x
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QUARTERLY
REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION
REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Nevada
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26-0768064
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(State or other jurisdiction of incorporation or
organization)
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(I.R.S.
Employer Identification No.)
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No.
1 Pingbei Road 2,
Nanping Science & Technology Industrial Park,
Zhuhai City, Guangdong Province,
The People’s Republic of China
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519060
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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o
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Accelerated filer
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o
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||
Non-accelerated filer
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o
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Smaller reporting
company
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x
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PART
I - FINANCIAL INFORMATION
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1
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Item
1. Financial Statements
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1
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Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
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8
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Item
3.Quantitative and Qualitative Disclosures About Market
Risk
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11
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Item
4T. Controls and Procedures
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12
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PART
II - OTHER INFORMATION
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13
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Item
1. Legal Proceedings
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13
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Item
1A. Risk Factors
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13
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Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
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13
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Item
3. Defaults Upon Senior Securities
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13
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Item
4. Other Information
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13
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Item
5. Exhibits
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13
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SIGNATURES
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14
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June 30, 2010
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December 31, 2009
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|||||||
(Unaudited)
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(Audited)
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|||||||
ASSETS
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||||||||
CURRENT
ASSETS:
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||||||||
Cash
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$ | 911,276 | $ | 1,115,047 | ||||
Prepaid
expenses and other current assets
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786,268 | 319,123 | ||||||
Inventories
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298,827 | 42,956 | ||||||
TOTAL
CURRENT ASSETS
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1,996,371 | 1,477,126 | ||||||
Deposits
for future deliveries of property and equipment
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596,310 | 312,362 | ||||||
Land
use right, net of accumulated amortization of $16,824 and $11,452,
respectively
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408,212 | 411,391 | ||||||
Property
and equipment, net of accumulated depreciation of $11,524 and $3,446,
respectively
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3,930,891 | 3,294,946 | ||||||
TOTAL
ASSETS
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$ | 6,931,784 | $ | 5,495,825 | ||||
LIABILITIES
AND STOCKHOLDERS' DEFICIENCY
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||||||||
CURRENT
LIABILITIES:
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||||||||
Accounts
payable and accrued expenses
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$ | 371,642 | $ | 154,813 | ||||
Due
to related parties-current portion
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19,213 | 5,675,528 | ||||||
TOTAL
CURRENT LIABILITIES
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390,855 | 5,830,341 | ||||||
Due
to related parties- non-current portion
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7,277,288 | 22,485 | ||||||
TOTAL
LIABILITIES
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7,668,143 | 5,852,826 | ||||||
STOCKHOLDERS'
DEFICIENCY:
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||||||||
Preferred
stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares
issued and outstanding
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- | |||||||
Common
stock, $0.0001 par value, 90,000,000 shares authorized, issued and
outstanding 22,599,974 shares and 22,574,974 shares,
respectively
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2,260 | 2,260 | ||||||
Additional
paid-in capital
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598,048 | 553,826 | ||||||
Accumulated
deficit
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(1,381,722 | ) | (925,466 | ) | ||||
Accumulated
other comprehensive income (loss)
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45,055 | 12,379 | ||||||
TOTAL
STOCKHOLDERS' DEFICIENCY
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(736,359 | ) | (357,001 | ) | ||||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
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$ | 6,931,784 | $ | 5,495,825 |
Three Months Ended
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Three Months Ended
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Six Months Ended
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Six Months Ended
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|||||||||||||
June 30, 2010
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June 30, 2009
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June 30, 2010
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June 30, 2009
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|||||||||||||
SALES
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$ | - | $ | - | $ | - | $ | 660,051 | ||||||||
COSTS
AND EXPENSES:
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||||||||||||||||
Cost
of sales
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- | - | - | 589,460 | ||||||||||||
Selling,
general and administrative expenses
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189,327 | 78,717 | 350,815 | 162,197 | ||||||||||||
TOTAL
COSTS AND EXPENSES
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189,327 | 78,717 | 350,815 | 751,657 | ||||||||||||
LOSS
FROM OPERATIONS
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(189,327 | ) | (78,717 | ) | (350,815 | ) | (91,606 | ) | ||||||||
Interest
expense
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(17,358 | ) | (11,566 | ) | (102,667 | ) | (19,805 | ) | ||||||||
Dividend
and interest income
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490 | - | 686 | - | ||||||||||||
Gain
(loss) on foreign currency transactions
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(1,419 | ) | (2,165 | ) | (3,460 | ) | (2,419 | ) | ||||||||
NET
LOSS
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(207,614 | ) | (92,448 | ) | (456,256 | ) | (113,830 | ) | ||||||||
OTHER
COMPREHENSIVE INCOME (LOSS):
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||||||||||||||||
Foreign
currency translation adjustment
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16,878 | 438 | 32,676 | 28,889 | ||||||||||||
COMPREHENSIVE
LOSS
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$ | (190,736 | ) | $ | (92,010 | ) | (423,580 | ) | $ | (84,941 | ) | |||||
Loss
per common share -basic and diluted
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$ | (0.01 | ) | $ | (0.00 | ) | (0.02 | ) | $ | (0.01 | ) | |||||
Weighted
average number of shares outstanding -basic and
diluted
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22,599,974 | 22,574,974 | 22,599,974 | 22,574,974 |
Six Month Ended
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Six Mnth Ended
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|||||||
June 30, 2010
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June 30, 2009
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|||||||
OPERATING
ACTIVITIES:
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||||||||
Net
loss
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$ | (456,256 | ) | $ | (113,830 | ) | ||
Adjustments
to reconcile net loss to net
cash used in operating activities: |
0
0
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|||||||
Imputed
interest on loans from related parties
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44,374 | 20,424 | ||||||
Increase
in long term interest payable to affiliated parties
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57,945 | |||||||
Stock
issued for services
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0 | |||||||
Depreciation
of property and equipment
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7,936 | 59 | ||||||
Amortization
of land use right and intangible assets
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5,637 | 6,171 | ||||||
Changes
in operating assets and liabilities:
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0 | |||||||
Accounts
receivable
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0 | |||||||
Prepaid
expenses and other current assets
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(463,956 | ) | (27,488 | ) | ||||
Inventory
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(254,806 | ) | ||||||
Accounts payable and accrued expenses
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230,735 | (783 | ) | |||||
NET
CASH USED IN OPERATING ACTIVITIES
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(828,391 | ) | (115,447 | ) | ||||
INVESTING
ACTIVITIES:
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||||||||
Deposits
for future deliveries of equipment
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(281,398 | ) | (237,492 | ) | ||||
Acquisition
of property and equipment
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(619,262 | ) | (47,779 | ) | ||||
Acquisition
of Intangible Assets
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(5,842 | ) | ||||||
NET
CASH USED IN INVESTING ACTIVITIES
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(906,502 | ) | (285,271 | ) | ||||
FINANCING
ACTIVITIES:
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||||||||
Loans
from related parties
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1,524,273 | 612,685 | ||||||
Sale
of common stock
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||||||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
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1,524,273 | 612,685 | ||||||
EFFECT
OF EXCHANGE RATE CHANGES ON CASH
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6,849 | 20,148 | ||||||
INCREASE
IN CASH
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(203,771 | ) | 232,115 | |||||
CASH
- BEGINNING OF PERIOD
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1,115,047 | 259,025 | ||||||
CASH
- END OF PERIOD
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$ | 911,276 | $ | 491,140 | ||||
Supplemental
disclosures of cash flow information:
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||||||||
Interest
paid
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$ | - | $ | - | ||||
Income
taxes paid
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$ | - | $ | - |
June 30,
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December 31,
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|||||||
2010
|
2009
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|||||||
Due
to Company’s chairman and chief executive officer, non-interest bearing,
due on demand
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$ | 8,836 | $ | |||||
Due
to Company’s president,Ms. Lin
Chen, non-interest bearing, due on demand
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368 | 368 | ||||||
Due
to Zhuhai Yuemao Laser Facility Engineering Co., Ltd. (“Yuemao
Laser”) , non-interest bearing, due on demand
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10,009 | 1,120 | ||||||
Due
to Mr. Wenshen Chen, Company’s chairman and chief executive officer, due
12/1/2013 , at 1% per annum
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3,031,319 | 2,207,336 | ||||||
Due
to Zhuhai Yuemao Laser Facility Engineering Co., Ltd. (“Yuemao
Laser”) due 12/1/2013 , at 1% per annum
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245,385 | 236,889 | ||||||
Due
to Yuemao Technology Ltd. (“Yuemao Technology”) , due 12/1/2013 , at 1%
per annum
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3,927,424 | 3,252,300 | ||||||
Interest
Payable , due 12/1/2013with the principals, not interest
bearing
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73,160 | 14,860 | ||||||
Total
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7,296,501 | 5,712,873 | ||||||
Current
portion
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(19,213 | ) | (5,675,528 | ) | ||||
Non-current
portion
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$ | 7,277,288 | 37,345 |
Exhibit No.
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Title of Document
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31.1
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Certification
of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),
promulgated under the Securities and Exchange Act of 1934, as
amended
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31.2
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Certification
of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a),
promulgated under the Securities and Exchange Act of 1934, as
amended
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32.1
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Certification
pursuant to Section 906 of Sarbanes Oxley Act of 2002 (Chief Executive
Officer)
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32.2
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Certification
pursuant to Section 906 of Sarbanes Oxley Act of 2002 (Chief Financial
Officer)
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Universal
Solar Technology, Inc.
|
||
Date:
August 16, 2010
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By:
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/s/ Wensheng Chen
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Wensheng
Chen
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Chief
Executive Officer
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||
By:
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/s/ Lijie Zhu
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Lijie
Zhu
Chief
Financial Officer
(Principal
Financial and Accounting
Officer)
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