GME INNOTAINMENT, INC. - FORM 10-Q/A

Attached files

file	filename
EX-32.2 - EXHIBIT 32.2 - GME INNOTAINMENT, INC.	ex322.htm
EX-31.1 - EXHIBIT 31.1 - GME INNOTAINMENT, INC.	ex311.htm
EX-32.1 - EXHIBIT 32.1 - GME INNOTAINMENT, INC.	ex321.htm
EX-31.2 - EXHIBIT 31.2 - GME INNOTAINMENT, INC.	ex312.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q/A

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2011

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

Commission file number 333-139008

GREAT CHINA MANIA HOLDINGS, INC.

(Exact Name of Registrant as Specified in Its Charter)

GREAT EAST BOTTLES & DRINKS (CHINA) HOLDINGS, INC

(Former Name of Registrant, if Applicable)

Florida		59-2318378
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

203 Hankow Center, 5-15 Hankow Road
Tsimshatsui, Kowloon, Hong Kong		n/a
(Address of principal executive offices)		(Zip Code)

(852) 2192-4808

(Registrant’s telephone number, including area code)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes T No £

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Ruble 12b-2 of the Exchange Act. Yes £ No £

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes £ No T

The number of shares of Common Stock, $0.01 par value, outstanding on May 16, 2011 was 24,676,000.

GREAT CHINA MANIA HOLDINGS, INC. (FORMERLY KNOWN AS GREAT EAST BOTTLES & DRINKS (CHINA) HOLDINGS, INC.) AND SUBSIDIARIES

TABLE OF CONTENTS

	Part I – Financial Information
Item 1	Financial Statements
	Unaudited Condensed Balance Sheets, March 31, 2011 and December 31, 2010
	Unaudited Condensed Statements of Operations and Comprehensive Income for thethree months ended March 31, 2011 and 2010
	Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010
	Notes to the Unaudited Condensed Consolidated Financial Statements
Item 2	Management’s Discussion and Analysis or Plan of Operation
Item 3	Quantitative and Qualitative Disclosures about Market Risk
Item 4	Controls and Procedures

	Part II – Other Information
Item 1	Legal Proceedings
Item 2	Unregistered Sales Of Equity Securities And Use Of Proceeds
Item 3	Defaults Upon Senior Securities
Item 4	[Removed and Reserved]
Item 5	Other Information
Item 6	Exhibits

Explanatory Note

The financial statements and notes in the Form 10-K for the year ended December 31, 2010 (filed April 15, 2011) inadvertently contained erroneous financial information. The sole purpose of this amendment is to file corrected financial data. No other changes have been made to the Form 10-K. This Form 10-K/A speaks as of the original filing date and has not been updated to reflect events occurring subsequent to the original filing date.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GREAT CHINA MANIA HOLDINGS, INC. (FORMERLY KNOWN AS GREAT EAST BOTTLES & DRINKS (CHINA) HOLDINGS, INC.) AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2011 (Unaudited) (Restated)			December 31, 2010 (Audited) (Restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	72,264			56,735
Accounts receivable		306,677			-
Inventories		113,726			-
Amount due from a related party		-			920,293
Prepaid expenses and other receivables		10,052			257
Total current assets		502,719			977,285

PROPERTY, PLANT & EQUIPMENT, NET		-			25,273

TOTAL ASSETS	$	502,719			1,002,558

LIABILITIES AND EQUITY
LIABILITIES
CURRENT LIABILITIES
Accounts payable	$	208,432		$	17,088
Notes payable		-			7,126
Accrued expenses and other payables		93,417			59,605
Receipt in advance		3,551			48,917
Amount due to a director		-			39,529
Advance from shareholders		138,055			-
Amount due to related parties		72,329			3,082,623
Taxes payable		-			9,379
Total current liabilities		515,784		$	3,264,267

LONG-TERM NOTES PAYABLE		-			8,748

TOTAL LIABILITIES		515,784			3,273,015

SHAREHOLDERS’ EQUITY
Common stock, Par value $0.01; 375,000,000 shares authorized; 24,676,000 and 9,202,000 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively		246,760			92,020
Additional paid in capital		6,633,689			5,406,259
Accumulated deficits		(6,893,514	)		(7,767,490	)
Accumulated other comprehensive loss		-			(1,246	)

TOTALSHAREHOLDERS’ EQUITY		(13,065	)		(2,270,457	)

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	502,719		$	1,002,558

See accompanying notes to condensed consolidated financial statements.

GREAT CHINA MANIA HOLDINGS, INC. (FORMERLY KNOWN AS GREAT EAST BOTTLES & DRINKS (CHINA) HOLDINGS, INC.) AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME (UNAUDITED)

	Three months ended March 31,
	2011			2010 (Restated)
CONTINUING OPERATIONS
REVENUES	$	878,853		$	-

COST OF SALES		621,550			-

GROSS PROFIT		257,303			-

EXPENSES
General and administrative (inclusive of depreciation)		263,485			233,645
TOTAL OPERATING EXPENSES		263,485			233,645

LOSS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES		(6,182	)		(233,645	)

OTHER INCOME/(EXPENSE)
Other income		4,947			-
Other expenses		(3,411	)		(232	)
TOTAL OTHER INCOME/(EXPENSE)		1,536			(232	)

NET LOSS BEFORE PROVISION FOR INCOME TAXES		(4,646	)		(233,877	)

PROVISION FOR INCOME TAXES		-			-

NET LOSS FROM CONTINUING OPERATIONS	$	(4,646	)	$	(233,877	)

DISCONTINUED OPERATIONS
NET LOSS		(80,233	)		(308,736	)
GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS		958,855			-

NET INCOME FROM DISCONTINUED OPERATIONS	$	878,622		$	(308,736	)

NET INCOME/(LOSS) FOR THE PERIOD	$	873,976		$	(542,613	)

OTHER COMPREHENSIVE INCOME		-			-

TOTAL COMPREHENSIVE INCOME/(LOSS) INCOME FOR THE PERIOD	$	873,976		$	(542,613	)

LOSS PER SHARE, BASIC AND DILUTED – CONTINUING OPERATIONS	$	-			(0.01	)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED		13,156,467			40,200,000

See accompanying notes to condensed consolidated financial statements.

GREAT CHINA MANIA HOLDINGS, INC. (FORMERLY KNOWN AS GREAT EAST BOTTLES & DRINKS (CHINA) HOLDINGS, INC.) AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the three months ended March 31,
	2011			2010 (Restated)
Cash flows from operating activities
Net loss from continuing operations	$	(4,646	)	$	(233,877	)
Changes in operating assets and liabilities:
Increase in accounts receivable		(306,677	)		-
Increase in inventories		(113,726	)		-
Increase in prepaid expenses and other receivables		(10,052	)		-
Increase in accounts payable		208,432			-
Decrease in receipt in advance		3,551			-
Increase in accrued expenses and other payables		90,641			-
Net cash used in continuing operating activities		(132,477	)		(233,877	)
Net cash (used in)/provided by discontinued operating activities		(144,522	)		14,711,915
Net cash used in operating activities		(276,999	)		14,478,038

Cash flows from investing activities
Net cash provided by continuing investing activities		-			-
Net cash used in discontinued investing activities		-			(217,273	)
Net cash used in investing activities		-			(217,273	)

Cash flows from financing activities
Increase in amount due to a related party		66,686			233,877
Advance from shareholders		138,055			-
Net cash provided by continuing financing activities		204,741			233,877
Net cash provided by/(used in) discontinued financing activities		116,483			(15,822,792	)
Net cash provided by financing activities		321,224			(15,588,915	)

Net increase in cash and cash equivalents
Continuing operations		72,264			-
Discontinued operations		(28,039	)		(1,328,150	)
		44,225			(1,328,150	)
Effect of foreign exchange rate changes
Continuing operations		-			-
Discontinued operations		2,769			(95,346	)
		2,769			(95,346	)
Cash and cash equivalents at beginning of period
Continuing operations		-			-
Discontinued operations		56,735			1,630,739
		56,735			1,630,739
Cash and cash equivalents at end of period
Continuing operations		72,264			-
Discontinued operations		31,465			207,243
	$	103,729		$	207,243
Supplemental disclosure of cash flows information:
Cash paid for interest
Discontinued operations	$	454		$	192,660

Non cash financing activities:
Conversion of debt to shares	$	1,382,170		$	-

See accompanying notes to condensed consolidated financial statements.

GREAT CHINA MANIA HOLDINGS, INC. (FORMERLY KNOWN AS GREAT EAST BOTTLES & DRINKS (CHINA) HOLDINGS, INC.) AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MARCH 31, 2011

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

Great China Mania Holdings, Inc. (“GMEC” or the “Company”) was incorporated in Nevada on July 8, 1983. On October 26, 2010, the Company entered into an Acquisition Agreement with Mr. Wong Heong Kin to acquire 100% of Water Scientific Holdings Limited (“Water Scientific”) in exchange for 500,000 shares of common stock of the Company.

On December 30, 2010, the Company entered into an Asset Purchase and Sale Agreement with Mr. Chung A. Tsan Guy, a shareholder of the Company. Pursuant to the agreement, the Company sold the then subsidiary Great East Bottles & Drinks (BVI) Inc. (“GEBD BVI”, an investment holding company incorporated in the British Virgin Islands (“BVI”)) in exchange for Mr. Chung surrendering 31,498,000 shares of common stock of the Company.

In order to diversify the Company’s operations, several new subsidiaries have been formed and are now operating within the Company. From October 26, 2010 to March 31, 2011, Water Scientific functioned as a subsidiary of the Company. In February, three new subsidiaries of the Company were formed and have since maintained operations. These subsidiaries are GME Holdings Limited, Great China Games Limited and Great China Media Limited. As of the date of this filing, our corporate structure is as follows:

GMEC owns a wholly-owned subsidiary, Sharp Achieve Holdings Limited (BVI). Sharp Achieve Holdings Limited (BVI) has a wholly-owned subsidiary, Super China Global Limited (BVI). Super China Global Limited has three subsidiaries: 1) GME Holdings Limited which was incorporated February 18, 2011 and specialized in artiste and project management services; 2) Great China Media Limited which was incorporated February 1, 2011 and specialized in publication of magazines; and 3) Great China Games Limited which was incorporated February 1, 2011 and specialized in retail operation of video games and accessories.

On March 16, 2011, the Company amended its Articles of Incorporation and changed the name of the Company from “Great East Bottles & Drinks (China) Holdings, Inc.” to “Great China Mania Holdings, Inc.”

In addition, the Company, as of March 31, 2011, disposed of Water Scientific Holdings Limited (“Water Scientific”). As of the date of this filing, the Company no longer carries on the operations of Water Scientific.(the “Disposal”. See also Footnote 3).

NOTE 2 – PRINCIPLES OF CONSOLIDATION

The unaudited interim financial statements of the Company and the Company’s subsidiaries (see Note 1) for the three months ended March 31, 2011 and 2010 have been prepared pursuant to the rules & regulations of the SEC. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company’s operations is the Hong Kong Dollar (HK$) for three months ended March 31, 2011and 2010, while the reporting currency is the US Dollar.

In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation of the Company’s financial position as of March 31, 2011, the results of its operations and cash flows for the three months ended for March 31, 2011 and 2010.

The results of operations for the three months ended March 31, 2011are not necessarily indicative of the results for a full year period.

NOTE 3 –DISPOSAL OF WATER SCIENTIFIC

On March 31, 2011 the Company disposed Water Scientific to Wong Heong Kin and Chung A. Tsan Guy and they will assume all of the assets and liabilities of Water Scientific from the Company. Water Scientific ceased to become a consolidating subsidiary of the Company after March 31, 2011. All the operating losses of Water Scientific from January 1, 2011 to March 31, 2011 are recorded as net loss from discontinued operations while the reduction of net liabilities associated with the disposal of Water Scientific over the carrying cost of Water Scientific are recorded as gains on disposal of discontinued operations.

By disposal of Water Scientific, the Company sold its ecological products operations. A summary of the balance sheet and income statement of Water Scientific, immediately before the Disposal, is presented as follow:

(i)	Summary of balance sheet

	March 31, 2011 (Date of disposal)		December 31,2010
ASSETS
Cash and cash equivalents	$	31,465	$	56,735
Amount due from a related party		978,087		645,385
Prepaid expenses and other receivables		257		257
PROPERTY, PLANT & EQUIPMENT, NET		23,613		25,273
TOTAL ASSETS	$	1,033,422	$	727,650

LIABILITIES
Accounts payable	$	-	$	17,088
Notes payable		14,134		15,874
Accrued expenses and other payables		59,420		59,605
Receipt in advance		48,765		48,917
Amount due to a director		39,406		39,529
Amount due to related parties		1,821,202		1,418,620
Taxes payable		9,350		9,379
TOTAL LIABILITIES		1,992,277	$	1,609,012

NET LIABILITIES	$	958,855	$	881,362

Represented by :
Gain on disposal of discontinued operations	$	958,855	$	N/A

(ii)	Summary of income statement

	Three months ended March 31, 2011 (Date of disposal)			Three months ended March 31, 2010
Revenue	$	-		$	-
Gross margin		-			-
Loss before provision for income taxes		(80,233	)		-
Net loss for the period	$	(80,233	)	$	-

The results of Water Scientific were not consolidated for the three months ended March 31, 2010 as the Company acquired Water Scientific in October 2010.

NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Economic and political risk

The Company’s continuing operations and discontinued operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in the Hong Kong may influence the Company’s business, financial condition, and results of operations.

The Company’s major operations in the Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

(b) Cash and cash equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company’s continued operations maintain bank accounts in Hong Kong. The Company’s discontinued operations maintain bank accounts in Hong Kong.

Inventories consisting of raw materials and finished goods are stated at the lower of cost or net realizable value. Finished goods are comprised of direct materials held for resale. Inventory costs are calculated using first in first out (FIFO) method of accounting.

(d) Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated depreciation. The cost of maintenance and repairs is charged to operations as incurred, whereas significant renewals and improvements are capitalized. The cost and the related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income.

(e) Depreciation and amortization

The Company provides for depreciation of plant and equipment by use of the straight-line method for financial reporting purposes.

Plant and equipment are depreciated over the following estimated useful lives:

Office equipment	5 years
Transportation equipment	5 years

No depreciation expense attributable to the property, plant and equipment of continuing operation for the years ended March 31, 2011 and 2010. Depreciation expense attributable to the property, plant and equipment of discontinued operation for the years ended March 31, 2011 and 2010 was $1,582 and nil, respectively.

(f) Accounting for the impairment of long-lived assets

The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows, anticipated holding periods, or market conditions change, our evaluation of impairment losses may be different and such differences could be material to our consolidated financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future events that could differ materially from actual results. There were no impairments of long-lived assets for the years ended March 31, 2011 and 2010.

(g) Income tax

Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized.

The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized

In accordance with the relevant tax laws and regulations of Hong Kong, the applicable corporation income tax rate was 16.5% on assessable profits, if any, for the years ended March 31, 2011 and 2010, respectively.

(h) Fair value of financial instruments

The Company’s financial instruments primarily consist of cash and cash equivalents, amount due from a related company, prepaid expenses and other receivables, accounts payable, accrued expenses and other payables, receipt in advance, taxes payable and amount due to a related party.

The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

As of the balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments and the fact that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profiles at respective year ends.

(i) Revenue recognition

For continuing operations, the Company and its subsidiaries are principally engaged in retails of video games and accessories, publication of magazines, project and artist management services. Revenue represents invoiced value of goods and services sold and are recognized when the following criteria are met:

(i) Persuasive evidence of an arrangement exists;

(ii) Delivery has occurred;

(iii) Seller’s price to the buyer is fixed or determinable; and

(iv) Collectability is reasonably assured.

For discontinued operations, the Company recognizes revenue from sale of ecological products and customers take ownership and assume risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and selling price is fixed or determinable.

(j) Earnings per share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of March 31, 2011 and 2010, there were no dilutive securities outstanding.

(k) Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 may differ from those estimates.

The Company provides no other retirement benefits to its employees.

(l) Comprehensive income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation gain, net of tax.

(m) Foreign currency translation

The accompanying consolidated financial statements are presented in United States Dollars (US$). The functional currency of the Company is Hong Kong Dollar (HK). Capital accounts of the consolidated financial statements are translated into United States dollars from HK$ at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year. The translation rates are as follows:

	2011		2010

Year end HK$ : US$ exchange rate		0.1282		0.1282
Average yearly HK$ : US$ exchange rate		0.1282		0.1282

(n) Recent accounting pronouncements

The Company has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.

NOTE 5 – ACCOUNTS RECEIVABLE

The Company’s accounts receivable as of the balance sheet dates are summarized as follows:

	March 31,2011		December 31,2010
Accounts receivable	$	306,677	$	-
Less: Allowance for doubtful accounts		-		-
Accounts receivable, net		306,677		-

The Company’s sales are primarily to Hong Kong customers with excellent credit ratings and since Company has incurred minimal bad debts in the past, no allowance for doubtful accounts has been recorded as of the balance sheet dates.

NOTE 6 – INVENTORIES

Inventories as of the balance sheet dates are summarized as follows:

	March 31,2011		December 31,2010
Raw materials	$	26,316	$	-
Finished goods		87,410		-
Total		113,726		-

The raw materials represent the paper used in publication of magazines and the finished goods represent the video games and accessories held for retail operations.

NOTE 7 –PREPAID EXPENSES AND OTHER RECEIVABLES

Prepaid expenses and other receivables as of the balance sheet dates are summarized as follows:

	March 31,2011		December 31,2010
Prepaid expenses	$	5,051	$	257
Other receivable		5,001		-
Total		10,052		257

NOTE 8 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment of the Company consist primarily of motor vehicle and office equipment. As of the balance sheet dates, property, plant and equipment are summarized as follows:

	Depreciable lives	March 31,2011		December 31, 2010
				Consolidated			Attributable to continuing operations

At cost:
Motor vehicle – hire purchase	5 years	$	-	$	28,680		$	-
Office equipment	5 years		-		2,580			-
			-		31,260			-

Less: Accumulated depreciation			-		(5,987	)		-

Property, plant and equipment, net		$	-		25,273		$	-

No depreciation expense attributable to the property, plant and equipment of continuing operation for the years ended March 31, 2011 and 2010 respectively. Depreciation expense attributable to the property, plant and equipment of discontinued operation for the years ended March 31, 2011 and 2010 was $1,582 and nil, respectively.

NOTE 9 – ACCRUED EXPENSES AND OTHER PAYABLES

As of the balance sheet dates, the Company’s accrued expenses and other payables are summarized as follows:

	March 31,2011		December 31, 2010
			Consolidated		Attributable to continuing operations

Accrued expenses	$	93,417		59,605		-
Other payables		-		-		-
	$	93,417		59,605	$	-

NOTE 10 – AMOUNT DUE TO A DIRECTOR

As of the balance sheet dates, the Company’s current accounts with the directors are summarized as follows:

	March 31,2011		December 31, 2010
			Consolidated		Attributable to continuing operations

Mr. Stetson Chung	$	-	$	39,529	$	-

The amount due to Mr. Stetson Chung represents temporary advances from the director for the Company’s working capital. The balance is unsecured, interest free, and has no fixed terms of repayment. During the reporting period, Mr. Chung resigned as Chief Executive Officer and director of the Company.

NOTE 11 – ADVANCES FROM SHAREHOLDERS

The advances from shareholders are unsecured, interest free and have no fixed repayment term.

NOTE 12 – AMOUNT DUE FROM/(TO) RELATED PARTIES

As of the balance sheet dates, the Company’s current accounts with the related companies are summarized as follows:

	March 31,2011			December 31, 2010
				Consolidated			Attributable to continuing operations

Asia Choice International Limited	$	-		$	920,293		$	-

Total amount due from a related party		-			920,293			-

China Culture Limited	$	(63,561	)	$	-		$	-
Mr. Chan Ka Wai		(6,925	)		(1,389,095	)		-
Global Mania Empire Management Limited		(1,843	)		-			-
Great East Packaging Holdings Limited (“GEPH”)		-			(1,693,528	)		-

Total amount due to related parties	$	(72,329	)	$	(3,082,623	)	$	-

The amount due to China Culture Limited represents temporary advances from the related company for the Company’s working capital. The balances are unsecured, interest free, and have no fixed terms of repayments. China Culture Limited is a related party as it is a Company owned by Mr. Chan Wing Hing, one of the Company’s directors appointed during the reporting period.

The amount due to Mr. Chan Ka Wai represents the balance of certain past due promissory note not converted into common stocks. The balances are unsecured, interest free, and have no fixed terms of repayments. Mr. Chan Ka Wai is one of the Company’s directors appointed during the reporting period.

The amount due to Global Mania Empire Management Limited represents temporary advances from the related company for the Company’s working capital. The balances are unsecured, interest free, and have no fixed terms of repayments. Global Mania Empire Management Limited is a related party as it is a Company owned by Mr. Kwong Kwan Yin Roy, one of the Company’s directors appointed during the reporting period.

NOTE 13 – WEIGHTED AVERAGE NUMBER OF SHARES FOR EARNINGS PER SHARE CALCULATION

The calculation of weighted average number of shares for the three months ended March 31, 2011 and 2010is illustrated as follows:

	2011
	Number of shares		Weighted average number of shares

At January 1, 2011	$	9,202,000	$	9,202,000
Share issuance completed on March 9, 2011 for debt conversion		15,474,000		3,954,467

At March 31 2011	$	24,676,000	$	13,156,467

	2010
	Number of shares		Weighted average number of shares

At January 1, 2010 and March 31 2010		40,200,000		40,200,000

NOTE 14 –CONVERSION OF PROMISSORY NOTE

On March 9, 2011, the Company acknowledged the execution of a Purchase and Assignment Agreement between GEBD BVI (the “Assignor”) and Mr. Chan Ka Wai (the “Assignee”) whereby the Assignor assigned the rights of a certain past due promissory note dated December 31, 2010, due by the Company in the principal amount of $1,389,095 (the “Note”) to the Assignee. As consideration for assignment of the Note by Assignor, Assignee agreed to pay Assignor or its designees consideration in the aggregate sum of $600,000.

Thereafter, the Assignee provided notice to the Company that he elected to convert the debt represented by the Note into shares of common stock of the Company and the Company agreed to convert the Note into 15,474,000 shares of common stock of the Company.

NOTE 15 – RELATED PARTY TRANSACTION

In addition to the transactions detailed elsewhere in these financial statements, the Company and its subsidiaries entered into the following material transactions with the related parties for the three months ended March 31, 2011:

	2011		2010
From continuing operations
China Culture Limited
Lease payment of properties by subsidiaries	$	47,590	$	-

China Culture Limited is a related party as it is a company owned by Mr. Chan Wing Hing, a Company director appointed during the reporting period.

NOTE 16 – CONTINGENCIES AND COMMITMENTS

As of March 31, 2011, the subsidiaries of the Company, the expected annual lease payments under these operating leases are as follows:

	March 31,2011
For the year ended December 31,
2011		267,103
2012		67,883
Total		334,986

NOTE 17 – SEGMENT REPORTING

The Company’s reportable segments of business include artiste and project management services, publication of magazines and retail of video games and accessories. Each of these segments is conducted in a separate corporation and each functions independently of the others. The Company has no sales between segments.

Financial information of the Company’s business segments is as follows:

	Three months ended March 31
	2011			2010
Revenues from:
Continuing operations
Artiste and project management services,	$	105,768		$	-
Publication of magazines		479,075			-
Retail of video games and accessories		294,010			-
Corporate		-			-
	$	878,853		$	-
Discontinued operations – Water Scientific		-			-
	$	878,853		$	-

Segment profit/( loss) from:
Artiste and project management services,		11,452			-
Publication of magazines	$	20,368		$	-
Retail of video games and accessories		(4,415	)		-
Corporate		(32,051	)		(233,877	)
	$	(4,646	)	$	(233,877	)
Discontinued operations – Water Scientific		878,622			-
	$	873,976		$	(233,877	)

Segment profit of discontinued operations – Water Scientific represents the total of the net loss of Water Scientific up to 31 March 2011 $80,233 and the gain on disposal of Water Scientific $958,855.

Segment assets:	March 31, 2011		December 31, 2010

Artiste and project management services,	$	105,896	$	-
Publication of magazines		256,338		-
Retail of video games and accessories		140,357		-
Corporate		128		-
	$	502,719	$	-
Discontinued operations – Water Scientific		-		1,002,558
	$	502,719	$	1,002,558

NOTE 18 - GOING CONCERN

The Company will need additional working capital to carry out its planned activity, which raises substantial doubt about its ability to continue as a going concern. Continuation of the Company as a going concern is dependent upon obtaining additional working capital through loans, equity financing or merger with another entity. Management of the Company has developed a strategy, which it believes will accomplish this objective through additional equity funding and other financing which will enable the Company to operate for the coming year.

NOTE 19 – PROFORMA STATEMENTS OF INCOME

Proforma statement of income is presented to illustrate and compare the impact of continuing operations and discontinued operations including entire bottles and bottled water manufacturing operations run by GEBD BVI and trading of ecological products operation run by Water Scientific to the balances that previously reported in 2010 10/Q filing for three months ended March 31, 2010.

	Continuing operations			Discontinued Operations - Water Scientific		Discontinued Operations- GEBD BVI			As previously reported in 2010 10/Q filing

Revenue	$	-		$	-	$	8,563,674		$	8,563,674
Cost of sales		-			-		7,302,197			7,302,197
Gross margin		-			-		1,261,477			1,261,477
Total operating expense		233,645			-		1,452,438			1,686,083
Total other income/( expense)		(232	)		-		(476,079	)		(476,311	)
Net loss before provision for income taxes		(233,877	)		-		(667,040	)		(900,917	)
Provision for income taxes		-			-		(153,302	)		(153,302	)
Net loss for the period		(233,877	)		-		(820,342	)		(1,054,219	)
Net loss attributable to non controlling interests		-			-		(537,671	)		(537,671	)
Net loss attributable to the Company		(233,877	)		-		(282,671	)		(516,548	)
Other comprehensive loss attributable to shareholders		-			-		(26,065	)		(26,065	)
Net income from discontinued operations		-			-		-			-
Total comprehensive income/(loss)	$	(233,877	)	$	-	$	(308,736	)	$	(542,613	)
Earnings per share, basic and diluted		(0.01	)		-		(0.01	)		(0.01	)
Weighted average number of shares outstanding		40,200,000					40,200,000			40,200,000

In the opinion of the management, the comparative figures for the three months ended 31 March 2010 were reclassified to current presentation because the balances shown in previous filings represent the discontinued operations of GEBD BVI which were not relevant to the current operations. The results of Water Scientific were not consolidated for the three months ended March 31, 2010 as the Company acquired Water Scientific in October 2010.

NOTE 20 – RESTATEMENT

The Company has restated certain amounts of the condensed consolidated financial statements to reflect the impact on disposal of discontinued operations in last year. Accumulated deficits and additional paid-in capital as of March 31, 2011 and December 31, 2010, respectively, has been increased by $5,223,073, respectively. There is no change in net assets as of March 31, 2011.

The Company has also restated the condensed consolidated statement of income and condensed statement of cashflows for the period ended March 31, 2010 to reflect the results and cashflows attributable to the discontinued GEBD BVI operations.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Note regarding forward – looking statements

This quarterly report contains forward-looking statements within the meaning of the federal securities laws. These include statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such as "anticipate", "expect", "intend", "plan", "will", "we believe", "the Company believes", "management believes" and similar language. The forward-looking statements are based on the current expectations of the Company and are subject to certain risks, uncertainties and assumptions, including those set forth in the discussion under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this report. The actual results may differ materially from results anticipated in these forward-looking statements. We base the forward-looking statements on information currently available to us, and we assume no obligation to update them.

Investors are also advised to refer to the information in our filings with the Securities and Exchange Commission, specifically Forms 10-K, 10-Q and 8-K, in which we discuss in more detail various important factors that could cause actual results to differ from expected or historic results. It is not possible to foresee or identify all such factors. As such, investors should not consider any list of such factors to be an exhaustive statement of all risks and uncertainties or potentially inaccurate assumptions.

Except as otherwise indicated by the context, references in this Form 10-K to “we”, “us”, “our”, “the Registrant”, “our Company” or “the Company” are to Great China Mania Holdings, Inc. (formerly known as Great East Bottles & Drinks (China) Holdings, Inc.), a Florida corporation and its consolidated subsidiaries. Unless the context otherwise requires, all references to (i) “BVI” are to British Virgin Islands; (ii) “PRC” and “China” are to the People’s Republic of China; (iii) “U.S. dollar”, “$” and “US$” are to United States dollars; (iv) “HKD” are to the Hong Kong Dollar; (v) “Securities Act” are to the Securities Act of 1933, as amended; and (vi) “Exchange Act” are to the Securities Exchange Act of 1934, as amended.

Critical Accounting Policies and Estimates

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States ("US GAAP"). US GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expenses amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

We believe the following is among the most critical accounting policies that impact our consolidated financial statements. We suggest that our significant accounting policies, as described in our consolidated financial statements in the Summary of Significant Accounting Policies, be read in conjunction with this Management's Discussion and Analysis of Financial Condition and Results of Operations.

We recognize revenue in accordance with Staff Accounting Bulletin ("SAB") No. 104. All of the following criteria must exist in order for us to recognize revenue:

1. Persuasive evidence of an arrangement exists;

2. Delivery has occurred;

3. The seller's price to the buyer is fixed or determinable; and

4. Collectability is reasonably assured.

The majority of the Company's revenue results from sales contracts with direct customers and revenues are generated upon the shipment of goods. The Company's pricing structure is fixed and there are no rebate or discount programs. Management conducts credit background checks for new customers as a means to reduce the subjectivity of assuring collectability. Based on these factors, the Company believes that it can apply the provisions of SAB 104 with minimal subjectivity.

Recent Accounting Pronouncements

The Company does not expect that the adoption of any recent accounting pronouncements will have any material impact on its financial statements.

Special Note Regarding Recent Corporate Actions

Since December 30, 2010, there have been several major corporate events that have changed the operations of the Company, and such changes have impacted the financial statements of the Company considerably, especially when compared with the former operations of 2010. A full summary of the corporate changes can be found in the Company’s Form 10-K filed on April 15, 2011. However, a brief summary is included here as well.

Pursuant to a private Stock Purchase Agreement dated January 25, 2011, between Mr. Chung A. Tsan Guy and Mr. Chan Ka Wai, Mr. Chung sold 6,099,400 shares of common stock of the Company to Mr. Chan for a total purchase price of $548,964 or $0.09 per share. Pursuant to this transaction, a change of control of the company occurred.

On March 16, 2011, the Company amended its Articles of Incorporation and changed the name of the Company to “Great China Mania Holdings, Inc.”.

On March 31, 2011 the Company entered into an Asset Sale, Purchase and Transfer Agreement with Mr. Wong Heong Kin and Mr. Chung A. Tsan Guy (the “Buyers”) whereby the Company sold the operations of Water Scientific Holdings Limited in exchange for the assumption of all of the assets and liabilities of the subsidiary Water Scientific Holdings Limited by the Buyer.

Results of Operations – Three Months Ended March 31, 2011 as Compared to Three Months Ended March 31, 2010.

The following table summarizes the results of our operations during the three-month period ended March 31, 2011 and 2010, and provides information regarding the dollar and percentage increase or (decrease) from the three-month period ended March 31, 2011 to the three-month period ended March 31, 2010.

	Three months ended March 31,				Increase (decrease)
		2011		2010	Increase (decrease)	% Change
Revenue	$	878,853	$	-	878,853	N/A
Cost of sales		621,550		-	621,550	N/A
Gross profit		257,303		-	257,303	N/A
General & administrative		263,485		233,645	29,840	12.77%
Loss from operations		(6,182)		(233,645)	227,463	N/A
Other income (expense)		1,536		(232)	1,768	N/A
Provision for taxation		-		-	-	N/A
Discontinued operations		878,622		-	878,622	N/A
Net income (loss)		873,976		(233,877)	1,107,853	N/A

Revenues

Sales revenue increased to $878,853 in the three months ended March 31 of 2011as compared to nil in the same period in 2010, representing a 100.00% increase. This change is reflective of the fact that the Company has new and entirely different operations in 2011 than it did in 2010.

Cost of sales and gross margin

Cost of sales increased to $621,550 in the three months ended March 31 2011 from $nil in the same period of 2010. The gross profits increased to 29.28% in the three months ended March of 2011 compared to nil in the same period in 2010. This change is reflective of the fact that the Company has new and entirely different operations in 2011 than it did in 2010.

General and administrative

General and administrative expenses increased from $233,645 in the three months ended March 31 of 2010 to $263,485 for the same period in 2011, representing a decrease of $29,840 or 12.77%.This change is reflective of the fact that the Company has new and entirely different operations in 2011 than it did in 2010.

Net income

Net income for the three months ended March 31 of 2011 was $873,976 as compared to net loss was $233,877 in the same period 2010. This change is reflective of the fact that the Company has new and entirely different operations in 2011 than it did in 2010 and the gain on disposal of discontinued operating activities.

Liquidity and Capital Resources

Cash

Our cash balance at March 31, 2011 was $72,264, representing a decrease of $134,979 compared with our cash balance of $207,243 as at March 31, 2010. This change is reflective of the fact that the Company has new and entirely different operations in 2011 than it did in 2010.

Cash flow

Operating Activities

Net cash used in operating activities during the three months ended March 31 of 2011 amounted to $276,999 representing a increase in outflow of $43,122 compared with net cash used in operating activities of $233,877 in the same period of 2010. This change is reflective of the fact that the Company has new and entirely different operations in 2011 than it did in 2010.

Financing Activities

Net cash provided by financing activities during the three months ended March 31 of 2011 amounted to $321,224, representing an increase in inflow of $87,347 compared with net cash provided by financing activities of $233,877 in the same period of 2010 This change is reflective of the fact that the Company has new and entirely different operations in 2011 than it did in 2010.

Working capital

Our net current liabilities decreased by $8,863,750 to $13,065 at March 31, 2011 from $8,876,815 at March 31, 2010. This change is reflective of the fact that the Company has new and entirely different operations in 2011 than it did in 2010.

We currently generate our cash flow through providing artiste and project management services, publication of magazines and retail of video games and accessories. We believe that our cash flow generated from operations will be sufficient to sustain operations for at least the next 12 months. There is no identifiable expansion plan as of March 31, 2011, but from time to time, we may identify new expansion opportunities for which there will be a need for use of cash.

Going concern

Off-Balance Sheet Arrangements

We do not have any off balance sheet arrangements

Inflation

Inflation has not had a material impact on our business and we do not expect inflation to have an impact on our business in the near future

Currency Exchange Fluctuations

All of the Company’s revenues and a majority of its expenses in the three months ended March 31, 2011 were denominated in Hong Kong Dollars (“HKD”), the currency of Hong Kong, and were converted into US dollars at the exchange rate of 7.8 to 1. There can be no assurance that HKD-to-U.S. dollar exchange rates will remain stable. A devaluation of HKD relative to the U.S. dollar would adversely affect our business, consolidated financial condition and results of operations. We do not engage in currency hedging.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This item is not applicable as we are currently considered a smaller reporting company.

ITEM 4T. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed by us in reports that we file under the Exchange Act is recorded, processed, summarized and reported as specified in the SEC’s rules and forms and that such information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer, or CEO, and our Interim Chief Financial Officer, or Interim CFO, to allow timely decisions regarding required disclosure. Management, with the participation of our CEO and Interim CFO, performed an evaluation of the effectiveness of our disclosure controls and procedures as of December 31, 2010. Based on that evaluation and as described below under “Management’s Report on Internal Control Over Financial Reporting”, we have identified a material weakness in our internal control over financial reporting. As a result of this material weakness and as a result of our failure to identify this material weakness in our internal control over financial reporting as a material weakness in our disclosure controls and procedures, our management, including our CEO and Interim CFO, concluded that our disclosure controls and procedures were not effective as of March 31, 2011.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. In connection with management's assessment of our internal control over financial reporting as required under Section 404 of the Sarbanes-Oxley Act of 2002, we identified the following material weakness in our internal control over financial reporting as of December 31, 2010:

1.	Insufficient accounting personnel with the appropriate level of accounting knowledge, experience and training in the application of accounting principles generally accepted in the United States commensurate with financial statement reporting requirements.

As a result, we have concluded that our internal controls over financial reporting are not effective as of December 31, 2010.

Remediation of Material Weakness in Internal Control

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can only provide reasonable assurances with respect to financial statement preparation and presentation. In addition, any evaluation of effectiveness for future periods is subject to the risk that controls may become inadequate because of changes in conditions in the future.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this annual report.

To remediate the material weakness surrounding this, we have performed and are continuing to perform, among others, the following actions:

·	additional training of our accounting personnel by our independent accountants of the proper format and compilation of data for US GAAP financial statements:

·	implementation of new software to facilitate the handling of all financial data as well as the accumulation of data in a format more user friendly to the preparation of US GAAP financial statements; and

·	additional coordination with our local accountants and auditors to strengthen our controls in an attempt to supplement the additional training of our employees

The Company has begun to convene meetings among its top executives to address budgeting issues. As a private company for over fourteen years, the budgeting process was never formalized. We have recently begun to utilize an independent third party to assist in the preparation of formal budget forecasts

Changes in Internal Control over Financial Reporting

Our Certifying Officers have indicated that there were significant changes in our internal controls or other factors that could significantly affect such controls subsequent to the date of their evaluation, and there were such control actions with regard to significant deficiencies and material weaknesses. We have performed, among others, the following actions:

·	additional training of our accounting personnel by our independent accountants of the proper format and compilation of data for US GAAP financial statements;

·	implementation of new software to facilitate the handling of all financial data as well as the accumulation of data in a format more user friendly to the preparation of US GAAP financial statements; and

·	additional coordination with our local accountants and auditors to strengthen our controls in an attempt to supplement the additional training of our employees.

PART II--OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We are not presently a party to any material litigation, nor to the knowledge of management is any litigation threatened against us, which may materially affect us.

ITEM 1A. RISK FACTORS

No material change since the filing of the 10-K on April 15, 2011.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

On March 9, 2011, the Company acknowledged the execution of a certain PURCHASE AND ASSIGNMENT AGREEMENT between Great East Bottles & Drinks (BVI), Inc. (the “Assignor”) and Chan KaWai (the “Assignee”) whereby the Assignor assigned the rights of a certain past due promissory note dated December 31, 2010, due by the Company in the principal amount of HK$10,834,900 (the “Note”) to the Assignee. As consideration for assignment of the Note by Assignor, Assignee agreed to pay Assignor or its designees consideration in the aggregate sum of $600,000 United States Dollars.

Issuer Purchases of Equity Securities

We did not repurchase any of our securities during the quarter ended March 31, 2011.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 [REMOVED AND RESERVED].

ITEM 5.OTHER INFORMATION

None.

ITEM 6. EXHIBITS.

Exhibit Number	Description
31.1	Certification of Chief Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

GREAT EAST BOTTLES & DRINKS (CHINA) HOLDINGS

(Registrant)

By: /S/ Yau Wai Hung

Yau Wai Hung

Chief Executive Officer, President, and Director

Date: January 17, 2012

By: /S/ Yau Wai Hung

Yau Wai Hung

Interim Chief Financial Officer

Date: January 17, 2012

GME INNOTAINMENT, INC. - FORM 10-Q/A - January 18, 2012

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GME INNOTAINMENT, INC. Reports