As filed with the Securities and Exchange Commission on January 4, 2005
                                                     Registration No. 333-120431

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                               Amendment No. 1 to
                                   Form SB - 2
                             REGISTRATION STATEMENT
                                      Under
                           THE SECURITIES ACT OF 1933

                          CHINA DIGITAL WIRELESS, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           Nevada                                           90-0093373
(State or other jurisdiction                      (IRS Employer incorporation or
      of organization)                                  identification No.)
                                      7374
                          (Primary Standard Industrial
                           Classification Code Number)

                               429 Guangdong Road
                                 Shanghai 200001
                           People's Republic of China
                              Ph: (86-21) 6336-8686
--------------------------------------------------------------------------------
       (Address, including zip code, and telephone number, including area
               code, of registrant's principal executive offices)

                     The Corporation Trust Company of Nevada
                            6100 Neil Road, Suite 500
                               Reno, Nevada 89511
                               Ph: (775) 688-3061
--------------------------------------------------------------------------------
            (Name, address, including zip code, and telephone number,
                   including area code, of agent for service)

                                 With copies to:

                              Jackson Walker L.L.P.
                         Attention: George Diamond, Esq.
                           901 Main Street, Suite 6000
                               Dallas, Texas 75202
                               Ph: (214) 953-6000
                               Fax: (214) 661-6618

Approximate  date of  commencement  of proposed  sale to the public:  As soon as
practicable after the effective date of this registration statement.
If any of the  securities  being  registered on this form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act, check
the following box. [_]
If this Form is filed to register additional securities for an offering pursuant
to Rule 462(b) under the  Securities  Act,  check the following box and list the
Securities  Act  Registration   Statement   number  of  the  earlier   effective
Registration Statement for the same offering. [_]
If this Form is a  post-effective  amendment filed pursuant to Rule 462(c) under
the  Securities  Act,  check  the  following  box and  list the  Securities  Act
Registration  Statement number of the earlier effective  Registration  Statement
for the same offering.
If this Form is a  post-effective  amendment filed pursuant to Rule 462(d) under
the  Securities  Act,  check  the  following  box and  list the  Securities  Act
Registration  Statement number of the earlier effective  Registration  Statement
for the same offering.
If delivery of the prospectus is expected to be made pursuant to Rule 434, check
the following box.

The Registrant hereby amends this  registration  statement on such date or dates
as may be necessary to delay its effective date until the registrant  shall file
a further amendment which specifically  states that this registration  statement
shall  thereafter  become  effective  in  accordance  with  section  8(a) of the
Securities  Act of  1933  or  until  the  registration  statement  shall  become
effective  on such  date  as the  Securities  and  Exchange  Commission,  acting
pursuant to said section 8(a), may determine.



                   Subject to completion dated January 4, 2005



                                2,737,381 Shares

                          CHINA DIGITAL WIRELESS, INC.

                                  Common Stock

                           ---------------------------

         This is an offering of 2,737,381  shares of common stock by the selling
stockholders. The shares are being registered to permit public secondary trading
of the shares that are being offered by the selling  stockholders  named in this
prospectus. We will not receive any of the proceeds from the sale of the shares.

         The selling  stockholders  may, but are not  obligated to, offer all or
part of their  shares for  resale  from time to time  through  public or private
transactions,  at either  prevailing  market  prices or at privately  negotiated
prices.

         Our common  stock is  currently  quoted on the NASD's  Over-the-Counter
Bulletin  Board under the symbol  "CHDW." On January 3, 2005,  the last reported
sales price on our common stock was $3.76 per share.

         Investing  in our  common  stock  involves  risks.  See "Risk  Factors"
beginning  on page 6 to read about  factors you should  consider  before  buying
shares of our common stock.

         Neither the Securities and Exchange Commission nor any state securities
commission has approved or  disapproved  of these  securities or passed upon the
adequacy or accuracy of this prospectus. Any representation to the contrary is a
criminal offense.

         The date of this prospectus is ___________, 2005.

                           ---------------------------


                              ABOUT THIS PROSPECTUS

         You should rely only on the  information  contained in this document or
any  other  document  to  which  we  refer  you.  Neither  we  nor  the  selling
stockholders have authorized  anyone to provide you with different  information.
If anyone  provides you with different or inconsistent  information,  you should
not rely on it. Neither we nor the selling  stockholders  are making an offer to
sell  these  securities  in a  jurisdiction  where  the  offer  or  sale  is not
permitted.  The information contained in this document is current only as of its
date,  regardless of the time of delivery of this  prospectus or of any sales of
shares of common stock. Our business, financial condition, results of operations
and prospects may have changed since that date.

The  information  in this  prospectus  is not complete  and may be changed.  The
selling  stockholders  may  not  sell  the  securities  until  the  registration
statement filed with the Securities and Exchange  Commission is effective.  This
prospectus  is not an offer to sell these  securities  and is not  soliciting an
offer to buy  these  securities  in any  state  where  the  offer or sale is not
permitted.


                                                        
                                TABLE OF CONTENTS


PROSPECTUS SUMMARY.............................................................3
CHINA DIGITAL WIRELESS, INC....................................................3
THE OFFERING...................................................................5
RISK FACTORS...................................................................6
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS.............................19
MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND DIVIDEND POLICY.....20
MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION.....................21
BUSINESS......................................................................35
DIRECTORS AND EXECUTIVE OFFICERS..............................................48
PRINCIPAL STOCKHOLDERS........................................................51
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS..........................52
DESCRIPTION OF OUR CAPITAL STOCK..............................................53
SELLING STOCKHOLDERS..........................................................54
SHARES ELIGIBLE FOR FUTURE SALE...............................................55
PLAN OF DISTRIBUTION..........................................................55
INDEPENDENT PUBLIC ACCOUNTANTS................................................56
LEGAL MATTERS.................................................................56
EXPERTS.......................................................................56
INTERESTS OF NAMED EXPERTS AND COUNSEL........................................56
WHERE YOU CAN FIND MORE INFORMATION...........................................56
FINANCIAL STATEMENTS
PART II.....................................................................II-1
INFORMATION NOT REQUIRED IN PROSPECTUS......................................II-1
RECENT SALES OF UNREGISTERED SECURITIES.....................................II-1
EXHIBITS....................................................................II-2
UNDERTAKINGS................................................................II-3
SIGNATURES..................................................................II-5
















                                       2


                               PROSPECTUS SUMMARY

         This summary highlights selected  information about us and the offering
that is  contained  elsewhere  in this  prospectus.  You should  read the entire
prospectus  before making an investment  decision,  especially  the  information
presented  under the heading  "Risk  Factors" and the financial  statements  and
related  notes  included  elsewhere  in this  prospectus,  as well as the  other
documents to which we refer you.  Except as otherwise  indicated by the context,
references in this  prospectus to "we," "us," "our," or the "company" are to the
combined  business of China Digital Wireless,  Inc. and its wholly-owned  direct
subsidiary,  Sifang  Holdings  Company  Limited,  or  Sifang  Holdings,  and its
wholly-owned  subsidiary,  Shanghai TCH Data Technology Co., LTD, or TCH, and in
each case do not include the selling stockholders.

                          CHINA DIGITAL WIRELESS, INC.

Our Business

         Value-added  Information  Services.  We render value-added  information
services  in  China  by  purchasing  content  from  third-party   providers  and
reformatting that content. Our value-added  information services enable wireless
receiver (mobile phone and pager) users in China to access financial information
and various  entertainment-related  services.  We contract  with our  affiliated
wireless service  providers to transmit the reformatted  content to customers of
China's various network operators.

         The  primary  focus  of  our  value-added  information  services  is on
providing wireless receiver users in China with access to financial information.
We derive the vast majority of our value-added information services revenue from
our financial information business.  Our financial information software,  Sifang
Gutong,  allows our customers to access stock and currency exchange  information
and execute stock trades.

         Leveraging our experience and understanding of the wireless value-added
services market in China,  we purchase and reformat  content,  applications  and
technologies  that we believe  are popular in the Chinese  wireless  market.  To
further enhance and differentiate  our services,  we have entered into, and will
continue to actively pursue,  collaborative  relationships with third parties to
customize,  market and provide access to their content through various  wireless
technologies to Chinese consumers. In addition, all of our services are promoted
by our sales force and supported by our customer  service team, each of which is
strategically based in Shanghai.

         We began providing our entertainment-related services, including icons,
screen savers,  multiplayer  games,  Western  horoscopes,  jokes, and sports and
entertainment  news during the latter part of 2003. These services are ancillary
to our financial information services and they represent only a small percentage
of our value-added information services revenue at the present time.

         We conduct  our  business  in China  solely  through  our  wholly-owned
subsidiary,  Sifang Holdings, and its wholly-owned subsidiary,  TCH. In order to
meet  ownership  requirements  under  Chinese law that restrict us, as a foreign
company,   from   operating   in   certain   industries   such  as   value-added
telecommunication  and  Internet  services,  we have  entered  into  information
service  and  cooperation  agreements  with  two  of  our  affiliates  that  are
incorporated  in the People's  Republic of China:  Shanghai  Sifang  Information
Technology  Co., Ltd., or Sifang  Information,  and Shanghai  Tianci  Industrial
Group Co., Ltd., or Tianci.

         The original stockholder  structure of Sifang Holdings was identical to
the current  stockholder  structure  of Sifang  Information,  and each of Sifang
Information and Tianci are owned  approximately  69% through direct and indirect
ownership  by Tai  Caihua,  our  president  and the  chairman  of our  board  of
directors. We hold no ownership interest in Sifang Information or Tianci. Sifang
Information and Tianci contract with China Mobile Communications Corporation, or
China Mobile, and China United Telecommunications  Corporation, or China Unicom,
respectively,  to provide wireless value-added  information services to wireless
receiver  customers  in  China  via  China  Mobile  and  China  Unicom.   Sifang
Information  transmits  those  services to  customers  of China Mobile and China
Unicom on behalf of itself and Tianci  pursuant  to a signed  agreement  between
Sifang Information, Tianci and TCH, respectively.


                                       3


         Distribution.   We  primarily   distribute   nine   different   SAMSUNG
Electronics Co., Ltd., or Samsung, mobile phone models in the region surrounding
Shanghai, China. Six of the Samsung models we distribute are compatible with the
CDMA  network  and  three  are  compatible  with  the  GSM  network.  We plan to
pre-install  the end-user  portion of our Sifang  Gutong  software in all of the
Samsung mobile phones we  distribute,  and market our stock  information,  stock
trading,  and currency  exchange  services by placing  brochures  touting  those
services in the  packaging of those  Samsung  mobile phones before we distribute
the phones to retailers.  We believe this process will increase name recognition
of our financial information, stock trading, and currency exchange services with
wireless receiver users.

         There are three main first-tier wholesalers of Samsung phones in China:
Shanghai Taili Communication Equipment Co., Ltd., Shenzhen Tianyin Communication
Development  Co., Ltd., and Guangzhou  Yingtai Data Power  Technology  Co., Ltd.
These   first-tier   wholesalers   contract,   through  local   branches,   with
sub-wholesalers  to  distribute  each Samsung  model in a defined  area. We have
contracts with Shanghai branch offices of the three main first-tier  wholesalers
on whom we rely,  making us a sub-wholesaler  distributor of nine Samsung mobile
phone models in the Shanghai  region.  We sell  approximately  52% of our mobile
phones to three retailers.

Our Corporate Information

         We  originally  began  operations  as a Colorado  corporation  known as
Boulder Brewing Company, or Boulder Brewing. We were incorporated in Colorado on
May 8, 1980 and operated as a microbrewery of various beers. Boulder Brewing was
unable to become  profitable  within any  segment of its core  business,  became
illiquid,  and was forced to divest itself of all of its assets. Boulder Brewing
became dormant without any operations or assets in the second quarter of 1990.

         In September 2001,  Boulder Brewing changed its state of  incorporation
from Colorado to Nevada and changed its name to Boulder  Acquisitions,  Inc., or
Boulder  Acquisitions.  The articles of  incorporation  and bylaws of the Nevada
corporation  became the articles of  incorporation  and bylaws of the  surviving
corporation.  From the date of  reincorporation  until  June  23,  2004  Boulder
Acquisitions had no material operations or assets.

         On June 23, 2004, we completed a stock  exchange  transaction  with the
stockholders of Sifang Holdings.  The exchange was consummated  under Nevada and
Cayman  Islands law  pursuant to the terms of a  Securities  Exchange  Agreement
dated  effective as of June 23, 2004 by and among Boulder  Acquisitions,  Sifang
Holdings and the  stockholders  of Sifang  Holdings.  Pursuant to the Securities
Exchange  Agreement,  we issued 13,782,636 shares of our common stock, par value
$0.001  per  share,  to  the  stockholders  of  Sifang  Holdings,   representing
approximately 89.7% of our post-exchange issued and outstanding common stock, in
exchange  for 100% of the  outstanding  capital  stock of  Sifang  Holdings.  We
presently  carry on the business of Sifang  Holdings'  wholly-owned  subsidiary,
Shanghai TCH Data Technology Co., Ltd., a Chinese corporation, or TCH.

         Effective   August  6,  2004,   we  changed   our  name  from   Boulder
Acquisitions,  Inc.  to  China  Digital  Wireless,  Inc.  The  name  change  was
undertaken  in order to  provide us with a name that is more  indicative  of the
business operations we conduct.

         Our corporate  headquarters is located at 429 Guangdong Road, Shanghai,
200001, Peoples Republic of China. Our telephone number is (86-21) 6336-8686.




                                       4


                                  THE OFFERING

Common stock outstanding prior to this offering.... 17,018,692 shares

Common stock offered by us......................... 0 shares

Common stock offered by the selling stockholders... 2,737,381 shares

Total shares of common stock offered............... 2,737,381 shares

Common stock to be outstanding after the offering.. 17,018,692 shares

Risk factors....................................... See "Risk Factors" and other
                                                    information included in this
                                                    prospectus  for a discussion
                                                    of   factors    you   should
                                                    consider  before deciding to
                                                    invest   in  shares  of  our
                                                    common stock.



















                                       5


                                  RISK FACTORS

         An investment  in our  securities  involves a high degree of risk.  You
should  carefully  consider the following  risks and the other  information  set
forth  elsewhere in this  prospectus,  including  our financial  statements  and
related notes,  before you decide to purchase shares of our common stock. If any
of  these  risks  occur,  our  business,  financial  condition  and  results  of
operations could be adversely  affected.  As a result,  the trading price of our
common stock could decline,  perhaps  significantly,  and you could lose part or
all of your investment.

                          Risks Related to Our Business

Risks Related to Our Wireless Value-Added Information Services Business

We depend upon contractual  arrangements with our affiliated  value-added mobile
phone service  providers,  Sifang Information and Tianci, for the success of our
business.  These  arrangements may not be as effective in providing  operational
control as direct ownership of these businesses and may be difficult to enforce.

         Because we  conduct  our  business  only in China,  and  because we are
restricted by the Chinese government from owning  telecommunications or Internet
operations  in China,  we  depend on our  affiliated  value-added  mobile  phone
service  providers,  Sifang  Information and Tianci,  in which we have no direct
ownership interest,  but with which we have entered into information service and
cooperation agreements, to provide those services to mobile phone users in China
through contractual agreements with the mobile operators, China Mobile and China
Unicom. These arrangements may not be as effective in providing control over our
value-added  information  services  to mobile  phone  users in China as would be
direct ownership of these businesses.  For example, Sifang Information or Tianci
could fail to take actions  required to operate our  business,  such as entering
into service contracts with China Mobile or China Unicom. Moreover, a portion of
the fees for our  services are paid by the mobile  operators  directly to Sifang
Information  and Tianci,  which are then obligated to transfer all of those fees
to us, in return  for a small  fee.  If Sifang  Information  or Tianci  fails to
perform their obligations  under these agreements,  we may have to rely on legal
remedies  under  Chinese law,  which we cannot  assure you would be effective or
sufficient.

         In the opinion of our Chinese counsel, Grandall Legal Group (Shanghai),
Sifang Information and Tianci each possess such licenses, permits, certificates,
authorities and approvals, issued by appropriate governmental agencies or bodies
in the People's  Republic of China,  as are necessary to conduct its business as
presently  conducted as well as to perform its  obligations  under any contracts
between it and China Mobile and China Unicom, respectively.  In addition, to the
best knowledge of Grandall Legal Group (Shanghai), TCH is not in breach of or in
default  under  any laws of the  People's  Republic  of  China or any  approval,
consent, waiver, authorization,  exemption,  permission,  endorsement or license
granted by any  People's  Republic of China  governmental  agencies.  There are,
however,  substantial uncertainties regarding the interpretation and application
of current and future Chinese laws and regulations, as discussed below.

We depend on one software  developer for a  significant  portion of our software
development, as well as for important marketing relationships.

         We rely on Shanghai  Chengao  Industrial  Co.,  Ltd.,  or  Chengao,  to
develop a  significant  portion of our  software,  including  our Sifang  Gutong
software.  We also rely on Chengao to  provide  us with an  important  marketing
relationship  regarding the mobile phone version of our Sifang Gutong  software.
If we lose our relationship with Chengao, we could have a difficult time finding
a suitable replacement in the short term.



                                       6


Our corporate  structure could be deemed to be in violation of current or future
Chinese laws and regulations which could adversely affect our ability to operate
our business effectively or at all.

         In connection with China's entry into the World Trade Organization,  or
WTO, foreign investment in telecommunications and Internet services in China was
liberalized   to   allow   for   30.0%   foreign    ownership   in   value-added
telecommunication  and  Internet  services  in 2002,  49.0% in 2003,  and  50.0%
thereafter. In order to meet these ownership requirements,  we have entered into
information  service and  cooperation  agreements  with Sifang  Information  and
Tianci.  We do not have any direct ownership  interest in Sifang  Information or
Tianci. The original  stockholder  structure of Sifang Holdings was identical to
the current  stockholder  structure  of Sifang  Information,  and each of Sifang
Information and Tianci are beneficially  owned 69% by Tai Caihua,  our president
and the  chairman of our board of  directors.  It is possible  that the relevant
Chinese authorities could, at any time, assert that any portion or all of TCH's,
Sifang  Information's,  or Tianci's  existing or future ownership  structure and
businesses violate existing or future Chinese laws,  regulations or policies. It
is  also   possible   that   the  new   laws  or   regulations   governing   the
telecommunication  or Internet sectors in China that have been adopted or may be
adopted in the future will prohibit or restrict foreign  investment in, or other
aspects  of,  TCH's,  Sifang  Information's  or  Tianci's  current  or  proposed
businesses and  operations.  In addition,  these new laws and regulations may be
retroactively applied. In any such case, we could be required to restructure our
operations,  which could  adversely  affect our ability to operate our  business
effectively or at all.

We depend on China  Mobile and China  Unicom  for  delivery  of our  value-added
information  services to mobile  phone users in China,  and the  termination  or
alteration of Sifang Information's and Tianci's various contracts with either of
them or their  provincial or local  affiliates  could  materially  and adversely
impact our business.

         Our  affiliated  value-added  mobile phone  service  providers,  Sifang
Information and Tianci,  contract with the two principal  mobile phone operators
in China,  China  Mobile and China  Unicom,  to offer our  wireless  value-added
information services to mobile phone users through these mobile phone operators,
which service  nearly all of China's  approximately  282.2 million  mobile phone
subscribers.  Given their dominant market position,  our affiliated  value-added
mobile phone service  providers'  negotiating  leverage with these  operators is
limited.  If our affiliated  value-added mobile phone service providers' various
contracts with either  operator are terminated or adversely  altered,  it may be
impossible for our affiliated value-added mobile phone service providers to find
appropriate  replacement  operators  with the  requisite  licenses  and permits,
infrastructure  and customer base to offer our services,  and our business would
be significantly impaired.

         Our value-added information services are provided to mobile phone users
in China  pursuant to  contracts  with Sifang  Information  and Tianci have with
China Mobile and China Unicom and their provincial or local affiliates.  Each of
these contracts is  non-exclusive,  and has a limited term (generally one year).
Our  affiliates  usually  renew these  contracts or enter into new ones when the
prior  contracts  expire,  but on occasion  the renewal or new  contract  can be
delayed by periods of one month or more. The terms of these  contracts vary, but
the operators are generally  entitled to terminate them in advance for a variety
of reasons or, in some cases,  for no reason in their  discretion.  For example,
several of our affiliates'  contracts with the mobile operators can generally be
terminated if:

o        our  affiliate  fails  to  achieve  performance   standards  which  are
         established by the applicable operator from time to time,
o        our  affiliate  breaches its  obligations  under the  contracts,  which
         include,  in many cases,  the  obligation  not to deliver  content that
         violates the operator's policies and applicable law,
o        the  operator  receives  high levels of customer  complaints  about our
         affiliate's services, or
o        the operator  sends written  notice to our affiliate  that it wishes to
         terminate the contract at the end of the applicable notice period.

         Our affiliates may also be compelled to alter their  arrangements  with
these mobile operators in ways which adversely affect our business. China Mobile
and China  Unicom  have  unilaterally  changed  their  policies  as  applied  to
third-party service providers in the past, and may do so again in the future. We



                                       7


may  not  be  able  to  adequately  respond  to  negative  developments  in  the
contractual  relationships  between  our  affiliates  and China  Mobile or China
Unicom in the future  because  we do not have a  contractual  relationship  with
China Mobile or China Unicom.

Our business could be adversely affected if China Mobile or China Unicom or both
begin providing their own wireless value-added services.

         Our wireless value-added information services business may be adversely
affected if China Mobile or China Unicom or both decide to begin providing their
own wireless  value-added services to mobile phone users. In that case, we would
face enhanced  competition,  and our services could be fully or partially denied
access to their networks.

We depend in part on China Mobile and China Unicom to maintain  accurate records
and  their  willingness  to pay  our  affiliated  value-added  wireless  service
providers.

         We depend in part on China Mobile and China Unicom to maintain accurate
records of the fees paid by mobile phone users and their  willingness to pay our
affiliated  value-added  wireless service  providers.  Specifically,  the mobile
operators  provide our affiliates  with monthly  statements  that do not provide
itemized  information  regarding  which of our services are being paid for. As a
result,  monthly  statements that our affiliates  receive and provide to us from
the mobile operators cannot be reconciled to our internal records.  In addition,
we have only limited means to independently  verify the information  provided to
us by our  affiliates in this regard because we do not have access to the mobile
operators'  internal  records.  Our business  and results of operation  could be
adversely  affected if these mobile  phone  companies  miscalculate  the revenue
generated  from our services and our  affiliates'  portion of that  revenue,  or
refuse to pay our affiliates altogether.

Our  revenues  and cost of services  are  affected  by billing and  transmission
failures which are often beyond our control.

         Our  affiliates  do not collect fees for our  services  owed to them by
China Mobile and China Unicom in a number of circumstances, including if:

o        the delivery of our service to a customer is  prevented  because his or
         her phone is turned off for an extended  period of time, the customer's
         prepaid  phone card has run out of value or the  customer has ceased to
         be a customer of the applicable operator,
o        China Mobile or China Unicom experiences  technical problems with their
         networks which prevent the delivery of our services to the customer,
o        we  experience  technical  problems with our  technology  platform that
         prevent delivery of our services,
o        our  affiliates  experience  technical  problems with their  technology
         platforms that prevent delivery of our services, or
o        the  customer  refuses to pay for our  service  due to quality or other
         problems.

         These  situations are known in the industry as billing and transmission
failures,   and  we  do  not  recognize  any  revenue  for  services  which  are
characterized  as billing and transmission  failures.  The failure rate can vary
among the operators,  and by province, and also has fluctuated  significantly in
the past. If actual billing and transmission failures exceed our estimates,  our
revenues could be materially adversely affected.

Because China Mobile and China Unicom do not supply our  affiliated  value-added
mobile phone service  providers with revenue and  transmission  information on a
service-by-service  basis, we can only estimate our actual gross revenue and our
cost of services by service type, and as a result,  which of our services are or
may be  profitable,  all of which  make it  difficult  to  analyze  the  factors
affecting our financial performance.

         China Mobile's and China Unicom's monthly  statements to our affiliated
value-added  service  providers  regarding the services  provided  through their
networks  currently do not contain revenue and billing and transmission  failure



                                       8


information on a service-by-service  basis. Although we maintain our own records
reporting the services  provided,  we can only estimate our actual gross revenue
and cost of services by service type in this  business  because we are unable to
confirm which services were transmitted but resulted in billing and transmission
failures.  As a result,  we are not able to  definitively  calculate and monitor
service-by-service  revenue,  margins and other financial  information,  such as
average  revenue per user by service and total revenue per user by service,  and
also  cannot  definitively  determine  which  of  our  services  are  or  may be
profitable.

China Mobile and China Unicom may impose  higher  service or network fees on our
affiliated  value-added  service  providers if we are unable to satisfy customer
usage and other performance criteria.

         Fees for our wireless value-added information services are charged on a
monthly subscription or per use basis. Based on our contractual  arrangement and
those of our wireless value-added service providers, we rely on China Mobile and
China Unicom to bill and collect fees for our services from mobile phone users.

         China  Mobile  and  China  Unicom   generally   charge  our  affiliated
value-added  service  providers  service  fees of 15%  and  30% of the  revenues
generated  by their  services,  respectively.  To the extent  that the number of
messages sent by Sifang  Information  over China  Mobile's  network  exceeds the
number of messages their customers send to it, Sifang  Information  must pay per
message  network  fees,  which  decrease in several  provinces  as the volume of
customer usage of our services increases.  The number of messages sent by Sifang
Information  will exceed those sent by end-users,  for example,  if a user sends
Sifang  Information a single  message to order a game but Sifang  Information in
turn must  send  that user  several  messages  to  confirm  his or her order and
deliver the game itself.  Tianci's  service fees owed to China Unicom could also
rise  if  Tianci  fails  to meet  certain  customer  usage,  revenue  and  other
performance  criteria.  We cannot be certain that our affiliates will be able to
continue to satisfy  these  criteria in the future or that the mobile  operators
will keep the criteria at their current  levels.  Any increase in China Mobile's
or China  Unicom's  network  fees and  service  charges  could  reduce our gross
margins.

China  Mobile  and China  Unicom  may  terminate  their  relationships  with our
affiliates if our affiliates fail to achieve minimum customer usage, revenue and
other criteria.

         Our business could be adversely affected if our affiliated  value-added
mobile phone service  providers fail to achieve minimum customer usage,  revenue
and other criteria  imposed or revised by China Mobile and China Unicom at their
discretion  from time to time.  China  Mobile and China  Unicom,  through  their
national  and local  offices,  have  historically  preferred to work only with a
small group of the best performing wireless value-added service providers, based
upon the  uniqueness of the service  offered by each  provider,  total number of
users,  usage and revenue generated in the applicable  province or municipality,
the rate of customer  complaints,  and marketing  expenditures in the applicable
province or municipality.

The services our affiliated value-added mobile phone service providers offer and
the prices they charge are subject to approval by China Mobile and China Unicom,
and if  requested  approvals  are not granted in a timely  manner,  our business
could be adversely affected.

         Our affiliated  value-added  mobile phone service providers must obtain
approval  from China  Mobile and China  Unicom with respect to each service that
they propose to offer to their  customers and the pricing for each such service.
In addition,  any changes in the pricing of our  affiliates'  existing  services
must be approved in advance by these  operators.  There can be no assurance that
such  approvals  will be granted in a timely manner or at all.  Moreover,  under
some of our affiliates'  contracts with the operators,  prices cannot be changed
more than once  every six months and  prices  must be within  fixed  parameters,
depending on the service.  Any failure of our affiliates to obtain, or any delay
in obtaining, such approvals could place us at a competitive disadvantage in the
market and adversely affect our business.



                                       9


We  operate  in a  rapidly  evolving  industry,  which  makes it  difficult  for
investors to evaluate our business.

         We  began  commercially   offering  wireless  value-added   information
services  to mobile  phone and pager users in China in January  2002,  and since
that time,  the  technologies  and  services  used in the  wireless  value-added
information  services industry in China have developed  rapidly.  As a result of
this  rapid  and  continual  change  in  the  industry,  the  prospects  of  our
value-added  information  service  business should be considered in light of the
risks and difficulties frequently encountered by businesses in an early stage of
development. These risks include our ability to:

o        attract  and  retain  users for our  wireless  value-added  information
         services,
o        expand the  content  and  services  that we offer and,  in  particular,
         develop and aggregate innovative new content and service offerings,
o        respond effectively to rapidly evolving competitive and market dynamics
         and  address  the  effects  of  mergers  and  acquisitions   among  our
         competitors,
o        build relationships with strategic partners, and
o        increase awareness of our brand and user loyalty.

         Due to these  factors,  there can be no certainty that we will maintain
or increase our current  share of the highly  competitive  wireless  value-added
information services market in which we operate.

The  success  of  much  of our  wireless  value-added  information  services  is
significantly  dependent on our ability to obtain and reformat desirable content
and technology from third parties.

         We obtain much of our content, including financial information,  games,
logos, music, news and other information,  from third parties.  Furthermore,  we
expect that we will  develop and  purchase  technology  in  connection  with our
development  of next  generation  services  such as MMS,  JAVA and BREW.  As the
market for  wireless  value-added  information  services  develops,  content and
technology  providers may attempt to increase  their  profits from  distribution
arrangements  by  demanding  greater  fees or a share of  revenues,  which would
adversely  affect  our  financial  performance.  Many of our  arrangements  with
content and technology providers are non-exclusive, have a term of one year, and
are subject to renewal.  If our competitors are able to obtain such content in a
similar  or  superior  manner  or to  develop,  purchase  or  license  the  same
technologies,  it could adversely  affect the popularity of our services and our
negotiating leverage with third-party providers.

         If  we  fail  to  establish   and  maintain   economically   attractive
relationships   with  content  and   technology   providers  and  to  thereafter
successfully  reformat their products,  we may not be able to attract and retain
customers or maintain or improve our financial performance.

We depend on our Sifang Gutong  software  continuing  to be compatible  with new
mobile phone models.

         There can be no  assurance  that our  Sifang  Gutong  software  will be
compatible with new mobile phones developed by manufacturers such as Samsung. If
the software is no longer compatible,  we will be forced to engage Chengao or an
alternative  software  developer to develop software that is compatible with the
new mobile phones or we will have to develop the software  ourselves.  If we are
unable to either engage a software  developer or develop  software in house that
is compatible with new mobile phones, we will lose a significant  portion of our
value-added  information  services  revenue,  including  all of the  pre-charged
subscription  fee revenues we receive  pursuant to our information  services and
cooperation agreement among us, Chengao, and Sifang Information.

We face intense competition.

         The Chinese  market for  wireless  value-added  services  is  intensely
competitive. We believe there are more than 800 service providers (including the
three  groups  discussed  below) as of June 30,  2004.  We compete  directly  or
indirectly with three groups of wireless value-added service providers in China:



                                       10


o        portal service providers,  which have established expertise in Internet
         content and have  subsequently  branched into mobile space. The portals
         serve as content aggregators offering a variety of wireless value-added
         services,
o        dedicated  service  providers,  whose  businesses  focus on  offering a
         variety of wireless content directly to mobile phone users, and
o        niche service  providers,  which focus primarily on a particular market
         segment or  application  that  often  builds on a  pre-existing  sector
         competency.

         We have faced  direct or  indirect  competition  from all three  groups
since our entry into this market.  Moreover, there are low barriers to entry for
new competitors in the wireless  value-added  services market. As a result,  our
existing or  potential  competitors  may in the future  achieve  greater  market
acceptance  and gain  additional  market  share,  which in turn could reduce our
revenues.

Most of our  value-added  information  services  revenues  are derived  from the
Shanghai  municipal  area and  surrounding  provinces,  and the  termination  or
alteration of our affiliates' contracts with the mobile operators,  or a general
economic  downturn in those areas,  could have a particularly  adverse effect on
our business.

         Per capita income levels and mobile phone  penetration rates (i.e., the
number of mobile  subscribers  divided by the  population of China) in China are
generally higher in the coastal and southern provinces, and most of our revenues
derive  from  those  areas,  including  the  municipality  of  Shanghai  and the
provinces of Beijing and Jiangsu.

We depend on key personnel for the success of our business.  Our business may be
severely  disrupted if we lose the services of our key  executives and employees
or fail to add new senior and middle managers to our management.

         Our future success is heavily  dependent upon the continued  service of
our key executives,  particularly Tai Caihua,  our president and chairman of our
board of directors,  Fu Sixing, our chief executive  officer,  Lu Qin, our chief
financial officer,  and Huang Tianqi, our chief technology  officer.  Our future
success is also  dependent  upon our  ability to  attract  and retain  qualified
senior and middle managers to our management team. If one or more of our current
or future key  executives  and  employees are unable or unwilling to continue in
their present  positions,  we may not be able to easily  replace  them,  and our
business may be severely disrupted.  In addition, if any of these key executives
or employees  joins a  competitor  or forms a competing  company,  we could lose
customers  and  suppliers  and incur  additional  expenses  to recruit and train
personnel.  Each of our  executive  officers  has entered  into  non-competition
agreements  with TCH. We do not maintain  key-man life  insurance for any of our
key  executives.  Management will spend  approximately  30% of its time managing
Sifang Information.

         We also rely on a number of key  technology  staff for the operation of
our  company.  Given the  competitive  nature of our  industry,  the risk of key
technology staff leaving our company is high and could disrupt our operations.

Rapid growth and a rapidly  changing  operating  environment  strain our limited
resources.

         As our value-added  information  services  customer base increases,  we
will  need  to  increase  our  investment  in  our  technology   infrastructure,
facilities and other areas of operations, in particular our product development,
customer service and sales and marketing departments, which are important to our
future success. If we are unable to manage our growth and expansion effectively,
the quality of our services and our customer  support could  deteriorate and our
business may suffer.  Our future success will depend on, among other things, our
ability to:

o        develop and quickly introduce new services, adapt our existing services
         and  maintain  and  improve  the  quality  of  all  of  our   services,
         particularly as new mobile technologies such as 3G are introduced,


                                       11


o        expand the percentage of our value-added  information services revenues
         which are  recurring  and are derived from monthly  subscription  based
         services,
o        continue  to  enter  into and  maintain  relationships  with  desirable
         content providers,
o        continue training,  motivating and retaining our existing employees and
         attract and integrate new employees,  including our senior  management,
         most of whom have been with our company for less than one year,
o        develop and improve our  operational,  financial,  accounting and other
         internal systems and controls, and
o        maintain  adequate  controls and procedures to ensure that our periodic
         public  disclosure  under applicable  laws,  including U.S.  securities
         laws, is complete and accurate.

Any  failures  of the mobile  telecommunications  network,  the  Internet or our
technology platform may reduce use of our services.

         Both the continual  accessibility  of China Mobile's and China Unicom's
mobile  networks  and  the  performance  and  reliability  of  China's  Internet
infrastructure are critical to our ability to attract and retain our value-added
information  services customers . Moreover,  our business depends on our ability
to maintain the  satisfactory  performance,  reliability and availability of our
technology platform.  The servers which constitute the principal system hardware
for  our  operations  are  located  in one  location  in  Shanghai.  Any  server
interruptions,  break-downs or system  failures,  including  failures  caused by
sustained power shutdowns,  floods or fire causing loss or corruption of data or
malfunctions  of software or hardware  equipment,  or other  events  outside our
control that could result in a sustained  shutdown of all or a material  portion
of the mobile networks, the Internet or our technology platform, could adversely
impact our  ability to  provide  our  services  to our  value-added  information
services customers and decrease our revenues.

Computer  viruses and hacking may cause delays or  interruptions  on our systems
and may reduce use of our services and harm our reputation.

         Computer  viruses  and  hacking  may  cause  delays  or  other  service
interruptions on our systems.  "Hacking"  involves efforts to gain  unauthorized
access to information or systems or to cause intentional malfunctions or loss or
corruption of data, software, hardware or other computer equipment. In addition,
the inadvertent  transmission of computer  viruses could expose us to a material
risk of loss or litigation and possible liability.  We may be required to expend
significant  capital and other  resources  to protect  our  systems  against the
threat of such  computer  viruses  and  hacking and to rectify any damage to our
systems.  Moreover,  if a computer virus or hacking which affects our systems is
highly  publicized,  our reputation could be materially damaged and usage of our
services may decrease.

We may be held liable for information we purchase and reformat.

         We may face liability for defamation,  negligence, copyright, patent or
trademark  infringement  and other  claims based on the  reformatted  content to
which we provide access through our wireless value-added  information  services.
For example, SMS news updates provided by us could possibly be deemed to contain
state secrets in violation of applicable Chinese law. In addition, third parties
could assert claims  against us for losses  incurred in reliance on  information
distributed by us. We may incur significant costs in investigating and defending
these claims, even if they do not result in liability.

We may not be able to adequately protect our intellectual  property,  and we may
be exposed to infringement claims by third parties.

         We rely on  contractual  restrictions  on  disclosure  to  protect  our
intellectual  property  rights.  Monitoring  unauthorized use of our information
services is  difficult  and costly,  and we cannot be certain  that the steps we
take will effectively  prevent  misappropriation  of our technology and content.
Our  management may determine in the future to make  application  for copyright,
trademark  or  trade  secret  protection  if  management  determines  that  such
protection would be beneficial and cost-effective.


                                       12


         From time to time,  we may have to resort to  litigation to enforce our
intellectual  property  rights,  which  could  result in  substantial  costs and
diversion of our resources.  In addition,  third parties may initiate litigation
against us for alleged infringement of their proprietary rights. In the event of
a  successful  claim of  infringement  and our failure or  inability  to develop
non-infringing  technology  or  content  or  license  the  infringed  or similar
technology or content on a timely basis,  our business  could suffer.  Moreover,
even if we are able to license the  infringed or similar  technology or content,
license fees that we pay to licensors could be substantial or uneconomical.

We have limited business insurance coverage.

         The  insurance  industry  in  China  is  still  at an  early  stage  of
development.  Insurance  companies  in China offer  limited  business  insurance
products, and do not, to our knowledge, offer business liability insurance. As a
result,  we do not  have  any  business  liability  insurance  coverage  for our
operations.  Moreover, while business disruption insurance is available, we have
determined  that the risks of disruption and cost of the insurance are such that
we do not  require it at this  time.  Any  business  disruption,  litigation  or
natural disaster might result in substantial costs and diversion of resources.

Risks Related to the Wireless Value-Added Services Industry

Our ability to generate revenues could suffer if the Chinese market for wireless
value-added services does not develop as anticipated.

         The wireless  value-added  services market in China has evolved rapidly
over the last four years, with the introduction of new services,  development of
consumer  preferences,  market  entry  by  new  competitors  and  adaptation  of
strategies by existing competitors.  We expect each of these trends to continue,
and we must  continue  to adapt our  strategy  to  successfully  compete  in our
market.

         In particular,  we currently offer a wide range of wireless value-added
information services for mobile phones using 2.5G technologies.  There can be no
assurance,  however,  that these 2.5G  technologies and any services  compatible
with them will be accepted  by  consumers  or promoted by the mobile  operators.
Moreover,   there  are  numerous  other   technologies   in  varying  stages  of
development, such as third generation mobile technologies, which could radically
alter or eliminate the market for SMS or 2.5G services.

         Accordingly,  it is extremely  difficult to accurately predict consumer
acceptance  and demand for various  existing and  potential  new  offerings  and
services,   and  the  future  size,  composition  and  growth  of  this  market.
Furthermore,  given the  limited  history  and  rapidly  evolving  nature of our
market, we cannot predict the price that wireless subscribers will be willing to
pay for our  services or the  services  of our  affiliated  value-added  service
providers or whether subscribers will have concerns about security, reliability,
cost and quality of service associated with wireless services.  If acceptance of
our wireless value-added information services is different than anticipated, our
ability to maintain or increase our revenue and profits could be materially  and
adversely affected.

The  popularity of our services  which operate with next  generation  technology
standards are necessarily  dependent on the market  penetration of mobile phones
that are compatible with those standards, which is beyond our control.

         Mobile  phone  users can  access  our MMS,  WAP,  JAVA,  BREW and other
services which operate with next  generation  technology  standards only if they
purchase mobile phones that are compatible with those standards.  In particular,
mobile phones that are 2.5G-compatible have historically been significantly more
expensive  in China than  mobile  phones  using  older  technology  such as GSM.
Although the prices of 2.5G-compatible  mobile phones have been dropping rapidly
in recent quarters, we cannot be certain whether this trend will continue or the
extent to which existing users will be willing to upgrade their mobile phones to
obtain the latest  technology.  The pricing,  marketing  and other factors which
affect the sales of more  sophisticated  mobile  phones  are all  outside of our
control,  and weak sales of mobile phones for which we have  developed  services
could adversely affect our business.



                                       13


The telecommunication  laws and regulations in China are evolving and subject to
interpretation  and will likely change in the near future. If we are found to be
in  violation  of current or future  Chinese  laws or  regulations,  we could be
subject to severe penalties.

         Although   wireless   value-added   services  are  subject  to  general
regulations  regarding  telecommunication  services,  we believe that  currently
there are no Chinese laws at the national level  explicitly  governing  wireless
value-added services,  such as our services related to MMS, WAP, JAVA, and BREW,
and no Chinese government authority has been specifically designated to regulate
these services.  Many providers of wireless  value-added  services have obtained
various value-added  telecommunication  services licenses,  such as the licenses
possessed  by our Chinese  affiliates,  Sifang  Information  and  Tianci.  These
value-added  telecommunication  licenses  were  issued  by  the  local  Shanghai
Municipal Telecommunications Administration Bureau, and may not be sufficient to
offer wireless  value-added services on a national basis. Sifang Information and
Tianci  are  in the  process  of  applying  with  the  Ministry  of  Information
Industries  for an  inter-provincial  value-added  telecommunication  license in
accordance with the Ministry's general regulations  regarding  telecommunication
services.  However,  we cannot  predict  whether  either  will be  granted  that
license.  Moreover,  we cannot be certain that any local or national value-added
telecommunication  license  requirements  will not conflict  with one another or
that any given license will be deemed  sufficient  by the relevant  governmental
authorities  for the provision of this category of service.  It is also possible
that new national legislation might be adopted to regulate such services.

         If we or our affiliates are found to be in violation of any existing or
future Chinese laws or regulations  regarding wireless  value-added  services or
Internet access, the relevant Chinese authorities have the power to, among other
things:

o        levy fines;
o        confiscate  our  income  or the  income of our  affiliated  value-added
         service providers;
o        revoke our business license or the business  licenses of our affiliated
         value-added service providers;
o        shut down our  servers  or the  servers of our  affiliated  value-added
         service  providers  or block  any Web sites  that we or our  affiliated
         value-added service providers may operate;
o        require  us  to  discontinue   any  portion  or  all  of  our  wireless
         value-added information services business; or
o        require our affiliated value-added service providers to discontinue any
         portion or all of their wireless value-added services business.

The  Chinese  government,  China  Mobile or China  Unicom  may  prevent  us from
distributing,  and we may be subject to liability for,  content that any of them
believe is inappropriate.

         China  has  enacted  regulations  governing  telecommunication  service
providers,  Internet access and the distribution of news and other  information.
In the past, the Chinese  government has stopped the distribution of information
over the Internet that it believes violates Chinese law,  including content that
is obscene,  incites violence,  endangers national security,  is contrary to the
national interest,  or is defamatory.  In addition,  our affiliated  value-added
service  providers may not publish certain news items,  such as news relating to
national security, without permission from the Chinese government.  Furthermore,
the Ministry of Public  Security has the  authority to cause any local  Internet
service  provider  to block any Web site  maintained  outside  China at its sole
discretion.

         China Mobile and China  Unicom also have their own  policies  regarding
the  distribution  of  inappropriate  content by  wireless  value-added  service
providers and have recently punished certain providers for distributing  content
deemed by them to be  obscene.  Such  punishments  have  included  censoring  of
content,  delaying  payments of fees by the mobile  operators  to the  offending
service  provider,  forfeiture  of fees  owed  by the  mobile  operators  to the
offending  service  provider  and  suspension  of  the  service  on  the  mobile
operators'  networks.  Accordingly,  even if our affiliated wireless value-added



                                       14


service  providers  comply with  Chinese  governmental  regulations  relating to
licensing and foreign investment prohibitions,  if the Chinese government, China
Mobile  or China  Unicom  were to take any  action  to  limit  or  prohibit  the
distribution  of  information  or to limit or  regulate  any  current  or future
content or services  available to users,  our revenues  could be reduced and our
reputation harmed.

         The Chinese  government is expected to grant licenses to offer wireless
services in China to China Telecom, China Netcom and possibly other parties with
which  our  affiliated  wireless  value-added  service  providers  have  not yet
developed  close  relationships.  If  those  parties  receive  licenses  and are
successful in the market but our  affiliates  are unable to develop  cooperative
relationships with them, our business could be adversely affected.

         It is also  possible  that China  Telecom,  China  Netcom and any other
parties  receiving  wireless  licenses may decide to offer wireless  value-added
services created by them,  rather than by third-party  service providers such as
our  affiliated  wireless  value-added  service  providers.  In that  case,  our
business could be adversely affected.

Risks Related to Doing Business in China

A downturn in the Chinese economy may slow down our growth and profitability.

         The growth of the Chinese  economy has been  uneven  across  geographic
regions  and  economic  sectors.  There can be no  assurance  that growth of the
Chinese  economy  will be steady or that any  downturn  will not have a negative
effect on our business.  Our  profitability,  will decrease if expenditures  for
wireless value-added services decrease due to a downturn in the Chinese economy.
More specifically, increased penetration of wireless value-added services in the
less  economically  developed central and western provinces of China will depend
on those  provinces  achieving  certain  income levels so that mobile phones and
related services become affordable to a significant portion of the population.

Government  regulation of the  telecommunications  and Internet  industries  may
become more complex.

         Government regulation of the telecommunications and Internet industries
is highly complex.  New  regulations  could increase our costs of doing business
and prevent us from efficiently  delivering our services.  These regulations may
stop or slow down the expansion of our wireless value-added information services
customer base and limit access to our services.

The  uncertain  legal  environment  in China could  limit the legal  protections
available to you.

         The  Chinese  legal  system  is a civil  law  system  based on  written
statutes. Unlike common law systems, it is a system in which decided legal cases
have little  precedential value. In the late 1970s, the Chinese government began
to promulgate a comprehensive system of laws and regulations  governing economic
matters.  The overall effect of  legislation  enacted over the past 20 years has
significantly  enhanced the protections afforded to foreign invested enterprises
in China. However, these laws, regulations and legal requirements are relatively
recent  and are  evolving  rapidly,  and their  interpretation  and  enforcement
involve  uncertainties.  These  uncertainties  could limit the legal protections
available  to  foreign  investors,   such  as  the  right  of  foreign  invested
enterprises to hold licenses and permits such as requisite business licenses.

Any  recurrence  of severe  acute  respiratory  syndrome,  or SARS,  or  another
widespread  public  health  problem,  could  adversely  affect our  business and
results of operations.

         A renewed outbreak of SARS or another  widespread public health problem
in China,  where all of our  revenue  is  derived,  and in  Shanghai,  where our
operations are  headquartered,  could have a negative  effect on our operations.
Our operations may be impacted by a number of health-related factors,  including
the following:



                                       15


o        quarantines  or closures of some of our  offices  which would  severely
         disrupt our operations,
o        the sickness or death of our key officers and employees, and
o        a general slowdown in the Chinese economy.

         Any of the foregoing events or other unforeseen  consequences of public
health problems could adversely affect our business and results of operations.

Changes in China's political and economic policies could harm our business.

         The economy of China has historically been a planned economy subject to
governmental plans and quotas and has, in certain aspects, been transitioning to
a more market-oriented economy. Although we believe that the economic reform and
the macroeconomic measures adopted by the Chinese government have had a positive
effect on the  economic  development  of China,  we cannot  predict  the  future
direction of these  economic  reforms or the effects these  measures may have on
our business,  financial  position or results of  operations.  In addition,  the
Chinese  economy  differs from the economies of most countries  belonging to the
Organization  for  Economic   Cooperation  and   Development,   or  OECD.  These
differences include:

o        economic structure;
o        level of government involvement in the economy;
o        level of development;
o        level of capital reinvestment;
o        control of foreign exchange;
o        methods of allocating resources; and
o        balance of payments position.

         As a result of these  differences,  our business may not develop in the
same way or at the same rate as might be expected if the  Chinese  economy  were
similar to those of the OECD member countries.

Restrictions  on currency  exchange may limit our ability to receive and use our
revenues effectively.

         Because  almost  all of our  future  revenues  may  be in the  form  of
Renminbi, any future restrictions on currency exchanges may limit our ability to
use revenue generated in Renminbi to fund any future business activities outside
China or to make  dividend  or other  payments  in U.S.  dollars.  Although  the
Chinese   government   introduced   regulations   in  1996  to   allow   greater
convertibility  of the Renminbi for current  account  transactions,  significant
restrictions   still   remain,   including   primarily  the   restriction   that
foreign-invested  enterprises  may only buy, sell or remit  foreign  currencies,
after providing valid commercial documents, at those banks authorized to conduct
foreign  exchange  business.  In  addition,  conversion  of Renminbi for capital
account items, including direct investment and loans, is subject to governmental
approval in China,  and  companies  are required to open and  maintain  separate
foreign  exchange  accounts for capital account items. We cannot be certain that
the Chinese regulatory  authorities will not impose more stringent  restrictions
on the  convertibility  of the  Renminbi,  especially  with  respect  to foreign
exchange transactions.

The value of our  securities  will be  affected  by the  foreign  exchange  rate
between U.S. dollars and Renminbi.

         The value of our common stock will be affected by the foreign  exchange
rate between U.S. dollars and Renminbi.  For example, to the extent that we need
to convert U.S.  dollars into Renminbi for our operational  needs and should the
Renminbi appreciate against the U.S. dollar at that time, our financial position
and the price of our common stock may be adversely affected.  Conversely,  if we
decide to convert our  Renminbi  into U.S.  dollars for the purpose of declaring
dividends on our common stock or for other business purposes and the U.S. dollar
appreciates  against the Renminbi,  the U.S.  dollar  equivalent of our earnings
from our subsidiaries in China would be reduced.



                                       16


Risks Related to the Mobile Phone Distribution Industry

We are  dependent  on three  main  first-tier  wholesalers  to supply all of our
mobile phones.

         Our performance  depends on whether we can continue to secure contracts
with the three first-tier  wholesalers of Samsung mobile phones on whom we rely.
We  have no  long-term  purchase  contracts  or  other  contracts  that  provide
continued  supply,  pricing or access to new mobile  phone models and any of the
first-tier  wholesalers on whom we rely could  discontinue  selling to us at any
time. We may not be able to acquire new Samsung  models in the future and we may
not be able to acquire the models that we need in  sufficient  quantities  or on
terms that are  acceptable  to us in the future.  As a result,  our revenues may
decrease.

Our performance is dependent on the popularity of Samsung's mobile phone models.

         We primarily  distribute mobile phones manufactured by Samsung and thus
are  dependant  on Samsung's  ability to create and deliver high quality  mobile
phone  models  in a cost  effective  and  timely  manner.  Samsung  is a leading
manufacturer of mobile phones based on both the CDMA network and the GSM network
in China.  There can be no assurance  that Samsung will  continue to create high
quality mobile phone models that are popular with  consumers.  As a result,  our
revenues  may  decrease.  In  addition,  our  success  depends on our ability to
anticipate  and  respond to changing  mobile  phone  model  trends and  consumer
demands in a timely  manner.  The models we  distribute  must  appeal to a broad
range of consumers whose  preferences  cannot always be predicted with certainty
and may change between sales  seasons.  If we misjudge which mobile phone models
will be  popular  or the  market  for the  models we  distribute,  our sales may
decline or we may be required to sell our models at lower prices.

Cash Flow.

         It is important that we have  sufficient  cash flow to purchase  enough
mobile phones from the first-tier  wholesalers on whom we rely. If our cash flow
decreases  significantly,  we will not be able to purchase a sufficient quantity
of inventory to meet our customers' demands,  which would have a negative impact
on our sales,  and may cause the first-tier  wholesalers on whom we rely to look
to other  sub-wholesalers  to distribute  their mobile phones.  This development
would have a negative impact on our revenues.

Customers.

         One of the factors the first-tier  wholesalers on whom we rely consider
when determining who they will use as a sub-wholesaler  is the  sub-wholesaler's
relationship  with retailers.  Currently  approximately  52% of our mobile phone
sales are made to three retailers. We have no long-term sales contracts or other
contracts that provide  continued selling or pricing and any of the retailers we
supply  could  discontinue   buying  from  us  at  any  time.  If  we  lose  our
relationships  with our three largest  retailers,  we will have a difficult time
finding new large  retailers to purchase our Samsung  mobile phones and may lose
our  relationships  with the first-tier  wholesalers on whom we rely. This would
have a negative impact on our business.

We face certain risks relating to customer service.

         Any material  disruption  or slowdown in our order  processing  systems
resulting from labor disputes,  mechanical  problems,  human error or accidents,
fire, natural disasters,  or comparable events could cause delays in our ability
to  receive  and  distribute  orders  and may  cause  orders to be lost or to be
shipped or delivered late. As a result, customers may cancel orders or refuse to
receive goods on account of late shipments, which would result in a reduction in
our net sales and could result in increased administrative and shipping costs.



                                       17


We face risks associated with distribution.

         We conduct  all of our  distribution  operations  from one  facility in
Shanghai,  China.  Any disruption in the operations at our  distribution  center
could have a negative impact on our business.

Competition.

         Despite the fact that we distribute nine Samsung mobile phone models in
the Shanghai,  China region,  we face competition from distributors of different
models of mobile phones  manufactured by Samsung in the Shanghai region and from
distributors  of phones  manufactured  by  companies  other  than  Samsung  that
distribute in the Shanghai region.

         Competition is based on a variety of factors  including  maintenance of
product quality, competitive pricing, delivery efficiency,  customer service and
satisfaction  levels and the  ability to  anticipate  technological  changes and
changes in customer preferences.  The first-tier  wholesalers on whom we rely or
Samsung may acquire,  startup, or expand their own distribution  systems to sell
directly to our customers.

Risks Related to our Common Stock

The market price for our common stock may be volatile.

         The market price for our common  stock is likely to be highly  volatile
and subject to wide fluctuations in response to factors including the following:

o        actual or anticipated fluctuations in our quarterly operating results,
o        announcements of new services by us or our competitors,
o        changes in financial estimates by securities analysts,
o        conditions in the wireless value-added services market,
o        changes  in the  economic  performance  or market  valuations  of other
         companies involved in wireless  value-added services or distribution of
         mobile phones,
o        announcements by our competitors of significant acquisitions, strategic
         partnerships, joint ventures or capital commitments,
o        additions or departures of key personnel,
o        potential litigation, or
o        conditions in the mobile phone market.

         In addition,  the securities markets have from time to time experienced
significant price and volume  fluctuations that are not related to the operating
performance  of  particular  companies.   These  market  fluctuations  may  also
materially  and  adversely   affect  the  market  price  of  our  common  stock.
Stockholders could experience substantial dilution.

         We may issue additional shares of our capital stock to raise additional
cash for working capital.  If we issue  additional  shares of our capital stock,
our  stockholders  will  experience  dilution  in  their  respective  percentage
ownership in the company.

We have no present intention to pay dividends.

         Neither during the preceding two fiscal years nor during the nine month
period  ended  September  30,  2004  did we pay  dividends  or make  other  cash
distributions  on our common  stock,  and we do not expect to declare or pay any
dividends in the foreseeable future. We intend to retain any future earnings for
working capital and to finance current operations and expansion of our business.



                                       18


A  large  portion  of our  common  stock  is  controlled  by a small  number  of
stockholders.

         A large  portion  of our  common  stock  is held by a small  number  of
stockholders.  As a result, these stockholders are able to influence the outcome
of stockholder votes on various matters, including the election of directors and
extraordinary   corporate  transactions  including  business  combinations.   In
addition,  the  occurrence  of sales of a large  number of shares of our  common
stock,  or the  perception  that these sales could  occur,  may affect our stock
price and could  impair our  ability to obtain  capital  through an  offering of
equity  securities.  Furthermore,  the current ratios of ownership of our common
stock  reduce the public  float and  liquidity  of our common stock which can in
turn affect the market price of our common stock.

We may be subject to "penny stock" regulations.

         The Securities and Exchange Commission,  or SEC, has adopted rules that
regulate  broker-dealer  practices in  connection  with  transactions  in "penny
stocks." Penny stocks generally are equity  securities with a price of less than
$5.00 (other than securities registered on certain national securities exchanges
or  quoted  on the  NASDAQ  system,  provided  that  current  price  and  volume
information  with respect to  transactions in such securities is provided by the
exchange or  system).  Penny stock  rules  require a  broker-dealer,  prior to a
transaction in a penny stock not otherwise exempt from those rules, to deliver a
standardized  risk  disclosure  document  prepared by the SEC,  which  specifies
information  about penny stocks and the nature and  significance of risks of the
penny stock market. A broker-dealer  must also provide the customer with bid and
offer quotations for the penny stock, the compensation of the broker-dealer, and
our sales person in the transaction,  and monthly account statements  indicating
the  market  value  of each  penny  stock  held in the  customer's  account.  In
addition,  the penny stock rules require that, prior to a transaction in a penny
stock not  otherwise  exempt from those  rules,  the  broker-dealer  must make a
special written  determination that the penny stock is a suitable investment for
the purchaser and receive the purchaser's  written agreement to the transaction.
These  disclosure  requirements  may have the  effect of  reducing  the  trading
activity in the secondary  market for stock that becomes  subject to those penny
stock rules.  Whenever any of our  securities  become subject to the penny stock
rules,  holders  of  those  securities  may have  difficulty  in  selling  those
securities.

                SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

         This prospectus contains forward-looking  statements that involve risks
and  uncertainties.  These  statements  relate  to future  events or our  future
financial  performance.   In  some  cases,  you  can  identify   forward-looking
statements by terminology  such as "may,"  "will,"  "could,"  "expect,"  "plan,"
"intend,"  "anticipate,"   "believe,"  "estimate,"  "predict,"  "potential,"  or
"continue," or the negative of such terms or other comparable terminology. These
statements are only predictions. Actual events or results may differ materially.
In  evaluating  these  statements,  you  should  specifically  consider  various
factors, including the risks outlined in the "Risk Factors" section above. These
factors   may  cause  our  actual   results  to  differ   materially   from  any
forward-looking statement.

         Although   we  believe   that  the   expectations   reflected   in  the
forward-looking  statements are reasonable,  we cannot guarantee future results,
levels of activity,  performance or achievements. We are under no duty to update
any of the  forward-looking  statements  after  the date of this  prospectus  to
conform such statements to actual results or to changes in our expectations.




                                       19


                            MARKET FOR COMMON EQUITY,
                 RELATED STOCKHOLDER MATTERS AND DIVIDEND POLICY

         Our  common  stock is traded on the  NASD's  Over-the-Counter  Bulletin
Board  under the  symbol  "CHDW."  On August  6, 2004 we  changed  our name from
Boulder  Acquisitions,  Inc. to China  Digital  Wireless,  Inc.  and changed our
symbol from "BAQI" to "CHDW." On January 3, 2005,  the last reported sales price
for our common stock was $3.76 per share.

         The following table sets forth, for the quarters  indicated,  the range
of closing  high and low bid prices of our common  stock as reported by the NASD
Over-the-Counter  Bulletin Board, as adjusted for all previously  effected stock
splits.

                                                                Common Stock
                                                              -----------------
By Quarter Ended                                                High      Low
----------------                                              --------  ------- 

Fiscal 2002

March 31, 2002...........................................     $.02         $.02
June 30, 2002............................................     $.02         $.02
September 30, 2002.......................................     $.00         $.02
December 31, 2002........................................     $.00         $.00

Fiscal 2003

March 31, 2003...........................................     $.00         $.00
June 30, 2003............................................     $.42         $.23
September 30, 2003.......................................     $.42         $.42
December 31, 2003........................................     $.42         $.42

Fiscal 2004

March 31, 2004...........................................     $5.00        $.42
June 30, 2004............................................     $4.05        $2.30
September 30, 2004.......................................     $3.90        $1.98
December 31, 2004........................................     $4.85        $2.80
------------------------

         As of January 3, 2005, there were 17,018,692 shares of our common stock
outstanding held by approximately 2545 stockholders of record.

         We did not pay any cash dividends on our common stock in fiscal 2002 or
2003  nor have  dividends  been  paid or  declared  in  fiscal  2004.  We do not
anticipate  paying any cash  dividends  on our common  stock in the  foreseeable
future.  We  currently  intend to retain  future  earnings,  if any,  to finance
operations and the expansion of our business.




                                       20


            MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION

         The  following  discussion  should  be read  in  conjunction  with  our
financial  statements and the notes thereto and the other financial  information
appearing elsewhere in this document. In addition to historical information, the
following   discussion  and  other  parts  of  this  document   contain  certain
forward-looking information. When used in this discussion, the words "believes,"
"anticipates,"  "expects,"  and  similar  expressions  are  intended to identify
forward-looking  statements.  Such  statements  are subject to certain risks and
uncertainties,  which could cause actual results to differ materially from those
projected due to a number of factors beyond our control.  We do not undertake to
publicly  update  or  revise  any  of its  forward-looking  statements  even  if
experience or future changes show that the indicated  results or events will not
be  realized.   You  are  cautioned  not  to  place  undue   reliance  on  these
forward-looking statements, which speak only as of the date hereof. You are also
urged to carefully  review and consider our  discussions  regarding  the various
factors,  which affect our  business,  included in this section and elsewhere in
this report.  In evaluating  our  business,  you should  carefully  consider the
information  provided  under the caption "Risk  Factors"  beginning on page 6 in
this prospectus.

         Factors that might cause actual results, performance or achievements to
differ  materially  from those  projected  or  implied  in such  forward-looking
statements include,  among other things: (i) the impact of competitive products;
(ii)  changes  in law  and  regulations;  (iii)  adequacy  and  availability  of
insurance coverage;  (iv) limitations on future financing;  (v) increases in the
cost of borrowings and unavailability of debt or equity capital; (vi) the effect
of adverse publicity regarding our products;  (vii) our inability to gain and/or
hold market  share;  (viii)  exposure to and expense of resolving  and defending
product liability claims and other litigation;  (ix) consumer  acceptance of our
products;  (x) managing and maintaining  growth;  (xi) customer  demands;  (xii)
market and industry conditions including pricing and demand for products, (xiii)
the  success of  product  development  and new  product  introductions  into the
marketplace;  (xiv) the departure of key members of management; (xv) our ability
to  efficiently  market its products;  as well as other risks and  uncertainties
that are  described  from time to time in our filings  with the  Securities  and
Exchange Commission.

Overview of Business Background

         Sifang  Holdings  was formed  under the laws of the  Cayman  Islands on
February 9, 2004 for the purpose of holding 100% of the equity interests in TCH.
TCH was  established  as a foreign  investment  enterprise in Shanghai under the
laws of the PRC on May 25, 2004, with a registered capital of $7.2 million.

         Sifang  Information  is a  Shanghai-based  privately  owned  enterprise
established under the laws of the PRC on August 14, 1998. Sifang  Information is
engaged in the  business of pager and mobile  phone  distribution  and  provides
value added information  services to the customers in the Shanghai  metropolitan
area.  In March 2004,  Sifang  Information  spun off its pager and mobile  phone
distribution  business and the majority of its value added information  services
business by  presenting a set of carve-out  financial  statements  for the years
ended December 31, 2002 and 2003 and three months ended March 31, 2004 as if the
spun-off business had been a stand-alone  company for two years and one quarter.
On March 31, 2004,  Sifang  Information  transferred the spun-off  business into
TCH. Being a receiving entity under the common control, TCH initially recognized
all the assets and  liabilities  transferred  at their  carrying  amounts in the
accounts of Sifang  Information  at the date of transfer  under the  guidance of
SFAS No. 141, Appendix D. On May 26, 2004 Sifang  Information  exchanged 100% of
equity interest in TCH for a 100% equity interest in Sifang Holdings.  Since the
ultimate  owners  of the  three  entities  were the same  owners  and the  three
entities remained under common control,  the ownership exchange  transaction was
accounted for at historical  costs under the guidance of SFAS No. 141,  Appendix
D. Prior to May 26, 2004,  there were no  activities  in Sifang  Holdings.  As a
result of  exchanging  the  ownership  between  TCH and Sifang  Holdings,  TCH's
historical  financial  statements become the historical  financial statements of
Sifang Holdings.

         Sifang  Information  operates in a business  segment that is subject to
certain restrictions  imposed by the government of the PRC. For example,  paging



                                       21


facilities,  radio  transmitting  stations and  transmitting  equipment owned by
Sifang Information are not allowed to be owned by foreign investment enterprises
in accordance with PRC government  regulations.  Therefore,  Sifang  Information
still  maintains a small part of its business and paging  facilities in order to
stay in compliance with relevant regulations and laws in PRC.

         As a result of the  spin-off,  TCH  engages in the  business  of mobile
phone  distribution  and the  provision of pager and mobile phone  (collectively
"wireless  receiver")  users with access to certain  information  reformatted by
TCH. TCH purchases mobile phones from first tier  distributors and sells them to
retailers with a mark-up.  In the process of providing  value-added  information
services  through  entering into monthly  subscription  agreements  with various
users, TCH purchases trading activity information from stock exchanges, comments
and analysis on PRC stock  markets  provided by certain  reputable  security and
investment  companies,   lottery  information,   weather  forecast,   and  other
value-added  products  and  reformats  the  aforementioned  information  through
decoding and recoding and then has the  reformatted  information  transmitted by
Sifang  Information,  via service contracts,  to pager users. The information is
constantly  saved in TCH's server in order for mobile phone users to dial in via
China  Mobile or China  Unicom.  By  signing a monthly  subscription  agreement,
wireless users are asked to make advance  payments for either three or six-month
subscription periods.

Critical Accounting Policies

         We prepare our  consolidated  financial  statements in accordance  with
accounting  principles  generally accepted in the United States of America.  The
preparation  of these  financial  statements  requires the use of estimates  and
assumptions  that affect the reported  amounts of assets and liabilities and the
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements and the reported amount of revenues and expenses during the reporting
period.  Management  periodically  evaluates the  estimates and judgments  made.
Management  bases its estimates and  judgments on historical  experience  and on
various  factors that are  believed to be  reasonable  under the  circumstances.
Actual  results  may  differ  from  these  estimates  as a result  of  different
assumptions or conditions.

         The following critical  accounting policies affect the more significant
judgments and estimates used in the  preparation of our  consolidated  financial
statements.

Revenue Recognition

         Revenues  generated  from sales of mobile  phones are  recognized  when
persuasive  evidence of an  arrangement  exists,  delivery of the  products  has
occurred,  customer  acceptance has been obtained,  which means the  significant
risks and rewards of the ownership have been  transferred  to the customer,  the
price is fixed or determinable and collectability is reasonably assured.

         We provide  wireless  receiver  users with access to certain  financial
information  provided by stock exchanges,  comments and analyses on stock market
activity provided by certain reputable security  investment  companies in China,
lottery information,  weather forecasts,  and other value-added products through
signing a monthly  subscription  agreement or buying a pre-charged service card.
We purchase the  aforementioned  information from respected vendors and reformat
it through  decoding and recoding and transmit the  reformatted  information via
Sifang   Information  to  pager  users.  We  constantly  store  the  reformatted
information  in our server in order for mobile  phone users to dial in via China
Mobile or China Unicom. By signing a monthly  subscription  agreement,  wireless
receiver  users need to make  payments for three to six-month  subscriptions  in
advance.  We record the  proceeds as deferred  revenue and amortize the deferred
revenue over the subscription  period.  When customers buy a pre-charged service
card,  we record the  proceeds as deferred  revenue.  When a customer  commences
using  this card to access  our  server  or begins  using a pager to access  the
aforementioned information, we identify the subscription period and amortize the
deferred revenue over the subscription period.

         In  response  to a  retailer's  request,  we have an  installing  agent
install our  software on mobile  phones,  which are owned by the  retailer.  The
retailer  sells  these  phones  for a premium  covering  a fee to be paid to the
installing agent with the pre-charged  six-month  subscription fee being paid to
us.  After a customer  using such a phone dials the server to access the desired



                                       22


information,  the server records a unique identification number installed on the
mobile  phone  which  indicates  that a specific  phone  user  starts his or her
subscription  period. After we receive a detailed list from the installing agent
regarding the number of phones that have been  installed  with our software,  we
match this  information with a detailed list from the retailer setting forth how
many such phones have been sold.  Based on the number of such  phones  sold,  we
record accounts receivable and deferred revenue correspondingly.  At the date on
which a customer starts to dial into the server, the subscription  period begins
and we amortize deferred revenue accordingly.

         Since April 2004, the revenue generated from selling  pre-charged cards
has gradually decreased while the revenue generated through monthly subscription
with China Mobile  and/or China Unicom  (collectively  "Mobile  Operators")  has
gradually increased as the Mobile Operators' billing systems have been enhanced.
Our  affiliates,  Sifang  Information  and  Tianci,  contract  with  the  Mobile
Operators for the  transmission  of our  value-added  information  service.  The
Mobile  Operators  bill and collect from customers and then pass those fees (net
of billing and  collection  service  fees  charged by the Mobile  Operators)  to
Sifang  Information  and Tianci who in turn pass those fees to us. We  recognize
net  revenues  based on the total  amount paid by our  customers,  for which the
Mobile  Operators  bill and  collect on our behalf . There is a time lag ranging
from 10 days to 45 days between the service period cut-off date and the date the
Mobile Operators send out their billing statements due to the segregated billing
systems of each  provincial  subsidiary  of the Mobile  Operators.  For the nine
months ended  September 30, 2004,  about 10% of our service  revenue from mobile
phone users is recognized  based on monthly billing  statements  prepared by the
provincial  subsidiaries of the Mobile Operators.  However,  as of September 30,
2004 none of such revenue can be attributed to the  relationship  between Tianci
and China  Unicom,  as billing  delays have  prevented us from  recognizing  any
revenue from this relationship.  We have not recognized service revenue based on
the records provided by our own server. In addition, the Mobile Operators charge
a network usage fee based on a fixed per message fee multiplied by the excess of
messages  sent over  messages  received  (this type  service is not covered by a
monthly  service  subscription  and we have no control  whether it will incur or
not).  These network usage fees charged by the Mobile Operators are reflected as
a part of cost of  services  in the  financial  statements.  Network  usage fees
charged by the Mobile Operators are reduced for messages  received by us because
the Mobile Operators separately charge the sender a fee for these transmissions.

         We  currently  record the mobile  phone  service  revenue  based on the
amounts paid by our customers net of the Mobile  Operators'  service  charge for
billing  and  collection  on our  behalf.  According  to EITF  Issue No.  99-19,
recognizing revenue on a net basis in this situation is appropriate if we do not
act as a principal in connection  with the  provision of our  services.  Factors
which support a conclusion that we are not acting as a principal include:

o        limited  ability to adjust the cost of services by adjusting the design
         or marketing of the service,
o        limited  ability to determine  prices,  we must follow the price policy
         within ranges prescribed by Mobile Operators, and
o        limited ability to assume risk of non-payment by customers.

         We have very  limited  ability to adjust the ratio of our  revenues  to
cost of services  (which  include the Mobile  Operators'  network  usage fee and
other fees, if any). In addition,  the majority of service  revenue derived from
mobile phone users are subject to the floor price for monthly service set by the
Mobile  Operators as we do no have an ability to negotiate  with our  customers.
The Mobile  Operators  will normally  make payments  within the 30 days after we
receive the billing  statement because it takes time for the Mobile Operators to
collect payments from our customers. Consequently, we actually bear less risk of
non-payments  by  customers  as  Mobile   Operators  must  take  care  of  their
collections  first.  Only about 10% of the total  service  revenue  derived from
mobile  phone  users in the nine  months  ended  September  30,  2004 was billed
through the Mobile Operators' billing systems. Whereas, there are three items of
mobile  phone  services  over which we do have an ability  to  determine  price,
however,  the portion of this type of revenue was  immaterial in the nine months
ended  September  30, 2004.  Therefore,  we have  concluded  that  reporting net
revenue billed through the Mobile Operators' billing systems is appropriate.



                                       23


Accounts Receivable, Employees Receivable, and Allowance for Doubtful Accounts

         During the normal course of business, we extend unsecured credit to our
retail  customers  who are mainly  located in the  Shanghai  metropolitan  area.
Typically,  the credit  terms  require  payment to be made within 30 days of the
sale.  We do not require  collateral  from our  customers.  We maintain our cash
accounts at credit worthy financial institutions.

         We regularly evaluate and monitor the creditworthiness of each customer
on a case-by-case  basis. We include any account balances that are determined to
be  uncollectable,  along with a general reserve,  in the overall  allowance for
doubtful  accounts.  After all attempts to collect a receivable have failed, the
receivable  is written  off  against  the  allowance.  Based on the  information
available to management, we believe that our allowance for doubtful accounts was
adequate as of September 30, 2003 and 2004.  However,  actual  write-offs  might
exceed the recorded allowance.

         We advance cash to sales people for their travel and business  activity
needs. Under certain circumstances, the advances to employees might not be fully
recovered by us.  Accordingly,  we also provide  allowances against any doubtful
accounts.

Inventories

         Inventories  consist  principally of mobile phones manufactured by name
brand  manufactures  with  various  features and are stated at the lower of cost
(first-in, first-out) or market.

Rebates and Credits Receivable

         In 2004 our major vendor began  providing  sales rebates and credits if
we fulfilled  certain sales volumes  prescribed by the vendor in order to induce
our distributors to sell more of our products.  As a result,  we are entitled to
receive certain rebates and credits for the inventory held and sold by us within
the specified  period of time as defined by our vendor  through  submitting  the
necessary  application  forms.  In  general,  once  the  vendor  approves  these
applications  the amounts of these rebates and credits will be deducted from our
accounts  payable to our vendor and decrease the cost of goods sold or inventory
held correspondingly.

Impairment of Long-Lived Assets

         We apply the provisions of Statement of Financial  Accounting  Standard
No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS
No. 144"), issued by the Financial Accounting Standards Board ("FASB"). SFAS No.
144 requires that long-lived  assets be reviewed for impairment  whenever events
or changes in  circumstances  indicate that the carrying  amount of an asset may
not be  recoverable  through the estimated  undiscounted  cash flows expected to
result from the use and eventual  disposition  of the assets.  Whenever any such
impairment exists, an impairment loss will be recognized for the amount by which
the carrying value exceeds the fair value.

Income Taxes

         We account for income taxes in accordance  with  Statement of Financial
Accounting  Standards No 109,  "Accounting  for Income  Taxes" ("SFAS No. 109").
SFAS No. 109  requires  an entity to  recognize  deferred  tax  liabilities  and
assets.  Deferred tax assets and  liabilities  are recognized for the future tax
consequence  attributable to the difference  between the tax bases of assets and
liabilities and their reported amounts in the financial statements. Deferred tax



                                       24


assets and liabilities are measured using the enacted tax rate expected to apply
to taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred tax assets and liabilities of
a change in tax rates is  recognized  in income in the period that  included the
enactment date.

         TCH is  registered  at Pudong  District  in  Shanghai  and subject to a
favorable  income tax rate of 15%  compared  to a normal  income tax rate of 33%
(30% for the central  government and 3% for the local  government) under current
PRC tax laws.  However,  Sifang Information  registered in the Shanghai downtown
and area has been treated by the Shanghai  Municipal  Administration of Labor as
an  enterprise  that  provides  unemployed  and  handicapped  people  with jobs.
Accordingly,  Sifang Information is entitled to be subject to a favorable income
tax rate of 15% and  qualifies  for income tax  exemption  for three  years from
January 1, 2000 to December 31, 2002,  and 50% of income tax reduction for three
years from  January 1, 2003 to  December  31,  2005.  The income tax  provisions
presented on our financial  statements are based on the historical actual income
tax rates of Sifang  Information at 7.5% for the nine months ended September 30,
2003 and 2004, respectively. The deferred tax assets are determined based on the
historical income tax rates applicable at the Sifang Information level.

         There is no income tax for companies  domiciled in the Cayman  Islands.
Accordingly,  Sifang Holdings financial statements do not present any income tax
provisions related to Cayman Islands tax jurisdiction. Use of Estimates

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

Discussion and Analysis of Operating Results

         Nine Months  Ended  September  30, 2004  Comparing to Nine Months Ended
September 30, 2003

Revenue recognition

         We generate  revenue  from both mobile  phone sales and the delivery of
value-added  services.  The revenues  related to mobiles phone  distribution are
recognized when the following  criteria are met: (a) we have  transferred to the
customer the  significant  risks and rewards of  ownership of the goods;  (b) we
retain  neither  continuing   managerial   involvement  to  the  degree  usually
associated  with  ownership nor effective  control over the goods sold;  (c) the
amount of revenue can be measured reliably; (d) it is probable that the economic
benefits  associated  with the  transaction  will flow to us;  and (e) the costs
incurred  or to be  incurred  in  respect  of the  transaction  can be  measured
reliably.  The  revenues  related to the  delivery of  value-added  services are
comprised of services  provided to pager users and  services  provided to mobile
phone users.  Revenues from providing  services to pager users are recognized in
the period in which services are rendered and the  subscription  fee is fixed or
determinable and collectability is reasonably  assured.  Revenues from providing
services  to  mobile  phone  users  are  recognized  in the  period in which the
services are  performed,  provided  that  persuasive  evidence of a  contractual
arrangement  exists and  collectability  is  reasonably  assured.  Any  payments
received related to the services prior to service being rendered are recorded as
deferred revenue.

Revenue

Mobile phone distribution

         Our mobile phone  distribution  in the nine months ended  September 30,
2004 increased by approximately  $4,459,211,  representing an approximately  41%
increase,  to  $15,427,286  (including  product sales to three  related  parties
(Shanghai Shantian Telecommunication Technology Inc., Tianci Group Co., Ltd., or
Tianci Group,  and Sifang  Information)  as compared to $10,968,075 for the same
period of the prior year.  The increase was due mainly to our  marketing  effort


                                       25


and further  facilitated by Samsung's marketing  promotion.  For the nine months
ended  September 30, 2004,  Samsung's  mobile phones  accounted for about 97% of
total  product  sales and other  name  brand  mobile  phones  accounted  for the
remaining 3%.  Compared to the nine months ended  September 30, 2003,  Samsung's
mobile  phones  accounted  for 99% of  total  product  sales  and  other  brands
accounted  for the  balance.  Market  competition  for mobile  phone sales is so
fierce that we decreased our overall  mark-up ratio to 5.0% in order to maintain
our market  position,  compared to the mark-up ratio of 8.9% for the same period
the prior year.

Mobile phone sales to a related party

         Before  January 1, 2004 we only  distributed  CDMA mobile phones in the
Shanghai  area.  Beginning  in January 2004 we entered into the GSM mobile phone
distribution business. Since the retail market channel related to our GSM mobile
phone  distribution  was developed and  maintained by Shanghai , in which Sifang
Information  holds a 51% equity  interest,  all of our Samsung GSM mobile phones
were sold to Shanghai  Shantian,  which made  Shanghai  Shantian our second tier
distributor.   During  the  nine  months  ended  September  30,  2004,  we  sold
$10,512,821 of mobile phones with a reasonable  mark-up of approximately 3.6% in
order to support  start-up  stage of  Shantian's  business  as  compared  to the
aggregate  mark-up ratio of 5.0% for the products  sold to all other  customers.
Compared  to the  mark-up  ratio of 7.9% in the  first  half  year of 2004,  the
decrease in mark-up ratio was due mainly to the  significant  decline of mark-up
to 1.8% for the three months ended  September  30, 2004 compared to 7.0% for the
same period of the prior year.  Because TCH had not obtained all the  government
issued VAT  invoices  for the mobile  phones  distribution,  the sales of mobile
phones went through the related parties during the third quarter.


Service revenue, net

         Total service revenue net of the related business tax and surcharge for
the nine months ended  September 30, 2004 increased by  approximately  $116,541,
representing approximately a 5.0% increase, to $2,467,990 compared to $2,351,449
for the same  period of the prior  year.  Moreover,  the  components  of service
revenue changed  significantly.  Service revenue from mobile phone users for the
nine months ended  September  30, 2004  increased by  $1,433,076  to  $1,828,041
compared to $394,965  for the same  period of the prior  year,  representing  an
increase of  approximately  363%,  which  resulted  in the  overall  increase in
service  revenue.  Service  revenue  from pager users for the nine months  ended
September 30, 2004  decreased by  $1,316,535 to $639,949  compared to $1,956,484
for  the  same  period  of the  prior  year,  representing  approximately  a 67%
decrease.  We believe  that service  revenue  from pager users will  continue to
decrease  given the  increased  popularity  of mobile  phones  over  beepers and
pagers.  The decrease in service revenue from pager users will likely plateau at
a certain  level as most lower  income  pager  users still like to use pagers to
access our information services.

Cost of goods sold

         The cost of goods sold for the nine  months  ended  September  30, 2004
increased by  $4,670,568  to  $14,658,663  compared to  $9,988,095  for the same
period of the prior year,  representing  an  approximately  47 %  increase.  The
increase was consistent with the increases in revenue from product sales.

Cost of service

         The cost of  service  for the nine  months  ended  September  30,  2004
decreased by $47,684 to $660,791 compared to $708,475 for the same period of the
prior year,  representing an approximately 6.7% decrease.  This decrease was the



                                       26




result of a decrease in the content  fee charged by the content  providers  from
$66,901 to $25,538 in the comparison of the nine months ended September 30, 2004
and the same period last year. According to the contracts signed between TCH and
other  content   providers  who  offered  us  information   content  related  to
securities, lottery entertainment and so on, we recorded all accrued expenses in
the third quarter of year 2004. We expect that the final  determined  fee due to
the providers will be confirmed in the fourth quarter of 2004. Meanwhile, we are
striving to expand the contents included in our value-added  services within the
current fee-charge level and trying to establish collaborative  relationships or
partnerships with certain information content providers.

Gross profit

         After considering the cost of goods sold and cost of service, our gross
profit for the nine months ended  September 30, 2004 decreased by  approximately
$47,132  to  approximately  $2,575,822,  representing  an  approximately  1.8  %
decrease,  compared to the gross profit of $2,622,954 for the same period of the
prior year. The decrease of gross profit was primarily attributable to the fact:
(i)  service  revenue  from  pager  users  generated  in the nine  months  ended
September  30, 2004  decreased  from  $1,956,484  to $639,949,  representing  an
approximately  67.3%  decrease,  compared to the same period in fiscal 2003; and
(ii) the gross profit ratio of the mobile phone distribution for the first three
quarters in fiscal 2004  decreased from 8.9% to 5.0% resulting in the decline of
the total gross profit.

         The following table presents in summary certain  information related to
the  various  components  of  revenue in a manner  similar to segment  reporting
information.

                                                           Information     Information
                                           Mobile Phone      Service -      Service -
                                           Distribution    Mobile Phone       Pager           Total
                                           ------------    ------------    ------------    ------------
                                                                               
For nine months ended September 30, 2004                                                     
                                                                                             
Revenue                                    $ 15,427,286    $  1,828,041    $    639,949    $ 17,895,276
Cost                                         14,658,663         150,900         509,891      15,319,454
Gross profit                                    768,623       1,677,141         130,058       2,575,822
Gross profit ratio                                  5.0%           91.7%           20.3%           14.4%
                                                                                             
For nine months ended September 30, 2003                                                     
                                                                                             
Revenue                                    $ 10,968,075    $    394,965    $  1,956,484    $ 13,319,524
Cost                                          9,988,095         163,827         544,648      10,696,570
Gross profit                                    979,980         231,138       1,411,836       2,622,954
Gross profit ratio                                  8.9%           58.5%           72.2%           19.7%
                                                               
       
Other income, net

         On July 16, 2004, Tianci Group, a related party to TCH, entered into an
agreement  with China Unicom to promote CDMA mobile phones and relevant  monthly
service for China Unicom. According to the signed agreement, should Tianci Group
sell  varieties of CDMA mobile  phones  owned by China  Unicom to customers  who
would like to  subscribe  for  monthly  service for a period of two years with a
monthly service fee of $3.38, Tianci Group would be entitled to receive an sales
commission from China Unicom of $15.70 per unit,  sales  commission of $3.62 per
SIM card, and $12.08 for monthly service  subscription.  Tianci Group feels that
TCH has been in a better  position to sell these CDMA mobile  phones,  SIM cards
and monthly service subscriptions. Therefore, Tianci Group entered into an agent
agreement with TCH and asked TCH to conduct these businesses on behalf of Tianci
Group. Consequently,  TCH would be entitled to receive the sales commission from
Tianci  Group based on the terms  between  Tainci Group and China  Unicom.  This
agent  business  started in August 2004 along with the  promotion  initiated  by
China Unicom. As this business activity is more uncertain in nature, we reported
this sales commission as other income instead of regular revenue.  We recognized
agent  income of  $130,060 in the nine months  ended  September  30, 2004 at TCH
level.  The  recurrence  of this type of  transaction  depends on the  promotion
initiated by China  Unicom.  Therefore,  we recognize  the agent income as other
income.
                                                                   
Selling expenses                                                         

         Selling expenses for the nine months ended September 30, 2004 increased
by $11,592 to $127,833  compared  to  $116,241  for the same period of the prior
year,  representing  an  approximately  10%  increase.  The  increase was due to
promotion expenses for value-added  information  service related to mobile phone
users. Advertising fees increased from $889 to $29,707.

General and administrative expenses

         General and administrative expenses for the nine months ended September
30, 2004 increased by $1,169,720 to $1,462,504 compared to $292,784 for the same
period of the prior year, representing a material increase. The increase was due


                                       27


mainly to the stock-based  compensation expenses of approximately $1,014,000 and
an  increase  of $19,737  in  software  amortization  expenses  from  $75,293 to
$95,030. In addition,  office rental expense increased by approximately  $20,556
and audit and  consultant  fees  incurred in the first three  quarters of fiscal
2004   accounted   for  a   $10,656   increase   for  the   reorganization   and
recapitalization  transaction.  Other  miscellaneous  items  accounted  for  the
remaining increase of $4,355 for the nine months ended September 30, 2004.

         Of the  aforementioned  stock-based  compensation of $1,014,000 for the
nine months ended September 30, 2004, $604,000 was the fair value of the 167,895
shares issued to a consultant in lieu of cash  payment,  and other  $410,000 was
total  premium  difference  between the trading  price ($3.60 per share) and the
stock purchase price ($1.14 per share) per a stock purchase agreement  resulting
in the issuance of 166,667 redeemable shares.

Interest income (expense)

         For the nine months  ended  September  30,  2004,  interest  income was
$31,931,  which was mainly derived from the amount due from Sifang  Information.
For the nine months ended  September  30,  2003,  there were two  borrowing  and
lending  transactions  between  TCH  and  Sifang  Information  resulting  in the
interest expense $10,873.

Income tax

         TCH is subject to taxation under the laws of the PRC, and the statutory
income tax rate for the nine months ended  September 30, 2003 and 2004 was 7.5%.
In the nine months ended of September 30, 2003 and 2004,  income tax expense was
$165,229 and $169,643,  respectively,  based on pretax income of $2,258,366  and
$1,247,476 (which included the stock compensation of $1,014,000  incurred in the
U.S.). Since the loss of approximately  $1,014,000  incurred in the U.S. did not
offset the taxable income in China, the income tax expense of $169,643  incurred
in China was based on the taxable income of approximately $2,261,899.


Net income

         We recorded net income of $977,833 for the nine months ended  September
30,  2004,  a  $1,059,994  decrease  in net income  compared  to a net income of
$2,037,827 for the same period of the prior year,  representing an approximately
52% decrease. The decrease in net income was attributable to (i) the increase in
general  and  administrative  expenses  for the period  compared  to general and
administrative  expenses  for the same  period of the prior  year,  and (ii) the
decrease of the gross profit  generated from mobile phone  distribution  and the
pager service business.

Earnings per share

         The  earnings per share for the nine months  ended  September  30, 2004
decreased  by $0.08 to $0.07  compared to $0.15 for the same period of the prior
year, representing an approximately 53% decrease. The decrease was due mainly to
the decrease in our net income and the increase in the total outstanding  shares
of common  stock as the  weighted  average  number  of  shares  of common  stock
outstanding   for  the  nine  months  ended  September  30,  2004  increased  by
approximately  13%,  compared  the  weighted  average  number  of  common  stock
outstanding for the same period of the prior year.

Fiscal Year Ended  December 31, 2003 Compared to the Fiscal Year Ended  December
31, 2002

Revenue recognition

         We generate  revenue  from both mobile  phone sales and the delivery of
value-added  services.  The revenues  related to mobiles phone  distribution are
recognized when the following  criteria are met: (a) we have  transferred to the
customer the  significant  risks and rewards of  ownership of the goods;  (b) we
retain  neither  continuing   managerial   involvement  to  the  degree  usually
associated  with  ownership nor effective  control over the goods sold;  (c) the
amount of revenue can be measured reliably; (d) it is probable that the economic



                                       28


benefits  associated  with the  transaction  will flow to us;  and (e) the costs
incurred  or to be  incurred  in  respect  of the  transaction  can be  measured
reliably.  The  revenues  related to the  delivery of  value-added  services are
comprised of services  provided to pager users and  services  provided to mobile
phone users.  Revenues from providing  services to pager users are recognized in
the period in which services are rendered and the  subscription  fee is fixed or
determinable and collectability is reasonably  assured.  Revenues from providing
services  to  mobile  phone  users  are  recognized  in the  period in which the
services are  performed,  provided  that  persuasive  evidence of a  contractual
arrangement  exists and  collectability  is  reasonably  assured.  Any  payments
received related to the services prior to service being rendered are recorded as
deferred revenue.

Revenue

Mobile phone distribution

         Our mobile  phone  distribution  for the year ended  December  31, 2003
increased by  $13,008,954,  representing  a 2,500%  increase,  to $13,529,279 as
compared to $520,325 for the year ended  December 31, 2002. The increase was due
mainly to our  marketing  effort,  which was combined with  Samsung's  marketing
efforts.  In the  telecommunication  market of China, mobile phones have rapidly
replaced  beep  pagers  with  the  development  of  the  wireless  communication
technology  that  stimulated  a large  demand  from  consumers  resulting  in an
increase in mobile  phone  distribution.  In the year ended  December  31, 2003,
Samsung's  mobile phones  accounted for about 97% of the total product sales and
the other name brands mobile  phones  accounted for the remaining 3%. During the
year ended  December 31, 2002, we did not sell any Samsung mobile phones whereas
Motorola's  mobile  phones  accounted for 99.6% of total product sales and other
name brands  accounted  for the balance.  Compared to the negative  gross profit
ratio for the year ended  December 31, 2002, the gross profit ratio for the year
ended  December  31,  2003 was a  positive  8.17%,  which was due  mainly to the
increase in sales volume and product mix.

Service revenue, net

         Total service  revenue net of related  business tax and  surcharges for
the year ended  December  31, 2003  increased  by $100,017,  to  $3,503,099,  as
compared to $3,403,082  for the year ended  December 31, 2002,  representing  an
approximately  2.9%  increase.  The overall  increase  was due  primarily to the
increase  of service  revenue  from  mobile  phone users which was offset by the
decrease of service  revenue from pager users.  Service revenue for mobile phone
users for the year ended December 31, 2003 increased by $1,290,366 to $1,297,323
compared  to $6,957 for the prior  year.  In  addition,  approximate  $60,850 of
service  revenue from mobile phone users was  attributed to the prepaid  service
fees generated by an installing agent,  Chenggao Industry Co. Ltd. who installed
the  software  on a  retailer's  inventories  and  collected  proceeds  from the
retailer  and  transferred  the proceeds to us.  Please refer to our  accounting
policy regarding revenue  recognition for further details.  Service revenue from
pager  users for the year ended  Decembr31,  2003  decreased  by  $1,190,349  to
$2,205,776  compared to $3,396,125 for the year ended  December 31, 2002,  which
was due mainly to the prevailing demand for mobile phone services.

Cost of goods sold

         The cost of goods sold for the year ended  December 31, 2003  increased
by  $11,896,996  to  $12,424,454  as  compared  to  $527,458  for the year ended
December 31, 2002.  The increase of the cost of goods sold was  consistent  with
the increase of the revenue. For the years ended December 31, 2003 and 2002, the
inventory turn-over ratios are 9.00 and 0.45, respectively.





                                       29


Cost of service

         The cost of service for the year ended  December 31, 2003  increased by
$58,207 to $910,440  compared to $852,233 for the year ended  December 31, 2002,
representing an approximately 6.8% increase.  The increase was related mainly to
the  value-added  information  service  provided  to mobile  phone users and the
purchasing cost related to more  information  content along with the increase in
service fees charged by Mobile  Operators.  In the year ended December 31, 2003,
we expanded the category of  information  services to meet the  expectations  of
variety of customers accompanied by the rise of information  acquisition cost at
the rate of nearly 50%. The cost for purchasing  information content jumped from
$40,267 to $72,656 and the service  fees charged by Mobile  Operators  increased
form $1,153 to $18,420,  respectively.  Regarding the cost of service related to
mobile  phone  users,  the cost of service for the year ended  December 31, 2003
increased by $169,101  compared to $46,219 for the year ended December 31, 2002,
representing  a 365.87%  increase  and being  consistent  with the  increase  in
service revenue generated from mobile phone users. Regarding the cost of service
related to beep pager users, the cost of service for the year ended December 31,
2003 decreased by $110,894  compared to $806,014 for the year ended December 31,
2002, representing a decrease of 13.76% and a semi-fixed nature of cost.

Gross profit

         After considering the cost of goods sold and cost of service, our gross
profit  for the  year  ended  December  31,  2003  increased  by  $1,153,768  to
$3,697,484,  representing an approximately 45.4% increase,  as compared to gross
profit of  $2,543,716  for the year ended  December 31,  2002.  The increase was
primarily  attributable  to the material  increase of the gross profit of mobile
phone distribution and information  service provided for mobile phone users. The
increase  of these  two items was from the  negative  gross  profit of $7,133 in
fiscal 2002 to a positive  gross profit of $1,104,825  and from a negative gross
profit of  $39,262  to a  positive  gross  profit of  $1,082,003,  respectively,
aggregating $2,233,223, which offset the decrease in gross profit of information
service provided for beep pager users from $2,590,111 to $1,510,656.

         However,  the percentage of gross profit over the total revenue for the
year ended December 31, 2003 was  approximately  21.7% compared to 64.8% for the
year ended December 31, 2002,  representing a 43.1%  decrease.  The decrease was
due to the fact that the service  revenue  generated in year 2003  accounted for
only 21% of total revenue whereas the service revenue generated in the year 2002
accounted for 87% of total revenue,  given that the service revenue is much more
profitable than mobile phone distribution.













                                       30




                                                        Information      Information
                                       Mobile Phone       Service -        Service -
                                       Distribution     Mobile Phone        Pager            Total
                                       ------------     ------------     ------------    ------------
                                                                                      
For the year ended December 31, 2003

Revenue                                $ 13,529,279     $  1,297,323     $  2,205,776    $ 17,032,378
Cost                                     12,424,454          215,320          695,120      13,334,894
Gross profit                              1,104,825        1,082,003        1,510,656       3,697,484
Gross profit ratio                             8.17%           83.40%           68.49%          21.71%

For the year ended December 31, 2002

Revenue                                $    520,325     $      6,957     $  3,396,125    $  3,923,407
Cost                                        527,458           46,219          806,014       1,379,691
Gross profit                                 (7,133)         (39,262)       2,590,111       2,543,716
Gross profit ratio                            (1.37)%        (564.35)%          76.27%          64.83%


Selling expenses

         Selling  expenses  for the year ended  December  31, 2003  decreased by
$135,012 to $153,437 as compared to $288,539 for the prior year, representing an
approximately  47%  decrease.  The decrease  was due mainly to the  reduction in
advertising and promotion expenses of this year compared with those of the prior
year, which declined from $117,290 to $14,721. We have moved the marketing focus
from  beep  pager  users to mobile  phone  users in order for us to adapt to the
demands  demonstrated  by  the  telecommunication   market.   Furthermore,   the
traditional  marketing method on beep pager users was not a fit for mobile phone
value-added information service and distribution.  As we have contracted with an
installing  agent to install our software in the  inventory  of a retailer,  and
established  collaborative  relationships  and partnerships  with the installing
agent and retailer to sell information services, we have been able to reduce our
marketing expenses.

General and administrative expenses

         General and  administrative  expenses  for the year ended  December 31,
2003  increased  by $180,608  to  $391,930 as compared to $211,322  for the year
ended  December  31,  2002,  representing  an 85%  increase.  The  increase  was
attributable mainly to an increase in employee compensation and welfare payments
along  with  the  annual   amortization  of  intangible   assets.  The  employee
compensation  and welfare  payments  increased by $102,666  representing  a 161%
increase.  In addition,  the amortization of software development cost increased
by $45,645,  representing a 76% increase at TCH level.  Property taxes increased
by $9,056 in the year ended  December 31, 2003 as we purchased a new property at
the end of year 2002.  The rent  increase of $20,540 in the year ended  December
31, 2003 was due to rent for new office space.

Interest income (expense)

         During the year ended  December  31,  2002,  we used funds from  Sifang
Information to start our mobile phone  distribution  business,  the  outstanding
balance of due to our parent was  $604,062  at December  31,  2002 and  interest
expense  incurred  during the year ended  December  31, 2002 was $ 36,245 all of
which was paid to our parent, Sifang Information.

         During the year ended  December 31, 2003,  we paid off all  outstanding
balances  and lent certain  funds to our parent,  Sifang  Information.  All lent
monies  were  repaid   before   December  31,  2003.   During  2003  there  were
inter-company loans between TCH and Sifang Information. However, the outstanding
balance due to and due from these  entities at the year ended  December 31, 2003
was $0,  whereas  the total  interest  expense  incurred  during  the year ended
December  31,  2003 was  $12,082  all of which was  related to the amount due to
parent.



                                       31


Income tax

         TCH is subject to taxation under the laws of the PRC, and the statutory
income tax rate for the year ended  December  31, 2003 was 7.5% and for the year
ended  December 31, 2002 was 0%.  During the year ended  December 31, 2003,  the
income tax expense was $246,694 based on pretax income of $3,134,674 whereas the
income tax for the year ended  December  31,  2002 was zero as our  company  was
still under the period for receiving  the preferred tax treatment  regardless of
pretax income of $2,003,442 for that year.

         According  to  Statement  of  Financial  Accounting  Standards  No. 109
"Accounting  for Income Tax",  an entity is required to  recognize  deferred tax
liabilities  and assets  which are  recognized  for the  future tax  consequence
attributable  to the difference  between the tax bases of assets and liabilities
and their reported  amounts in the financial  statement.  Regarding the deferred
income tax expense  (benefit),  the deferred income tax benefit $5,556 generated
in the year December 31, 2002 was due to the changes in deferred tax liabilities
and assets.  For the year ended  December  31,  2003,  the  deferred  income tax
expense $601 was due to the changes in deferred tax liabilities and assets.

Net income

         We recorded net income of  $2,887,980  for the year ended  December 31,
2003, an $878,982  increase in net income compared to a net income of $2,008,998
for the prior year,  representing an approximately 44% increase. The increase in
net income was due mainly to: 1) the increase of mobile phone distribution gross
profit from a negative 7,133 to a positive  $1,104,825;  2) the after tax income
generated from providing  value-added  information service to mobile phone users
was higher  than the  after-tax  income  generated  from  providing  value-added
information service to pager users.

Earnings per share

         The  earnings  per share for the year ended 2003  increased by $0.06 to
$0.21  compared to earnings per share of $0.15 for the prior year,  representing
an approximately 40% increase. The increase was due mainly to an increase in net
income.

Liquidity and Capital Resources

         The Company's  cash balance  decreased by  approximately  $750,502 from
approximately  $877,568 as of September 30, 2003 to approximately $127,066 as of
September  30, 2004.  This decrease in cash was due primarily to the decrease in
net income and the increase of accounts receivable.

         The cash flow  provided  by  operating  activities  for the nine months
ended  September  30,  2004  decreased  by  approximately  $139,716  to $290,362
compared to $430,078 cash provided in operating  activities  for the same period
of the prior year.  We believe  that the decrease was due mainly to the increase
of  $1,891,866  in  accounts  receivable  offset  by  the  non-cash  expense  of
$1,014,423  and increase of $68,166 in current  liabilities  for the nine months
ended  September 30, 2004.  First,  net income of $977,833 for nine months ended
September  30, 2004  compared to net income of  $2,037,827 in the same period of
the prior year,  represented a change of  $1,059,994.  Second,  the cash used in
accounts receivable  increased $1,891,866 in the nine months ended September 30,
2004  compared  to the net cash used of $251,770 in the same period of the prior
year,  representing  a change of  $1,640,096.  Advances to vendors  increased by
$463,248 at September 30, 2004  compared to the increase of  $1,153,961  for the
same  period of the prior  year,  represented  a  positive  change of  $690,713.
Inventory  decreased by $521,815 at September 30, 2004, compared to the increase
in inventory by $1,403,365.  VAT  recoverable in the nine months ended September
30, 2004 was a cash generator  representing a change of  approximately  $196,420
compared to that in the same period of the prior  year.  However,  the change in
accounts  payable was in a net cash used  position in the nine months  September
30, 2004,  representing a negative change of approximately  $579,932 compared to
positive  cash  inflow of $474,889  for the same  period of the prior year.  The
change in  deferred  revenue at  September  30, 2004 was less than the change in
deferred revenue for the same period of the prior year.

         The cash flow used in  investing  activities  for the nine months ended
September 30, 2004 increased by $1,413,809 to approximately  $2,159,769 compared
to $745,960 for the same period of the prior year,  representing  a  significant
increase.  The increase in cash used in investing  activities  was due mainly to
the increase in loan  receivables  from Sifang  Information,  the parent company
before the reverse acquisition.



                                       32


         The cash flow  provided by financing  activities  for nine months ended
September 30, 2004 increased by  approximately  $282,570  compared to the absent
cash inflow for the same period of the prior year.  We believe that the increase
was due mainly to the proceeds  from issuing its common stock in addition to the
fact that we did not have any  payment for amount due to Sifang  Information  in
the nine month period ended September 30, 2004.

         Our cash balance increased by approximately $520,058 from $1,193,690 as
of December 31, 2002 to  $1,713,748  as of December 31, 2003.  This  increase in
cash was due primarily to the increase in net income.

         The cash flow  provided  by  operating  activities  for the year  ended
December  31,  2003  increased  by   approximately   $901,825  to  approximately
$1,383,597  as compared to the cash of  approximately  $481,772  generated  from
operating  activities for the year ended December 31, 2002. The increase in cash
flow from operating activities was attributed mainly to the increase of $878,982
in net  income.  The cash  out-flow in  accounts  receivable  for the year ended
December  31, 2003  increased  by  $1,434,318  compared to the cash  out-flow of
$356,298 for the prior year,  representing a 402.56% increase. The cash out-flow
in inventory for the year ended December 31, 2003 decreased by $747,223 compared
to the cash out-flow of $1,169,223 for the prior year,  representing a 63.91% of
decrease.  The cash in-flow in VAT  recoverable  for the year ended December 31,
2003 was $117,780  compared to the cash out-flow of $201,194 for the prior year,
representing  a positive  change of  $318,974.  Deferred  revenue  and  accounts
payable were in a net cash  generated  position for the year ended  December 31,
2003,  representing a positive change of approximately  $111,569 and $501,352 as
compared to the prior year.

         The cash flow used in investing  activities for the year ended December
31, 2003 decreased by $322,785 to approximately $259,858 as compared to $582,643
for the prior year,  representing a 55.4% decrease. The decrease in cash used in
investing  activities  was mainly due to the decrease in purchasing of property,
equipment and software.

         The cash flow used in financing  activities for the year ended December
31, 2003 was the same amount provided by financing activities for the prior year
due to the repayment of amounts due to parent incurred in 2003.

         Management  estimates  that we will continue to have positive cash flow
provided by operating  activities in the remaining  three months of 2004. We may
continue to lend money to Sifang  Information  on an as-needed  basis.  However,
management expects to collect certain amounts due form Sifang Information in the
second half of 2004.

         Management  predicts that in the upcoming year, the cash needed for our
growth strategy and related working  capital  requirements  will be derived from
the cash generated from operating activities and financing activities. We intend
to conduct a private  placement to raise  approximate  $5 million from investors
and a  long-term  debt  financing,  as an  alternative  way,  for the purpose of
developing  our new projects and expanding  current  operations,  which focus on
mobile phone distribution and wireless value-added services. No assurance can be
given that we will succeed in our plan of financing.

         The  forecast  of the  period  of  time  through  which  our  financial
resources will be adequate to support operations is a forward-looking  statement
that involves  risks and  uncertainties.  The actual  funding  requirements  may
differ  materially from this as a result of a number of factors  including plans
to fully support our expansion.

Recent Accounting Pronouncements

         In January 2003, the FASB issued FASB  Interpretation  No. 46 (FIN 46),
"Consolidation of Variable Interest  Entities." FIN 46, as amended by FIN 46(R),
issued in January  2003,  requires an investor  with a majority of the  variable
interests  in a  variable  interest  entity to  consolidate  the entity and also
requires majority and significant variable interest investors to provide certain



                                       33


disclosures.  A  variable  interest  entity is an  entity  in which  the  equity
investors do not have a controlling  financial interest or the equity investment
at risk is insufficient  to finance the entity's  activities  without  receiving
additional  subordinated financial support from other parties. The provisions of
FIN 46(R) are  applicable for fiscal years ending after December 15, 2004. We do
not have any variable interest entities that must be consolidated.

Quantitative and Qualitative Disclosures About Market Risk

         Foreign Currency Risk.  Substantially all our revenues and expenses are
denominated  in  Renminbi,  but a portion  of our cash is kept in U.S.  dollars.
Although we believe that,  in general,  our exposure to foreign  exchange  risks
should be limited,  our cash flows and revenues  will be affected by the foreign
exchange rate between U.S. dollars and Renminbi. For example, to the extent that
we need to convert U.S.  dollars into  Renminbi  for our  operational  needs and
should the Renminbi  appreciate  against the U.S.  dollar at that time, our cash
flows would be reduced  which could  materially  adversely  affect our business.
Conversely,  if we decide to convert  our  Renminbi  into U.S.  dollars  for the
purpose of  declaring  dividends on our  ordinary  shares or for other  business
purposes and the U.S. dollar appreciates  against the Renminbi,  the U.S. dollar
equivalent of our earnings from our subsidiaries in China would be reduced.

         We have  experienced  minute foreign  exchange gains or losses to date.
However,  we do not engage in any hedging  activities,  and we may in the future
experience  economic  loss as a result of any  foreign  currency  exchange  rate
fluctuations.



                                    BUSINESS

General

         Our  current  operations  include  providing  value  added  information
services  and  cellular  phone   distribution   through  our  Chinese  operating
subsidiary.

Overview

         Value-Added  Information  Services.  We render value-added  information
services  in  China  by  purchasing  content  from  third-party   providers  and
reformatting that content. Our value-added  information services enable wireless
receiver (mobile phone and pager) users in China to access financial information
and various  entertainment-related  services.  We contract  with our  affiliated
wireless service  providers to transmit the reformatted  content to customers of
China's various network operators.

         The  primary  focus  of  our  value-added  information  services  is on
providing wireless receiver users in China with access to financial information.
We derive the vast majority of our value-added information services revenue from
our financial information business.  Our financial information software,  Sifang
Gutong,  allows our customers to access stock and currency exchange  information
and execute  stock  trades.  We are one of the  largest  stock  information  and
trading value-added information service providers in China.

         We began providing our entertainment-related services, including icons,
screen savers,  multiplayer  games,  Western  horoscopes,  jokes, and sports and
entertainment  news during the latter part of 2003. These services are ancillary
to our financial information services and they represent only a small portion of
our value-added information services revenue at the present time.



                                       34


         Leveraging our experience and understanding of the wireless value-added
services  market  in  China,  we have  consistently  purchased  and  reformatted
content,  applications and technologies that are popular in the Chinese wireless
market. To further enhance and differentiate our services, we have entered into,
and will continue to actively  pursue,  collaborative  relationships  with third
parties to customize, market and provide access to their content through various
wireless technologies to Chinese consumers. In addition, all of our services are
promoted by our sales force and supported by our customer  service team, each of
which is strategically based in Shanghai.

         In order to meet ownership requirements under Chinese law that restrict
us,  as a  foreign  company,  from  operating  in  certain  industries  such  as
value-added  telecommunication  and  Internet  services,  we have  entered  into
information  service and cooperation  agreements with two of our affiliates that
are  incorporated  in the People's  Republic of China:  Sifang  Information  and
Tianci. We hold no ownership  interest in Sifang  Information or Tianci.  Sifang
Information and Tianci contract with China Mobile Communications Corporation, or
China Mobile, and China United Telecommunications  Corporation, or China Unicom,
respectively,  to provide wireless value-added  information services to wireless
receiver  customers  in  China  via  China  Mobile  and  China  Unicom.   Sifang
Information  transmits  those  services to  customers  of China Mobile and China
Unicom on behalf of itself and Tianci  pursuant  to a signed  agreement  between
Sifang Information and Tianci.

         Distribution.   We  primarily   distribute   nine   different   SAMSUNG
Electronics  Co., Ltd., or Samsung,  mobile phone models in the Shanghai,  China
region.  Six of the Samsung models we distribute  are  compatible  with the CDMA
network and three of the Samsung models we distribute  are  compatible  with the
GSM network.  We plan to pre-install  the end-user  portion of our Sifang Gutong
software in all of the Samsung mobile phones we distribute, and market our stock
information,  stock trading, and currency exchange services by placing brochures
touting those services in the packaging of those Samsung mobile phones before we
distribute  the phones to retailers.  We believe this process will increase name
recognition of our financial  information,  stock trading, and currency exchange
services with wireless receiver users.

         There are three main first-tier wholesalers of Samsung phones in China:
Shanghai Taili Communication Equipment Co., Ltd., Shenzhen Tianyin Communication
Development  Co., Ltd., and Guangzhou  Yingtai Data Power  Technology  Co., Ltd.
These   first-tier   wholesalers   contract,   through  local   branches,   with
sub-wholesalers  to  distribute  each Samsung  model in a defined  area. We have
contracts with Shanghai branch offices of the three main first-tier  wholesalers
on whom we rely,  making us a sub-wholesaler  distributor of nine Samsung mobile
phone models in the Shanghai  region.  We sell  approximately  52% of our mobile
phones to three retailers.

Our Business Strategy

         Our  objective is to maintain  and  strengthen  our position  both as a
provider of wireless  value-added  information  services and as a distributor of
mobile phones in the Shanghai region. In order to achieve our objective, we plan
to, among other things,  increase the number of subscribers  to our  value-added
information services by increasing the number of mobile phones we distribute and
pre-installing  those  phones  with the  end-user  portion of our Sifang  Gutong
software. Key strategies for achieving our goal are to:

o        Continue to expand and diversify our portfolio of wireless  value-added
         information services, including new SMS, 2.5G and other next generation
         services such as those compatible with 3G,
o        Increase  investment  in  sales,   marketing  and  branding,   both  in
         conjunction with network operators and through independent  activities,
         in order to promote  customer  awareness  of our  wireless  value-added
         information services in China,
o        Continue to strengthen  our  relationships  with China Mobile and China
         Unicom by  increasing  our sales  presence  at the  national  and local
         levels and through joint marketing and promotion activities,
o        Expand our  marketing  channels  by  continuing  to develop  integrated
         marketing campaigns with traditional media outlets,


                                       35


o        Continue to be a  sub-wholesaler  of Samsung mobile phones and increase
         the number of models of mobile phones that we distribute, and
o        Work on establishing  relationships with new mobile phone manufacturers
         and wholesalers in order to diversify our distribution business.

                      Our Value-Added Information Services

Financial Services

         Our primary focus with regard to  value-added  information  services is
the  provision of financial  information  services  utilizing  our Sifang Gutong
software.  This  software,  developed  by  Chengao,  utilizes  the JAVA and BREW
platforms.  JAVA and BREW utilize the more  advanced 2.5G  technology  standard,
which enables high-capacity wireless data transmissions.  As a result,  services
offered  over these  platforms  are more  sophisticated  and offer users  higher
quality  graphics  and richer  content and  interactivity,  commanding a premium
price over our other  services.  Our Sifang Gutong  software  enables our mobile
phone  and  pager   customers   to  access   quotes  and   retrieve   customized
investment-related   information,  as  well  as  access  our  currency  exchange
information.

         Sifang Gutong  provides our mobile phone and pager  customers  with the
ability to receive  streaming  real-time quotes,  including stocks,  most active
issues,  largest gainers and losers,  and mutual funds for securities trading on
the Shenzhen and Shanghai stock exchanges.  Our Sifang Gutong software available
to mobile phone users includes a stock trading  function that enables our mobile
phone  customers to directly place orders to buy and sell  securities  listed on
the two aforementioned stock exchanges.  Our trading window corresponds with the
hours that  securities  markets are open from 9:30 a.m. to 11:30 a.m.,  and from
1:00 p.m. to 3:00 p.m., Beijing Time.

         We receive a  continuous  direct  feed of detailed  quote data,  market
information  and news. Our customers can create  customized  lists of stocks for
quick access to current  trading  information.  Through our  relationships  with
financial  information  companies such as Shanghai Stock Information Company, we
also provide access to breaking news, charts, market commentary and analysis.

         The value-added  financial information we offer can only be accessed by
a customer on whose  mobile  phone or pager the  end-user  portion of our Sifang
Gutong software has been installed.  We plan to pre-install the end-user portion
of our Sifang  Gutong  software  in all of the  Samsung  mobile  phones  that we
distribute.  With regard to mobile phones and pagers not  distributed  by us, we
will provide  installation  of our Sifang  Gutong  software  free of charge upon
request.

         Pursuant  to the  request of a Beijing  retailer,  we  entered  into an
agreement  with  Chengao and Sifang  Information  whereby  Chengao  installs the
end-user  portion of our Sifang Gutong  software into mobile phones owned by the
retailer.  The retailer  sells these phones at a premium price to consumers.  In
return for the premium price, the consumers receive our value-added  information
services for six months free of charge.  The retailer passes the premium back to
Chengao,  who retains a small  installation fee and then passes the remainder on
to us. This relationship  helps us market our value-added  information  services
and enables us to establish relationships with new customers.

Other Services

         We also provide  icons and screen  savers,  multiplayer  action  games,
Western horoscopes,  jokes and event-driven or entertainment news updates. These
services represent only a small portion of our value-added  information services
revenues  at the present  time.  However,  we believe  that  providing  wireless
receiver users in China access to  entertainment-related  services increases our
ability  to  retain  our  financial  information   subscribers  and  expand  our
subscriber base, and we expect the entertainment-related services portion of our
value-added information services business will grow over time.



                                       36


o        Horoscopes.   With  this  service,   users  can  obtain  daily  Western
         horoscopes via their mobile phones or pagers.         
o        Games. We offer  interactive  SMS, JAVA and WAP-based games that can be
         played on the screens of mobile phones.  These games are designed to be
         easy to play on the dial  pad of a mobile  phone  and to  maximize  the
         graphics available on mobile phone screens.  Our current game offerings
         include our popular titles Ant Kingdom and English Island. Ant Kingdom,
         designed  for the  WAP  platform,  is a  role-playing  game  set in the
         kingdom  of Ant.  Players  begin  play as a  soldier,  and as they gain
         experience  in the game,  gradually  build  their  character  to higher
         levels such as captain,  officer and eventually,  king. The goal of the
         game is to be the king.  In English  Island,  a JAVA-based  educational
         game,  players are given English  words and must spell them  correctly.
         Every  time a  player  spells  a word  correctly,  the  player's  score
         increases.  The faster a player can spell words  correctly,  the higher
         the score he can achieve.
o        Jokes.  We send  users of this  service a variety of jokes on demand or
         via automatic daily messages.
o        News.   We   automatically   send   periodic  SMS  messages  on  recent
         event-driven news, sports (especially  soccer), or entertainment events
         to  subscribers  of this service.  Mobile phone users can also download
         desired  information  on  demand.  We  obtain  our  news  content  from
         government  affiliated  media  companies,  such as XinhuaNet  and other
         local media.

Content Relationships

         Our content  collaborators  authorize the inclusion of their content in
one or more of our value-added information services for a fixed fee which we pay
directly to the provider.  Our agreements with our content collaborators usually
have a  one-year  term,  and  are  non-exclusive.  Currently,  our  key  content
collaborators are:

o        Shanghai Stock Information Company.
o        Xinhua News Agency (Shanghai).
o        Shanghai Wanguo Stock Information Company.
o        Shanghai Yibang Stock Information Company.
o        Shanghai Shiji Stock Information Company.
o        Korea Techall Co., Ltd. (which provides game content).
o        Shanghai Shenfa Software Co., Ltd. (which provides game content).

Marketing Relationships

         Sifang Information and Tianci, our affiliated  value-added mobile phone
service  providers,  have  marketing  relationships  with China Mobile and China
Unicom.  We sell and market our services  principally  through  China Mobile and
China Unicom.  We also sell and market  through Sifang  Information's  Web site,
www.sifang.net,  and promotional events, direct marketing, media advertising and
other activities.

         We are also focused on expanding our  marketing  channels by developing
integrated  marketing campaigns with traditional media outlets and multinational
corporations.  For example, we have been involved in several marketing campaigns
with Motorola  whereby our wireless  value-added  services are promoted in their
in-store  and media  advertising  in China,  and  Motorola  is in turn  promoted
through our services.

         We sell all of our paging value-added  information services through our
affiliated value-added paging service provider, Sifang Information.  We contract
directly with end users to settle all payments  from pager users.  We market our
paging  value-added  information  services  through  traditional  media outlets,
including newspapers and magazines, and directly to end-users.

Operator Channels

         General.  All  of  our  paging  value-added  information  services  are
provided  through the paging  network owned by Sifang  Information.  We contract
directly with the pager users to collect all fees generated from our value-added
information  services.  We have an information service and cooperation agreement
with Sifang  Information  that  provides  us  exclusive  access to their  paging


                                       37


network for ten years. This agreement is automatically  renewable for additional
one  year  terms  unless  we  decide  to  terminate.  All  of our  mobile  phone
value-added  information  services  are provided to mobile phone users by Sifang
Information  through the networks of China Mobile and China Unicom.  Previously,
mobile phone users paid for our services by purchasing  pre-paid services cards.
Now, our services are billed to mobile phone  customers in one of two ways:  (1)
certain of our  customers pay for our services in advance when they purchase our
services  and  a  mobile  phone  together  in a  premium  package  (through  our
relationship with Chengao and Sifang  Information),  and (2) our other customers
(who do not  purchase  our  services as part of any such  premium  package)  are
billed by the mobile operators, who collect the fees for our services, including
both our data  access  and short  message  services,  from  their  mobile  phone
subscribers.  The mobile  operators then pass those fees (net of fees charged by
the mobile operator) to our affiliated  value-added  service  providers,  Sifang
Information and Tianci,  who in turn pass those fees to us in return for a small
fee  pursuant to the terms of  information  service and  cooperation  agreements
between us and each of them.

         Our  management  team utilizes our experience in China to develop close
ties  with  the  key  personnel  of the  mobile  operators  at the  central  and
provincial  levels.  As of September  30, 2004,  we had  approximately  25 sales
professionals strategically located in provinces and municipalities concentrated
in the eastern and  southern  regions of China to work  closely  with the mobile
operators  at the  local  level,  where  pricing  and  important  marketing  and
operational  decisions are made.  Our sales  network  enables us to work closely
with operators to facilitate the approval required for new service offerings and
for related pricing and to enjoy enhanced marketing and promotional  support. We
are also able to gain insight  into  developments  in the local  markets and the
competitive  landscape,   as  well  as  new  market  opportunities.   Our  sales
professionals are well-incentivized; most of their compensation is tied to usage
of our services in the applicable region.

         Coordinated  Marketing  Campaigns.   Our  affiliated  wireless  service
providers  cooperate in marketing  campaigns with China Mobile and China Unicom.
These network operators distribute literature marketing us and our affiliates.

Non-Operator Channels

         We also focus on non-mobile operator sales and marketing activities,
such as:

o        promoting Sifang Information's Web site,  www.sifang.net,  to potential
         users as a fun,  easy-to-access  place to request our wireless  content
         and applications,
o        engaging in direct  marketing  to mobile  phone users by, for  example,
         including  advertising inserts in users' bills from Shanghai Mobile and
         Shanghai Unicom,
o        engaging in direct marketing to stock market investors by, for example,
         including  advertising  inserts  in  investors'  bills  from  brokerage
         companies such as GF Securities Co., Ltd., Guotai Junan Securities Co.,
         Ltd., Everbright Securities Co., Ltd. and Guoxin Securities Co., Ltd.,
o        utilizing our database of users to create targeted marketing campaigns,
o        advertising  in  traditional  media  outlets  such  as  newspapers  and
         magazines, and
o        we plan to pre-install the Samsung mobile phones we distribute with the
         end-user  portion of our Sifang Gutong  software,  and place  brochures
         touting our stock  information,  stock  trading and  currency  exchange
         services in the packaging of those phones,  before distributing them to
         retailers.

Customer Research

         Our sales,  marketing and product development  activities are supported
by our five-member  customer research  department.  This department  focuses our
sales efforts in the following three distinct phases:

         Customer  Acquisition.  Our customer research  department  analyzes the
success rates of various national and local marketing  campaigns in which we are
involved,  including  by user  segment and cost per user,  in order to determine


                                       38


which  campaigns are the most effective.  Using phone surveys,  focus groups and
analyses of usage patterns,  the department also considers demographic and other
market  factors to  identify  product  mixes and  product  categories  which are
suitable for the current market environment.

         Customer  Conversion.  To enhance  our  ability to convert  one-time or
occasional  customers into regular users of our services,  our customer research
department analyzes customer and product churn rates across the market,  average
revenue  per user  data and other  information.  In this  way,  it can  identify
different customer segments and develop targeted  marketing  campaigns for those
segments, including cross-selling and up-selling marketing campaigns.

         Customer Retention.  Our customer research department evaluates ways to
maximize user interest in our services through, for example,  providing feedback
to our  product  developers  to  improve  product  features  based  on  customer
information  and bundling older services with newly launched  services.  It also
creates various reward programs designed to enhance customer loyalty.

Customer Services

         We pride  ourselves in providing  high quality  customer  service.  Our
dedicated customer service center based in Shanghai provides our users real-time
support  and is  staffed by 20  full-time  professionals.  The center  currently
operates  everyday from 7:00 a.m. to 10:00 p.m. We strive to achieve the fastest
response times and highest customer satisfaction levels in the industry.

Competitive Landscape

         There  are  currently  three  broad   categories  of  wireless  service
providers in China:

o        Portal service providers,  which have established expertise in Internet
         content and have  subsequently  branched into mobile space. The portals
         serve as content aggregators offering a variety of wireless value-added
         services.  These national portal operators include Sohu, NetEase, SINA,
         and Tom.com.
o        Dedicated  service  providers,  whose  businesses  focus on  offering a
         variety of wireless content  directly to mobile users.  These providers
         include Linktone, Newpalm and Mtone Wireless.
o        Niche service providers,  which focus on a particular market segment or
         application  that often  builds on a  pre-existing  sector  competency.
         These providers include Tencent, Enorbus, and Solute. We belong in this
         category because of our focus on financial information services.

We may also face competition from international wireless service providers.

As the mobile  operators are becoming more  selective in choosing  their service
providers  to promote  high  quality  content,  ensure  high  levels of customer
service and limit the number of providers with which they have to deal, scale is
becoming  more  important,  and we believe the industry  will likely  experience
consolidation with the leading nationwide providers gaining more market share at
the expense of smaller local  providers.  Nationwide  providers may also acquire
some of their smaller competitors to gain access to local relationships with the
mobile operators in China or new product expertise.




                                       39


                                  Distribution

Our Distribution Operation

         We  distribute  various  mobile  phone  brands in the  Shanghai,  China
region. We distribute mobile phones manufactured  primarily by Samsung, and to a
lesser extent, by Motorola,  Inc.  ("Motorola").  We began distributing Motorola
mobile phones in early 2002 and Samsung mobile phones in November 2002. We began
discontinuing our Motorola mobile phone distribution  business on June 30, 2004.
We will remain a distributor,  for the Shanghai region, of nine different mobile
phone models manufactured by Samsung,  and plan to increase our sales of Samsung
mobile phones.

         Six of the Samsung models we distribute  are  compatible  with the CDMA
network and three of the Samsung models we distribute  are  compatible  with the
GSM network.  We plan to pre-install  the end-user  portion of our Sifang Gutong
software in all of the Samsung mobile phones we distribute, and market our stock
information,  stock trading, and currency exchange services by placing brochures
touting those services in the packaging of those Samsung mobile phones before we
distribute  the phones to retailers.  We believe this process will increase name
recognition  of our  financial  information  and  stock  trading  services  with
wireless receiver users.

         There are three main first-tier wholesalers of Samsung phones in China:
Shanghai Taili Communication Equipment Co., Ltd., Shenzhen Tianyin Communication
Development  Co., Ltd., and Guangzhou  Yingtai Data Power  Technology  Co., Ltd.
These wholesalers  contract,  through local branches,  with  sub-wholesalers  to
distribute  each model in a defined area. We have contracts with Shanghai branch
offices of the three main  first-tier  wholesalers on whom we rely,  making us a
sub-wholesaler  distributor  of nine Samsung mobile phone models in the Shanghai
region. We sell approximately 52% of our mobile phones to three retailers.

         We have rebate  programs with Shanghai  Taili  Communication  Equipment
Co., Ltd. and Shenzhen  Tianyin  Communication  Development Co., Ltd. whereby we
are  credited  a certain  portion of the sales  price we paid to the  first-tier
wholesaler  if we are able to fulfill  certain  sales volume  prescribed by that
first-tier  wholesaler.  As a result, we are entitled to receive certain rebates
and credits for the inventory  held and sold by us within a specified  period of
time as set by the first-tier wholesaler offering the rebate program.

Competition

         We   estimate   that  we  compete   with   between  ten  and  20  other
sub-wholesalers  for the rights to  distribute  Samsung  phones in the  Shanghai
region. The three main competitive factors the wholesalers  consider in granting
a sub-wholesaler the rights to distribute a particular model include:

         Available Cash Flow. Sub-wholesalers must be able to pay for the mobile
phones  they  desire  to  purchase  from  first-tier   wholesalers.   First-tier
wholesalers will be hesitant to grant rights to distribute a particular model to
a sub-wholesaler if that sub-wholesaler does not have sufficient capital to make
large  purchases.  We  believe  that  having  adequate  cash  flow  gives  us  a
competitive advantage.

         Relationships  with  Retailers.  The  wholesalers  look to the types of
relationships  sub-wholesalers  have with large  retailers  when deciding  which
sub-wholesaler  to  utilize.  We have  strong  relationships  with  three  large
retailers in Shanghai and sell  approximately  52% of our mobile phones to these
three retailers.

         Relationships  with Wholesalers.  We have  relationships with the three
major wholesalers of Samsung phones in China and have been  sub-wholesalers  for
those three wholesalers for more than a year.




                                       40


                                    Employees

The following table  summarizes the functional  distribution of our employees as
of December 29, 2003 and 2004:



                                                            December 20,
                              Department              2003                2004
                Business Development                    5                  5
                Customer Research                       5                  5
                Customer Service                       20                  20
                Finance                                 3                  3
                Human Resources                         2                  2
                Investor Relations                      2                  2
                Legal and Administrative                2                  2
                Sales and Marketing                    25                  25
                Product Development                    20                  20
                Technical Support                      10                  10
                                                                          
                Total                                  94                  94
                                                                         
         None of our  personnel  are  represented  under  collective  bargaining
agreements. We consider our relations with our employees to be good.

                                   Facilities

         We currently occupy two office spaces in the Shanghai region.  We lease
the first, located at 429 Guangdong Road,  Shanghai,  People's Republic of China
200001,  for approximately  $41,000 a year,  pursuant to an operating lease that
expires in December 2006. This office space contains our corporate headquarters,
and is approximately  250 square meters under an operating lease that expires in
December 2006. We own the second,  located at 689  Laoshandong  Road,  Shanghai,
People's Republic of China 200120,  which houses our technical team and servers,
and is  approximately  800 square  meters.  We believe we will be able to obtain
adequate facilities,  principally through the leasing of appropriate properties,
to accommodate our future expansion plans.

                                Legal Proceedings

         No legal proceedings have been or are currently being undertaken for or
against the company, nor are we aware of any contemplated proceedings.

                     Wireless Technology Standards in China

         Several  different  wireless  technology  standards have been developed
which  operate at  different  frequencies  with both  analog and  digital  radio
signals.  First generation  wireless telephone systems employ analog technology,
while newer systems  employ digital  technology.  Digital  wireless  technology,
commonly  referred to as second  generation  technology,  or 2G,  multiplies the
number of users  that can be served by the same band of  spectrum  using  analog
technology. The wireless technologies most relevant in China currently include:

o        Global System for Mobile Communications,  or GSM -- initially developed
         in   order   to   facilitate    unification    and    integration    of
         telecommunications  within the  European  Union has  become  widespread
         throughout most Asian  countries.  GSM technology  breaks audio signals
         into sequential  pieces of data of a defined length,  places each piece
         into an information conduit at specific intervals and then reconstructs
         the pieces at the end of the conduit. A key component of the GSM system
         is the SIM card.  Data stored on the card  identifies the subscriber to
         the  mobile  network  as  well  as  the  service  authorized  for  that
         subscriber.  Since the identity of the  subscriber is held on the card,
         any mobile phone can be used in conjunction with the SIM card.
o        Code Division Multiple Access, or CDMA -- a digital technology standard
         which has been used in  commercial  operation  by several  operators in
         certain countries such as the United States and Korea. Unlike GSM, CDMA
         technology is a continuous  transmission technology which uses a coding
         system to mix discrete audio signals  together during  transmission and
         then separates those signals at the end of transmission.



                                       41


         Prior to the commercial  rollout of third generation,  or 3G, networks,
2.5G  technology  standards  have  been  developed  for  both  the GSM and  CDMA
technologies to offer higher data transmission speeds,  enabling the use of more
data intensive products. Current 2.5G wireless technologies include:

o        General  Packet-Switched  Radio Service,  or GPRS -- offers faster data
         transmission  with speeds ranging from 56 kilobits per second, or Kbps,
         to 114 Kbps via a GSM network. GPRS supports a wide range of bandwidths
         and is  particularly  suited for sending and receiving  small bursts of
         data,  such as e-mail  and Web  browsing,  as well as large  volumes of
         data. GPRS also makes it possible for users to make telephone calls and
         transmit data simultaneously.
o        CDMA  1x  RTT  --  an  advanced  CDMA-based   technology  which  allows
         transmission of data at speeds of up to 144 Kbps, compared to a maximum
         of 64 Kbps for second generation CDMA networks.

         3G   represents   several   technology   standards   developed  by  The
International  Telecommunications  Union.  Third generation  technology has been
developed for both the GSM standard and CDMA standard.

         Wireless  value-added  services  can be  offered  through  all of these
technology standards and most commonly include:

o        Short  Messaging  Services,  or SMS -- a service that enables a user to
         send and  receive  text  messages  comprised  of words or numbers or an
         alphanumeric combination. SMS was created when it was incorporated into
         the GSM standard.
o        Wireless Application  Protocol,  or WAP -- a software protocol standard
         that  defines  a  standardized  means  of  transmitting  Internet-based
         content and data to handheld  devices such as mobile  phones and pagers
         with secure  access to e-mail and  text-based  Web pages.  WAP supports
         most wireless networks including GSM and CDMA.
o        Multimedia  Messaging  Services,  or MMS -- a  method  of  transmitting
         graphics,  video  clips,  sound  files and  short  text  messages  over
         wireless networks using the WAP protocol. MMS, however, is not the same
         as e-mail in that MMS is based on the concept of multimedia  messaging.
         An MMS  message  is  coded  so that  the  images,  sounds  and text are
         displayed  in  a   predetermined   order  as  one   singular   message.
         Furthermore, MMS does not support attachments as e-mail does.
o        JAVA -- a general programming environment that creates applications for
         the Internet or any other distributed  networks.  JAVA applications are
         intended to be independent of the hardware platform.








                                       42


                                 Market Overview

Wireless Value-Added Services as a Revenue Driver for the Mobile Operators

         As the wireless  market in China  continues to develop,  an  increasing
portion of the mobile  operators'  users have relatively low per capita incomes.
These  subscribers  generally yield lower levels of average revenue per user, or
ARPU,  because  they are  primarily  users of pre-paid  services.  In  addition,
China's wireless market is becoming increasingly competitive, as demonstrated by
the recent CDMA promotions by China Unicom,  as well as the intra-city  wireless
offerings by China's two fixed-line  operators,  China Telecom and China Netcom,
which  offer  users  limited  mobile  services  within a city based on  Personal
Handyphone  Service or Personal  Access System  technology.  In addition,  China
Telecom,  China Netcom and possibly other parties are expected to be awarded two
wireless  licenses,  although  the timing of such grants is unclear.  Both China
Telecom  and China  Netcom are large,  established  companies  with  significant
assets and the entry by them or other companies into the Chinese wireless market
could  lead to further  competition  among the  mobile  operators.  Due to these
pressures on the traditional  voice-related  businesses of the mobile operators,
SMS and other wireless value-added services have become a key differentiator and
increasingly important driver for the growth prospects of China Mobile and China
Unicom.  We believe  wireless  value-added  services will play a key role in the
mobile operators' competitive positioning when attracting and retaining users as
well as in their efforts to reverse declining ARPU levels.

         Against this competitive backdrop,  the market for wireless value-added
services in China has expanded significantly and is expected to continue to grow
at a fast pace.  Currently,  SMS services  continue to represent the bulk of the
wireless  value-added  services  market in China.  This  market is  increasingly
shifting towards next generation  technologies,  with mobile operators upgrading
their  networks to GPRS and CDMA 1x RTT and users  upgrading to next  generation
mobile  phones that can operate  with  technologies  such as MMS and WAP.  China
Mobile and China Unicom have recognized this  opportunity and are  collaborating
with  select  service   providers,   including  us,  to  further   develop  2.5G
applications and services.

Operators' Wireless Value-Added Services Initiatives in China

         China Mobile was the first to enter the market by introducing a popular
trial SMS program in  connection  with the Sydney  Olympic Games in August 2000.
China Mobile later  established  its  Monternet(TM)  platform in November  2000.
China  Unicom  started  its  Uni-Info  platform in May 2001.  Monternet(TM)  and
Uni-Info  offer  mobile  phone users a single  access point to order and pay for
wireless value-added services.

         From the  inception of  Monternet(TM)  and  Uni-Info,  China Mobile and
China  Unicom have  outsourced  almost all content  and  applications  for their
platforms,  meaning that these  operators,  much like NTT DoCoMo and SK Telecom,
rely almost entirely upon third-party  service  providers to drive their network
traffic,  supply  attractive  wireless  services and increase revenue from their
wireless value-added  services. In turn, the operators focus on the operation of
their networks.  For their part, wireless value-added service providers in China
rely on the two  operators,  China  Mobile  and China  Unicom,  for the  network
distribution  of  their  content  and  services,  billing  and  collection,  and
remittance  of  revenues.   Both   operators   have   established   similar  fee
arrangements.

         In addition to their working  relationships  with  third-party  service
providers,  China's  mobile  operators  will likely form closer  alliances  with
mobile  phone  vendors  in order to  standardize  user  friendly  access  to and
functionality for wireless value-added services in all mobile phones.

                              Government Regulation

         The  following  is a summary  of the  principal  governmental  laws and
regulations that are or may be applicable to wireless service  providers like us
in  China.  The  scope  and  enforcement  of many of the  laws  and  regulations
described  below  are  uncertain.  We  cannot  predict  the  effect  of  further
developments  in the Chinese legal system,  including  the  promulgation  of new
laws,  changes to existing laws or the  interpretation  or  enforcement of laws,
particularly with regard to wireless value-added services,  which is an emerging
industry in China.



                                       43


Regulation of Telecommunication Services

         The telecommunications industry, including certain wireless value-added
services, is highly-regulated in China. Regulations issued or implemented by the
State  Council,  the  Ministry of  Information  Industries,  and other  relevant
government   authorities  cover  many  aspects  of  telecommunications   network
operation,  including entry into the  telecommunications  industry, the scope of
permissible   business   activities,   interconnection   and  transmission  line
arrangements, tariff policy and foreign investment.

         The principal  regulations  governing the  telecommunications  services
business in China include:

o        Telecommunications  Regulations (2000), or the Telecom Regulations. The
         Telecom  Regulations  categorize all  telecommunications  businesses in
         China  as  either  infrastructure   telecommunications   businesses  or
         value-added telecommunications businesses. The latter category includes
         SMS  and  other  wireless  value-added  services.   Under  the  Telecom
         Regulations,  certain services are classified as being of a value-added
         nature and require the  commercial  operator of such services to obtain
         an operating license, including telecommunication information services,
         online data  processing and  translation  processing,  call centers and
         Internet  access.  The  Telecom  Regulations  also set forth  extensive
         guidelines  with  respect to  different  aspects of  telecommunications
         operations in China.
o        Regulations    for    the     Administration    of     Foreign-Invested
         Telecommunications  Enterprises (2002), or the FI Telecom  Regulations.
         The FI Telecom Regulations set forth detailed requirements with respect
         to capitalization,  investor  qualifications and application procedures
         in connection  with the  establishment  of a  foreign-invested  telecom
         enterprise.  Under the FI  Telecom  Regulations,  a  foreign  entity is
         prohibited  from  owning  more  than  50% of the  total  equity  in any
         value-added  telecommunications  business in China,  subject to certain
         geographic limitations.
o        Administrative  Measures  for  Telecommunications   Business  Operating
         License  (2001),  or the Telecom  License  Measures.  Under the Telecom
         License Measures,  an approved value-added  telecommunications  service
         provider   must   conduct   its   business  in   accordance   with  the
         specifications recorded on its Telecom Business Operating License.

         In addition to  regulations  promulgated  at the national  level by the
Chinese  government,  the Shanghai  municipal  government has issued provisional
regulations  requiring SMS service providers to obtain licenses from or register
with the local Ministry of Information Industries branch office before providing
SMS  service  within the city.  At this time,  it is  unclear  whether  national
regulations will be promulgated regulating SMS services.

         Our affiliates,  Sifang Information and Tianci, each have a value-added
telecommunication   services   license   issued   by  the   Shanghai   Municipal
Telecommunications  Administration  Bureau,  which is the  local  office  of the
Ministry  of  Information  Industries.  They are  each  also in the  process  of
applying for an inter-provincial value-added  telecommunication license with the
Ministry of Information Industries.

Other Laws and Their Application

         Regulation  of Internet  Content  Services.  As a wireless  value-added
information services provider,  we do not engage in the Internet portal business
which typically  involves the provision of extensive  Internet content services,
including  Chinese language Web navigational  and search  capabilities,  content
channels,  web-based  communications  and community  services and a platform for
e-commerce,  such as auction  houses.  Sifang  Information  registered  with the
Shanghai  Telecommunication  Administration  Bureau in  January  2001 to provide
commercial services at the www.sifang.net Web site.



                                       44


         As a commercial ICP provider,  Sifang  Information  is prohibited  from
posting or displaying any content that:

o        opposes the fundamental principles determined in China's Constitution;
o        compromises  state  security,  divulges state  secrets,  subverts state
         power or damages national unity;
o        harms the dignity or interests of the state;
o        incites ethnic hatred or racial  discrimination or damages inter-ethnic
         unity;
o        sabotages China's religious policy or propagates heretical teachings or
         feudal superstitions;
o        disseminates   rumors,   disturbs   social  order  or  disrupts  social
         stability;
o        propagates obscenity,  pornography,  gambling, violence, murder or fear
         or incites the commission of crimes;
o        insults or slanders a third party or infringes  upon the lawful  rights
         and interests of a third party; or
o        includes   other   content   prohibited   by  laws  or   administrative
         regulations.

Failure to comply  with these  prohibitions  may result in the closing of Sifang
Information's Web site.

         Regulation of News  Dissemination  through SMS Services.  Pursuant to a
circular issued by the Shanghai Communications  Administration,  distribution of
news content through wireless applications like SMS must be approved by relevant
government  agencies.  Both Sifang  Information  and Tianci  have all  necessary
approvals.

         Regulation of Advertisements.  The State Administration of Industry and
Commerce,  or the SAIC, is the  government  agency  responsible  for  regulating
advertising  activities  in  China.  The  SAIC has not  promulgated  regulations
specifically  aimed at  wireless  advertising  through  a media  other  than the
Internet,  such as through SMS services.  One provisional  regulation  issued by
Shanghai  municipal  government  prohibits  service  providers  from sending SMS
advertisements without the client's consent.

         As  part  of our  non-mobile  operator  marketing  activities,  we have
developed  integrated marketing campaigns with traditional media outlets such as
magazines  and  newspapers  and  multinational   corporations   through  certain
cross-selling  efforts with companies,  including  Motorola and Samsung.  If the
SAIC were to treat our  integrated  marketing  campaigns or other  activities as
being  advertising  activities,  we would need to apply to the local SAIC for an
advertising license to conduct wireless  advertising business (through SMSs, for
example).  We can give no assurance that such  application  would be approved by
the SAIC.  Failure to obtain such approval  could result in penalties  including
being banned from engaging in online  advertising  activities,  confiscation  of
illegal earnings and fines.

         Foreign Exchange Controls.  The principal regulations governing foreign
exchange in China are the Foreign  Exchange Control  Regulations  (1996) and the
Administration of Settlement,  Sale and Payment of Foreign Exchange  Regulations
(1996),  or  the  Foreign  Exchange  Regulations.  Under  the  Foreign  Exchange
Regulations,  Renminbi is freely  convertible  into foreign currency for current
account items,  including the distribution of dividends.  Conversion of Renminbi
for  capital  account  items,  such as direct  investment,  loans  and  security
investment,   however,   is  still   subject  to  the   approval  of  the  State
Administration of Foreign Exchange, or SAFE.

         Under the Foreign Exchange  Regulations,  foreign-invested  enterprises
are required to open and maintain separate foreign exchange accounts for capital
account  items  (but  not  for  other  items).  In  addition,   foreign-invested
enterprises  may only buy, sell and/or remit  foreign  currencies at those banks
authorized to conduct foreign exchange business after providing valid commercial
documents  and,  in the case of capital  account  item  transactions,  obtaining
approval from SAFE.

Intellectual Property and Proprietary Rights

         We rely primarily on a combination  of copyright  laws and  contractual
restrictions  to establish  and protect our  intellectual  property  rights.  We
require  our  employees  to  enter  into  agreements   requiring  them  to  keep
confidential all information  relating to our customers,  methods,  business and



                                       45


trade  secrets  during and after their  employment  with us. Our  employees  are
required to acknowledge and recognize that all inventions,  trade secrets, works
of authorship,  developments and other  processes,  whether or not patentable or
copyrightable,  made by them during their employment are our property. They also
sign agreements to substantiate  our sole and exclusive right to those works and
to transfer any ownership that they may claim in those works to us.

         While we actively take steps to protect our  proprietary  rights,  such
steps may not be adequate to prevent the infringement or misappropriation of our
intellectual property. This is particularly the case in China where the laws may
not  protect  our  proprietary   rights  as  fully  as  in  the  United  States.
Infringement or misappropriation  of our intellectual  property could materially
harm our business.  Sifang Information has registered the following Internet and
WAP domain name www.sifang.net.

         Shanghai Sifang  Communication  Company  ("Sifang  Communication")  has
registered one trademark with China's  Trademark  Office.  That trademark is our
logo,  a square (the  English  translation  of "Sifang"  is  "square").  China's
trademark law utilizes a "first-to-file"  system for obtaining trademark rights.
As a result,  the first applicant to file an application  for  registration of a
mark will preempt all other applicants.  Prior use of unregistered marks, except
"well known" marks,  is generally not a basis for legal action in China.  We may
not be able to  successfully  defend or claim any legal rights in any trademarks
for which we apply in the future.

         Pursuant  to  a  license  agreement   between  our  affiliate,   Sifang
Communication,  and us, we have the right to use our registered  trademark,  our
square logo,  whenever necessary.  We also acquired all of Sifang  Information's
interest in the Sifang Gutong software  pursuant to the terms of the spin-off of
Sifang  Information's  business  divisions  focusing on value-added  information
services and  distribution  of mobile phones.  We have the right to use the word
"Sifang" and to market ourselves through  www.sifang.net  with regard to both of
the spun-off divisions.

         Many parties are actively  developing and seeking patent protection for
wireless services-related  technologies.  We expect these parties to continue to
take steps to protect these  technologies,  including seeking patent protection.
There may be patents  issued or  pending  that are held by others and that cover
significant parts of our technology, business methods or services. Disputes over
rights to these  technologies  are likely to arise in the  future.  We cannot be
certain that our products do not or will not infringe valid patents,  copyrights
or other intellectual  property rights held by third parties.  We may be subject
to legal  proceedings and claims from time to time relating to the  intellectual
property of others.











                                       46


                        DIRECTORS AND EXECUTIVE OFFICERS

         The following table provides  information about our executive  officers
and directors and their respective ages and positions as of January 3, 2005. The
directors  listed  below will serve until the next  annual  meeting of the China
Digital Wireless stockholders:

Name                     Age          Positions Held
----                     ---          --------------
                                      
Tai Caihua               47           Director, President, Chairman of the Board
Shi Ying                 44           Director
Huang Tianqi             32           Director, Chief Technology Officer
Jing Weiping             40           Director
Mao Ming                 42           Director
Song Jing                28           Director
Fu Sixing                43           Director, Chief Executive Officer
Yu Ruijie                41           Director
Zhang Xiaodong           36           Director
Huang Wei                41           Director
Lu Qin                   35           Chief Financial Officer
                                     

         Tai  Caihua  has  served  as our  president,  chairman  of our board of
directors  and a member of our board of directors  since June 23, 2004.  Mr. Tai
has been (i) the  president  and sole  director of our wholly owned  subsidiary,
Sifang Holdings, since February 2004; (ii) chairman of the board of directors of
Sifang Holdings' wholly owned subsidiary,  TCH, since our inception in May 2004;
(iii)  director and general  manager of Shanghai  Tianci  Industry  (Group) Co.,
Ltd.,  one of our  affiliates,  since January 1994 and (iv) a director of Sifang
Information, one of our affiliates, since December 2001. Mr. Tai holds a Masters
of Business Administration from the Macau University of Science and Technology.

         Shi Ying has  served as a member of our board of  directors  since June
24, 2004.  Ms. Shi has been the head of operations  and a member of the board of
directors of TCH since our  inception in May 2004.  For the past eight years she
headed the operations  department of Sifang Information.  Ms. Shi graduated from
the Shanghai Sports College with a Bachelors degree.

         Huang Tianqi has served as our chief technology  officer since June 23,
2004 and a member of our board of directors  since June 24, 2004.  Mr. Huang has
served as chief technology officer of Sifang Holdings and vice-general  manager,
chief technology officer and a director of TCH since their inception in February
2004 and May 2004,  respectively.  Mr.  Huang  also  serves as the  vice-general
manager and a member of the board of  directors  of Sifang  Information.  Before
becoming  vice-general  manager,  Mr. Huang was the chief technology  officer at
Sifang  Information for seven years. Mr. Huang graduated from Nanjing University
of Posts and  Telecommunications  with a Bachelors Degree and from Shanghai Jiao
Tong University with a Masters of Science Degree.

         Jing  Weiping  has served as a member of our board of  directors  since
June 24, 2004.  Mr. Jing has served as a member of the board of directors of TCH
since our  inception in May 2004 and as a Director of Sifang  Information  since
2001. Mr. Jing served as the manager of the technology  assurance  department of
Sifang  Information  for the past nine years.  Mr. Jing  received his  Bachelors
Degree from Dong Hua University.

         Mao Ming serves as a member of our board of  directors.  He was elected
to our board of directors June 24, 2004. He has been (i) the general manager and
a member of the board of directors of TCH since our  inception in May 2004;  and
(ii) the  general  manager and a director of Sifang  Information  since  January
1998.  Mr. Mao  graduated  from China PLA  Measurement  College with a Bachelors
Degree and from the Macau University of Science and Technology with a Masters of
Business Administration.



                                       47


         Song Jing has served as a member of our board of  directors  since June
24, 2004. Mr. Song has served as vice-general  manager and a member of the board
of  directors of TCH since our  inception in May 2004 and as general  manager of
Shanghai Shan Tian  Telecommunication  Co.,  Ltd.,  an affiliate of ours,  since
November 2003.  Previously,  Mr. Song served as director and general  manager of
Shanghai Zhong Si Hua Hao Co., Ltd. for one year and assistant  general  manager
of both  Shanghai Hua Si Trading Co.,  Ltd. and Shanghai Qi Shi Trading Co., Ltd
for five years.

         Fu Sixing has served as our chief executive officer since June 23, 2004
and a member of our board of directors since June 24, 2004. Mr. Fu has served as
executive  manager  of  Sifang  Holdings  and as the  head of the  research  and
development  department and a director of TCH since their  inception in February
2004 and May 2004,  respectively.  For the past seven years,  Mr. Fu was (i) the
assistant to general manager of Shanghai Tianci Industry (Group) Co., Ltd.; (ii)
a director and the general  manager of Shanghai  Sifang Health  Technology  Co.,
Ltd.  and  directorate  secretary  of  Sifang  Information.  Mr. Fu  received  a
Bachelors  of Science in Physics from  Nanjing  University,  a Masters of Social
Science in Economics from Huadong Normal  University and a Doctorate of Business
Administration from the University of Southern California.

         Yu Ruijie has served as a member of our board of  directors  since June
24, 2004. Mr. Yu has served (i) as head of the Systems Department and a director
of TCH  since  our  inception  in May 2004  and (ii) as the head of the  Systems
Department of Sifang Information since January 1994. Mr. Yu received a Bachelors
Degree in Computer Science from Shanghai University of Engineering Science.

         Zhang  Xiaodong has served as a member of our board of directors  since
June 24,2004.  Mr. Zhang has served as the head of the projection  department of
TCH since our inception in May 2004. Mr. Zhang also serves as a director and the
head of the  projection  department  of  Sifang  Information.  For the past nine
years, Mr. Zhang served as head of the wireless engineering department at Sifang
Information.  Mr. Zhang  graduated  from  Shanghai Jiao Tong  University  with a
Bachelors  Degree and  received a Masters  Degree from the Macao  University  of
Science and Technology.

         Huang Wei has served as a member of our board of  directors  since June
24, 2004. Mr. Huang has served as (i) the vice-general  manager of TCH since our
inception  in May 2004 and (ii)  vice-general  manager  and a director of Sifang
Information.  since 1993.  Ms. Huang  graduated  from Nanjing  University of Air
Force and Politics with a Bachelors Degree in Logistics.

         Lu Qin has served as our Chief  Financial  Officer since June 23, 2004.
Ms. Lu has served as the (i) head of the accounting department of TCH and Sifang
Information  since  May 2004 and April  1998,  respectively  and (ii)  financial
controller  of Sifang  Holdings  since  February  2004.  Ms. Lu  graduated  from
Shanghai Television  University with a Bachelors Degree in Financial  Accounting
and is a Certified Public Accountant.

Board Composition and Committees

         The board of directors is currently composed of ten members,  including
Tai Caihua,  Song Jin, Shi Ying, Mao Ming, Fu Sixing,  Huang Tianqi,  Huang Wei,
Jing  Weiping,  Yu Ruijie and Zhang  Xiaodong.  All Board  action  requires  the
approval of a majority of the  directors in  attendance  at a meeting at which a
quorum is present.

         We currently do not have standing  audit,  nominating  or  compensation
committees.   We  intend,  however,  to  establish  an  audit  committee  and  a
compensation  committee  of the board of directors  as soon as  practicable.  We
envision that the audit  committee will be primarily  responsible  for reviewing
the services  performed by our independent  auditors,  evaluating our accounting
policies and our system of internal controls. The compensation committee will be
primarily  responsible  for  reviewing  and  approving  our salary and  benefits
policies  (including  stock  options),   including   compensation  of  executive
officers.



                                       48


Director Compensation

         We do not pay our directors a fee for  attending  scheduled and special
meetings of our board of directors. We do reimburse each director for reasonable
travel expenses related to such director's  attendance at board of directors and
committee meetings.

Indebtedness of Directors and Executive Officers

         None of our  directors or officers or their  respective  associates  or
affiliates is indebted to us.

Family Relationships

         Except as set forth herein, there are no family relationships among our
directors or officers.  Mr. Tai Caihua,  President  and a member of our Board of
Directors is married to Ms. Shi Ying, a member of our Board of Directors and Ms.
Ying is also a sibling of Huang Wei, a member of our Board of Directors.

Executive Compensation

         The  following   Summary   Compensation   Table  sets  forth  all  cash
compensation  paid to our chief executive  officer for services  rendered in all
capacities to the company during the noted periods.  No other executive officers
received salary and bonus compensation in excess of $100,000 during fiscal 2003.

                           Summary Compensation Table

                                                                  Securities
 Name and Principal Underlying                                    Underlying
          Positions                       Year       Salary        Options
--------------------------------          ----       ------       ----------
Tai Caihua (1)
President/Chairman of the Board           2004       $2,416           --
Timothy P. Halter (2)
Chief Executive Officer/Director          2004        $-0-         131,722

Glenn Little (3)                          2004        $-0-            --
Chief Executive Officer/Director          2003        $-0-            --
                           
------------------------
(1)      Began  service as an officer and  director of the Company in June 2004.
         Reported salary information is as of August 31, 2004.
(2)      Appointed Chief  Executive  Officer in February 2004 and resigned as an
         officer and director of the Company in June 2004.
(3)      Resigned as an officer and director of the Company in March 2004.

















                                       49


                             PRINCIPAL STOCKHOLDERS

         The  following  table  sets  forth,  as of  January  3,  2005,  certain
information with respect to the beneficial  ownership of our common stock by (i)
each  director  and officer of China  Digital,  (ii) each person  known to China
Digital to be the  beneficial  owner of five percent or more of the  outstanding
shares of common stock of China Digital, and (iii) all directors and officers of
China  Digital  as a group.  Unless  otherwise  indicated,  the person or entity
listed  in the  table  is the  beneficial  owner  of,  and has sole  voting  and
investment  power  with  respect  to, the shares  indicated.  Certain  principal
stockholders are selling stockholders in this offering.

                                   Amount and Nature of Beneficial Ownership (1)
                                   ---------------------------------------------
                                          Number              Percent of
Name of Beneficial Owner               of Shares (2)        Voting Stock (3)
------------------------               -------------        ----------------    
Tai Caihua (4)                          11,301,764               66.4%
Shi Ying (5)                            11,301,764               66.4%
Halter Financial Group, Inc. (6)        1,271,287                 7.5%
Chinamerica Fund, LP                     877,193                  5.2%
Mao Ming                                 413,480                  2.4%
Song Jing                                413,480                  2.4%
Huang Tianqi                             275,652                  1.6%
Jing Weiping                             275,652                  1.6%
Fu Sixing                                275,652                  1.6%
Yu Ruijie                                275,652                  1.6%
Zhang Xiaodong                           275,652                  1.6%
Huang Wei                                275,652                  1.6%

Directors and executive officers 
as a group (10 persons)               13,782,636                 81.0%
------------------------
(1)      On January  3, 2005,  there  were  17,018,692  shares of China  Digital
         Wireless  common  stock  outstanding.  Each person named below has sole
         investment  and voting  power with  respect to all shares of our common
         stock shown as  beneficially  owned by the person,  except as otherwise
         indicated below.
(2)      Under  applicable  rules   promulgated  by  the  SEC  pursuant  to  the
         Securities  Exchange Act of 1934,  as amended,  or the Exchange  Act, a
         person is deemed the  "beneficial  owner" of a security  with regard to
         which the person, directly or indirectly,  has or shares (a) the voting
         power,  which  includes  the power to vote or direct  the voting of the
         security,  or (b) the  investment  power,  which  includes the power to
         dispose  or  direct  the  disposition  of the  security,  in each  case
         irrespective of the person's economic  interest in the security.  Under
         these SEC  rules,  a person is deemed to  beneficially  own  securities
         which the person has the right to acquire  within 60 days  through  (x)
         the exercise of any option or warrant or (y) the  conversion of another
         security.
(3)      In  determining  the percent of our common  stock owned by a person (a)
         the numerator is the number of shares of our common stock  beneficially
         owned by the person, including shares the beneficial ownership of which
         may be acquired within 60 days upon the exercise of options or warrants
         or conversion of convertible securities, and (b) the denominator is the
         total of (i) the 17,018,692  shares of our common stock  outstanding on
         January  3, 2005 and (ii) any  shares  of our  common  stock  which the
         person has the right to  acquire  within 60 days upon the  exercise  of
         options or warrants or conversion of  convertible  securities.  Neither
         the numerator nor the  denominator  include  shares which may be issued
         upon the exercise of any other options or warrants or the conversion of
         any other convertible securities.
(4)      Includes  1,791,743  shares held by Mr. Tai's wife,  Shi Ying.  Mr. Tai
         disclaims beneficial ownership of those shares.
(5)      Includes  9,510,021 shares held by Ms. Shi's husband,  Tai Caihua.  Ms.
         Shi disclaims beneficial ownership of those shares.
(6)      Includes  116,720  shares held by Timothy P. Halter,  the president and
         sole stockholder of Halter Financial Group, Inc.



                                       50


              CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

         On  June  1,  2004,  we  entered  into  two  information   service  and
cooperation agreements with Sifang Information,  and one information service and
cooperation  agreement  with  Tianci.  Pursuant  to  those  agreements,   Sifang
Information and Tianci transmit all of our value-added  information  services to
customers of China's various  wireless  receiver  networks.  The agreements have
ten-year terms and we pay each of Sifang  Information  and Tianci a fee based on
the  costs  the two  companies  incur for the  transmission  of our  reformatted
content.  During the nine months ended  September  30,  2004,  we paid to Sifang
Information  $425,879 for transmitting  value-added  information  pursuant to an
information  service and  cooperation  agreement  between the Company and Sifang
Information.

         During the normal course of our business, we incurred debt from related
parties and loaned money to related parties,  including Sifang Information,  for
financing purposes.  In 2002, we borrowed funds from Sifang Information to start
our mobile phone  distribution  business.  At December 31, 2002, the outstanding
balance of the loan was $604,062,  and interest expense incurred on the borrowed
amount was $36,245. During 2003, we paid off all outstanding balances and loaned
certain  amounts to Sifang  Information,  which  amounts  were  repaid by Sifang
Information before year end. We continued to borrow funds from and lend funds to
Sifang Information,  however, as of December 31, 2003, all such amounts had been
repaid.  Interest expense  incurred on amounts borrowed from Sifang  Information
for the year ended December 31, 2003 was $12,082.

         We advanced  $966,522 to Sifang  Information for financing  purposes on
March 28, 2004. At March 31, 2004,  the  outstanding  principal  amount due from
Sifang  Information  was  $966,522  and  interest  income  on  that  amount  was
immaterial  because the amount was  advanced  at the end of March  2004.  Sifang
Information  repaid us the entire amount  advanced,  plus interest,  on June 29,
2004.

         We  purchased a building  located at 689  Laoshandong  Road,  Shanghai,
People's  Republic  of China  200120,  from our  related  party,  Shanghai  Fude
Industry  Co., for a price of $910,925.  This  building now houses our technical
team and our servers.

         On June 30, 2004, TCH signed an agreement with Sifang  Information  Co.
Ltd. for  developing a smart card  information  system related to citizen health
and  exercise.  This project is approved by the Shanghai  Municipal  Government.
Pursuant to the signed  agreement,  Sifang  Information  will develop smart card
information  system  in  terms  of  the  specifications   contained  the  design
blueprint.  This  card  can be used  for  accessing  gym  facilities  and  other
approved,  related health  facilities under the program.  In accordance with the
financial terms of the signed  agreement,  Sifang  Information will take care of
expenses related to the smart card marketing and related  customer  after-market
services.  TCH will take care of  expenses  related to the  detailed  smart card
information  system design and development,  hardware and software  maintenance,
and related  information  service.  In return,  TCH is entitled to share a major
portion of the future revenue  generated by this smart card information  system.
In order to initiate this project,  TCH gave Sifang Information a line of credit
of up to RMB20,000,000  (equivalent  approximately $2,418,000) for financing its
market promotion and penetration and deployment,  with an interest rate based on
the market  interest  rate (at  September  30, 2004 the  interest  rate was 5%),
interest  payable  monthly and principal to be repaid by Sifang  Information  no
later  than  June  30,  2006   resulting  in  an  estimated   total  expense  of
approximately  RMB22,800,000  (equivalent of $2.7 million).  The  aforementioned
$2.4  million  includes  the  outstanding  balance of amounts due from Sifang of
$2,140,607  as of  September  30,  2004.  The  interest  income  incurred on the
outstanding  balance  due from  Sifang  Information  for the nine  months  ended
September  30,  2004 was $  30,205,  based on 5% as the  annual  interest  rate.
Currently,  TCH is  engaging  in the  process  of  designing  the  sophisticated
software for the card information  system and preparing for the operating of the
related hardware.

         In the beginning of the third quarter of 2004, TCH had not obtained all
necessary  government  issued VAT invoices.  As such,  TCH was  prohibited  from
selling  cellular  phones to third parties.  In lieu, TCH sold Samsung and other
brand GSM and CDMA  mobile  phones to  Shantian  and  Sifang  Information  , two
related  parties.  As of  September  30, 2004 the  accounts  receivable  (trade)
balance due from Shantian and Sifang Information was $2,177,459.

         During the nine months ended  September  30, 2004,  we sold Samsung and
other GSM mobile  phones valued at  $10,512,821  including a 3.6% mark-up to the
Shanghai  Shantian  Telecommunication  Technology  Inc.  (Shantian)  and  Sifang
Information,  each a  related  party.  As of  September  30,  2004 the  accounts
receivable (trade) balance due from these parties was $2,177,459.

         On February 23, 2004, we sold 987,915 shares of restricted common stock
for gross proceeds of $300,000,  pursuant to a subscription agreement, to Halter
Financial Group,  Inc., an entity owned by Timothy P. Halter, a former member of
the  Board of  Directors  and the  Company's  former  Chief  Executive  Officer.
Additionally,  in consideration for agreeing to serve as an officer and director
of the  Company,  Timothy P.  Halter was  granted a warrant  to  purchase  up to
131,722 shares of common stock of the Company. The warrant was exercised on June
14, 2004, and we received gross proceeds of $40,000 upon exercise.



                                       51


         On February  23, 2004,  we agreed to pay Little and Company  Investment
Securities,  an  entity  owned  by  Glenn  A.  Little,  our  former  controlling
stockholder,  officer and director,  $30,000 in  consulting  fees related to the
transaction  discussed  in  the  previous  paragraph  and in  consideration  for
maintaining  the corporate  entity.  To formalize this  obligation,  we issued a
$30,000  non-interest  bearing  promissory  note  maturing on February 23, 2005.
Concurrent  with the  transaction  discussed in the previous  paragraph,  we and
Little and Company Investment  Securities executed an Exchange Agreement whereby
we issued  98,792  shares of common  stock in  satisfaction  of the  outstanding
promissory note.

         On June 23,  2004,  we entered  into a Stock  Purchase  Agreement  with
Halter Financial Group,  Inc. pursuant to which we sold 166,667 shares of common
stock of the Company in  exchange  for  $190,000.  Timothy P. Halter is the sole
stockholder and President of Halter Financial Group,  Inc. Pursuant to the Stock
Purchase  Agreement,  we granted to Halter  Financial  Group,  Inc. an option to
require  the Company to  purchase  up to 166,667  shares of common  stock of the
Company at a price of $1.14 per share, such option being exercisable at any time
after  the date  that is six  months  after  the  Company  files a  registration
statement on Form SB-2 with the SEC,  registering the shares purchased by Halter
Financial  Group,  Inc.,  up to and  including the earlier of the date that such
registration  statement  is declared  effective  by the SEC or Halter  Financial
Group, Inc.'s shares are eligible for resale under Rule 144 under the Securities
Act of 1933.

                        DESCRIPTION OF OUR CAPITAL STOCK

         The  following  description  is a summary of the material  terms of our
capital  stock.  This summary is subject to and qualified in our entirety by our
Articles  of  Incorporation,  as  amended,  and  Bylaws as  amended,  and by the
applicable provisions of Nevada law.

         The  authorized  capital stock of the company  consists of  100,000,000
shares of common stock, having a par value of $0.001 per share.

         Common  Stock.  Each  outstanding  share of common  stock  entitles the
holder  thereof  to  one  vote  per  share  on  all  matters.  The  Articles  of
Incorporation  do not permit  cumulative  voting for the election of  directors,
which means that the holders of more than 50% of such outstanding  shares voting
for the election of directors can elect all of the  directors to be elected,  if
they so choose;  in such event,  the holders of the remaining shares will not be
able to elect any of our directors.  Stockholders do not have preemptive  rights
to purchase shares in any future issuance of our common stock.

         The holders of shares of our common stock are entitled to dividends out
of funds legally  available when and as declared by our board of directors.  Our
board of directors has not declared a dividend  during the two preceding  fiscal
years or during  calendar 2004 and does not  anticipate  declaring a dividend in
the foreseeable  future. In the event of liquidation,  dissolution or winding up
of the affairs of the company, holders are entitled to receive, ratably, the net
assets available to stockholders after payment of all creditors.

         All of the issued and  outstanding  shares of our common stock are duly
authorized,  validly issued, fully paid, and non-assessable.  To the extent that
additional  shares of our common  stock are issued,  the  relative  interests of
existing stockholders will be diluted.

         Transfer Agent and Registrar. Our transfer agent is Securities Transfer
Corporation, 2591 Dallas Parkway, Suite 102, Frisco, Texas 75034.



                                       52




                              SELLING STOCKHOLDERS

         The  following  table sets forth the names of the selling  stockholders
and  for  each  selling  stockholder  the  number  of  shares  of  common  stock
beneficially  owned as of  December  20,  2004,  and the number of shares  being
registered.  All information  with respect to share ownership has been furnished
by the selling  stockholders.  The shares being offered are being  registered to
permit public secondary  trading of the shares and each selling  stockholder may
offer all or part of the shares  owned for resale  from time to time.  A selling
stockholder  is under no  obligation,  however,  to sell any shares  immediately
pursuant to this prospectus,  nor is a selling stockholder obligated to sell all
or any portion of the shares at any time. Therefore, no estimate can be given as
to the  number  of shares of common  stock  that will be sold  pursuant  to this
prospectus  or  the  number  of  shares  that  will  be  owned  by  the  selling
stockholders upon termination of the offering made hereby.

                                                                                       Percentage 
                                      Shares of                        Shares of       Owned Upon 
                                    Common Stock     Percentage      Common Stock     Completion of 
   Selling Stockholders                Owned            Owned      to be Registered     Offering
                                                                          

Halter Financial Group, Inc.         1,154,567           6.8          1,154,567            -0-
John Zhang                             167,895            *             167,895            -0-
Marat Rosenberg                         57,367            *              34,367         38,000
Little & Company Investment                                                            
Securities                             192,259           1.1             64,763            *
Gary Evans                             175,439           1.0            175,439           -0-
Chinamerica Acquisition,                                                               
LLC                                    263,157           1.5            263,157           -0-
Chinamerica Fund, LP                   877,193           5.2            877,193           -0-
                                                                                    
* Indicates less than 1%                                                


                         SHARES ELIGIBLE FOR FUTURE SALE

         Upon  completion of the  offering,  we will have  17,018,692  shares of
common stock  outstanding.  A current  stockholder  who is an "affiliate" of the
company, defined in Rule 144 as a person who directly, or indirectly through one
or more  intermediaries,  controls,  or is  controlled  by,  or is under  common
control  with,  the  company,  will  be  required  to  comply  with  the  resale
limitations of Rule 144.

         Purchasers of shares in the offering, other than affiliates, may resell
their shares immediately.  Sales by affiliates will be subject to the volume and
other  limitations of Rule 144,  including  certain  restrictions  regarding the
manner of sale,  notice  requirements,  and the  availability  of current public
information  about the  company.  The  volume  limitations  generally  permit an
affiliate to sell,  within any three month period,  a number of shares that does
not exceed the greater of one percent of the outstanding  shares of common stock
or the average weekly  trading  volume during the four calendar weeks  preceding
his sale. A person who ceases to be an  affiliate  at least three months  before
the sale of restricted securities  beneficially owned for at least two years may
sell the restricted  securities under Rule 144 without regard to any of the Rule
144 limitations.

                              PLAN OF DISTRIBUTION

         The 2,737,381  shares being offered by the selling  stockholders may be
sold or  distributed  from  time to time by the  selling  stockholders  or their
transferees  directly to one or more purchasers or through brokers,  dealers, or
underwriters  who may act solely as agents or may acquire  shares as principals.
Such sales or distributions  may be made at prevailing  market prices, at prices
related to such  prevailing  market  prices,  or at variable  prices  negotiated
between the sellers and purchasers that may vary. The distribution of the shares
may be effected in one or more of the following methods:

o        ordinary brokerage transactions, including long or short sales,
o        transactions  involving cross or block trades,  or otherwise on the OTC
         Bulletin Board,
o        purchases  by brokers,  dealers,  or  underwriters  as  principals  and
         subsequent  resale by the purchasers for their own accounts pursuant to
         this prospectus,
o        sales "at the market" to, or through, market makers or into an existing
         market for the shares,


                                       53


o        sales not  involving  market  makers or  established  trading  markets,
         including direct sales to purchasers or sales effected through agents,
o        transactions  involving options,  swaps, or other derivatives,  whether
         exchange-listed or otherwise, or
o        transactions  involving any  combination  of the foregoing or any other
         legally available means.
         
         In addition,  a selling stockholder may enter into hedging transactions
with one or more  broker-dealers  who may engage in short sales of shares in the
course of hedging the  positions  they assume  with the selling  stockholder.  A
selling  stockholder may also enter into options or other  transactions with one
or  more   broker-dealers   requiring   the  delivery  of  the  shares  by  such
broker-dealers  with the possibility  that such shares may be resold  thereafter
pursuant to this prospectus.

         A  broker,   dealer,   underwriter,   or  agent  participating  in  the
distribution  of the shares may receive  compensation  in the form of discounts,
concessions,  or commissions from the selling  stockholders and/or purchasers of
the shares for whom such  person  may act as an agent,  to whom such  person may
sell as principal,  or both; and such compensation as to a particular person may
be in  excess  of  customary  commissions.  The  selling  stockholders  and  any
broker-dealers acting in connection with the sale of the shares being registered
may be deemed to be  underwriters  within the  meaning  of Section  2(11) of the
Securities  Act of 1933,  as  amended,  or the  Securities  Act,  and any profit
realized  by  them  on  the  resale  of  shares  as  principals  may  be  deemed
underwriting  compensation  under the  Securities  Act.  We know of no  existing
arrangements  between any of the selling stockholders and any other stockholder,
broker,  dealer,  underwriter,  or agent relating to the sale or distribution of
the  shares,  nor  can we  presently  estimate  the  amount,  if  any,  of  such
compensation.

         Although we will receive no proceeds  from the sale of shares  pursuant
to this  prospectus,  we have  agreed  to bear the  costs  and  expenses  of the
registration of the shares,  including legal and accounting fees, and such costs
and expenses are estimated to be approximately $230,000.

         We have informed the selling  stockholders  that while they are engaged
in a  distribution  of the  shares  included  in this  prospectus  they  will be
required to comply with certain  anti-manipulative rules contained in Regulation
M under the Exchange  Act. With certain  exceptions,  Regulation M prohibits any
selling stockholder,  any affiliated  purchaser,  and any broker-dealer or other
person who participates in such distribution from bidding for or purchasing,  or
attempting to induce any person to bid for or purchase, any security that is the
subject  of  the  distribution  until  the  entire   distribution  is  complete.
Regulation M also prohibits any bids or purchases made in order to stabilize the
price of a security in connection with the distribution of that security.

                         INDEPENDENT PUBLIC ACCOUNTANTS

         There have been no changes in and/or  disagreements  with BDO  Shanghai
Zhonghua Certified Public Accountants,  independent registered public accounting
firm, on accounting and financial disclosure matters.

                                  LEGAL MATTERS

         Certain legal matters in this  offering,  including the legality of the
common stock offered pursuant to this prospectus, will be passed upon for us and
the selling stockholders by Jackson Walker L.L.P.

                                     EXPERTS

         The  financial  statements of the company  included in this  prospectus
have  been  audited  by BDO  Shanghai  Zhonghua  Certified  Public  Accountants,
independent  registered public accounting firm, as stated in the opinion,  which
has been rendered  upon the authority of said firm as experts in accounting  and
auditing.



                                       54


                     INTERESTS OF NAMED EXPERTS AND COUNSEL

         No  "Expert"  or  "Counsel"  as defined by Item 509 of  Regulation  S-B
promulgated  pursuant to the  Securities  Act,  whose  services were used in the
preparation of this Form SB-2, was hired on a contingent basis or will receive a
direct or indirect interest in the company.

                       WHERE YOU CAN FIND MORE INFORMATION

         We have filed a registration statement on Form SB-2 with the Securities
and Exchange  Commission  under the  Securities  Act of 1933 with respect to the
shares of common stock offered in this  offering  prospectus.  This  prospectus,
which  is a part of the  registration  statement,  does not  contain  all of the
information set forth in the registration  statement,  or the exhibits which are
part  of the  registration  statement.  You  should  refer  to the  registration
statement and its exhibits for additional  information  that is not contained in
this  prospectus.  Whenever we make  reference in this  prospectus to any of our
contracts,  agreements  or other  documents,  you should  refer to the  exhibits
attached  to the  registration  statement  for  copies of the  actual  contract,
agreement or other document.

         We are  subject to the  informational  requirements  of the  Securities
Exchange Act of 1934, as amended, and we are required to file reports, any proxy
statements and other  information  with the Securities and Exchange  Commission.
You can read our  Securities  and  Exchange  Commission  files,  including  this
registration  statement,  over  the  Internet  at the  Securities  and  Exchange
Commission's  web site at  http://www.sec.gov.  You may  also  read and copy any
documents  we file with the  Securities  and Exchange  Commission  at its public
reference facility at 450 Fifth Street,  N.W.,  Washington,  D.C. 20549. You may
also obtain copies of the documents at prescribed rates by writing to the Public
Reference Section of the Securities and Exchange Commission at 450 Fifth Street,
N.W., Washington, D.C. 20549. Please call the Securities and Exchange Commission
at  1-800-SEC-0330  for  further  information  on the  operation  of the  public
reference facilities.














                                       55


                              FINANCIAL STATEMENTS


Report of Independent Registered Public Accounting Firm......................F-1

Consolidated Financial Statements

Balance Sheets as of December 31, 2002 and 2003, and September 30, 2004 
   (Unaudited)...............................................................F-2

Statements of Income and Comprehensive Income for the Years Ended
   December 31, 2002 and 2003 and the Nine Months Ended September 30, 2003 
   and 2004 (Unaudited)......................................................F-3

Statements of Shareholders' Equity for the Years Ended December 31, 2002 
   and 2003 and Nine Months Ended September 30, 2004 (Unaudited).............F-4

Statements of Cash Flows for the Years Ended December 31, 2002
   and 2003 and the Nine Months Ended September 30, 2003 and 2004 
   (Unaudited)...............................................................F-5

Notes to Financial Statements................................................F-6










             Report of Independent Registered Public Accounting Firm



The Board of Directors
Sifang Holdings Co. Ltd.

We have audited the accompanying  consolidated balance sheets of Sifang Holdings
Co.  Ltd.  (the  "Company")  as of  December  31,  2002 and 2003 and the related
consolidated statements of income and comprehensive income, stockholders' equity
and cash flows for the years then  ended.  These  financial  statements  are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting  Oversight  Board in the United  States of America.  Those  standards
require that we plan and perform the audit to obtain reasonable  assurance about
whether the financial  statements are free of material  misstatements.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements.  An audit also includes  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 consolidated  financial statements referred to above present
fairly, in all material respects,  the financial position of Sifang Holdings Co.
Ltd., as of December 31, 2002 and 2003 and the results of its operations and its
cash flows for the years then ended, in conformity  with  accounting  principles
generally accepted in the United States of America.


                                             BDO Shanghai Zhonghua
                                             Certified Public Accountants




Shanghai, PRC
June 1, 2004














                                      F-1





                   CHINA DIGITAL WIRELESS, INC AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEETS
                                (In U.S. Dollars)
                                                                             December 31,         
                                                                   ------------------------------   September 30,
                                                                        2002             2003            2004
                                                                   -------------    -------------   -------------
                                                                                                     (Unaudited)
                                                                                                     
ASSETS                                                                                                 
                                                                                                       
Current assets:                                                                                        
                                                                                                       
   Cash and cash equivalents                                       $   1,193,690    $   1,713,748   $     127,066
   Note (trade) and accounts receivable, net of allowance for                                          
     doubtful accounts by $30,143, $25,651, and $28,157                  572,711        2,363,327       2,075,228
   Trade receivable from a related party                                    --               --         2,177,459
Advances to employees, net of allowance for doubtful accounts by                                       
$0, $659, and $356                                                          --             12,525           6,769
   Advances to vendors                                                      --             76,891         540,139
   VAT recoverable                                                       201,194           83,414          78,640
   Inventories                                                         1,169,223        1,591,223       1,069,408
   Deposits and prepaids                                                  37,178          248,288         332,867
   Deferred tax assets                                                     5,556            4,955           9,024
                                                                   -------------    -------------   -------------
Total current assets                                                   3,179,552        6,094,371       6,416,600
                                                                   -------------    -------------   -------------
                                                                                                       
Loan receivable from a related party                                        --               --         2,140,607
Escrow receivable                                                           --               --         1,500,000
Property and equipment, net                                            1,333,796        1,354,238       1,234,549
                                                                   -------------    -------------   -------------
Total assets                                                       $   4,513,348    $   7,448,609   $  11,291,756
                                                                   =============    =============   =============
                                                                                                       
LIABILITIES AND SHAREHOLDERS' EQUITY                                                                   
                                                                                                       
Current liabilities:                                                                                   
   Accounts payable                                                $        --      $     111,569   $       6,526
   Deferred revenue                                                       43,930          537,046         579,996
   Employee welfare payable                                               41,034           79,707      
   VAT payable                                                              --               --             6,671
   Other taxes payable                                                    27,973           26,171         106,916
   Accrued liabilities                                                     1,046           22,919          53,295
   Amounts due to parent                                                 604,062             --              --  
                                                                   -------------    -------------   -------------
Total current liabilities                                                718,045          764,945         833,111
                                                                   -------------    -------------   -------------
Total liabilities                                                        718,045          764,945         833,111
                                                                   -------------    -------------   -------------
                                                                                                       
Redeemable common stock, 0.001 par value; 1,482,456                                                    
   shares issued and outstanding, with a redemption                                                    
   price of $1.14 per share                                                 --               --         1,690,000
Commitments                                                                                            
                                                                                                       
Stockholders' equity:                                                                                  
   Common stock - $0.001 par value, 100,000 000 shares                                                 
     authorized, 13,782,636 shares and 15,536,236 shares                                               
     issued and outstanding and additional paid-in capital                13,783           13,783          15,537
   Additional paid-in capital                                          1,436,217        1,436,217       2,541,456
   Retained earnings                                                   2,345,672        5,233,652       6,211,485
   Accumulated other comprehensive income (loss) - translation                                         
     adjustments                                                            (369)              12             167
                                                                   -------------    -------------   -------------
 Total stockholder's equity                                             3,795,303        6,683,664       8,768,645
                                                                   -------------    -------------   -------------
Total liabilities and stockholders' equity                         $   4,513,348    $   7,448,609   $  11,291,756
                                                                   =============    =============   =============

                                                                       
          See accompanying notes to consolidated financial statements.

                                      F-2




                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                (In U.S. Dollars)


                                             Years Ended December 31,       Nine Months Ended Sept. 30,
                                           ----------------------------    ----------------------------
                                               2002            2003            2003            2004
                                           ------------    ------------    ------------    ------------
                                                                            (Unaudited)     (Unaudited)
                                                                                        
Revenues:
   Mobile phones distribution              $    520,325    $ 13,529,279    $ 10,968,075    $  4,914,465
   Mobile phone sales to a related party           --              --              --        10,512,821
   Service revenue, net                       3,403,082       3,503,099       2,351,449       2,467,990
                                           ------------    ------------    ------------    ------------
Total revenues                                3,923,407      17,032,378      13,319,524      17,895,276


Cost of goods sold                              527,458      12,424,454       9,988,095       4,526,396
Cost of goods sold to a related party              --              --              --        10,132,267
Cost of service                                 852,233         910,440         708,475         660,791
                                           ------------    ------------    ------------    ------------
Gross profit                                  2,543,716       3,697,484       2,622,954       2,575,822

Operating expenses:
   Selling                                      288,539         153,437         116,241         127,833
   General and administrative                   211,322         391,930         292,784       1,462,504
   Loss on disposal of fixed assets               4,168           5,361            --              --
                                           ------------    ------------    ------------    ------------
Total operating expenses                        504,029         550,728         409,025       1,590,337
                                           ------------    ------------    ------------    ------------


Income from operations                        2,039,687       3,146,756       2,213,929         985,485

Interest expense                                (36,245)        (12,082)        (10,873)         31,931
                                           ------------    ------------    ------------    ------------

Income before income taxes                    2,003,442       3,134,674       2,203,056       1,147,476

Income tax provision (benefit)                   (5,556)        246,694         165,229         169,643
                                           ------------    ------------    ------------    ------------

Net income                                 $  2,008,998    $  2,887,980    $  2,037,827         977,833
                                           ============    ============    ============    ============

Other comprehensive income (loss): 
   Translation adjustments                 $       (252)   $        381    $       (119)   $        155
                                           ------------    ------------    ------------    ------------

Comprehensive income                       $  2,008,746    $  2,888,361    $  2,037,827    $    977,833
                                           ============    ============    ============    ============




          See accompanying notes to consolidated financial statements.

                                      F-3





                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Years Ended December 31, 2002 and 2003 and Nine Months Ended September 30, 2004
                                (In U.S. Dollars)


                                                                                                
                                        Common                                                     Accumulated
                                -----------------------------    Additional                           Other            Total       
                                     Stock          Stock          Paid-in         Retained       Comprehensive    Shareholders'
                                    Shares          Amount         Capital         Earnings       Income (Loss)       Equity
                                -------------   -------------   -------------    -------------    -------------    -------------
                                                                                                           
Balance, January 1, 2002           13,782,636   $      13,783   $   1,436,217          336,674    $        (117)   $   1,786,557
                                                                                                                      
Net income                               --              --              --          2,008,998             --          2,008,998
                                                                                                                      
Translation adjustments                  --              --              --               --               (252)            (252)
                                -------------   -------------   -------------    -------------    -------------    -------------
                                                                                                                      
Balance, December 31, 2002         13,782,636          13,783       1,436,217        2,345,672             (369)       3,795,303
                                                                                                                      
Net income                               --              --              --          2,887,980             --          2,887,980
                                                                                                                      
Translation adjustments                  --              --              --               --                381              381
                                -------------   -------------   -------------    -------------    -------------    -------------
                                                                                                                      
Balance, December 31, 2003         13,782,636          13,783       1,436,217        5,233,652               12        6,683,664
                                                                                                                      
Recapitalization and                                                                                                  
   reorganization (unaudited)       1,585,705           1,586         308,465             --               --            310,051
                                                                                                                      
Shares issued for consulting                                                                                          
   expense (unaudited)                167,895             168         604,254             --               --            604,422
                                                                                                                      
Shares issued for proceeds                                                                                            
   of $190,000 (unaudited)            166,667            --           410,001             --               --            410,001
                                                                                                                      
Shares issued for proceeds                                                                                            
   of $1.5 million(unaudited)       1,315,789            --              --               --               --               --
                                                                                                                      
Offset by issuing cost                                                                                                
   (unaudited)                           --              --          (217,481)            --               --           (217,481)
                                                                                                                      
Net income (unaudited)                   --              --              --            977,833             --            977,833
                                                                                                                      
Translation adjustments                  --              --              --               --                155              155
                                -------------   -------------   -------------    -------------    -------------    -------------
Balance, June 30 2004              17,018,692   $      15,537   $   2,541,456        6,211,485    $         167    $   8,768,645
                                =============   =============   =============    =============    =============    =============

                                                                         











          See accompanying notes to consolidated financial statements.

                                      F-4





                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                Increase (Decrease) in Cash and Cash Equivalents
                                (In U.S. Dollars)

                                                        Years Ended December 31,      Nine Months Ended Sept. 30,
                                                      ---------------------------     ---------------------------
                                                          2002            2003            2003            2004
                                                      -----------     -----------     -----------     -----------
                                                                                      (Unaudited)     (Unaudited)          
                                                                                                  
Cash flows from operating activities:                                                                
   Net income                                         $ 2,008,998     $ 2,887,980     $ 2,037,827     $   977,833
   Adjustments to reconcile net income to net cash                                                   
     provided by operating activities:                                                               
     Depreciation and amortization                        132,904         234,055         172,271         138,851
     Bad debt expenses                                     17,817             659           3,499           4,257
     Loss on disposal of fixed assets                       4,168           5,361            --              --
     Stock compensation                                      --              --              --         1,014,423
     Deferred tax assets                                   (5,556)            601           5,556          (4,069)
     Changes in assets and liabilities:                                                              
     Accounts receivables                                (356,298)     (1,790,616)       (251,770)     (1,891,866)
     Prepaids, deposit and advances to employees           13,372        (224,294)         34,218         (80,574)
     Advance to vendors                                      --           (76,891)     (1,153,961)       (463,248)
     Inventories                                       (1,169,223)       (422,000)     (1,403,365)        521,815
     Accounts payable                                        --           111,569         474,889        (105,043)
     Deferred revenue                                      (8,236)        493,116         235,579          42,950
     Employee welfare payable                              25,227          26,206          15,609          12,467
     VAT recoverable                                     (201,194)        117,780         201,194           4,774
     VAT payable                                             --              --              --             6,671
     Other taxes payable                                   19,079          (1,802)         49,309          80,745
     Accrued liabilities                                      714          21,873           9,223          30,376
                                                      -----------     -----------     -----------     -----------
Net cash provided by operating activities                 481,772       1,383,597         429,957         290,362
                                                      -----------     -----------     -----------     -----------
Cash flows from investing activities:                                                                
   Purchase of property, equipment, and software       (1,186,756)       (259,858)       (141,898)        (19,162)
   Decease (Increase) in due from parent                  604,113            --          (604,062)     (2,140,607)
                                                      -----------     -----------     -----------     -----------
                                                                                                     
Net cash provided by (used in) investing activities      (582,643)       (259,858)       (745,960)     (2,159,769)
                                                      -----------     -----------     -----------     -----------
Cash flows from financing activities:                                                                
                                                                                                     
   Recapitalization and reorganization                       --              --              --           310,051
   Proceeds from issuing redeemable common stock             --              --              --         1,690,000
   Escrow receivables                                        --              --              --        (1,500,000)
   Offset offering expense                                   --              --              --          (217,481)
   Increase (Decrease) in due to parent                   604,062        (604,062)           --              --
                                                      -----------     -----------     -----------     -----------
                                                                                                     
Net cash provided by (used in) financing activities       604,062        (604,062)           --           282,570
                                                      -----------     -----------     -----------     -----------
                                                                                                     
Foreign currency translation                                 (252)            381            (119)            155
                                                      -----------     -----------     -----------     -----------
Net increase in cash and cash equivalents                 502,939         520,058        (316,003)     (1,586,682)
Cash and cash equivalents, beginning of the period        690,751       1,193,690       1,193,690       1,713,748
                                                      -----------     -----------     -----------     -----------
Cash and cash equivalents, end of the period          $ 1,193,690     $ 1,713,748     $   877,687     $   127,066
                                                      ===========     ===========     ===========     ===========
Supplemental disclosure of cash flow information:                                                    
  Cash paid during the year for:                                                                     
     Interest                                         $    36,245     $    12,082     $      --       $      --
     Income taxes                                            --           246,093            --              --
                                                      ===========     ===========     ===========     ===========

                                                                       

          See accompanying notes to consolidated financial statements.

                                      F-5



                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 1 - ORGANIZATION AND BUSINESS BACKGROUND

Formation of Sifang Holdings Co. Ltd.

Sifang Holdings Co. Ltd. (the "Company") was incorporated in the Cayman Islands,
established  under the law of the Cayman  Islands,  on  February 9, 2004 for the
purpose  of holding a 100%  equity  interest  in TCH Data  Technology  Co.  Ltd.
("TCH").  TCH was  established  as a foreign  investment  enterprise in Shanghai
under the laws of People's  Republic of China (the "PRC") on May 25, 2004 with a
registered capital of $7.2 million.

Sifang   Information   Technology   Co.  Ltd.   ("Sifang   Information")   is  a
Shanghai-based  privately owned enterprise established under the laws of the PRC
on  August  14,  1998.  Sifang  Information  conducts  pager  and  mobile  phone
distribution and provides  value-added  information services to customers in the
Shanghai  metropolitan  area.  In March 2004,  Sifang  Information  spun off its
mobile phone distribution business and a majority of the value-added information
services business by presenting a set of carve-out financial  statements for the
years ended  December 31, 2002 and 2003 and three months ended March 31, 2004 as
if the spin-off  business had been a  stand-alone  company for two years and one
quarter. On March 31, 2004 Sifang Information transferred this spin-off business
into  TCH.  Being  a  receiving  entity  under  common  control,  TCH  initially
recognized all the assets and liabilities  transferred at their carrying amounts
in the accounts of Sifang Information at the date of transfer under the guidance
of SFAS No. 141, Appendix D. On May 25, 2004 Sifang Information  transferred its
100%  equity  interest  in TCH in  exchange  for a 100%  equity  interest in the
Company.  Because the three entities have the same group of ultimate  owners and
the three  entities  are under  common  control,  the  transfer of  ownership is
accounted for at historical  costs under the guidance of SFAS No. 141,  Appendix
D. Prior to May 25, 2004 there was no operating  activities at Sifang  Holdings.
As a  result  of the  ownership  exchange  between  TCH and the  Company,  TCH's
historical  financial  statements become the historical  financial statements of
the Company.

Because Sifang  Information  operates in a business segment:  paging business in
which the paging facilities are subject to certain  restrictions  imposed by the
PRC  government.   PRC  government   regulations   prohibit  foreign  investment
enterprises from owning radio transmitting  stations and transmitting  equipment
owned by Sifang Information.  Therefore,  Sifang Information still keeps a small
part of its business and paging facility to comply with the relevant regulations
and laws in China.

As a result of the spin-off, TCH is in the business of mobile phone distribution
and provides pager and mobile phone  (collectively  "wireless  receiver")  users
with access to certain  information  reformatted  by TCH. TCH  purchases  mobile
phone  products  from  first-tier  distributors  and sells to  retailers  with a
mark-up. In the process of providing  value-added  information  services through
entering into monthly subscription  agreements with various users, TCH purchases
information from Shanghai Stock Exchange,  comments and analysis on stock market
provided  by  certain  reputable  security  and  investment  companies,  lottery
information,   weather   forecasts,   etc.,  and  reformats  the  aforementioned
information  through  decoding and  recoding.  The  reformatted  information  is
transmitted  by  Sifang  Information  via a  service  contract  to  pager  users
constantly and is stored in TCH's server in order for mobile phone users to dial
in via  China  Mobile  or  China  Unicom.  By  signing  a  monthly  subscription
agreement,  wireless  users are asked to make  payment  for three- or  six-month
subscription fees in advance.



                                      F-6


                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)


NOTE 1 - ORGANIZATION AND BUSINESS BACKGROUND (Continued)

Recapitalization and Reorganization

On June 23, 2004, Boulder Acquisitions, Inc. (Boulder Acquisitions) entered into
a stock exchange  agreement with Sifang Holdings Co. Ltd.  Pursuant to the stock
exchange agreement,  Boulder Acquisitions issued 13,782,636 shares of its common
stock in exchange of 100% equity  interest in Sifang  Holdings Co. Ltd.,  making
Sifang Holdings a wholly owned subsidiary of Boulder Acquisitions.

Boulder Acquisitions was incorporated under the laws of the State of Colorado on
May 8, 1980 as Boulder Brewing Company  (Boulder  Brewing).  Boulder Brewing was
the  successor  to a  general  partnership  formed  in 1979.  From  the  initial
inception of the original  partnership  through 1990, Boulder Brewing was in the
business  of  operating a  microbrewery  (generally  defined as a brewery  which
produces less than 15,000 barrels per year) in Boulder,  Colorado.  During 1990,
as a result of various debt defaults,  Boulder  Brewing's assets were foreclosed
upon and the  Company  ceased  all  business  operations.  Boulder  Brewing  has
effectively had no operations, assets or liabilities since its fiscal year ended
December 31, 1990.

In September  2001,  Boulder  Brewing  changed its state of  Incorporation  from
Colorado  to Nevada  by means of a merger  with and into  Boulder  Acquisitions,
Inc., a Nevada corporation formed on September 6, 2001 solely for the purpose of
effecting the  reincorporation.  The Articles of Incorporation and Bylaws of the
Nevada corporation are the Articles of Incorporation and Bylaws of the surviving
corporation. Such Articles of Incorporation eliminated the provision for Boulder
Acquisitions to issue preferred stock.

The above stock exchange  transaction  resulted in those  shareholders of Sifang
Holdings obtaining a majority voting interest in Boulder Acquisitions. Generally
accepted  accounting  principles  require  that the company  whose  shareholders
retain the majority  interest in a combined  business be treated as the acquirer
for accounting purposes.  Consequently,  the stock exchange transaction has been
accounted for as a  recapitalization  of Sifang  Holdings as Sifang Holdings has
acquired  controlling  equity interest in Boulder  Acquisitions,  as of June 23,
2004. The reverse  acquisition process utilizes the capital structure of Boulder
Acquisitions  and the assets and  liabilities of Sifang Holdings are recorded at
historical cost.

Sifang  Holdings is the  continuing  operating  entity for  financial  reporting
purposes,  and the financial  statements prior to June 23, 2004 represent Sifang
Holdings'  financial  position and results of  operations.  As of June 23, 2004,
Boulder  Acquisitions  had only cash of $310,051,  and  shareholders'  equity of
$310,051 with 1,585,705  shares of common stock  outstanding,  all of which were
included in the consolidated financial statements of Sifang Holdings. Please see
the unaudited shareholders' equity statement for the period from January 1, 2004
to June 30,  2004.  Although  Sifang  Holdings  is  deemed  to be the  acquiring
corporation for financial accounting and reporting purposes, the legal status of
Boulder  Acquisitions as the surviving  corporation did not change. On August 6,
2004,  Boulder  Acquisitions,  Inc. changed its name to China Digital  Wireless,
Inc.





                                      F-7




                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The  Company's  financial  statements  have  been  derived  from the  historical
financial  statements and  accounting  records of Sifang  Information  using the
historical  results of operating  results and historical basis of the assets and
liabilities  transferred to the Company in accordance with accounting principles
generally accepted in the United States of America. Management believes that the
assumptions  underlying the  accompanying  financial  statements are reasonable.
However,  the  financial  statements  that  derived  from  Sifang  Information's
financial  records  may  not  necessarily   reflect  the  Company's  results  of
operations  and cash flows had the Company been a stand-alone  company.  Interim
information may not be indicative of results for a full year.

In the carve-out process,  the cost of sales included in the Company's financial
statements is directly related to the product  revenue.  The cost of services is
directly  related to  different  types of  service.  The  selling  expenses  are
allocated  based  on the  relationship  between  expense  and  revenue  (such as
commission)  and  payroll  records.  The  general  and  administrative  expenses
allocated are mainly based on the hours  management  spent and payroll  records.
Income tax provision has been  calculated on a separate  company basis and is in
line with the historical  actual income tax provision at the Sifang  Information
level, assuming that all income taxes had been paid to Sifang Information and no
income  tax  liability  was  in  existence  in  the  periods   reported  in  the
accompanying financial statements. Management believes that the costs, operating
expense,  interest expense,  and income tax provision  included in the Company's
financial  statements are a reasonable  representation of the costs and expenses
that would have been incurred if the Company had performed  these functions as a
stand-alone company.

The accompanying  statements of income and  comprehensive  income and cash flows
for each of the nine months ended September 30, 2003 and 2004, and balance sheet
as of September 30, 2004,  have not been audited.  In the opinion of management,
they include all normal recurring  adjustments necessary for a fair presentation
of the  financial  position  and the  results  of  operations  for  the  periods
presented.  However,  interim information may not be indicative of results for a
full year.

Foreign Currency Translations and Transactions

The Renminbi  ("RMB"),  the national currency of PRC, is the primary currency of
the economic  environment  in which the  operations  of TCH are  conducted.  The
Company uses the United States dollar ("U.S.  dollars") for financial  reporting
purposes.

The Company  translates TCH's assets and liabilities into U.S. dollars using the
rate of exchange  prevailing  at the balance  sheet date,  and the  statement of
income is translated at average rates during the reporting  period.  Adjustments
resulting from the translation of TCH's financial  statements from RMB into U.S.
dollars  are   recorded  in   stockholders'   equity  as  part  of   accumulated
comprehensive  loss - translation  adjustments.  Gains or losses  resulting from
transactions  in  currencies  other than RMB are  reflected in the  statement of
income for the reporting periods.


                                      F-8


                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY


                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenue Recognition

Revenues  generated from sales of mobile phones are recognized  when  persuasive
evidence of an  arrangement  exists,  delivery  of the  products  has  occurred,
customer  acceptance has been obtained,  which means the  significant  risks and
rewards of the ownership  have been  transferred  to the customer,  the price is
fixed or determinable and collectability is reasonably assured.

The  Company,  through  TCH,  provides  wireless  receiver  users with access to
certain financial information provided by stock exchanges, comments and analysis
on PRC based  stock  market  activity  provided  by certain  reputable  security
investment companies in China, lottery information,  weather forecast, and other
value added services through the execution of a monthly  subscription  agreement
or through  the  purchase of a  pre-charged  service  card.  TCH  purchases  the
aforementioned information from respected vendors, reformats it through decoding
and recoding and  transmits  the  reformatted  information  via Shanghai  Sifang
Information   Technology  Co.,  or  Sifang   Information  to  pager  users.  The
information  is constantly  stored in the  Company's  server in order for mobile
phone users to dial in via China  Mobile or China  Unicom.  By signing a monthly
subscription  agreement,  wireless  receiver  users need to make  payments for a
three- to  six-month  subscription  in  advance.  TCH  records  the  proceeds as
deferred  revenue and  amortizes  the  deferred  revenue  over the  subscription
period.  When customers buy a pre-charged  service card, the Company records the
proceeds as deferred revenue.  When a customer starts to use this card to access
the  Company's  server or starts  to use a pager to  access  the  aforementioned
information,  the Company  identifies the subscription  period and amortizes the
deferred revenue over the subscription period.

In response to a retailer's request, the Company has an installing agent install
the Company's  software on mobile phones,  which are owned by the retailer.  The
retailer  sells  these  phones  for a premium  covering  a fee to be paid to the
installing  agent and pre-charged  six-month  subscription fee to be paid to the
Company. After a customer using such a phone dials into the server to access the
desired information, the server records a unique identification number installed
on the mobile phone which indicates that a specific phone user starts his or her
subscription  period.  After  the  Company  receives  a  detailed  list from the
installing  agent  regarding the number of phones that have been  installed with
the Company's  software,  the Company matches this  information  with a detailed
list from the retailer  setting forth how many such phones have been sold. Based
on the number of such phones sold, the Company records  accounts  receivable and
deferred  revenue,  correspondingly.  At the date on which a customer  starts to
dial into the server, the six-month  subscription  period begins and the Company
amortizes deferred revenue accordingly.

Since April 2004,  the revenue  generated  from  selling  pre-charged  cards has
gradually  decreased while the revenue  generated  through monthly  subscription
with China Mobile  and/or China Unicom  (collectively  "Mobile  Operators")  has
gradually increased as the Mobile Operators' billing systems have been enhanced.
The Company's  affiliates,  Sifang  Information and Shanghai  Tianci  Industrial
Group  Co.,  Ltd.,  or  Tianci,  contract  with  the  Mobile  Operators  for the
transmission  of the  Company's  value-added  information  service.  The  Mobile
Operators  bill and  collect  from  customers  and then pass  those fees (net of
billing and collection  service fees charged by the Mobile  Operators) to Sifang
Information  and Tianci who in turn pass those fees to the Company.  The Company
recognizes  net revenues  based on the total amount paid by its  customers,  for
which the Mobile Operators bill and collect on behalf of the Company. There is a
time lag of a few months between the end of a particular  service period and the
date  the  Mobile  Operators  send  out  their  billing  statements  due  to the
segregated  billing  systems  of  each  provincial   subsidiary  of  the  Mobile
Operators.

                                      F-9


                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



For the nine months ended September 30, 2004, approximately 13% of the Company's
service  revenue from mobile phone users is recognized  based on monthly billing
statements prepared by the provincial subsidiaries of the Mobile Operators.  The
Company has not recognized  service revenue based on the records provided by its
own server.  In addition,  the Mobile Operators charge a network usage fee based
on a fixed per  message  fee  multiplied  by the  excess of  messages  sent over
messages  received.  This type  service  is not  covered  by a  monthly  service
subscription  and the Company has no control over  whether it will incur.  These
network  usage fees charged by the Mobile  Operators  are reflected as a part of
cost of services in the financial statements.  Network usage fees charged by the
Mobile  Operators are reduced for messages  received by the Company  because the
Mobile Operators separately charge the sender a fee for these transmissions.

The Company  currently  records the mobile phone  service  revenue  based on the
amounts paid by its customers net of the Mobile  Operators'  service  charge for
billing and  collection  on behalf of the  Company.  According to EITF Issue No.
99-19,  recognizing  revenue on a net basis in this  situation is appropriate if
the Company does not act as a principal, in connection with the provision of its
services. Factors which support a conclusion that the Company is not acting as a
principal include:

         o        limited  ability to adjust the cost of services  by  adjusting
                  the design or marketing of the service;
         o        limited ability to determine  prices,  the Company must follow
                  the price policy within ranges prescribed by Mobile Operators,
                  and
         o        limited ability to assume risk of non-payment by customers.

The Company has very limited ability to adjust the ratio of our revenues to cost
of services  (which include the Mobile  Operators'  network usage fee, and other
fees, if any). In addition,  the majority of service revenue derived from mobile
phone users is subject to the floor price for monthly  service set by the Mobile
Operators  and the  Company  does  no have an  ability  to  negotiate  with  its
customers.  The Mobile  Operators  will normally make  payments  within  several
months after the Company  receives the billing  statement  because it takes time
for the Mobile  Operators  to collect  payments  from the  Company's  customers.
Consequently,  the Company  actually bears less risk of non-payment by customers
as Mobile Operators need to take care of their collections first. Only about 13%
of the total service  revenue derived from mobile phone users in the nine months
ended  September  30,  2004 was billed  through  the Mobile  Operators'  billing
systems.  Whereas, there are three items of mobile phone services over which the
Company  does have an ability to determine  prices.  The portion of this type of
revenue was immaterial in the nine months ended  September 30, 2004.  Therefore,
the Company has concluded  that  reporting net revenue billed through the Mobile
Operators' billing systems is appropriate.

Cash and Cash Equivalents

The Company  considers  all highly  liquid  investments  with  maturity of three
months or less to be cash equivalents.


                                      F-10




                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Accounts Receivable, Employees Receivable, and Concentration of Credit Risk

During the normal course of business,  the Company extends  unsecured  credit to
its retail  customers  who are mainly  located in  Shanghai  metropolitan  area.
Typically  credit terms  require  payment to be made within 30 days of the sale.
The  Company  does not  require  collateral  from  its  customers.  The  Company
maintains  its cash  accounts at credit  worthy  financial  institutions.  As of
December  31, 2003 and March 31, 2004  accounts  receivable  resulting  from the
pre-charged fees were $1,788,974 and $2,263,419,  respectively.  The outstanding
balance of $1,788,974 was collected in full in April 2004.

The Company  regularly  evaluates  and  monitors  the  creditworthiness  of each
customer on a case-by-case basis. The Company includes any account balances that
are determined to be uncollectible, along with a general reserve, in the overall
allowance for doubtful accounts. After all attempts to collect a receivable have
failed,  the  receivable  is written  off against  the  allowance.  Based on the
information available to management, the Company believes that its allowance for
doubtful  accounts  was  adequate  as of  December  31,  2002 and 2003 and as of
September  30,  2004.  However,  actual  write-offs  might  exceed the  recorded
allowance.

The Company advances cash to sales people for their travel and business activity
needs. Under certain circumstances, the advances to employees might not be fully
recovered by the Company.  Accordingly,  the Company  also  provides  allowances
against any doubtful  accounts.  The following table presents combined allowance
activities in accounts receivable and advances to employees.

                                            December 31,              
                                  -----------------------------    September 30,
                                       2002            2003             2004
                                  ----------------------------------------------
                                                                    (Unaudited) 
Beginning balance                 $      12,326   $      30,143    $      26,310
Additions charged to expense             17,817             659            2,203
Actual write off                           --            (4,492)            --
Recovery                                   --              --               --
                                  -------------   -------------    -------------
Ending balance                    $      30,143   $      26,310    $      28,513
                                  =============   =============    =============
                                                                 
Inventories

Inventories  consist  principally  of mobile phones  manufactured  by name brand
manufactures  with  various  features  and  are  stated  at the  lower  of  cost
(first-in, first-out) or market.

Rebates and Credits Receivable

In 2004 the Company's  major vendor began providing sales rebates and credits if
the Company fulfills certain sales volumes  prescribed by the vendor in order to
attract its distributors to sell more of its products.  As a result, the Company
is entitled to receive  certain  rebates and credits for the inventory  held and
sold by the Company within the specified period of time as defined by its vendor
through submitting the necessary  application forms. In general, once the vendor
approves  these  applications,  the amounts of these rebates and credits will be
deducted from the Company's accounts payable to its vendor and decrease the cost
of goods sold or inventory held correspondingly.


                                      F-11


                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)




NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Capitalization of Software Costs

The  Company's  software is  developed by an  independent  third party to enable
pager users to accept certain  recoded  information  which is transmitted by the
Company and enable  mobile phone users to dial into the  Company's  server.  The
software is for internal use and gives the Company the ability to provide  value
added information services. In accordance with SOP 98-1, the Company capitalizes
the  external  cost  incurred  to  develop  this  internal-use  software  by  an
engineering company at the application development stage and amortizes that cost
over the  estimated  economic life of the software (two or three years) which is
consistent with the expected life of a particular type of mobile phone.

Property and equipment

Properties  and equipment are recorded at cost and are stated net of accumulated
depreciation.  Depreciation expense is determined using the straight-line method
over the shorter of the estimated useful lives of the assets as follows:

         Buildings                                      20 years
         Software                                      2-3 years
         Vehicles and other equipment                  2-5 years

Maintenance  and repairs are charged  directly to expense as  incurred,  whereas
betterment and renewals are generally  capitalized in their respective  property
accounts.  When an item is  retired  or  otherwise  disposed  of,  the  cost and
applicable  accumulated  depreciation are removed and the resulting gain or loss
is recognized and reflected as an item before operating income (loss).

Impairment of Long-Lived Assets

Effective  January 1, 2002,  the Company  applies the provisions of Statement of
Financial  Accounting  Standard  No.  144,  "Accounting  for the  Impairment  or
Disposal  of  Long-Lived  Assets"  ("SFAS  No.  144"),  issued by the  Financial
Accounting  Standards  Board  ("FASB").  SFAS No. 144 requires  that  long-lived
assets be reviewed for impairment  whenever  events or changes in  circumstances
indicate that the carrying amount of an asset may not be recoverable through the
estimated  undiscounted  cash flows expected to result from the use and eventual
disposition of the assets.  Whenever any such impairment  exists,  an impairment
loss will be recognized  for the amount by which the carrying  value exceeds the
fair value.  There was no  impairment  of  long-lived  assets in the years ended
December  31, 2002 and 2003,  and in the three  months  ended March 31, 2003 and
2004.

Fair Value of Financial Instruments

The  carrying  amount of cash,  notes  receivable,  accounts  receivable,  other
receivables,  advances to vendor,  accounts payable and accrued  liabilities are
reasonable  estimates of their fair value because of the short maturity of these
items.  Loan receivable from a related party bear interest at 5% per annum which
is similar to the market interest rate in China as of September 30, 3004.



                                      F-12


                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Value Added Tax

TCH is subject to value added tax ("VAT") imposed by the PRC government on TCH's
domestic  product  sales.  The output VAT is charged to  customers  who purchase
mobile  phones  from TCH and the  input VAT is paid  when TCH  purchases  mobile
phones  from its  vendors.  The VAT rate  ranges  from 13% to 17%,  in  general,
depending  on the types of  products  purchased  and sold.  The input VAT can be
offset against the output VAT. The VAT payable or receivable  balance  presented
on the Company's  balance  sheets  represents  the input VAT either less than or
larger than the output VAT. The debit balance represents a credit against future
collection of output VAT instead of a real receivable.

Employee Welfare and Retirement Benefits

The PRC has been  undergoing  significant  reforms  with regard to its  employee
welfare and fringe benefits administration.  Any enterprise operating in the PRC
is  subject to  government-mandated  employee  welfare  and  retirement  benefit
contribution  as a part of operating  expense to State  Administration  of Labor
Affairs.  In accordance  with PRC laws and  regulations,  TCH  participates in a
multi-employer  defined  contribution  plan pursuant to which TCH is required to
provide  employees with certain  retirement,  medical and other fringe benefits.
PRC  regulations  require  TCH to pay the local  labor  administration  bureau a
monthly  contribution at a stated  contribution  rate based on the monthly basic
compensation  of qualified  employees.  The local labor  administration  bureau,
which manages various  investment funds, will take care of employee  retirement,
medical and other fringe  benefits.  TCH has no further  commitments  beyond its
monthly contribution.  TCH contributed a total of $39,945, $58,501, $25,766, and
$19,951 to these funds as part of selling,  general and administrative  expenses
for years ended  December 31, 2002 and 2003 and nine months ended  September 30,
2003 and 2004, respectively.

Income Taxes

The Company  accounts for income taxes in accordance with Statement of Financial
Accounting  Standards No 109,  "Accounting  for Income  Taxes" ("SFAS No. 109"),
issued by the FASB.  SFAS No. 109 requires an entity to  recognize  deferred tax
liabilities  and assets.  Deferred tax assets and liabilities are recognized for
the future tax consequence  attributable to the difference between the tax bases
of  assets  and  liabilities  and  their  reported   amounts  in  the  financial
statements.  Deferred tax assets and  liabilities are measured using the enacted
tax rate  expected  to apply  to  taxable  income  in the  years in which  those
temporary  differences  are expected to be  recovered or settled.  The effect on
deferred tax assets and  liabilities  of a change in tax rates is  recognized in
income in the period that included the enactment date.

TCH is  registered  at Pudong  District in  Shanghai  and subject to a favorable
income tax rate of 15% compared to a normal income tax rate of 33% under current
PRC tax laws.  However,  Sifang Information  registered in the Shanghai downtown
area and has been treated by the Shanghai  Municipal  Administration of Labor as
an  enterprise  that  provides  unemployed  and  handicapped  people  with jobs.
Accordingly,  Sifang Information is entitled to be subject to a favorable income
tax rate of 15% and  qualifies  for income tax  exemption  for three  years from
January 1, 2000 to December 31, 2002,  and 50% of income tax reduction for three
years from  January 1, 2003 to  December  31,  2005.  The income tax  provisions
presented on the  Company's  financial  statements  are based on the  historical
actual income tax rates of Sifang Information at 0%, 7.5% and 7.5%. The deferred
tax assets are determined based on the historical income tax rates applicable at
the Sifang Information level.

                                      F-13




                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)




NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Income Taxes (Continued)

There  is  no  income  tax  for  companies  domiciled  in  the  Cayman  Islands.
Accordingly,  the Company's  financial  statements do not present any income tax
provisions related to Cayman Islands tax jurisdiction.

Use of Estimates

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

Comprehensive Income (Loss)

The  Company  adopted  Statement  of  Financial  Accounting  Standard  No.  130,
"Reporting  Comprehensive Income" ("SFAS No. 130"), issued by the FASB. SFAS No.
130 establishes standards for reporting and presentation of comprehensive income
(loss) and its components in a full set of general-purpose financial statements.
The Company has chosen to report  comprehensive  income (loss) in the statements
of income and comprehensive income.  Comprehensive income (loss) is comprised of
net  income  and  all  changes  to  stockholders'  equity  except  those  due to
investments by owners and distributions to owners.

Earnings (Loss) Per Share

The Company  presents  earnings per share in  accordance  with the  Statement of
Financial  Accounting  Standards No. 128, "Earnings per Share" ("SFAS No. 128").
The statement  replaces the  calculation  of primary and fully diluted  earnings
(loss) per share  with  basic and  diluted  earnings  (loss)  per  share.  Basic
earnings  (loss) per share  includes  no  dilution  and is  computed by dividing
income (loss) available to common shareholders by the weighted average number of
shares outstanding during the period.  Diluted earnings (loss) per share reflect
the  potential  dilution of  securities  that could share in the  earnings of an
entity,  similar to fully diluted  earnings (loss) per share. The Company has no
any potential common share equivalents as of September 30, 2004.

Recent Accounting Pronouncements

In  January  2003,  the  FASB  issued  FASB  Interpretation  No.  46  (FIN  46),
"Consolidation of Variable Interest  Entities." FIN 46, as amended by FIN 46(R),
issued in January  2003,  requires an investor  with a majority of the  variable
interests  in a  variable  interest  entity to  consolidate  the entity and also
requires majority and significant variable interest investors to provide certain
disclosures.  A  variable  interest  entity is an  entity  in which  the  equity
investors do not have a controlling  financial interest or the equity investment
at risk is insufficient  to finance the entity's  activities  without  receiving
additional  subordinated financial support from other parties. The provisions of
FIN 46(R) are  applicable  for fiscal years ending after  December 15, 2004. The
Company does not have any variable interest entities that must be consolidated.


                                      F-14


                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 3 - Equity Transactions

On June 23,  2004 the  Company  issued  167,895  share of its common  stock to a
consultant in lieu of cash payment. The trading price on June 23, 2004 was $3.60
per share; accordingly, the fair value of 167,895 shares was $604,422.

On June 23, 2004,  the Company  issued  166,667  share of its common stock to an
existing  stockholder  at a price  of $1.14  per  share in  exchange  for  gross
proceeds of $190,000 based on a stock purchase agreement. Pursuant to the signed
stock purchase  agreement,  the Company  granted to the existing  stockholder an
option which requires the Company to purchase the aforementioned  166,667 shares
of common stock at a price of $1.14 per share,  such option being exercisable at
any  time  after  the  date  that  is six  months  after  the  Company  files  a
registration  statement  on Form  SB-2  with the  SEC,  registering  the  shares
purchased by the existing  stockholder,  up to and  including the earlier of the
date that such  registration  statement is declared  effective by the SEC or the
existing  stockholder's  shares are eligible for resale under Rule 144 under the
Securities Act of 1933.  According to Topic D-98 from SEC,  "Classification  and
Measurement of Redeemable  Securities,"  the Company  believes that these shares
should be presented outside the permanent equity section;  however, these shares
should be considered to be included in  determining  basic earnings per share as
there was no  contingency  surrounding  these  underlying  shares.  In the above
transaction  of issuing  166,667  shares  incurred on June 23, 2004, the trading
price on that  day was  $3.60  per  share.  Due to the  nature  of this  insider
transaction,  the difference  between the price of $1.14 per share and the price
of  $3.60  per  share  was  recorded  as  deemed  compensation  to  an  existing
stockholder by presenting the increase of $410,001 in additional paid-in capital
and the increase of $410,001 in general and administrative expenses.

On June 28, 2004,  the Company  issued,  in  aggregate,  1,315,789 of its common
stock to three  investors  at a price of $1.14 per share in  exchange  for gross
proceeds of $1,500,000 based on respective stock purchase  agreements.  Pursuant
to the signed stock purchase  agreements,  the Company  granted to each of three
investors  an option which  requires the Company to purchase the  aforementioned
1,315,789 shares, in aggregate, at a price of $1.14 per share, such option being
exercisable  at any time  after the date that is six  months  after the  Company
files a registration statement on Form SB-2 with the SEC, registering the shares
purchased by the existing  stockholder,  up to and  including the earlier of the
date that such  registration  statement is declared  effective by the SEC or the
existing  stockholders'  shares are eligible for resale under Rule 144 under the
Securities  Act of 1933. As of September 30, 2004,  the proceeds of $1.5 million
were  kept in an  escrow.  Due to the  uncertainty  of when a Form  SB-2 will be
declared  effective,  the Company treated this escrow  receivable as a long-term
assets  instead  of  a  current  asset.   According  to  Topic  D-98  from  SEC,
"Classification and Measurement of Redeemable  Securities," the Company believes
that these shares  should be presented  outside the  permanent  equity  section;
however,  these shares should be considered to be included in determining  basic
earnings  per share as there was no  contingency  surrounding  these  underlying
shares.

The  Company  incurred  issuing  expense  of  $217,481  (mainly  audit and legal
expense) and accounted it for a reduction to additional paid-in capital.




                                      F-15


                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 4 - PROPERTY AND EQUIPMENT

A summary of property and equipment at cost is as follows:

                                            December 31,                
                                 ------------------------------    September 30,
                                      2002             2003             2004
                                 -------------    -------------    -------------
                                                                    (Unaudited)
                                                                      
Buildings                        $     943,300    $     943,368    $     943,380
Software                               222,858          391,660          461,187
Vehicles                                  --             65,484           65,484
Other equipment                        414,562          424,891          452,401
                                 -------------    -------------    -------------
                                     1,580,720        1,825,403        1,922,452
Accumulated depreciation              (246,924)        (471,165)         687,903
                                 -------------    -------------    -------------
                                 $   1,333,796    $   1,354,238    $   1,234,549
                                 =============    =============    =============


The depreciation and amortization for the years ended December 31, 2002 and 2003
and the nine months ended  September 30, 2003 and 2004 was  $132,904,  $234,055,
$172,271, and $138,851, respectively.

NOTE 5 - RELATED PARTY TRANSACTIONS

The Company had certain  transactions with Sifang  Information  during the years
ended  December 31, 2002 and 2003 and the nine months ended  September  30, 2003
and 2004, summarized as follows:

In accordance with terms contained in a signed service agreement between TCH and
Sifang  Information  giving  TCH the right to use  Sifang  Information's  paging
facility  (which may not be owned by foreign  investors at the present  time) to
transmit  the  reformatted  information,  the Company paid service fees of RMB4,
700,000 (equivalent  approximately $567,840) in each of the years ended December
31, 2002 and 2003, and RMB 3,524,838 (equivalent  approximately $425,877 in each
of the nine months ended September 30, 2003 and 2004.

During the normal  course of  business,  TCH incurred due to and due from Sifang
Information  for  financing  purposes.  In  2002  TCH  used  funds  from  Sifang
Information to start its mobile phone  distribution  business.  The  outstanding
balance due to this related party was $604,062 at December 31, 2002 and interest
expense  incurred  on the amount due to parent for the year ended  December  31,
2002 was $36,245.

During 2003,  TCH paid off all  outstanding  balances and lent certain  funds to
Sifang  Information  which was repaid  before  December 31,  2003.  There were a
couple of borrowing and lending  transactions between TCH and Sifang Information
in 2003,  however,  the outstanding balance of due to parent and due from parent
at December 31, 2003 was $0 whereas  interest expense incurred on the amount due
to parent for the year ended December 31, 2003 was $12,082.

During the nine months ended  September 30, 2004, TCH sold Samsung and other GSM
and CPMA mobile  phones  valued at  $10,512,821  including a 3.6% mark-up to the
Shanghai  Shantian  Telecommunication  Technology  Inc.  (Shantian)  and  Sifang
Information,  each a  related  party.  As of  September  30,  2004 the  accounts
receivable  (trade)  balance  due  from  Shantian  and  Sifang  Information  was
$2,177,459.


                                      F-16




                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 5 - RELATED PARTY TRANSACTIONS (Continued)

On June 30, 2004 TCH signed an agreement  with Sifang  Information  Co. Ltd. For
developing  a smart  card  information  system  related  to  citizen  health and
exercise.  This project has been approved by the Shanghai Municipal  Government.
Pursuant to the signed  agreement,  Sifang  Information  will develop smart card
information  system  in  terms  of  the  specifications   contained  the  design
blueprint. This card can be used for accessing gym facilities and other approved
and  related  health  facilities  under  the  program.  In  accordance  with the
financial terms on the signed  agreement,  Sifang  Information will take care of
expenses related to the smart card marketing and related  customer  after-market
services.  TCH will take care of  expenses  related to the  detailed  smart card
information  system design and development,  hardware and software  maintenance,
and related  information  service.  In return,  TCH is entitled to share a major
portion of the future revenue  generated by this smart card information  system.
In order to initiate this project,  TCH gave Sifang Information a line of credit
up to RMB20 million  (equivalent  approximately  $2.4 million) for financing its
market promotion and penetration and deployment,  with an interest rate based on
the market  interest  rate (at  September  30, 2004 the  interest  rate was 5%),
interest payable monthly and principal shall be repaid by Sifang  Information no
later  than June 30,  2006  resulting  in an  estimated  total  expense of RMB40
million  (equivalent of $4.8 million).  The aforementioned $2.4 million includes
the outstanding balance of amounts due from Sifang of $2,140,607 as of September
30,  2004.  The interest  income  incurred on the  outstanding  balance due from
Sifang  Information  for the nine months ended  September  30, 2004 was $30,205,
based on the interest rate of 5% per annum.

NOTE 6 - INCOME TAXES

The income  (loss)  generated  in the Cayman  Islands and the PRC before  income
taxes in 2002 and 2003,  and the nine months ended  September 30, 2003 and 2004,
was as follows:

                                                                      Nine Months Ended
                                        Years Ended December 31,        September  30,
                                       -------------------------   -------------------------
                                           2002          2003          2003          2004
                                       -----------   -----------   -----------   -----------
                                                                   (Unaudited)   (Unaudited)
                                                                              
Loss in the U.S. before income taxes   $      --     $      --     $      --     $(1,114,423)
Income in China before income taxes      2,003,442     3,134,674     2,037,827     2,092,256
                                       -----------   -----------   -----------   -----------
                                       $ 2,003,442   $ 3,134,674   $ 2,037,827   $   977,833
                                       ===========   ===========   ===========   ===========


                                                                               




                                      F-17



                                      




                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)




NOTE 6 - INCOME TAXES (Continued)

The income tax provision was as follows:

                                                          Nine Months Ended
                          Years Ended December 31,          September 30,
                          -------------------------   -------------------------
                             2002           2003         2003           2004
                          ----------     ----------   ----------     ----------
                                                      (Unaudited)    (Unaudited)                                                
Current:                                                               
   Cayman Island          $     --       $     --     $     --       $     --
   China                        --          246,093      159,673        173,712
                          ----------     ----------   ----------     ----------
Deferred:                                                              
   Cayman Island                --             --           --             --
    China                     (5,556)           601        5,556         (4,069)
                          ----------     ----------   ----------     ----------
                          $   (5,556)    $  246,694   $  165,229     $  169,643
                          ==========     ==========   ==========     ==========
                                                                    

TCH is subject to taxation  under the laws of the PRC, and the statutory  income
tax rate for the years  ended  December  31,  2002 and 2003 and the nine  months
ended  September  30, 2004 was 0%, 7.5% and 7.5%,  respectively.  The income tax
provision  for 2002 was based on pretax  income of  $2,003,442  and  adjusted by
permanent  differences of $146,285 with an income tax rate at 0%. The income tax
provision  for 2003 was based on a pretax  income  $3,134,674  and  adjusted  by
permanent  differences  of $154,557 with an income tax rate at 7.5%. In the nine
months ended of September 30, 2003 and 2004, income tax expense was $165,229 and
$169,643,  respectively,  based on pre tax income of $2,203,056 and  $1,147,476,
respectively,  with a  projection  that  there were no or little  permanent  and
temporary differences for income tax purpose.

The difference  between the effective  income tax rate and the expected  federal
statutory rate was as follows:
                                                                Nine Months Ended
                                Years Ended December 31,          September 30,
                                -------------------------   -------------------------
                                   2002           2003         2003           2004
                                ----------     ----------   ----------     ----------                                       
                                                           (Unaudited)     (Unaudited)
                                                                 
 
Statutory rate                        33.0%          33.0%        33.0%        33.0 %
Income tax holiday                   (33.0)         (25.5)       (25.5)         (25.5)
Permanent differences                 (0.3)           0.4       --             --
Change in valuation allowance         --             --           --             --
                                ----------     ----------   ----------     ----------
                                                                                 
Effective income tax rate             (0.3)%          7.9%         7.5%           7.5%
                                ==========     ==========   ==========     ==========

                                                                             





                                      F-18



                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)




NOTE 6 - INCOME TAXES (Continued)

The primary components of temporary differences which give rise to the Company's
deferred tax assets were as follows:

                                            December 31,                  
                                   -----------------------------   September 30,
                                        2002            2003            2004
                                   -------------   -------------   -------------
                                                                    (Unaudited)
                                                               
Allowance for receivables          $       2,261   $       1,973   $       2,139
Accrued liabilities                        3,295           2,982           6,885
                                   -------------   -------------   -------------
                                           5,556           4,955           9,024
Valuation allowance                         --              --              --
                                   -------------   -------------   -------------
Net deferred tax assets            $       5,556   $       4,955   $       9,024
                                   =============   =============   =============
                                                                  

NOTE 7 - COMMITMENTS

In order for TCH to provide  value-added  information  services  to pager  users
located in Shanghai and  provinces in the  Shanghai  vicinity,  TCH needs to use
certain   frequency   transmitting   equipment  and  relevant  other   equipment
(collectively "paging facilities') which are prohibited to be owned by a foreign
investment  enterprise.  As a result,  TCH entered into a service agreement with
Sifang Information  pursuant to which Sifang  Information  provides TCH with the
radio signal  transforming  service and other  services on an annual basis.  The
total  service  expenses for the years ended  December 31, 2002 and 2003 and the
nine  months  ended  September  30, 2003 and 2004 were  approximately  $567,840,
$567,840,  $425,877  and  $425,877,  respectively.  The service  agreement  will
continued  to be  effective  and be renewed on annual  basis  until PRC laws and
regulations allow foreign investment enterprises to own these paging facilities.

Operating Leasing Commitment

TCH has an operating lease with Shanghai Tianci Real Estate Co. Ltd. (one of its
related  parties)  to lease  one of its  apartments  (250  square  meters)  as a
management  office.  The  leasing  agreement  runs from May 1, 2003 to April 30,
2008.  The annual rent is RMB340,000  (equivalent  $41,078).  The rental expense
incurred for the Company for the years ended  December 31, 2002 and 2003 and the
nine months ended September 30, 2003 and 2004 was $0 (the rental incurred at the
Sifang Information level was  proportionally  charged to TCH as a service charge
under  the  co-operation  agreement),  $27,385,  $17,116  (the  same  reason  as
aforementioned) and $30,808, respectively.

Future minimum payments required under the operating lease which has a remaining
lease term in excess of one year at December 31, 2003 are as follows:

      December 31,                                                       Amount
-------------------------                                             ----------
         2004                                                         $   41,078
         2005                                                             41,078
         2006                                                             41,078
         2007                                                             41,078
         2008                                                             13,693
                                                                      ----------
                                                                      $  178,005
                                                                      ==========
                                                                      


                                      F-19




                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)



NOTE 8 - SEGMENT REPORTING

The Company currently operates in two principal  business  segments.  Management
believes that the following  table presents the useful  information to the chief
operation decision makers for measuring business performance and financing needs
and preparing the corporate budget, etc. The company's accounting systems do not
capture the total assets for each segment.  As most of the  Company's  customers
are located in the Shanghai  metropolitan  area and the  Company's  revenues are
generated in Shanghai, no geographical segment information is presented.


                                     Mobile Phone    Mobile Phone    Beep Pagers      
                                     Distribution      Service         Service        Corporate       Total
                                     ------------    ------------    ------------   ------------   ------------
                                                                                             
2002
Revenue                              $    520,325    $      6,957    $  3,396,125   $       --     $  3,923,407
Gross margin                               (7,133)        (39,262)      2,590,111           --        2,543,716
Inventory                               1,169,223            --              --             --        1,169,223
Fixed assets                                 --           390,496            --          943,300      1,333,796
Expenditures for long-lived assets           --           243,456            --          943,300      1,186,756
assetsassetsassassets

2003
Revenue                              $ 13,529,279    $  1,297,323    $  2,205,776   $       --     $ 17,032,378
Gross margin                            1,104,825       1,082,003       1,510,656           --        3,697,484
Inventory                               1,591,223            --              --             --        1,591,223
Fixed assets                                 --           455,680            --          898,558      1,354,238
Expenditures for long-lived assets           --           194,374            --           65,484        259,858

Nine months ended 
September 30, 2003
  (Unaudited)
Revenue                              $ 10,968,075    $    394,965    $  1,956,484   $       --     $ 13,319,524
Gross margin                              768,623         231,138       1,411,836           --        2,622,954
Inventory                               2,572,681            --              --             --        2,572,681
Fixed assets                                 --           393,707            --          909,716      1,303,423
Expenditures for long-lived assets           --           141,898            --             --          141,898

Nine months ended 
September 30, 2004
  (Unaudited)
Revenue                              $ 15,427,286    $  1,828,041    $    639,949   $       --     $ 17,895,276
Gross margin                              768,623       1,677,141         130,058           --        2,575,822
Inventory                               1,069,408            --              --             --        1,069,408
Fixed assets                                 --           369,588            --          861,961      1,234,549
Expenditures for long-lived assets           --            19,162            --             --           19,162





                                      F-20


                   CHINA DIGITAL WIRELESS, INC. AND SUBSIDIARY

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
  (Information for Nine Months Ended September 30, 2003 and 2004 is Unaudited)
                                (In U.S. Dollars)




NOTE 9 - CONCENTRATION OF CUSTOMERS AND VENDORS

Customers and vendors who account for 10% or more of revenues, accounts
receivable, purchases and accounts payable are presented as follows:

                                          Accounts                    Accounts  
                            Revenue      Receivable    Purchases       Payable
                           ----------    ----------    ----------    ----------
2002                       
                           
Customer A                          8%           57%         --            --
                           
Vendor A                         --            --              98%            0%
                           
2003                       
Customer Z                         16%            2%         --            --
Customer Y                         14%            2%         --            --
Customer X                         12%            1%         --            --
Customer W                          7%           79%         --            --
                           
Vendor T                         --            --              36%            0%
Vendor S                         --            --              31%            0%
Vendor X                         --            --              23%            0%
                           
Customer A       

The Company provided value-added paging service to Customer A, which was another
paging service  provider in Jiangsu  province.  The paging  service  revenue was
collected on a semiannual  basis pursuant to the terms of the service  agreement
signed between the Company and Customer A. The  outstanding  receivable  balance
was collected in full amount in 2003.

Customer W

Customer W actually is an installing agent who installed the Company's  software
per a retailer's  request on the retailer's mobile phones.  The retailer in turn
sells its mobile phones at a premium.  In terms of the signed agreement  between
the Company and the installing agent, the installing agent should be responsible
for collection from the retailer and then pay the Company according to the terms
of the agreement on a semiannual  basis.  The  outstanding  balance for the year
ended December 31, 2003 was collected in full in April 2004.

During  the  nine  months  ended  September  30,  2004,  the  Company  generated
approximately $10.5 million of sales of mobile phones to related parties,  which
accounted  for  approximately  59% of total  revenue for the nine  months  ended
September 30, 2004.



                                      F-21



                                     PART II

                     INFORMATION NOT REQUIRED IN PROSPECTUS

Indemnification of Directors and Officers

         The company's  Articles of Incorporation,  filed as Exhibit 3.1 hereto,
provide that it must  indemnify its directors and officers to the fullest extent
permitted  under  Nevada law against all  liabilities  incurred by reason of the
fact that the person is or was a  director  or  officer  or a  fiduciary  of the
company.  The  effect  of these  provisions  is  potentially  to  indemnify  the
company's  directors  and  officers  from all costs and  expenses  of  liability
incurred by them in connection with any action, suit or proceeding in which they
are involved by reason of their affiliation with the company. Pursuant to Nevada
law, a corporation may indemnify a director,  provided that such indemnity shall
not apply on account of:

         (a)      acts or  omissions  of the  director  finally  adjudged  to be
                  intentional misconduct or a knowing violation of the law;
         (b)      unlawful distributions; or
         (c)      any transaction  with respect to which it was finally adjudged
                  that such  director  personally  received  a benefit in money,
                  property,  or services to which the  director  was not legally
                  entitled.

         The Bylaws of the company, filed as Exhibit 3.2 hereto, provide that we
will  indemnify our officers and  directors  for costs and expenses  incurred in
connection with the defense of actions,  suits,  or proceedings  against them on
account of their being or having  been  directors  or  officers of the  company,
absent a finding of negligence or misconduct in office.

         The company's Bylaws also permit us to maintain  insurance on behalf of
our officers,  directors,  employees and agents  against any liability  asserted
against  and  incurred  by that  person  whether  or not we have  the  power  to
indemnify such person against liability for any of those acts.

Other Expenses of Issuance and Distribution

         Expenses incurred or (expected) relating to this Registration Statement
and distribution are as follows:  The amounts set forth are estimates except for
the SEC registration fee:

                                                Amount
SEC registration fee                        $     1,529.50
Printing and engraving expenses*            $     5,000.00
Professional fees and expenses*             $   200,000.00
Transfer agent's and registrar's fees and
     expenses*                              $     1,500.00
Miscellaneous*                              $     2,500.00

Total*                                      $   226,529.50

------------------------
*Estimates

         The Registrant will bear all of the expenses shown above.

                     RECENT SALES OF UNREGISTERED SECURITIES

         Set forth below is information  regarding the issuance and sales of the
company's  securities without registration for the past three (3) years from the
date of  this  Registration  Statement.  No such  sales  involved  the use of an


                                      II-1



underwriter, no advertising or public solicitation were involved, the securities
bear a restrictive  legend and no commissions  were paid in connection  with the
sale of any securities.

         On February 23, 2004,  the company  sold 987,915  shares of  restricted
common  stock  for  gross  proceeds  of  $300,000,  pursuant  to a  subscription
agreement,  to Halter  Financial  Group,  Inc.,  an entity  owned by  Timothy P.
Halter, a former member of the Board of Directors and the Company's former Chief
Executive  Officer.  Additionally,  in consideration for agreeing to serve as an
officer and director of the Company,  Timothy P. Halter was granted a warrant to
purchase up to 131,722 shares of common stock of the company.

         On February  23,  2004,  the  company  agreed to pay Little and Company
Investment  Securities,   an  entity  owned  by  Glenn  A.  Little,  its  former
controlling  stockholder,  officer  and  director,  $30,000 in  consulting  fees
related  to  the  transaction   discussed  in  the  previous  paragraph  and  in
consideration   for  maintaining  the  corporate   entity.   To  formalize  this
obligation,  the company issued a $30,000  non-interest  bearing promissory note
maturing on February 23, 2005.  Concurrent with the transaction discussed in the
previous  paragraph,  the company and Little and Company  Investment  Securities
executed an Exchange  Agreement  whereby the  company  issued  98,792  shares of
common stock in satisfaction of the outstanding promissory note.

         On June 23, 2004 the company  issued  167,895 share of its common stock
to a consultant in lieu of cash payment.

         On June 23, 2004,  the company issued 166,667 share of its common stock
to an existing  stockholder  at a price of $1.14 per share in exchange for gross
proceeds of $190,000 based on a stock purchase agreement.

         On June 28, 2004, the Company  issued,  in aggregate,  1,315,789 of its
common  stock to three  investors  at a price of $1.14 per share in exchange for
gross proceeds of $1,500,000 based on respective stock purchase agreements.

         The  foregoing  shares were issued in private  transactions  or private
placements  intending to meet the  requirements  of one or more  exemptions from
registration.  In  addition  to  any  noted  exemption  below,  we  relied  upon
Regulation D and Section  4(2) of the  Securities  Act of 1933,  as amended (the
"Act").   The  investors  were  not  solicited   through  any  form  of  general
solicitation or advertising,  the transactions being non-public  offerings,  and
the sales were conducted in private  transactions where the investor  identified
an investment intent as to the transaction without a view to an immediate resale
of the  securities;  the shares were  "restricted  securities" in that they were
both  legended with  reference to Rule 144 as such and the investors  identified
they were  sophisticated  as to the  investment  decision  and in most  cases we
reasonably  believed the investors were  "accredited  investors" as such term is
defined under Regulation D based upon statements and information  supplied to us
in writing and verbally in connection with the  transactions.  We never utilized
an underwriter for an offering of our securities and no sales  commissions  were
paid to any third party in connection  with the  above-referenced  sales.  Other
than the securities mentioned above, we have not issued or sold any securities.

                                    EXHIBITS

        Exhibit 
        Number                    Description
          3.1*             Articles of Incorporation of the Registrant.

          3.2**            Second Amended and Restated Bylaws of the Registrant.
          4.1****          Common Stock Specimen.

          5.1+             Legal Opinion of Jackson Walker L.L.P.



                                      II-2



         10.1**            Securities  Exchange  Agreement by and among  Boulder
                           Acquisitions, Inc., Sifang Holdings Co., Ltd. and the
                           stockholders  of  Sifang  Holdings  Co.,  Ltd.  dated
                           effective as of June 23, 2004.

         10.2***           Information Service and Cooperation  Agreement by and
                           among Shanghai Sifang Information Technology Co. Ltd.
                           and Shanghai TCH Data Technology Co. Ltd. dated as of
                           June 1, 2004.

         10.3***           Information Service and Cooperation  Agreement by and
                           among Shanghai Sifang Information Technology Co. Ltd.
                           and Shanghai TCH Data Technology Co. Ltd. dated as of
                           June 1, 2004.

         10.4***           Information Service and Cooperation  Agreement by and
                           among  Shanghai  Sifang  Information  Technology  Co.
                           Ltd.,   Shanghai  Chengao  Industrial  Co.  Ltd.  and
                           Shanghai  TCH Data  Technology  Co. Ltd.  dated as of
                           June 1, 2004.

         10.5***           Information Service and Cooperation  Agreement by and
                           among Shanghai Tianci  Industrial  (Group),  Co. Ltd.
                           and Shanghai TCH Data Technology Co. Ltd. dated as of
                           June 1, 2004.

         10.6***           Business  and  Related  Assets   Transfer   Agreement
                           between  Shanghai Sifang  Information  Technology Co.
                           Ltd. and Shanghai TCH Data  Technology Co. Ltd. dated
                           as of May 26, 2004.

         10.7**            Stock  Purchase   Agreement  by  and  between  Halter
                           Financial Group, Inc. and Boulder Acquisitions,  Inc.
                           dated as of June 23, 2004.

         10.8**            Stock Purchase  Agreement by and between  Chinamerica
                           Fund, LP and Boulder  Acquisitions,  Inc. dated as of
                           June 28, 2004.

         10.9**            Stock Purchase  Agreement by and between  Chinamerica
                           Acquisition, LLC and Boulder Acquisitions, Inc. dated
                           as of June 28, 2004.

         10.10**           Stock  Purchase  Agreement  by and between Gary Evans
                           and Boulder  Acquisitions,  Inc. dated as of June 28,
                           2004.

         21.1****          Subsidiaries of the Registrant.

         23.1              Consent of Independent  Registered  Public Accounting
                           Firm.

         23.2+             Consent of Jackson  Walker  L.L.P.  (filed as part of
                           Exhibit 5.1).

         24.1****          Power of Attorney  Reference  is made to page II-5 of
                           the Registration Statement.
                           
+        To be filed by amendment
*        Previously  filed as an exhibit to the  Registrant's  Annual  Report on
         Form  10-KSB for the fiscal year ended  December  31,  2001,  which was
         filed  with  the   Commission  on  January  28,  2002,   and  which  is
         incorporated herein by reference.



                                      II-3



**       Previously  filed as an exhibit to the  Registrant's  Current Report on
         Form 8-K  dated  July 8,  2004,  and  which is  incorporated  herein by
         reference.
***      Previously filed as an exhibit to the Registrant's  Quarterly Report on
         Form  10-QSB  for the  period  ended  June 30,  2004 as filed  with the
         Commission  on August 23,  2004,  and which is  incorporated  herein by
         reference.
****     Previously  filed  as  an  exhibit  to  the  Registrant's  Registration
         Statement  on Form SB-2 as filed with the  Commission  on November  12,
         2004, and which is incorporated herein by reference.


                                  UNDERTAKINGS

         The undersigned registrant hereby undertakes:

1) To file,  during  any  period in which  offers or sales  are  being  made,  a
post-effective amendment to this registration statement:

         (a)      To include any prospectus  required by section 10(a)(3) of the
                  Securities Act of 1933;
         (b)      To  reflect  in the  prospectus  any  facts or  events  which,
                  individually  or in the  aggregate,  represent  a  fundamental
                  change  in the  information  set  forth  in  the  registration
                  statement.  Notwithstanding  the  foregoing,  any  increase or
                  decrease in volume of securities  offered (if the total dollar
                  value of  securities  offered  would not exceed  that which is
                  being  registered)  and any deviation from the high or low end
                  of the estimated  maximum range,  may be reflected in the form
                  of  prospectus  filed  with the  Commission  pursuant  to Rule
                  424(b) if, in the  aggregate,  the changes in volume and price
                  represent  no more than a 20% change in the maximum  aggregate
                  offering price set forth in the  "Calculation  of Registration
                  Fee" table in the effective registration statement; and       

         (c)      To include any additional or changed  material  information on
                  the plan of distribution.

2) For  determining  liability  under the  Securities  Act of 1933,  treat  each
post-effective  amendment  as a new  registration  statement  of the  securities
offered,  and the offering of the securities at that time to be the initial bona
fide offering.

3) File a  post-effective  amendment  to  remove  from  registration  any of the
securities being registered, which remain unsold at the end of the offering.

4) Insofar as indemnification  for liabilities  arising under the Securities Act
may be permitted to directors,  officers or  controlling  persons of the company
pursuant to the foregoing provisions or otherwise,  the company has been advised
that,  in  the  opinion  of  the  Securities  and  Exchange   Commission,   such
indemnification  is  against  public  policy  as  expressed  in that Act and is,
therefore, unenforceable.

         In the event that a claim for indemnification  against such liabilities
(other  than the  payment  by us of  expenses  incurred  or paid by a  director,
officer or  controlling  person of us 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  whether  such
indemnification  by us is against  public policy as expressed in the  Securities
Act and we will be governed by the final adjudication of such issue.







                                      II-4


                                   SIGNATURES

         In accordance with the  requirements of the Securities Act of 1933, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the  requirements  for filing on Form SB-2 and authorizes  this  registration
statement  to be  signed  on its  behalf  by  the  undersigned,  thereunto  duly
authorized,  in the City of Shanghai,  People's Republic of China. China Digital
Wireless, Inc.

China Digital Wireless, Inc.

By: /s/ Tai Caihua                                         Date: January 3, 2005
   ---------------------------------------
   Tai Caihua, President and Chairman of the Board

By: /s/ Lu Quin                                            Date: January 3, 2005
   ---------------------------------------
   Lu Quin, Chief Financial Officer

         In accordance with the requirements of the Securities Act of 1933, this
registration  statement  has  been  signed  by  the  following  persons  in  the
capacities and on the date stated.


By:         *                                              Date: January 3, 2005
   Tai Caihua, Director                                
                                                       
By:         *                                              Date: January 3, 2005
   Shi Ying, Director                                  
                                                       
By:         *                                              Date: January 3, 2005
   Huang Tianqi, Director                              
                                                       
By:         *                                              Date: January 3, 2005
   Jing Weiping, Director                              
                                                       
By:         *                                              Date: January 3, 2005
   Mao Ming, Director                                  
                                                       
By:         *                                              Date: January 3, 2005
   Song Jing, Director                                 
                                                       
By:         *                                              Date: January 3, 2005
   Fu Sixing, Director                                 
                                                       
By:         *                                              Date: January 3, 2005
   Yu Ruijie, Director                                 
                                                       
By:         *                                              Date: January 3, 2005
   Zhang Xiaodong, Director                            
                                                       
By:         *                                              Date: January 3, 2005
   Huang Wei, Director                                 
                                                      

* By: /s/ Tai Caihua                                       Date: January 3, 2005
    ------------------------------- 
    Tai Caihua, As Attorney-in-fact



                                      II-5