (A) for the exclusive purpose of: (i) providing benefits to participants and their beneficiaries, and (ii) defraying reasonable expenses of administering the plan; (B) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; (C) by diversifying the investments of a plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and (D) in accordance with the documents and instruments governing the plan.” Fiduciaries who breach the duties that ERISA imposes may suffer a wide variety of legal and equitable remedies, including (i) the requirement to restore qualified plan losses and to pay over any fiduciary’s profits to the qualified plan; (ii) removal as fiduciary of the qualified plan; and (iii) liability for excise taxes that Section 4975 of the Code imposes.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, we are not required to provide this information.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The financial statements begin on page F-1.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES.

(a) Evaluation of Disclosure Controls and Procedures.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")) as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report were effective such that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to our management to allow timely decisions regarding disclosure.

(b) Management’s Report on Internal Control over Financial Reporting.

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. We have assessed the effectiveness of those internal controls as of March 31, 2011, using the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) Internal Control – Integrated Framework as a basis for our assessment.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

A material weakness in internal controls is a deficiency in internal control, or combination of control deficiencies, that adversely affects the Company’s ability to initiate, authorize, record, process, or report external financial data reliably in accordance with accounting principles generally accepted in the United States of America such that there is more than a remote likelihood that a material misstatement of the Company’s annual or interim financial statements that is more than inconsequential will not be prevented or detected. In the course of making our assessment of the effectiveness of internal controls over financial reporting, we identified one material weakness in our internal control over financial reporting. This material weakness consisted of:

Lack of expertise in U.S accounting principles among the personnel in our Chinese headquarters. Our books are maintained and our financial statements are prepared by the personnel employed at our executive offices in the City of Shenyang. Few of our employees have experience or familiarity with U.S accounting principles. The lack of personnel in our Shenyang office who are trained in U.S. accounting principles is a weakness because it could lead to improper classification of items and other failures to make the entries and adjustments necessary to comply with U.S. GAAP.

Management is currently reviewing its staffing and their training in order to remedy the weaknesses identified in this assessment. To date, we are not aware of significant accounting problems resulting from these weaknesses; so we have to weigh the cost of improvement against the benefit of strengthened controls. However, because of the above conditions, management’s assessment is that the Company’s internal controls over financial reporting were not effective as of March 31, 2011.

There was no change to the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

(d) Auditor Attestation

This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. The Dodd-Frank Wall Street Reform and Consumer Protection Act exempts us, as a company with a public float of less than $75 million, from the requirement that our independent registered public accounting firm attest to our financial controls.

ITEM 9B. OTHER INFORMATION.

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

Directors and Executive Officers

The following individuals constitute our board of directors and executive officers as of the date of this annual report on Form 10-K. Our executive officers are appointed annually by our board of directors. Each executive officer holds his office until he resigns, is removed by the Board, or his successor is appointed and qualified. Directors are elected annually by our stockholders at the annual meeting. Each director holds his office until his successor is elected and qualified or his earlier resignation or removal.

Name	Age	Positions / Title	Director Since
Honggang Yu	46	Chairman/CEO/President/Chief Financial Officer/Director	2008
Jichun Li	56	Vice President/Director	2009
Dongfeng Liu	52	Vice President/Director	2009
Tiehua Ju	56	Vice President/Director	2009
Yanxiang Liu	47	Director	2010
Xiaoyun Chen	35	Director	2010
Shuxian Lan	58	Director	2010
Ke Xu	56	Director	2010
Wenyi Zhao	53	Director	2010
Riming Cui	47	Director	2010

The following sets forth biographical information regarding the Company’s directors, officers and key employee.

Mr. Honggang Yu, Age 46, President, Chief Executive Officer, Chief Financial Officer and Chairman

Mr. Yu, was born in 1965, founded Vantone Manufacturing in 2003, and has been employed by Vantone Manufacturing since that time as Chairman and Chief Executive Officer. He has also served as Chairman and Chief Executive Officer of Vantone Yuan since it was organized in 2007. From 2000 to 2003, Mr. Yu was employed as a clerk by the Guangdong Development Bank. From 1992 to 2000, Mr. Yu was employed as Chief Financial Officer of the Dong Yu Group. In 1985 Mr. Yu was awarded a bachelor’s degree with a specialty in financial accounting by Dongbei University of Finance & Economics.

Mr. Jichun Li, Age 55, Vice President and Director

Mr. Li was born in 1955, helped to organize Vantone Yuan in 2007, and has served as its Vice President – Finance since that time. Since 2008 he has also served as Vice President – Finance for Vantone Manufacturing. From 1979 until he joined Vantone, Jichun Li served as Chief Financial Officer for four companies engaged in private enterprise in China, the last such appointment being with Shenyang Di Jie Trading Investment & Development Co., Ltd. In 1985 Mr. Li was awarded a degree from the Shenyang Television University, with a specialty in industrial accounting.

Mr. Dongfeng Liu, Age 52, Vice President and Director

Mr. Liu was born in 1958, comes to Vantone after a career in senior management of various engineering-based enterprises, including the Shenyang branch of Dalian Chu Ming Group, Shenyang North Traffic Heavy Industry Group, Liaoning Tian Yuan Group, Shenyang Diamond Factory and Shenyang Smelting Plant. Mr. Liu earned a bachelor’s degree with a concentration in engineering.

Mr. Tiehua Ju, Age 56, Vice President and Director

Mr. Ju was born in 1954 and brings to Vantone 27 years of experience in engineering and management. From 1998 to 2008 he was employed as Assistant President of Shenyang Dong Yu Group. Previously he held engineering positions at Shenyang Cable Factory, Liaoning Fuxin Mining Administration, and the Baotou Steel Institute. In 1982 Mr. Ju earned a bachelor’s degree with a concentration in metal pressure processing from Northeastern University in China, and in 2003 he earned a Master’s degree in Business Administration, also from Northeastern University.

Mr. Yanxiang Liu, Age 47, Independent Director, Chair of the Audit Committee and Member of the Compensation Committee

Mr. Liu was born in 1963, graduated from Dongbei University of Finance & Economics. He is a certified public accountant and certified tax accountant in China. Mr. Liu served as the office director of Shenyang Accounting Firm in Shenyang Economy and Technology Development Zone where he was in charge of programs involving auditing and capital verification for companies in the zone.

Ms. Xiaoyun Chen, Age 35, Independent Director and Member of the Audit Committee

Ms. Chen was born in 1975, Doctor of Laws. She is currently an associate law professor and a master tutor at Law School of Shenyang Normal University. Ms. Chen is a member of the editing committee for “Chinese Journal of International Law” and a part-time lawyer of Liaoning Changfeng Law Firm. She holds a Doctor degree in Law from Dalian Maritime University.

Mr. Riming Cui, Age 47, Independent Director and Chair of the Compensation Committee

Mr. Cui is currently a doctoral tutor and the associate dean of the School of Economics in Liaoning University. He mainly focuses in international trade, international market analysis and projection, operation and management of international companies. Mr. Cui is an expert in international economy and trade at the Economic Teaching Guidance Committee of the Chinese Ministry of Education. He is also a member or advisor of China International Trade Institute. Chinese and a Member of Shenyang People’s Political Consultative Conference

Mr. Ke Xu, Age 56, Independent Director and Member of the Nomination Committee

Mr. Xu was born in 1954, Holds a Doctor of clinical medicine in China Medical University. He is a doctoral tutor, attending doctor and the director of the radiology department in the First Affiliated Hospital of China Medical University. Mr. Xu served as a representative of the People’s Congress of Liaoning Province. He is also affiliated with many professional organizations, including the Radiology Society of North America, Radiology Society of China, “Chinese Journal of Radiology” and Institute of Biomedical Imaging of China Medical University, etc.

Mr. Wenyi Zhao, Age 53, Independent Director and Chair of the Nomination Committee

Mr. Zhao was born in 1957, holds a bachelor’s degree in Finance from Liaoning Finance and Trade College. Mr. Zhao was serving as General Manager of Market Management Department at the Liaoning Office of New China Life Insurance Co., Ltd. Mr. Zhao was previously a teacher at Liaoning Finance Vocational College. He was also the vice principal of Liaoning Banking School.

Mr. Shuxian Lan, Age 58, Independent Director, Member of the Audit Committee

Mr. Lan was born in 1952. He has been a Vice President at the Shenyang Yuehua Accounting Firm since 2002. From 1999 to 2001, he was the Vice President of Shenyang Hualun Accounting Firm. From 1994 to 1998, he served as the Office Manager, Head of Audit Department, Head of Consulting Department of Shenyang Accounting Firm. Mr. Lan holds a bachelor degree in economic management from Shandong Leader University studied by correspondence. He is a certified public accountant in China.

Board Committees

Our board of directors has established an audit committee, a compensation committee and a nominating/corporate governance committee, each of which operates pursuant to a charter adopted by our board of directors. The composition and functioning of all of our committees comply with all applicable requirements of Sarbanes-Oxley and the Commission’s rules and regulations. Each member of each of the committees is an independent director, as that term is defined NASDAQ Capital Market and/or NYSE Amex’s rules.

Audit Committee

Messrs. Yanxiang Liu, Shuxian Lan and Mrs. Xiaoyun Chen currently serve on the Audit Committee, which is chaired by Mr. Yanxiang Liu. Our board of directors has determined that each audit committee member has sufficient knowledge in financial and auditing matters to serve on the audit committee. Our board of directors has designated Mr. Liu, who is an independent director, as an “audit committee financial expert,” as defined under the rules of the Commission. It is the responsibility of the audit committee to:

·	Assist the board in monitoring

o	the integrity of our financial reporting process, systems of internal controls and financial statements and reports of the Company,

o	the performance of our internal audit function, and

o	our compliance with legal and regulatory requirements relating to disclosure and financial reporting.

·	Be directly responsible for the appointment, compensation and oversight of our independent registered accounting firm engaged for the purpose of preparing or issuing an audit report or related work.

Corporate Governance / Nominating Committee

Messrs. Wenyi Zhao and Ke Xu currently serve on the corporate governance/nominating committee, which is chaired by Mr. Zhao. Our nominating and corporate governance committee has the responsibility to:

·	Develop and recommend to the board our corporate governance guidelines and oversee compliance therewith.

·	Assist the board in effecting board organization, membership and function including identifying qualified Board nominees;

·	Assist the board in effecting the organization, membership and function of board committees including the composition of the committees and recommending qualified candidates for the committees.

·	Evaluate and provide successor planning for the chief executive officer and other executive officers.

·	Develop criteria for board membership, such as independence, term limits, age limits and ability of former employees to serve on the board and the evaluation of candidates' qualifications for nomination to the board and its committees as well as removal there from.

Prepare any report which is required by the rule of the Commission to be included in our filings with the Commission.

Compensation Committee

Compensation Committee Interlocks and Insider Participation

Messrs. Riming Cui and Yanxiang Liu currently serve on the compensation committee, which is chaired by Mr. Cui. Each member of the compensation committee is a “nonemployee director” for purposes of Section 16 of the Exchange Act and an “outside director” for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended. The compensation committee has the responsibility to:

Review and approve corporate goals and objectives relevant to the compensation of our chief executive officer, evaluate the chief executive officer’s performance in light of those goals and objectives, and either as a committee or together with the other independent directors, determine and approve the chief executive officer’s compensation level based on this evaluation.

Make recommendations to the board with respect to non-CEO compensation, incentive-compensation plans and equity-based plans, oversee the activities of the individuals and committees responsible for administering these plans, and discharge any responsibilities imposed on the Committee by any of these plans.

·	Approve any new equity compensation plan or any material change to an existing plan where stockholder approval has not been obtained and which is to be submitted for adoption by stockholders.

In consultation with management, oversee regulatory compliance with respect to compensation matters, including overseeing our policies on structuring compensation programs to preserve tax deductibility, and, as and when required, establishing performance goals and certifying that performance goals have been attained for purposes of Section 162(m) of the Internal Revenue Code.

·	Make recommendations to the board with respect to any severance or similar termination payments proposed to be made to any current or former executive officer or member of senior management.

·	Prepare an annual report of the Compensation Committee on executive compensation for inclusion in our annual proxy statement in accordance with applicable Commission rules and regulations

Director Independence

The following directors are independent: Mr. Yanxiang Liu, Ms. Xiaoyun Chen, Mr. Riming Cui, Mr. Ke Xu, Mr. Wenyi Zhao, and Mr. Shuxian Lan. Mr. Honggang Yu, Mr. Jichun Li, Mr. Dongfeng Li and Tiehua Ju are not independent directors.

Code of Ethics

We have not adopted a code of ethics that applies to our officers, employees and directors, including our Chief Executive Officer and senior executives. However, we plan to adopt one in the near future.

Section 16 Compliance

Section 16(a) of the Securities Exchange Act of 1934, requires our directors, executive officers and persons who own more than 10% of our common stock to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other of our equity securities.

To our knowledge, during the fiscal year ended March 31, 2011, based solely on a review of the copies of such reports furnished to us, all reports under Section 16(a) required to be filed by its officers and directors and greater than ten percent (10%) beneficial owners were timely filed except that: Mr. Honggang Yu and Mr. Jichun Li filed a late Form 3 and our other directors and officers have not filed a Form 3. In addition, Mr. Honggang Yu has not filed a Form 4 for the changes of his beneficial ownership of the Company.

Family Relationships

There are no family relationships by and between or among the members of the Board or other executives. None of our directors and officers is directors or executive officers of any company that files reports with the SEC except as set forth in the Biographies section above.

Legal Proceedings Involving Officers and Directors

Unless otherwise indicated, to the knowledge of the Company after reasonable inquiry, no current director or executive officer of the Company during the past ten years, has (i) been convicted in a criminal proceeding (excluding traffic violations or other minor offenses), (ii) been a party to any judicial or administrative proceeding (except for any matters that were dismissed without sanction or settlement) that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, U.S. federal or state securities laws, or a finding of any violation of U.S. federal or state securities laws, (iii) filed a petition under federal bankruptcy laws or any state insolvency laws or has had a receiver appointed for the person’s property or (iv) been subject to any judgment, decree or final order enjoining, suspending or otherwise limiting for more than 60 days, the person from engaging in any type of business practice , acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity or engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws, (v) been found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated, (vi) been found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated, (vii) been the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: (a) any Federal or State securities or commodities law or regulation, (b) any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or (c) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity, or (viii) been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

There are no material pending legal proceedings to which any of the individuals listed above is party adverse to the Company or any of its subsidiaries or has a material interest adverse to the Company or any of its subsidiaries. There are no family relationships between directors and executive officers of the Company.

ITEM 11. EXECUTIVE COMPENSATION.

The following table reflects the compensation paid to our principal executive officer during each of our fiscal years ended March 31, 2011 and 2010.

Summary Compensation Table

Name and Principal Position	Fiscal Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation Earnings ($)	Non-qualified Deferred Compensation Earnings ($)	All Other Compensation ($)	Total ($)
Honggang Yu, President,	2011	0	$22,064	0	0	0	0	0	$22,064
CEO, CFO and Chairman	2010	0	$10,543	0	0	0	0	0	$10,543

Jichun Li,	2011	$11,020	0	0	0	0	0	0	$11,020
Vice President and Director	2010	$8,713	$9,691	0	0	0	0	0	$18,404

Dongfeng Liu	2011	$11,010	$9,691	0	0	0	0	0	$20,701
Vice President and Director	2010	$8,104	$7,420	0	0	0	0	0	$15,524

Tiehua Ju	2011	$11,010	$9,691	0	0	0	0	0	$20,701
Vice President and Director	2010	$6,886	$6,248	0	0	0	0	0	$13,134

(1)

Honggang Yu has served as the Company’s President, Chairman of the Bord of Director, Chief Executive Officer and Chief Financial Officer since April 7, 2008. Mr. Yu also served (and continues to serve) as Chairman and Chief Executive Officer of Vantone Manufacturing and Vantone Yuan during the fiscal years ended March 31, 2011 and 2010. Mr. Yu’s compensation for the years ended March 31, 2011 and 2010 reflects his services as CEO and President of the Company and President of Vantone Manufacturing and Vantone Yuan, combined.

(2)

Jichun Li has served as the Company’s Director and Vice President since May 14, 2009. Mr. Li also served (and continues to serve) as Vice President of the finance department of Vantone Yuan during the fiscal years ended March 31, 2011 and 2010. Mr. Li’s compensation for the years ended March 31, 2011 and 2010 reflects his services as Vice President of the Company and the Vice President of the finance department of Vantone Yuan, combined.

(3)

Dongfeng Liu has served as the Company’s Vice President in charge of the marketing development department and our insurance agent department since November 27, 2009 and served as director of the Company since November 27, 2009. Mr. Liu’s compensation for the years ended March 31, 2011 and 2010 reflects his services as Vice President of the Company during such time periods.

(4)

Tianhua Ju has served as the Company’s Vice President in charge of the intelligence and administration department and comprehensive management department since November 27, 2009 and has served as director of the Company since November 27, 2009. Mr. Ju’s compensation for the years ended March 31, 2011 and 2010 reflects his services as Vice President of the Company during such time periods.

Outstanding Equity Awards at 2011 Fiscal Year End

None.

Employment Agreements

We have written employment agreements with all of our executive officers. The standard employment agreement, in compliance with PRC labor law and regulations, includes the terms of the employment such as the length of the employment, the provision of labor-related insurances, termination notice, holiday and sick leave and the labor-related benefits.

Compensation Discussion and Analysis

Overview of Compensation Program and Philosophy

The Compensation Committee and, prior to its establishment, our board of directors determined the compensation to be paid to our executive officers based on our financial and operating performance and prospects, and contributions made by the officers’ to our success. Each of the named officers will be measured by a series of performance criteria by the board of directors, or the compensation committee on a yearly basis. Such criteria will be set forth based on certain objective parameters such as job characteristics, required professionalism, management skills, interpersonal skills, related experience, personal performance and overall corporate performance.

Our board of directors and Compensation Committee have not adopted or established a formal policy or procedure for determining the amount of compensation paid to our executive officers. The Compensation Committee will make an independent evaluation of appropriate compensation to key employees, with input from management. The Compensation Committee has oversight of executive compensation plans, policies and programs.

COMPENSATION COMMITTEE REPORT

The Compensation Committee has reviewed the Compensation Discussion and Analysis set forth above with the Company’s management and, based upon such review and discussion, the Compensation Committee recommended to our Board that the Compensation Discussion and Analysis be included in this annual report on Form 10-K.

Members of the Compensation Committee:

Riming Cui, Chairman

Yanxiang Liu

July 12, 2011

The foregoing Compensation Committee Report does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other filing of the Company under the Securities Act of 1933 or the Exchange Act, except to the extent that the Company specifically incorporates the Report by reference therein.

Director Compensation

The following table shows information regarding the compensation earned during the fiscal year ended March 31, 2011 by the members of our board of directors whose compensation is not included in the summary compensation table.

Name	Fees Earned or Paid in Cash ($)	Stock Awards ($)	Option Awards ($)		All Other Compensation ($)	Total ($)
Yanxiang Liu	$889 (RMB6000)	0		0	0	$889 (RMB6000)
Xiaoyun Chen	$741 (RMB5000)	0		0	0	$741 (RMB5000)
Shuxian Lan	$741 (RMB5000)	0		0	0	$741 (RMB5000)
Ke Xu	$593 (RMB4000)	0		0	0	$593 (RMB4000)
Wenyi Zhao	$741 (RMB5000)	0		0	0	$741 (RMB5000)
Riming Cui	$741 (RMB5000)	0		0	0	$741 (RMB5000)

Indemnifications and Limitations of Liability for Directors and Executive Officers

Under Section 145 of the General Corporation Law of the State of Nevada, we will indemnify our directors and officers against liabilities that they may incur in such capacities, including liabilities under the Securities Act. Our certificate of incorporation provides that, pursuant to Nevada law, our directors shall not be liable for monetary damages for breach of the directors’ fiduciary duty of care to us and our stockholders. The provision in the certificate of incorporation does not eliminate the duty of care, and in appropriate circumstances equitable remedies such as injunctive or other forms of non-monetary relief will remain available under Nevada law. In addition, each director will continue to be subject to liability for breach of the director’s duty of loyalty to us or our stockholders, for acts or omissions not in good faith or involving intentional misconduct or knowing violations of the law, for actions leading to improper personal benefit to the director, and for payment of dividends or approval of stock repurchases or redemptions that are unlawful under Nevada law. In addition, the provision does not affect a director’s responsibilities under any other law, such as the federal securities laws or state or federal environmental laws.

Our Certificate of Incorporation provides for the indemnification of our directors, officers, employees, and agents, under certain circumstances, against attorney’s fees and other expenses incurred by them in any litigation to which they become a party arising from their association with or activities on behalf of us. We will also bear the expenses of such litigation for any of its directors, officers, employees, or agents, upon such person’s promise to repay us. Therefore, if it is ultimately determined that any such person shall not have been entitled to indemnification, this indemnification policy may result in substantial expenditures which will cause us unable to recover the cost.

We have been advised that in the opinion of the Securities and Exchange Commission, insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. In the event a claim for indemnification against such liabilities (other than our payment of expenses incurred or paid by our director, officer or controlling person in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth certain information as of the date hereof with respect to the beneficial ownership of our ordinary shares, the sole outstanding class of our voting securities, by (i) each shareholder known to be the beneficial owner of 5% or more of the outstanding ordinary shares of the Company, (ii) each executive officer and director, and (iii) all executive officers and directors as a group.

There are 30,001,000 shares of our common stock outstanding on the date of this report. Except as otherwise indicated, we believe that the beneficial owners of the common stock listed below have sole voting power and investment power with respect to their shares, subject to community property laws where applicable. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission.

In computing the number of shares beneficially owned by a person and the percent ownership of that person, we include shares of common stock subject to options or warrants held by that person that are currently exercisable or will become exercisable within 60 days. We do not, however, include these “issuable” shares in the outstanding shares when we compute the percent ownership of any other person.

Name and Address of Beneficial Owner(1)	Amount and Nature of Beneficial Ownership	Percentage of Class
Honggang Yu	11,975,935	39.9%
Jichun Li	957,880	3.2%
Dongfeng Liu	150,000	0.5%
Tiehua Ju	150,000	0.5%
All officers and directors (4 persons)	13,233,815	44.1%

_____________________________

(1)	Unless otherwise noted, the shareholder’s address is c/o No. 195, Zhongshan Road, Heping District, Shenyang, Liaoning Province, P.R. China.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Advanced to Stockholders/ Officers

From time to time, since the inception of Vantone Manufacturing and Vantone Yuan, Honggang Yu has loaned money to those entities, or they have loaned money to Mr. Yu. The loans do not bear interest and are payable on demand. As of March 31, 2011, the total net amount owed by Honggang Yu to the Company as a result of these loans was $2,435,135.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

All services reflected in the following table for fiscal year ended March 31, 2011 and 2010 were pre-approved in accordance with the policy of our Board of Directors.

(1) Audit Fees

Our principal accountant billed $100,000 and $100,000 to the Company for professional services rendered for the audit of financial statements for the fiscal years ended March 31, 2011 and 2010, respectively.

(2) Audit-Related Fees

There were no fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of the Company’s financial statements.

(3) Tax Fees

Tax fees consist of the preparation of Federal corporation income tax returns, State corporation income tax returns, and State annual filing regarding tax compliance issues. Our principal accountant billed $6,500, $6,500, and $6,500 for tax preparation fees for tax service rendered in October 2010 for fiscal years ended March 31, 2010, 2009, and 2008 tax filing, respectively. There were no tax preparation fees billed for the fiscal year ended March 31, 2011 tax filing to date.

(4) All Other Fees

Our principal accountant billed $85,000 and $0 for review fees for registration statements on Form S-1 filings in fiscal years ended March 31, 2011 and 2010, respectively.

There were no other fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported above.

(5) Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services

The Audit Committee pre-approves all audit and permissible non-audit services provided by the independent registered public accounting firm. These services may include audit services, audit-related services, tax services and other services. The Audit Committee has adopted a policy for the pre-approval of services provided by the independent registered public accounting firm.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a) The following documents are filed as part of this report:

(1) Financial Statements and Report of Independent Registered Public Accounting Firm, which are set forth in the index to Consolidated Financial Statements on pages F-1 through F-23 of this report.

Report of Independent Registered Public Accounting Firm— MS Group CPA LLC		F-1
Consolidated Balance Sheets		F-2
Consolidated Statements of Operations		F-3
Consolidated Statements of Comprehensive Income		F-4
Consolidated Statements of Shareholders’ Equity		F-5
Consolidated Statements of Cash Flows		F-6
Notes to Consolidated Financial Statements		F-7 to F-22

(2) Financial Statement Schedules: None.

(3) Exhibits

3.1

Articles of Incorporation (1)

3.2

By-laws (1)

10.1

Entrusted Management Agreement, dated April 1, 2007, among Junbao Zhang, Jichun Li, Shenyang Vantone Yuan Trading Co., Ltd. and Shenyang Vantone Healthcare Products Manufacturing Co., Ltd. (2)

10.2

Proxy Agreement, dated April 1, 2007, among Shenyang Vantone Healthcare Products Manufacturing Co., Ltd., Shenyang Vantone Yuan Trading Co., Ltd., Junbao Zhang and Jichun Li (2)

10.3

Purchase Option and Cooperation Agreement, dated April 1, 2007, among Junbao Zhang, Jichun Li, Shenyang Vantone Yuan Trading Co., Ltd. and Shenyang Vantone Healthcare Products Manufacturing Co., Ltd. (2)

21.1

List of Subsidiaries

31.1

Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(1) Filed as an exhibit to the Current Report on Form 8-K filed on September 5, 2007 and incorporated herein by reference.

(2) Filed as an exhibit to the Current Report on Form 8-K filed on May 15, 2009 and incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Vantone International, Group Inc.

Date: July 12, 2011	/s/ Honggang Yu
	Honggang Yu President, Chief Executive Officer, and Chief Financial Officer (Duly Authorized Officer, Principal Executive Officer and Principal Financial Officer)

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

/s/ Honggang Yu		July 12, 2011
Honggang Yu
Chairman, President, Chief Executive Officer, and Chief Financial Officer

/s/ Jichun Li		July 12, 2011
Jichun Li
Director and Vice President

/s/ Dongfeng Liu		July 12, 2011
Dongfeng Liu
Director and Vice President

/s/ Tiehua Ju		July 12, 2011
Tiehua Ju
Director and Vice President

/s/ Yanxiang Liu		July 12, 2011
Yanxiang Liu
Director

/s/ Xiaoyun Chen		July 12, 2011
Xiaoyun Chen
Director

/s/ Shuxian Lan		July 12, 2011
Shuxian Lan
Director

/s/ Ke Xu		July 12, 2011
Ke Xu
Director

/s/ Wenyi Zhao		July 12, 2011
Wenyi Zhao
Director

/s/ Riming Cui		July 12, 2011
Riming Cui
Director

CONTENTS		Page

Report of Independent Registered Public Accounting Firm		F-1

Consolidated Financial Statements:

Consolidated Balance Sheets		F-2
Consolidated Statements of Operations		F-3
Consolidated Statements of Comprehensive Income		F-4
Consolidated Statements of Changes in Stockholders’ Equity		F-5
Consolidated Statements of Cash Flows		F-6
Notes to Consolidated Financial Statements		F-7 to F-22

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Vantone International Group, Inc. and Subsidiaries

~~(Formerly~~We ~~Senior~~have ~~Optician~~audited ~~Service~~the accompanying balance sheets of Vantone International Group, Inc. and Subsidiaries) as of fiscal years ended March 31, 2011 and 2010, and the related statements of income, stockholders’ equity and comprehensive income, and cash flows for each of the years in the two-year period ended March 31, 2011. The management of Vantone International Group, Inc. and Subsidiaries is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

~~Consolidated~~We ~~Financial~~conducted ~~Statements~~our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vantone International Group, Inc. and Subsidiaries as of fiscal years ended March 31, 2011 and 2010, and ~~2009~~the results of their operations and their cash flows for each of the years in the two-year period ended March 31, 2011 in conformity with accounting principles generally accepted in the United States of America.

13MS Group CPA LLC MS Group CPA LLC Edison, New Jersey June 29, 2011

Index to the Consolidated Financial Statements

Page

F-2		Report of Independent Registered Public Accounting Firm.
F-3		Consolidated Balance Sheets as of March 31, 2010 and 2009.
F-4		Consolidated Statements of Operations for the Fiscal Years Ended March 31, 2010 and 2009.
F-5		Consolidated Statements of Comprehensive Income for the Fiscal Years Ended March 31, 2010 and 2009.
F-6		Consolidated Statements of Changes in Stockholders’ Equity for the Fiscal Years Ended March 31, 2010 and 2009.
F-7		Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2010 and 2009.
F-8 to F-24		Notes to Consolidated Financial Statements.

F-1

~~Report~~Vantone ofInternational ~~Independent~~Group, ~~Registered~~Inc. ~~Public~~and ~~Accounting Firm~~Subsidiaries

ToConsolidated ~~the~~Balance ~~Board of Directors and Stockholders of~~Sheets

~~Vantone~~As ~~International~~of ~~Group~~March 31, ~~Inc.~~2011 ~~(f/k/a Senior Optician Service Inc.)~~ and ~~Subsidiaries~~2010

We have audited the accompanying consolidated balance sheets of Vantone International Group, Inc. (f/k/a Senior Optician Services Inc.) and Subsidiaries as of years ended March 31, 2010 and 2009, and the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the two-year period ended March 31, 2010. The management of Vantone International Group, Inc. (f/k/a Senior Optician Services Inc.) and Subsidiaries is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

	As of March 31,
	2011			2010
Assets
Assets:
Current Assets
Cash and equivalents-non restricted	$	2,885,312		$	5,159,615
Cash - restricted		1,527.044			-
Accounts receivable, net of allowance
for doubtful amounts of $67,157 and $427,357, respectively		604,413			3,846,213
Insurance commissions receivable		10,761			3,659
Interests receivable		25,418			-
Loans receivable		7,053,111			-
Less: Unearned income		(16,378	)		-
Allowance for loan losses		(70,531	)		-
Total loans receivable, net		6,966,202			-
Advanced to suppliers		45,784			13,346
Inventories		521,739			140,952
Advanced to stockholders/officers, net		2,435,135			2,367,998
Prepayments and other current assets		265,605			240,405
Deferred income tax assets-current		207,765			123,101
Total Current Assets		15,495,178			11,895,289

Property and Equipment - Net		1,805,034			1,881,125
Non-Operating Property		1,238,549			1,188,237
Total Assets		18,538,761			14,964,651

Liabilities and Stockholders' Equity
Liabilities:
Current Liabilities
Loan payable		1,527,044			-
Accounts payable and accrued expenses		193,939			161,704
Insurance commissions payable		-			318
Customer deposits		4,831			723,737
Taxes payable		262,651			312,558
Deferred VIP membership revenue		248,387			-
Deferred network service revenue-current		4,203			-
Other current liabilities		236,716			205,294
Total Current Liabilities		2,477,771			1,403,611

Deferred Network Service Revenue-Noncurrent		26,270			-
Total Liabilities		2,504,041			1,403,611

Stockholders' Equity:
Vantone International Group Equity
Common stock - $0.001 par value, 100,000,000 shares
authorized, 30,001,000 and 29,901,000 shares

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audits provide a reasonable basis for our opinion.

issued and outstanding, respectively		30,001		29,901
Additional paid-in capital		1,919,800		1,887,100
Deferred compensation		-		32,800
Reserve funds		865,816		724,764
Retained earnings		11,922,055		10,155,893
Accumulated other comprehensive income		1,242,641		660,840
Total Vantone International Group, Inc. Stockholders' Equity		15,980,313		13,491,298
Non-controlling Interest		54,407		69,742
Total Equity		16,034,720		13,561,040

Total Liabilities and Stockholders' Equity	$	18,538,761	$	14,964,651

InSee ~~our~~notes ~~opinion,~~to ~~the~~ consolidated financial statements ~~referred to above present fairly, in all material respects, the financial position of Vantone International Group, Inc~~. (f/k/a Senior Optician Services Inc.) and Subsidiaries as of March 31, 2010 and 2009, and the results of their operations and their cash flows for each of the years in the two-year period ended March 31, 2010 in conformity with accounting principles generally accepted in the United States of America.

MS Group CPA LLC MS Group CPA LLC Edison, New Jersey June 11, 2010

F-2

Vantone International Group, Inc. (f/k/a Senior Optician Service Inc.) and Subsidiaries
Consolidated Balance Sheets
	For the Fiscal Years Ended March 31,
	2010		2009
Assets
Current Assets
Cash and equivalents	$	5,159,615	$	1,441,411
Accounts receivable, net of allowance for doubtful amounts of $427,164 and $0, respectively		3,849,872		886,539
Advanced to suppliers		13,346		10,037
Inventories		140,952		405,030
Advanced to stockholders/officers, net		2,367,998		371,354
Loan to related parties, net		-		148,092
Prepayments and other current assets		240,405		1,785,393
Deferred income taxes assets-current		123,101		181,873
Total Current Assets		11,895,289		5,229,729
Property and Equipment - Net		3,069,362		3,190,850
Deferred Income Taxes Assets-Noncurrent		-		691
Total Assets		14,964,651		8,421,270
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accrued expenses		161,704		155,138
Customer deposits		723,737		8,540
Taxes payable		312,558		85,038
Other current liabilities		205,612		13,448
Total Current Liabilities		1,403,611		262,164
Total Liabilities		1,403,611		262,164
Stockholders' Equity
Common stock - $0.001 par value, 100,000,000 shares authorized, 29,901,000 shares issued and outstanding *		29,901		29,901
Additional paid-in capital		1,887,100		1,882,091
Deferred compensation		32,800		32,800
Reserve funds		724,764		630,710
Retained earnings		10,155,893		4,767,563
Accumulated other comprehensive income		660,840		651,018
Total Vantone International Group, Inc. Stockholders' Equity		13,491,298		7,994,083
Noncontrolling Interest		69,742		165,023
Total Equity		13,561,040		8,159,106
Total Liabilities and Stockholders' Equity	$	14,964,651	$	8,421,270
*: As restated to show recapitalization.
See notes to consolidated financial statements.

Vantone International Group, Inc. and Subsidiaries

Consolidated Statements of Operations

For The Fiscal Years Ended March 31, 2011 and 2010

	For The Fiscal Years Ended March 31,
	2011			2010
Revenues
Products sold	$	5,956,016		$	10,975,106
Sales discount for products		(2,409,073	)		-
Insurance service rendered		34,321			284,218
Franchise joining fees		-			2,197
VIP membership fees		771,530			-
Network service fees		3,078			-
Financing interests		272,055			-
Total Revenues, Net		4,627,927			11,261,521

Cost of Goods Sold
Products sold		1,082,233			3,208,454
Insurance service rendered		21,837			277,475
Franchise joining cost		-			120
VIP membership cost		42,101			-
Network service cost		168			-
Financing cost		15,074			-
Total Cost of Goods Sold		1,161,413			3,486,049

Gross Profit		3,466,514			7,775,472

Operating Expenses
Selling expenses	21,099		297,178
Losses on disposal of fixed assets	2,677		6,043
Bad debt (recoveries) expenses	(369,324	)	427,164
Provision for loan losses	68,858		-
General and administrative expenses	1,284,155		1,350,694
Total Operating Expenses	1,007,465		2,081,079

Income From Operations	2,459,049		5,694,393

Other Income
Interest income, net		23,589			8,720
Other (expenses) income, net		(828	)		106,481
Total Other Income		22,761			115,201

Income Before Taxes		2,481,810			5,809,594
Provision for Income Taxes		589,931			344,229
Income Before Noncontrolling Interest		1,891,879			5,465,365

Less: Net loss attributable to the noncontrolling interest		(15,335	)		(17,019	)

Net Income Attributable to Vantone International Group, Inc.	$	1,907,214		$	5,482,384

Net Income Per Common Share:
- Basic and Diluted	$	0.06		$	0.18

Weighted Common Shares Outstanding
- Basic and Diluted		29,986,278			29,901,000

See notes to consolidated financial statements.

F-3

Vantone International Group, Inc. (f/k/a Senior Optician Service Inc.) and Subsidiaries
Consolidated Statements of Operations
	For the Fiscal Years Ended March 31,
	2010			2009
Revenues
Products sold	$	10,975,106		$	2,562,010
Service rendered		284,218			396,721
Franchise joining fees		2,197			-
Total Revenues		11,261,521			2,958,731
Cost of Goods Sold
Products sold		3,197,976			863,264
Service rendered		277,475			293,954
Franchise joining cost		120			-
Total Cost of Good Sold		3,475,571			1,157,218
Gross Profit		7,785,950			1,801,513
Operating Expenses
Selling expenses		724,342			461,535
General and administrative expenses		1,350,694			1,080,159
Total Operating Expenses		2,075,036			1,541,694
Income From Operations		5,710,914			259,819
Other Expenses
Interest income, net		8,720			30,617
Other income (expenses), net		106,481			(17,277	)
Loss on inventories disposal		(10,478	)		-
Loss on disposition of fixed assets		(6,043	)		(48,444	)
Total Other Income (Expenses)		98,680			(35,104	)
Income Before Taxes		5,809,594			224,715
Provision for Income Taxes		344,229			97,656
Income Before Noncontrolling Interest		5,465,365			127,059
Less: Net Loss attributable to the noncontrolling interest		(17,019	)		(22,764	)
Net Income Attributable to Vantone International Group, Inc.	$	5,482,384		$	149,823
Net Income Per Common Share:
- Basic and Diluted	$	0.18		$	0.01
Weighted Common Shares Outstanding *
- Basic and Diluted		29,901,000			29,901,000
*: As restated to show recapitalization.
See notes to consolidated financial statements.

Vantone International Group, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

For The Fiscal Years Ended March 31, 2011 and 2010

	For The Fiscal Years Ended March 31,
	2011		2010
Net Income Before Noncontrolling Interest	$	1,891,879	$	5,465,365
Other Comprehensive Income:
Foreign Currency Translation Adjustment		581,801		9,822
Total Comprehensive Income	$	2,473,680	$	5,475,187

See notes to consolidated financial statements.

F-4

Vantone International Group, Inc. (f/k/a Senior Optician Service Inc.) and Subsidiaries
Consolidated Statements of Comprehensive Income
	For the Fiscal Years Ended March 31,
	2010		2009
Net Income Before Noncontrolling Interest	$	5,465,365	$	127,059
Other Comprehensive Income:
Foreign Currency Translation Adjustment		9,822		188,615
Total Comprehensive Income	$	5,475,187	$	315,674
See notes to consolidated financial statements.

Vantone International Group, Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders' Equity

For The Fiscal Years Ended March 31, 2011 and 2010

	Vantone International Group, Inc. Stockholders' Equity

	Common Stock				Additional							Retained Earnings /			Other Comprehensive		Non
	No. of Shares		Amount		Paid-in Capital		Deferred Compensation			Reserve Fund		(Accumulated Deficit)			Income (Loss)		controlling Interest			Total

Balance as of March 31, 2009		29,901,000	$	29,901	$	1,882,091	$	32,800		$	630,710	$	4,767,563		$	651,018	$	165,023		$	8,159,106

Purchase Stock from Minority Stockholders		-		-		5,009		-			-		-			-		(78,262	)		(73,253	)
Reserve Fund		-		-		-		-			94,054		(94,054	)		-		-			-
Net Income		-		-		-		-			-		5,482,384			-		(17,019	)		5,465,365
Foreign Currency Translation Gain		-		-		-		-			-		-			9,822		-			9,822

Balance as of March 31, 2010		29,901,000	$	29,901	$	1,887,100	$	32,800		$	724,764	$	10,155,893		$	660,840	$	69,742		$	13,561,040

Company issued 100,000 common shares
in exchange for the Wilson Warrant		100,000		100		32,700		(32,800	)		-		-			-		-			-
Reserve Fund		-		-		-		-			141,052		(141,052	)		-		-			-
Net Income		-		-		-		-			-		1,907,214			-		(15,335	)		1,891,879

Foreign Currency Translation Gain		-		-		-		-			-		-			581,801		-			581,801

Balance as of March 31, 2011		30,001,000	$	30,001	$	1,919,800	$	-		$	865,816	$	11,922,055		$	1,242,641	$	54,407		$	16,034,720

See notes to consolidated financial statements.

F-5

Vantone International Group, Inc. (f/k/a Senior Optician Service Inc.) and Subsidiaries
Consolidated Statements of Changes in Stockholders' Equity
For the Fiscal Years Ended March 31, 2010 and 2009
	Vantone International Group, Inc. Stockholders' Equity
	Common Stock
	No. of Shares		Amount		Additional Paid-in Capital			Deferred Compensation		Reserve Fund		Retained Earnings / (Accumulated Deficit)			Other Comprehensive Income (Loss)		Noncontrolling Interest			Total
Balance as of March 31, 2008		29,901,000	$	29,901	$	2,299,587		$	32,800	$	569,325	$	4,676,121		$	462,403	$	183,122		$	8,253,259
Sold Two Subsidiaries to Related Parties		-		-		(417,496	)				-		-			-		-			(417,496	)
Liyuan Reserve Fund Prior to April 24, 2008		-		-		-			-		3,004		-			-		-			3,004
Reserve Fund		-		-		-			-		58,381		(58,381	)		-		-			-
Net Income		-		-		-			-		-		149,823			-		(18,099	)		131,724
Foreign Currency Translation Gain		-		-		-			-		-		-			188,615		-			188,615
Balance as of March 31, 2009		29,901,000	$	29,901	$	1,882,091		$	32,800	$	630,710	$	4,767,563		$	651,018	$	165,023		$	8,159,106
Purchase Stock from Minority Stockholders		-		-		5,009			-		-		-			-		(78,262	)		(73,253	)
Reserve Fund		-		-		-			-		94,054		(94,054	)		-		-			-
Net Income		-		-		-			-		-		5,482,384			-		(17,019	)		5,465,365
Foreign Currency Translation Gain		-		-		-			-		-		-			9,822		-			9,822
Balance as of March 31, 2010		29,901,000	$	29,901	$	1,887,100		$	32,800	$	724,764	$	10,155,893		$	660,840	$	69,742		$	13,561,040

Vantone International Group, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

For The Fiscal Years Ended March 31, 2011 and 2010

	For The Fiscal Years Ended March 31,
	2011			2010

Cash Flows From Operating Activities
Net Income	$	1,907,214		$	5,482,384
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities
Bad debt adjustment		(369,324	)		427,164
Provision for loan losses		68,858			-
Depreciation		171,477			161,502
Net loss attributable to noncontrolling interest		(15,335	)		(17,019	)
Deferred income tax benefits		(77,568	)		59,644
Losses on counting inventory		600			10,478
Losses on disposal of fixed assets		2,677			6,043
Changes in operating assets and liabilities:
Accounts receivable		3,629,280			(3,385,839	)
Insurance commissions receivable		(6,665	)
Interest receivable		(25,418	)
Advanced to suppliers		(30,578	)		(3,294	)
Inventories		(360,193	)		253,760
Prepayments and other current assets		(14,411	)		241,051
Accounts payable and accrued expenses		24,357			6,383
Insurance commissions payable		(318	)		-
Customer deposit		(719,102	)		714,376
Taxes payable		(60,576	)		227,166
Other current liabilities		21,806			191,931
Deferred VIP membership revenue		248,387			-
Deferred network service revenue		30,473			-
Net Cash Provided by Operating Activities		4,425,641			4,375,730

Cash Flows From Investing Activities
Cash-restricted		(1,527,044)			-
Net increase in loans receivable		(7,036,733	)		-
Payment for purchase of property and equipment		(23,184	)		(42,510	)
Proceeds from related parties return loan		-			761,462
Payment to related parties		-			(613,201	)
Net Cash (Used in) Provided by Investing Activities		(8,586,961	)		105,751

Cash Flows From Financing Activities
Proceeds from loan payable		1,527,044			-
Payment for acquiring noncontrolling interest		-			(73,253	)
Proceeds from stockholders/officers return of advances		-			137,227
Payment to stockholders/officers		-			(831,170	)
Net Cash Provided by (Used in) Financing Activities		1,527,044			(767,196	)

Net (Decrease) Increase in Cash and Equivalents		(2,634,276	)		3,714,285
Effect of Exchange Rate Changes on Cash		359,973			3,919
Cash and Equivalents at Beginning of Period		5,159,615			1,441,411
Cash and Equivalents at End of Period	$	2,885,312		$	5,159,615

Supplemental Disclosures of Cash Flow Information:
Interest paid	$	-		$	-
Income taxes paid	$	519,381		$	218,450

Supplemental Schedule of Non-Cash Investing and Financing Activities:
Other receivable converted to stockholders/officers loan	$	-		$	(1,304,209	)

See notes to consolidated financial statements.

F-6

Vantone International Group, Inc. (f/k/a Senior Optician Service Inc.) and Subsidiaries
Consolidated Statements of Cash Flows
	For the Fiscal Years Ended March 31,
	2010			2009
Cash Flows From Operating Activities
Net Income	$	5,482,384		$	149,823
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities
Bad debt adjustment		427,164			-
Depreciation		161,502			163,066
Net loss attributable to noncontrolling interest		(17,019	)		(22,764	)
Deferred income tax benefits		59,644			(206,439	)
Loss on counting inventory		10,478			-
Loss on disposal of fixed assets		6,043			48,444
Changes in operating assets and liabilities:
Accounts receivable		(3,385,839	)		(863,693	)
Advanced to suppliers		(3,294	)		(10,037	)
Inventories		253,760			(294,164	)
Prepayments and other current assets		241,051			(922,792	)
Accounts payable and accrued expenses		6,383			(24,300	)
Accounts payable - related parties		-			(133,995	)
Customer deposit		714,376			(439,213	)
Taxes payable		227,166			(2,945	)
Other current liabilities		191,931			5,975
Net Cash Provided by (Used in) Operating Activities		4,375,730			(2,553,034	)
Cash Flows From Investing Activities
Payment for purchase of property and equipment		(42,510	)		(117,477	)
Proceeds from related parties return loan		761,462			652,400
Payment to related parties		(613,201	)		(239,635	)
Net Cash Provided by Investing Activities		105,751			295,288
Cash Flows From Financing Activities
Proceeds from shareholders contribution of variable interest entities		-			(346,801	)
Payment for acquiring noncontrolling interest		(73,253	)		-
Proceeds from stockholders/officers return of advances		137,227			1,320,590
Payment to stockholders/officers		(831,170	)		(63,233	)
Net Cash (Used in) Provided by Financing Activities		(767,196	)		910,556
Net Increase (Decrease) in Cash and Equivalents		3,714,285			(1,347,190	)
Effect of Exchange Rate Changes on Cash		3,919			455,942
Cash and Equivalents at Beginning of Period		1,441,411			2,332,659
Cash and Equivalents at End of Period	$	5,159,615		$	1,441,411
Supplemental Disclosures of Cash Flow Information:
Interest paid	$	-		$	-
Income taxes paid	$	218,450		$	254,007
Supplemental Schedule of Non-Cash Investing and Financing Activities:
Other receivable converted to stockholders/officers loan	$	(1,304,209	)	$	-
See notes to consolidated financial statements.

Vantone International Group, Inc. and Subsidiaries

F-7

Vantone International Group, Inc. (f/k/a Senior Optician Services Inc.) and Subsidiaries

Notes to Consolidated Financial Statements

1. Organization and Nature of Operations

a.	Current Condition

Effective on August 17, 2009, the name of the Company was changed from Senior Optician Service Inc. (“Senior Optician”) to “Vantone International Group, Inc.” (“Vantone International”).

On May 14, 2009, Senior Optician acquired all of the outstanding capital stock of Vantone USA, Inc. (~~formerly: Vantone International Group Inc.) (~~“Vantone USA”). Upon completion of the Share Exchange, there were 29,901,000 shares of Vantone International (formerly “Senior Optician”) common stock issued and outstanding. The recapitalizations are described in further detail in Note 10 to the accompanying consolidated financial statements.

Upon completion of the Share Exchange, there were 29,901,000 shares of Vantone International common stock issued and outstanding. On May 24, 2010, the Company issued additional100, 000 common shares in exchange for the Wilson Warrant. As of result, the Company had 30,001,000 common shares issued and outstanding as of March 31, 2011. The recapitalizations are described in further detail in Note 13 to the accompanying consolidated financial statements.

Vantone USA was incorporated under the laws of Nevada on December 5, 2007. It is a holding company that has owned 100% of the equity in Shenyang Vantone Healthcare Products Manufacturing Co., Ltd. (“Vantone Manufacturing”) since July 14, 2008. Most of Vantone International’s activities are conducted through its wholly own subsidiary, Vantone Manufacturing, and Vantone Manufacturing’s variable interest entities in The People’s Republic of China (“PRC”).

Vantone International, ~~(formerly~~Vantone ~~“Senior Optician”)~~USA, Vantone ~~USA~~Small Financing, Vantone Manufacturing, and all of Vantone Manufacturing’s variable interest entities listed below will be called “the Company” in the accompanying consolidated financial statements.

Vantone Small Financing

On September 27, 2010, in an attempt to expand the Company’s business in China, Vantone International formed a joint venture with Vantone Yuan that focuses on providing micro financing service to the clients in China. The joint venture operates under the name “Shenyang Heping District Vantone Small Financing Co., Ltd. (“Vantone Small Financing”)”. Vantone Small Financing has registered capital in amount of $10 million. Pursuant to this joint venture agreement, Vantone International and Vantone Yuan are required to contribute $7.07 million $2.93 million within six months from the received date of operation certificate, in order to own 70.7% and 29.3% of the joint venture, respectively. On March 29 2011, the Vantone Small Financing had been approved to extend the contribution period from six months to two years by Bureau of Foreign Trade and Economic Cooperation of Heping District Shenyang City. The registered term of operations is 10 years from September 27, 2010 to September 26, 2020. As of March 31, 2011, the actual capital of $2.93 million (equivalent to RMB 19,550,425) was contributed by Vantone Yuan on October 12, 2010.

Vantone Manufacturing

Vantone Manufacturing is a foreign owned enterprise that was incorporated under the laws of LiaoNing Province in the PRC on January 9, 2007. Vantone Manufacturing was incorporated under the name “Shenyang Vantone Healthcare Food Co., Ltd.,” but adopted its current name on June 20, 2007. Its registered term of operations is fifteen years, from January 9, 2007 to January 8, 2022. Vantone Manufacturing ~~engages~~and its KangPing branch engage in manufacturing, processing, and marketing of daily commodities, water purifying equipment, and kitchen and bath equipment. Up to March 2008, Vantone Manufacturing had outsourced all of its manufacturing activities to enterprises in the PRC that are dedicated to manufacturing products exclusively for Vantone Manufacturing.

F-8

Entrusted Management of Vantone Yuan

On April 1, 2007, Vantone Manufacturing signed three agreements (Entrusted Management Agreement, Proxy Agreement, and Purchase Option and Cooperation Agreement) with the shareholders of Shenyang Vantone Yuan Trading Co., Ltd. (“Vantone Yuan”). Vantone Yuan is a private enterprise that was incorporated under the laws of LiaoNing Province. It was incorporated under the name “Shenyang Tongbida Trading Co., Ltd.,” but adopted its current name on June 21, 2007. The Entrusted Management Agreement stipulates that Vantone Manufacturing will enjoy all of the profits and bear all of the losses arising from the business of Vantone Yuan during Vantone Manufacturing’s management period. The effective terms of these agreements are ten years starting from April 1, 2007. The terms may be extended by the written agreement among the parties upon the expiration of the agreement. By reason of the Entrusted Management Agreement and its ancillary agreements, Vantone Manufacturing is considered to be the primary beneficiary of the business of Vantone Yuan. Therefore the financial statements of Vantone Yuan and its subsidiaries are required to be consolidated with the financial statements of Vantone Manufacturing, in accordance with accounting principles generally accepted in the United States (“US GAAP”). See Note 1215 for detailed information regarding the Entrusted Management Agreements.

Vantone Yuan engages in the distribution and sale of daily commodities, consumer electronics, home appliances, health and beauty products and equipment. It also engages in the import/export of various merchandise and technologies through a selfF-conducted trade model or agency arrangement. In March and October 2008, Vantone Yuan established a branch office in Jilin Province and in Heilongjiang Province, respectively. Both offices engage in the distribution and sales of daily commodities, and are licensed by the Industry and Commercial Bureau of the PRC to operate until March 29, 2012.7

During the periods covered by these financial statements, Vantone Yuan also operated through the following subsidiaries:

Kang Ping Vantone Trading Co., Ltd (“Kang Ping”) and Kang Ping Vantone Yuan Trading Co., Ltd., (“Kang Ping Vantone Yuan”) which were incorporated under the laws of LiaoNing Province in the PRC on March 20, 2008 and December 23, 2008, respectively. Vantone Yuan owned 100% of the registered capital of both subsidiaries. They each engaged in the distribution and sales of daily commodities, consumer electronics, home appliances, and also engaged in the import/export of various merchandise and technologies through a self-conducted trade model or agency arrangement in Kangping County of Shenyang District. Kang Ping Vantone Yuan filed a cancelation of registration of incorporation with KangPing County Industrial and Commercial Bureau in July 2009, effective on October 29, 2009.

Shenyang Vantone Liyuan Trading Co., Ltd. (“Liyuan”), in which Vantone Yuan had a 36.36% ownership interest from December 3, 2007 to April 24, 2008, and had a 100% ownership interest since April 24, 2008. Because Vantone Yuan did not have majority control over Liyuan during the year ended March 31, 2008, Vantone Yuan recorded its investment in Liyuan by the equity method for the year ended March 31, 2008. However, since acquiring 100% ownership of Liyuan on April 24, 2008 (which was approved by the Industrial and Commercial Bureau in Shenyang PRC on April 30, 2008), Vantone Yuan has consolidated Liyuan’s financial results with its own. Liyuan engaged in the distribution and sales of daily commodities, and also engaged in the import/export of various merchandise and technologies through a self-conducted trade model or agency arrangement. Liyuan filed a cancelation of registration of incorporation with Shenyang City Industrial and Commercial Bureau in August 2009, effective on October 23, 2009.

~~F-9~~Liaoning Vantone Insurance Agent Co., Ltd. (“Vantone Insurance”), in which Vantone Yuan acquired a 78% ownership interest on November 16, 2007. On June 8, 2009 Vantone Yuan purchased a 10% ownership interest from the other shareholder. Therefore Vantone Yuan has held an 88% ownership interest since this change. Vantone Insurance engages in the insurance agency business, mainly representing the insurance products of New China Life Insurance Co., Ltd. ZhongYi Life Insurance Co., Ltd and Heng An Life Insurance Corporation in the Shenyang District of the PRC.

Liaoning Vantone Insurance Agent Co., Ltd. (“Vantone Insurance”), in which Vantone Yuan has held a 78% ownership interest since November 16, 2007. On June 8, 2009 Vantone Yuan purchased a 10% ownership interest from other shareholder. Therefore Vantone Yuan has held a 88% ownership interest since this change. Vantone Insurance engages in the insurance agency business, mainly representing the insurance products of New China Life Insurance Co., Ltd. and Ping An Insurance Corporation in the Shenyang District of the PRC.

Jilin Qunfeng Insurance Agent Co., Ltd. (“Qunfeng”), in which Vantone Yuan held a 100% ownership interest after its acquisition was approved on September 26, 2008 by the Jilin Industrial and Commercial Bureau of the PRC. Qunfeng is an insurance agency company in Jilin Province that mainly represents the property insurance products of Sunshine Property and Casualty Insurance Co., Ltd. and An Hua Agricultural Insurance Co., Ltd. However, on March 30, 2009 the Jilin Industrial and Commercial Bureau of the PRC approved the transfer of Vantone Yuan‘s ownership of Qunfeng to Mr. Honggang Yu, Chairman of Vantone Yuan, and Mrs. Hongfen Cao, his wife.

Heilongjiang DiAn Insurance Agent Co., Ltd (“DiAn”), which Vantone Yuan purchased for 50,000 RMB (approximately $7,325) on September 26, 2008. This acquisition had been approved by the Heilongjiang Industrial and Commercial Bureau of the PRC on October 23, 2008. However, DiAn did not receive the correct amended business operation certificate until January 8, 2009. DiAn engages in the insurance agency business, mainly representing the insurance products of TaiPing Insurance Co. and Sunlight Agricultural Mutual Insurance Co. in Helongjiang Province. However, on March 26, 2009 the Heilongjiang Industrial and Commercial Bureau of the PRC approved the transfer of Vantone Yuan’s ownership of DiAn to Mr. Honggang Yu, Chairman of Vantone Yuan, and Mrs. Hongfen Cao, his wife.

F-10

b.	History of the Parent Company

Vantone International ~~(formerly “Senior Optician”),~~ was initially incorporated on April 20, 1966 under the laws of the State of Minnesota as Polar Homes, Inc. The Company changed its corporate name to Polar Campers, Inc. in 1968. The Company was originally formed to "build, manufacture, sell, lease, own, buy and otherwise deal with in mobile homes, campers, trailers and any other equipment which from time to time be decided upon; to own and otherwise deal with in real estate, and to do all things necessary and proper to accomplish said purposes." The Company ceased all business operations during 1973 and disposed of all assets and liabilities.

In August 1991, in anticipation of a business combination with another entity, the Company changed its corporate name to Access Plus, Inc. This business combination was unsuccessful and was abandoned in January 1992 due to lack of regulatory approval. Concurrent with the abandonment of that proposed business combination, the Company changed its corporate name to Environmental Protection Corporation.

On August 15, 2000, the Company changed its corporate name to Senior Optician Service, Inc. ~~Senior~~The ~~Optician~~Company ~~Service, Inc.~~ intended to enter the specialty eyewear products business and to focus its efforts on specialty eyewear sales and services for senior citizens who are either home or facility bound. Effective March 31, 2003, this business plan was suspended by management.

On August 31, 2007, the Company changed its corporate domicile from the State of Minnesota to the State of Nevada. The capital structure of the Company remained unchanged. The change of domicile was implemented by the formation of a new Nevada corporation named Senior Optician Service, Inc. which was formed on June 25, 2007. The Minnesota Senior Optician Service, Inc. was merged into and with the Nevada Senior Optician Service, Inc. ~~corporation.~~ The Minnesota ~~corporation~~Corporation disappeared August 31, 2007 following the completion of the merger.

On April 7, 2008, Mr. Honggang Yu purchased 5,175,000 shares of the Company’s common stock, representing 86.9% of the outstanding shares. The shares were purchased from Gregory M. Wilson and Kaniksu Financial Service, Inc.

2. Basis of Presentation

a.	Fiscal Year

The Company’s fiscal year ended on March 31. The accompanying consolidated financial statements of operations and cash flows ~~include~~included activities for the fiscal years ended March 31, ~~2010~~2011 and ~~2009~~2010, respectively.

F-118

b. ~~Principles~~Principle of Consolidation

The accompanying consolidated financial statements present the financial position, results of operations and cash flows of the Company and all entities in which the Company has a controlling voting interest. The consolidated financial statements also include the accounts of any variable interest entities ofin which the Company is considered to be the primary beneficiary, ~~since~~and such entities are required to be consolidated in accordance with accounting principles generally accepted in the United States (“US GAAP”). These consolidated financial statements include the financial statements of ~~Senior~~Vantone ~~Optician~~International, Vantone ~~International~~USA, Vantone Small Financing, Vantone Manufacturing, and Vantone Manufacturing’s variable interest entities. All significant intercompany transactions and balances are eliminated in consolidation.

The accompanying consolidated financial statements are prepared in accordance with US GAAP. This basis of accounting differs from that used in the statutory accounts of some of the Company’s subsidiaries, which were prepared in accordance with the accounting principles and relevant financial regulations applicable to enterprises with foreign investment in the PRC (“PRC GAAP”). Necessary adjustments made to the subsidiary statutory accounts to conform to US GAAP were included in these consolidated financial statements.

3. Summary of Significant Accounting Policies

a.	Use of Estimates

The preparation of consolidated financial statements in conformity with accounting ~~principal~~principles generally accepted in United States requires management to make estimates and assumptions that affect the amount reported in the consolidated financial statements and the accompany notes. Actual results could differ from those estimates.

b.	Foreign Currency Translation

The ~~accompanying~~reporting ~~consolidated~~currency ~~financial~~of ~~statements~~the ~~are~~Company ~~presented~~is inthe ~~United~~U.S. ~~States dollars~~dollar. The functional currencies of the Company’'s ~~functional~~subsidiaries ~~currency~~are islocal currencies, primarily the ~~Renminbi~~Chinese ~~(“RMB”)~~Renminbi. The ~~consolidated~~ financial statements are translated tointo U.S. dollars using ~~year~~period-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, ~~costs,~~ and expenses,. ~~and~~Translation ~~historical~~adjustments ~~capital~~resulting ~~contribution~~from ~~rate~~the process of ~~exchange~~translating ~~for~~the ~~capital~~local ~~contribution.~~currency ~~Net~~financial ~~gains~~statements ~~and~~into ~~losses~~U.S. ~~resulting~~dollars ~~from foreign exchange transactions~~ are included in ~~the~~other ~~statements~~comprehensive ofincome ~~operations~~or loss.

The following rates are used in translating the RMB to the U.S. Dollar presentation disclosed in these consolidated financial statements for the fiscal years ended of March 31, ~~2010~~2011 and ~~2009~~2010.

		For the Fiscal Years Ended of March 31,
			For The Fiscal Years Ended of March 31,
		2010		2009
			2011			2010
Assets and liabilities	period ended rate of RMB	~~¥ 6.8259/per USD~~	¥	¥ 6.~~8336/per USD~~5486	/per USD	¥	6.8259	/per USD
Revenue and expenses	average rate of RMB	~~¥ 6.8290/per USD~~	¥	¥ 6.~~8678/per USD~~7077	/per USD	¥	6.8290	/per USD

F-12

c.	Cash and Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates market value.

d.	Accounts Receivable

Accounts receivable are recognized and carried at original invoice amount less allowance for any uncollectible amounts. The Company provides an allowance for doubtful accounts equal to the estimated losses that will be incurred in the collection of receivables. The estimated losses are based on a review of the current status of the existing receivables. The allowance for doubtful accounts for the ~~fiscal~~ years ended March 31, ~~2010~~2011 and ~~2009~~2010 were $~~427~~67,~~164~~157 and $0427,357, respectively.

e. ~~Inventories~~Insurance Commissions Receivable and Payable

The Company has separately reflected receivables and payables arising from its insurance-related businesses on the accompanying consolidated balance sheets. The captions “insurance commission receivable” and “insurance commissions payable” include insurance commissions in the Company’s Commercial Insurance Services business. In general, the insurance commission was calculated based on the agency agreement with insurance carriers. Since the insurance carriers settled the insurance commission at fixed period, the Company recorded the commissions receivable from insurance carriers as “insurance commission receivable” when it incurred. Simultaneity, the Company calculated appropriate commission to agents and brokers as “insurance commission payable”.

F-9

f.	Inventories

The Company recorded the inventories at the lower of cost or market. Cost of raw materials and purchased finished goods are determined on a first-in, first-out basis (“FIFO”). Manufactured finished goods are determined on the weighted average basis and are comprised of direct materials, direct labor, and an appropriate proportion of overhead.

fg. Fair Value ~~of Financial Instruments~~Measurements

~~The~~For ~~carrying~~certain ~~amounts~~of ~~reported in~~ the ~~balance~~Company’s ~~sheet~~financial ~~for~~instruments, including cash and equivalents, accounts receivable, interests receivable, loans receivable, advanced to suppliers, inventories, prepaid and other current assets, deferred income tax assets, accounts payable and accrued expenses, customer deposits, taxes payable, and other current liabilities, the carrying amounts approximate their fair ~~value~~values ~~because~~due ofto the immediate or their short~~-term~~ ~~maturity of these financial instruments~~maturities.

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables, certain other current assets and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the consolidated balance sheets at fair value in accordance with ASC 825.

h.	Property and Equipment - Net

Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Upon sale or retirement of plant and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in the Company’s Consolidated Statements of Operations.

Depreciation of property and equipment is computed by using the straight-line method over the estimated useful lives of assets as follows:

	Years
Buildings	20 years
Vehicles	3 years to 5 years
Equipments and office furniture	5 years
Software	3 years

i.	Impairment of Long-Lived Assets

The Company evaluates the recoverability of its other long-lived assets, if circumstances indicate impairment may have occurred pursuant to ASC 360. This analysis is performed by comparing the respective carrying values of the assets to the current and expected future cash flows, on an undiscounted basis, to be generated from such assets. If such analysis indicates that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value through a charge to the Company’s Consolidated Statements of Operations

j.	Stock-Based Compensation

The Company measures compensation expense for its non-employee stock-based compensation under ASC 505-50, “Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services”. The fair value of the option issued is used to measure the transaction, as this is more reliable than the fair value of the services received. Fair value is measured as the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital.

F-10

k.	Revenue Recognition

Revenue includes sales of products, insurance services rendered, small amount financing and mortgage service, VIP membership fee and network service fees collected.

Products revenue represents the invoiced value of goods sold recognized upon the delivery of goods to customers, net of allowance for estimated returns, when both title and risk of loss transfer to the customer, provided that no significant obligations remain. Deferred revenue represents the undelivered portion of invoiced value of goods sold to customers. Sales transactions about the products are generally accounted for using the deposit method. Under the deposit method, payments received from the buyer are recorded as customer deposits. Revenue is represented net of value added taxes (“VAT”) for the sales revenue from PRC subsidiaries.

Insurance service incomes result from the commission income relation to the sale of insurance agreement. The Company recognizes the insurance service income upon the agency agreement with insurance company when the customer is bound to the contract after completion of any rescission period offered by the insurance underwriter.

The financing interest income was from micro financing service provided to the clients in China. The interests were calculated based on the loans agreement by both sides. The Company recorded loans principal and interests received in advance as “loans receivable” and “unearned income”, respectively.

The revenues from service included VIP membership fees and network service fees arising from E-commerce members. We recognize the service revenues upon the service period of the agreement signed by both sides. VIP memberships are short-term memberships. However, Network Service Memberships are permanent. Therefore, we are recognizing the revenue from Network Service Memberships for a term from the actual registered date to expiration date of the operations of Kang Ping Vantone.

l.	Reclassifications

Certain amounts reflected in the consolidated financial statements for the fiscal year ended March 31, 2010 have been reclassified to conform to the presentation for the fiscal year ended March 31, 2011.

m.	Advertising costs

Advertising costs are booked as expenses as incurred. The Company incurred $0 and $240,890 for the fiscal years ended March 31, 2011 and 2010.

n.	Income Taxes

Vantone International and Vantone USA file federal consolidated income taxes. The Company’s PRC subsidiary, Vantone Small Financing and Vantone Manufacturing, file income tax returns under the Income Tax Law of the People's Republic of China concerning Foreign Investment Enterprises and Foreign Enterprises and local income tax laws. Vantone Yuan and its subsidiaries file income tax returns under the Income Tax Law of the People's Republic of China.

The Company follows the FASB issued ASC740 - Accounting for Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred taxes also are recognized for operating losses that are available to offset future income taxes.

The Company adopted the provisions of FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes”, (“FIN 48”), codified in FASB ASC Topic 740, on January 1, 2007. As a result of the implementation of FIN 48, the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48, and the Company recognized no material adjustments to liabilities or stockholders’ equity. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of income. The adoption of FIN 48 did not have a material impact on the Company’s financial statements. On March 31, 2011 and March 31, 2010, the Company did not take any uncertain positions that would necessitate recording of tax related liability.

F-11

o.	Non-Controlling Interests

Effective April 1, 2009, the Company adopted FASB ASC Topic 810, “Consolidation,” which established new standards governing the accounting for and reporting of non-controlling interests (NCIs) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs (previously referred to as minority interests) be treated as a separate component of equity, not as a liability (as was previously the case), that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.

The net income (loss) attributed to the NCI was separately designated in the accompanying statements of operations and comprehensive income. Losses attributable to the NCI in a subsidiary may exceed the NCI’s interests in the subsidiary’s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance.

p.	Basic and Diluted net income per share

The Company accounts for net income per common share in accordance with ASC 260, “Earnings per Share” (“EPS”). ASC 260 requires the disclosure of the potential dilution effect of exercising or converting securities or other contracts involving the issuance of common stock. Basic net income per share is determined based on the weighted average number of common shares outstanding for the period. Diluted net income per share is determined based on the assumption that all dilutive convertible shares and stock options were converted or exercised into common stock.

q.	Foreign currency translation

The reporting currency of the Company is the U.S. dollar. The functional currencies of the Company's subsidiaries are local currencies, primarily the Chinese Renminbi. The financial statements are translated into U.S. dollars using period-end rates of exchange for assets and liabilities and average rates of exchange for the period for revenues and expenses. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in other comprehensive income or loss.

r.	Comprehensive income

ASC 220, “Reporting Comprehensive Income”, established standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. ASC 220 defines comprehensive income to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s only current component of comprehensive income is the foreign currency translation adjustment.

s.	Fair value of financial instruments

For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, advance to suppliers, other receivables, accounts payable, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities.

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

●	Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

As of March 31, 2011 and 2010, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value.

F-12

t.	Segment Reporting

ASC 280, Disclosure about Segments of an Enterprise and Related Information, requires disclosure of reportable segments used by management for making operating decisions and assessing performance. Reportable segments are categorized by products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. ASC 280 has effect on the Company’s financial statements. The Company generated four categories of revenues: products sold, commission received for insurance agency business, membership fees collected from members and Financing interest received from Small Financing business. See segment reporting spreadsheet on Note 16.

u.	Recent Accounting Pronouncements

4. Cash Restricted and Loan Payable

In an attempt to better expand our small financing loans business and prompt the availability of external fund, Vantone Small Financing plan to make profits margins between low cost loans of bank and high lending to our customers. In order to keep friend relationship with China CITIC Bank and conveniently obtain the loans from China CITIC Bank in the near future, on January 27, 2011, Vantone Yuan entered into an entrusted loan agreement with China CITIC Bank Shenyang Branch (“China CITIC Bank”). At the same time, Vantone Small Financing also signed a loan agreement with China CITIC Bank. Pursuant to two agreements, Vantone Yuan must deposit the total amount of RMB 10 million into a special bank account that is restricted to be used only for lending and repayment loans. Simultaneously, China CITIC Bank lent such amount of RMB10 million to Vantone Small Financing at annual rate of 4.815% commencing from January 27, 2011 and ending June 29, 2011. In the event that Vantone Small Financing does not return this loan to China CITIC Bank for three months after due day, the amount of RMB 10 million deposited into special bank account will be hold by China CITIC Bank. As a result, cash restricted and loan payable of RMB 10 million (equivalent to $1,527,044) were represented as of March 31, 2011, respectively.

5. Accounts Receivable and Allowance for Doubtful Accounts

During the winter in the year 2009, China experienced the coldest winter in fifty years. Demand for the Company’s jade mattresses with regulated temperature spiked and its bamboo fiber quilts were lager. Since those products can realize high gross profit, in order to prompt our revenue and support our agents, the Company provided to major customers with short term credit before March 31, 2010. As a result, the accounts receivable balance increased significantly as of March 31, 2010. Since the Company collected actively the accounts receivable for the year ended March 31, 2011, the outstanding accounts receivable balance reduced obviously as of March 31, 2011. For the fiscal years ended March 31, 2011 and 2010 the gross amount of accounts receivable balance was $670,570 (equivalent to RMB 4,397,846) and $4,273,570 (equivalent to RMB 29,170,873), respectively.

The accounts receivable amounts included in the consolidated balance sheets as of March 31, 2011 and 2010 were as follows:

	As of March 31,
	2011		2010
Distributors who had owed the Company more than
USD76,352 (equivalent to RMB 0.5 million)	$	660,881	$	4,246,736
Distributors or Customers who had owed the Company
equal or less than USD76,352 (equivalent to RMB 0.5 million)		10,689		26,833
Sub-total		671,570		4,273,570
Less: Allowance for doubtful accounts		67,157		427,357
Accounts receivable, net	$	604,413	$	3,846,213

The total amounts sold to the customers who had a balance of accounts receivable more than $76,352 (equivalent to RMB0.5million) were $660,881 and $4,426,736 for the fiscal years ended March 31, 2011 and 2010, respectively.

F-13

g.The ~~Property~~following ~~and~~is ~~Equipment~~a -summary ~~Net~~of the status of allowance for doubtful accounts as of March 31, 2011 and 2010.

Period	Amount		Period	Amount
As of June 30, 2010	$	338,746	As of June 30, 2009	$	-
As of September 30, 2010		82,764	As of September 30, 2009		-
As of December 31, 2010		83,877	As of December 31,2009		-
As of March 31, 2011	$	67,157	As of March 31, 2010	$	427,357

~~Depreciation~~The Company uses the allowance method to estimate the uncollectible portion of ~~property~~its account receivables. Based on the percentage of outstanding receivable approach, the Company should recorded bad debt expense in the debit and ~~equipment~~the isrelated ~~computed~~credit byto ~~using~~the allowance account at closing day. The Company maintains a reserve for uncollectible accounts of 10% of accounts receivable commencing from January 2010. As of March 31, 2011 and 2010 the ~~straight-line~~allowance ~~method~~for ~~over~~doubtful accounts was $67,157 (equivalent to RMB 439,785) and $427,357 (equivalent to RMB 2,917,087), respectively. Since the ~~estimated~~Company ~~useful~~did ~~lives~~not generate any credit sales for the fiscal year ended March 31, 2011, the Company did not increase allowance for doubtful account as of ~~assets~~March 31, 2011. Concurrently the accounts receivable balance incurred before March 31, 2010 were collected substantially during this period. As a result, the allowance for doubtful accounts was decreased significantly as ~~follows:~~of March 31, 2011.

	Years
Buildings	20 years
Vehicles	3 years to 5 years
Equipments and office furnitures	5 years
Software	3 years

Accounts receivable aging as of March 31, 2011 and 2010 consisted of the following:

h. Impairment of Long-Lived Assets

	As of March 31,
	2011		2010
Less than 90 days	$	-	$	4,273,570
More than 365days		671,570		-
Total	$	671,570	$	4,273,570

The Company’s ~~evaluates~~accounts ~~the~~receivable ~~recoverability~~with ages of ~~its~~more ~~other~~than ~~long-lived~~365 ~~assets~~days, ifas ~~circumstances~~reflected ~~indicate~~in ~~impairment may have occurred pursuant to ASC 360. This analysis is performed by comparing~~ the ~~respective~~table, ~~carrying~~was ~~values~~primarily ofattributable ~~the assets~~ to the ~~current~~fact ~~and expected future cash flows, on an undiscounted basis, to be generated from such assets. If such analysis indicates~~ that the ~~carrying~~Company’s ~~value~~accounts ofreceivable ~~these~~generated ~~assets~~for isyears ~~not~~ended ~~recoverable~~March 31, ~~the carrying value of such assets is reduced to fair value through a charge to the Company’s Consolidated Statements of Operations~~2010.

i.Accounts ~~Revenue~~receivable ~~Recognition~~turnover for the fiscal years ended March 31, 2011 and 2010 consisted of the following:

Revenue includes sales of products and services rendered. Products revenue represents the invoiced value of goods sold recognized upon the delivery of goods to customers, net of allowance for estimated returns, when both title and risk of loss transfer to the customer, provided that no significant obligations remain. Deferred revenue represents the undelivered portion of invoiced value of goods sold to customers. Service income, which is commission income from the sale of insurance contracts, is recognized when the customer is bound to the contract after completion of any rescission period offered by the insurance underwriter. Sales transactions not meeting all the conditions of the full accrual method are accounted for using the deposit method of accounting. Under the deposit method, all costs are capitalized as incurred, and payments received from the buyer are recorded as customer deposits. Revenue is represented net of value added taxes (“VAT”) for the sales revenue from PRC subsidiaries.

	For The Fiscal Year Ended of March 31,
	2011		2010
Accounts receivable turnover		-		2.97

Since the Company did not generate any credit sales for the fiscal year ended March 31, 2011, there was non-meaningful to the calculation of this rate for the fiscal year ended March 31, 2011.

6. Loans Receivable, Net

Vantone Small Financing was established on September 27, 2010. It accepted its first loans transaction in October 2010, and started its business by providing micro financing service to the clients in China. In general, the Company considers historical credit losses, performance, economic and etc when the Company provides the loans to unrelated third parties. In order to reduce its risk, the Company sometimes withheld the full amount of loan interests before release the rest of principal loans amount to the borrowers, and these withhold interests income have been recorded as “unearned income”. In additional, the term of the loans is usually no longer than six months. The Company uses the allowance method to estimate the uncollectible portion of its loans principal. Based on the percentage of outstanding loans approach, the Company should record provision for loans losses in the debit and the related credit to the allowance account at closing day. Vantone Small Financing adopted an uncollected amount allowance at 1% of the loans principal amount for the fiscal year ended March 31, 2011.

The following table presents the details of the Company's loans receivable, net.

	Loan receivable		Allowance of loans losses		Unearned interest income		Total loans receivable
Outstanding, April 1, 2010		-		-		-		-
Increased		7,053,111		70,531		16,378		6,966,202
Decreased		-		-		-		-
Outstanding, March 31, 2011	$	7,053,111	$	70,531	$	16,378	$	6,966,202

F-14

j7. ~~Related Parties Recognition~~ Inventories

~~Parties,~~Inventories ~~which~~as ~~can~~of beMarch ~~a corporation or individual~~31, ~~are~~2011 ~~considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial~~ and ~~operational~~2010 ~~decisions.~~consisted ~~Companies~~of ~~are also considered to be related if they are subject to common control or common significant influence. See Note 6 for related parties transactions in~~ the ~~fiscal years ended March 31, 2010 and 2009.~~following:

k. Employee Welfare Benefit

	As of March 31,
	2011		2010
Raw materials	$	80,142	$	47,859
Finished goods		441,597		93,093
Total	$	521,739	$	140,952

~~The~~Inventories ~~Company~~turnover has established an employee welfare plan in accordance with Chinese law and regulations. The Company makes annual contributions of 14% of all employees’ salaries. Commencing from January, 2008, pursuant to China Regulation, the Company recognizes the welfare expenses when they are incurred instead of accrued. The total expenses for the ~~welfare plan amounted to $13,047 and $4,383 for the~~ fiscal years ended March 31, ~~2010~~2011 and ~~2009,~~2010 ~~respectively.~~consisted of the following:

l. Income Taxes

	For The Fiscal Years Ended of March 31,
	2011		2010
Inventory turnover		3.27		11.75

~~Vantone~~Since ~~International~~the ~~(formerly:~~Company ~~Senior~~cancelled ~~Optician)~~traditional sales agent operation model and established Vantone ~~USA~~Insurance ~~file~~Online ~~federal~~Shop ~~consolidated~~in ~~income~~April ~~taxes.~~2010, ~~The~~the Company’s ~~PRC~~generate ~~subsidiary~~little revenue from its products sold for the three months ended June 30, ~~Vantone~~2010. ~~Manufacturing~~As of result, ~~files~~cost ~~income~~of ~~tax~~goods ~~returns~~sold ~~under~~decreased for the ~~Income~~fiscal ~~Tax~~year ~~Law~~ended ofMarch 31, 2011 as compared to the ~~People's~~same ~~Republic~~period ofin ~~China~~2010. ~~concerning~~However, ~~Foreign~~average ~~Investment~~inventories ~~Enterprises~~increased ~~and~~in ~~Foreign~~the ~~Enterprises~~fiscal ~~and~~year ~~local~~ended ~~income~~March ~~tax~~31, ~~laws.~~2011 ~~Vantone~~as ~~Yuan~~compared ~~and~~to ~~its~~the ~~subsidiaries~~same ~~file~~period ~~income~~in ~~tax~~2010. ~~returns~~Therefore, ~~under~~the inventories turnover rate for the ~~Income~~fiscal ~~Tax~~year ~~Law~~ended ofMarch 31, 2011 was less than in the ~~People's~~same ~~Republic~~period ofin ~~China~~2010.

The Company follows the FASB issued ASC740 - Accounting for Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns8. Advanced ~~Under~~to ~~this~~Stockholders/ ~~method~~Officers, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred taxes also are recognized for operating losses that are available to offset future income taxes.Net

~~The~~Amounts ~~Company~~advanced ~~adopted~~to ~~the~~stockholders/officers ~~provisions~~are ~~of FASB Interpretation No. 48~~unsecured, ~~“Accounting~~non-interest ~~for Uncertainty in Income Taxes”~~bearing, ~~(“FIN~~and ~~48”),~~have ~~codified~~no inset ~~FASB~~repayment ~~ASC Topic 740, on January 1, 2007~~date. As ~~a result~~ of ~~the~~March ~~implementation~~31, of2011 ~~FIN~~and 482010, the ~~Company~~total ~~made~~net aamounts ~~comprehensive review~~ of ~~its~~advanced ~~portfolio~~to ~~of tax positions in accordance with recognition standards established by FIN 48, and~~ the ~~Company recognized no material adjustments to liabilities or~~ stockholders’/officers ~~equity.~~were ~~When tax returns are filed~~$2, ~~it is highly certain that some positions taken would be sustained upon examination by the taxing authorities~~435,135 ~~while~~and others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which$2, ~~based on all available evidence~~367,998, ~~management~~respectively. ~~believes~~This itrepresented ~~is more likely than not that~~ the ~~position~~net ~~will~~amounts belent ~~sustained~~by ~~upon examination, including~~ the ~~resolution~~Company ofto ~~appeals or litigation processes, if any~~stockholders/officers. ~~Tax~~All ~~positions~~advances ~~taken~~to ~~are not offset or aggregated with other positions~~Mr. ~~Tax~~Honggang ~~positions~~Yu ~~that~~occurred ~~meet~~before ~~the~~May ~~more-likely-than-not~~14, ~~recognition~~2009, ~~threshold are measured as~~ the ~~largest~~“Share ~~amount~~Exchange” ~~of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority~~date. The ~~portion~~net ~~of the benefits associated with tax positions taken that exceeds the~~ amount ~~measured~~different ~~as described above is reflected as a liability for unrecognized tax benefits~~ in ~~the~~advanced ~~accompanying balance sheets along with any associated interest and penalties that would be payable~~ to ~~the~~stockholders/officers ~~taxing~~between ~~authorities~~March ~~upon~~31, ~~examination. Interest~~2011 ~~associated with unrecognized tax benefits is classified as interest expense~~ and ~~penalties~~2010 ~~are~~was ~~classified~~merely incaused ~~selling,~~by ~~general and administrative expenses in~~ the ~~statements~~currency ofexchange ~~income.~~rate ~~The~~different ~~adoption~~between ~~of FIN 48 did not have a material impact on the Company’s financial statements. At~~ March 31, ~~2010~~2011 and ~~2009, the Company did not take any uncertain positions that would necessitate recording of tax related liability~~2010.

F-15

	As of March 31,
	2011		2010
Mr. Honggang Yu	$	2,435,135	$	2,367,998
Total	$	2,435,135	$	2,367,998

m9. Property ~~Comprehensive~~and ~~Income~~Equipment-net

ASC 220, “Reporting Comprehensive Income”, defines comprehensive income to include all changes in equity except those resulting from investments by owners and distributions to owners and requires that the period’s comprehensive income, its components and accumulated balances be disclosed. Among other disclosures, ASC 220 requires that all items that are required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement that is presented with the same prominence as other consolidated financial statements. The Company’s only current component of comprehensive income is the foreign currency translation adjustment.

n. Basic and Diluted Net Income Per Share

o. Segment Reporting

ASC 280, Disclosure about Segments of an Enterprise and Related Information, requires disclosure of reportable segments used by management for making operating decisions and assessing performance. Reportable segments are categorized by products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. ASC 280 has effect on the Company’s financial statements. The Company primarily generated two categories of revenues: products sold and commission received for insurance agency business, see segment reporting spreadsheet on Note 13.

F-16

p. Stock-Based Compensation

The Company measures compensation expense for its non-employee stock-based compensation under ASC 505-50 “Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services”. The fair value of the option issued is used to measure the transaction, as this is more reliable than the fair value of the services received. Fair value is measured as the value of the Company’s common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty’s performance is complete. The fair value of the equity instrument is charged directly to compensation expense and deferred compensation listed as part of equity.

q. Recent Accounting Pronouncements

On February 25, 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-09 Subsequent Events Topic 855, “Amendments to Certain Recognition and Disclosure Requirements,” effective immediately. The amendments in the ASU remove the requirement for an SEC filer to disclose a date through which subsequent events have been evaluated in both issued and revised financial statements. Revised financial statements include financial statements revised as a result of either correction of an error or retrospective application of US GAAP. The FASB believes these amendments remove potential conflicts with the SEC’s literature. Subsequent events have been evaluated through the date the financial statements were issued.

In January 2010, FASB amended ASC 820, "Disclosures about Fair Value Measurements." The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company has determined the adoption of this disclosure does not have a material impact on its financial statements.

In December 2009, FASB issued an Accounting Standards Update (“ASU”) No. 2009-16, “Accounting for Transfers of Financial Assets”. This Accounting Standards Update amends the FASB Accounting Standards Codification for the issuance of FASB Statement No. 166, Accounting for Transfers of Financial Assets—an amendment of FASB Statement No. 140. The amendments in this Accounting Standards Update improve financial reporting by eliminating the exceptions for qualifying special-purpose entities from the consolidation guidance and the exception that permitted sale accounting for certain mortgage securitizations when a transferor has not surrendered control over the transferred financial assets. In addition, the amendments require enhanced disclosures about the risks that a transferor continues to be exposed to because of its continuing involvement in transferred financial assets. Comparability and consistency in accounting for transferred financial assets will also be improved through clarifications of the requirements for isolation and limitations on portions of financial assets that are eligible for sale accounting. The Company does not expect the adoption of this ASU to have a material impact on its financial statements.

F-17

In October 2009, the FASB issued ASU regarding accounting for own-share lending arrangements in contemplation of convertible debt issuance or other financing. This ASU requires that at the date of issuance of the shares in a share-lending arrangement entered into in contemplation of a convertible debt offering or other financing, the shares issued shall be measured at fair value and be recognized as an issuance cost, with an offset to additional paid-in capital. Further, loaned shares are excluded from basic and diluted earnings per share unless default of the share-lending arrangement occurs, at which time the loaned shares would be included in the basic and diluted earnings-per-share calculation. This ASU is effective for fiscal years beginning on or after December 15, 2009, and interim periods within those fiscal years for arrangements outstanding as of the beginning of those fiscal years. The Company does not expect this ASU to have a material impact on its financial statements.

In August 2009, the FASB issued ASU regarding measuring liabilities at fair value. This ASU provides additional guidance clarifying the measurement of liabilities at fair value in circumstances in which a quoted price in an active market for the identical liability is not available; under those circumstances, a reporting entity is required to measure fair value using one or more of valuation techniques, as defined. This ASU is effective for the first reporting period, including interim periods, beginning after the issuance of this ASU. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

4. Inventories

Inventories as of March 31,

Filing Compare · VANTONE INTERNATIONAL GROUP, INC.