China RuiTai Reports Fiscal Year 2007 Financi...(mployees 1265898...),Health

Employee security deposit 810,802 677,949

Total Current

Liabilities 55,361,171 48,087,430

Minority Interest 98,053 43,847

Owners' Equity:

Preferred stock, par value $0.001,

10,000,000 shares authorized,

authorized, no shares outstanding -- --

Common stock, par value $0.001,

50,000,000 shares authorized,

22,645,348 shares issued and

outstanding as of December 31,

2006

26,000,000 shares issued and

outstanding as of December 31,

2007 26,000 22,745

Additional paid-in capital 2,366,171 2,369,426

Statutory Reserves 1,042,355 272,979

Retained earnings 5,700,875 1,594,417

Accumulated other comprehensive

income 570,712 80,376

Owners' Equity 9,706,113 4,339,943

Total Liabilities and Owners' Equity $ 65,165,337 $ 52,471,220

CHINA RUITAI INTERNATIONAL HOLDINGS CO., LTD. AND SUBSIDIARIES

F/K/A SHANDONG RUITAI CHEMICAL CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(AUDITED)

For the Year Ended

December 31,

2007 2006

Operating Activities

Net income (loss) $ 4,875,834 $ 3,005,998

Adjustments to reconcile

net income (loss) to

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